UPDATE 1-Bank of Nova Scotia buys WaterStreet Group

* Scotiabank targets ultra high net worth segment

* Financial terms of transaction not disclosed

* Rivals RBC, BMO also targeting sector

TORONTO, Oct 25 (BestGrowthStock) – Bank of Nova Scotia (BNS.TO: )
has agreed to buy Canadian money manager WaterStreet Group, the
bank said on Monday, as it enters an increasingly crowded
market for ultra high net worth investors.

Scotiabank, Canada’s No. 3 lender, did not disclose the
purchase price, but said it was not financially material to the
bank.

“WaterStreet will be the anchor of the expansion of an
ultra high net worth service offering within Scotiabank,
providing us with the ability to immediately service this
growing segment of the Canadian market,” Barbara Mason, the
bank’s executive vice-president of wealth management for
Canada, said in a statement.

Canada’s big financial players have been building out their
wealth management arms as they hope to cash in on favorable
demographics and fee-based revenue that is less volatile than
traditional capital market revenue.

The ultra high net worth segment, which generally consists
of clients with a net worth above C$10 million ($9.8 million),
is particularly appealing as aging entrepreneurs decide to sell
their businesses and invest the proceeds, or pass them on to
family members who may decide to do the same.

Bank of Montreal (BMO.TO: ) said last month it was adding
advisers and lawyers to try to build a dominant position in the
Canadian ultra high net worth segment, while Royal Bank of
Canada (RY.TO: ) said recently it hoped to expand its ultra high
net worth footprint internationally.

BMO estimates the Canadian segment alone boasts and asset
pool of about C$600 billion.

Scotiabank’s shares were down 2 Canadian cents at C$54.53
on the Toronto Stock Exchange on Monday afternoon.

($1=$1.02 Canadian)
(Reporting by Cameron French; editing by Peter Galloway)

UPDATE 1-Bank of Nova Scotia buys WaterStreet Group