GMP Capital Trust announced Tuesday it is cutting the fund’s monthly cash distributions.

The independent securities firm will now pay investors 5¢ a month, down from 10.4¢ a month in September.

It was the second cut in four months.

“The severity of prevailing volatile market conditions is the worst seen in several decades in the Canadian capital markets and has been more prolonged than we and most industry participants have expected. As such, the distribution rate is being lowered to what we believe is a sustainable level over the medium-term in light of these challenging times,” said Kevin Sullivan, CEO, in a release.

Toronto-based GMP also announced that it recently let go 37 support staff to reduce costs, and cut some senior employees’ pay by 10%. Discretionary spending has also been reduced.

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“These coordinated efforts preserve capital, which along with our variable compensation model allow us to better withstand the current business environment,” Sullivan said.