Phillips, Hager & North Investment Management Ltd. announced today that it is partnering with Sky Investment Counsel. Sky will sub-advise PH&N’s Europe, Australasia and Far East (EAFE) equity investments and specialty mandates.

PH&N will hold a non-controlling ownership position in Sky, a newly-formed company headed by Jenny Witterick. Since 1993, Witterick has been the sole manager of the Foyston, Gordon & Payne International Equity Fund, which has a proven performance record over the period.

“We believe that we have partnered with one of the world’s best international equity managers to oversee our clients’ investments outside of North America,” said Tom Bradley, president and CEO of PH&N, in a news release. “Our relationship with Sky Investment Counsel will complement our proven abilities in managing North American equities and fixed income investments.”

Sky’s investment style is based on the approach used by Witterick in the past. This style shares PH&N’s emphasis on the quality of portfolio holdings, but also applies a value approach that has proven successful in the management of EAFE equities.

Canadian equity, U.S. equity and fixed income assets under management at PH&N will continue to be managed according to the long-term models that have earned PH&N a reputation as one of Canada’s leading investment managers.

PH&N’s partnership with Sky does not alter PH&N’s lineup of investment funds. There will be no change to the management expense ratios of PH&N’s funds or to the investment management fees charged to existing PH&N clients as a result of this partnership.

PH&N expects Sky to assume responsibility for the management of PH&N’s EAFE assets, including the PH&N Overseas Equity Fund, the PH&N Overseas Equity Pension Trust, and the EAFE portion of global and balanced funds and institutional accounts, by August 1, 2004.

In the interim, Witterick, through Foyston, Gordon & Payne Inc., will act as sub-advisor for PH&N’s EAFE mandates.

The changes announced are subject to regulatory approval.