KBSH Capital Management Inc. announced today that it has signed an investment manager engagement agreement with Lockwood Advisors, Inc., a managed account program provider to RBC Dominion Securities.

Lockwood has rated KBSH’s Diversified Income portfolio as a “recommended mandate” for RBC DS’s Access Manager Selection Program, a separately managed account platform.

“We are extremely pleased to be included as part of the RBC DS Access program,” said Peter Pennal, president and CEO of KBSH, in a news release. “Our Diversified Income portfolio has been a strong performer since inception and we look forward to making it available to a wider range of Canadian investors through one of the premier managed account platforms in Canada.”

The KBSH Diversified Income portfolio mandate is to deliver consistent, attractive income in a risk controlled fashion by investing principally in a balanced mix of income-producing asset classes, including corporate and high yield bonds, income trusts and dividend-paying equities.

The portfolio is managed towards an “absolute” return benchmark and seeks conservatively enhanced returns and lower volatility by investing across the risk spectrum, combining securities that have typically experienced low correlations of returns.

With a very flexible asset mix, the portfolio is expected to deliver sustainable performance through all stages of an economic cycle, and is considered an alternative to both lower yielding (bonds, GICs) and higher risk (pure equity or income trust) investment options for traditional, income oriented investors.

KBSH is a Canadian based asset manager established in 1980. At August 31, 2005, KBSH had approximately $5.6 billion of assets under management on behalf of pension funds, foundations, managed accounts, mutual funds and private clients.