Dominion Bond Rating Service has confirmed its long-term rating of Dundee Corp., but has changed the rating trend to Positive from Stable.

The rating agency says that the change in trend reflects that the fundamental operations of Dundee continued to improve in 2004.

“Dundee has grown the scale of its wealth management business through both organic growth and acquisitions. The reorganization of both the real estate and resource lines of business, involving the sale of certain assets, has well-positioned all segments for future growth while helping to limit the volatility of earnings. The company has reported improved financial results and this should continue,” DBRS explains.

DBRS says that the firm’s wealth management business, which is the most significant of Dundee’s three operating segments, reported good results in the first nine months of 2004, and total mutual fund assets increased to $11.2 billion as at December 2004, from $9 billion a year ago. “The mutual fund industry should continue to grow, given demographic trends and two years of positive equity market returns in Canada, which have helped improve investor confidence,” it adds.

Dundee’s other two business segments, Real Estate and Resources, also reported good results for the first nine months of 2004, DBRS notes.

“The integration of Cartier Partners Financial Group Inc., purchased in December 2003, has continued with the complex process of combining the operations of the two companies now being over 50% complete. Challenges have included information technology conversions, changes to back office processes, and the implementation of a consistent regulatory compliance structure across the entire distribution network,” DBRS says.