GMP Capital Trust today reported lower profit for the fourth quarter as investors adopted a conservative stance in the face of an uncertain economic outlook.

Net income for the quarter ended Dec. 31, 2007, was $23.8 million, or 38¢ per unit, down $6.7 million from fourth quarter 2006, generating an annualized ROE of 31.1% in fourth quarter 2007.

Distributable cash was $29.3 million, or 46 ¢ per basic unit, compared with $36 million in the same period last year.

Revenue in the fourth quarter was $101.5 million, representing a 2.1% decline from the same period a year ago.

“Business activity in the fourth quarter reflected the conservative stance adopted by investors generally in the face of an uncertain economic outlook which resulted in highly volatile market conditions,” said Kevin Sullivan, CEO, in a release.

Fourth quarter revenue in the GMP’s capital markets segment was $81.3 million, representing a decrease of $5.9 million (or 6.8%) largely reflecting lower advisory revenue compared with record advisory revenue achieved in fourth quarter 2006. The decline in advisory revenue was partially offset by higher equity underwriting and sales and trading commission revenue.

Fourth quarter revenue in the wealth management segment was $14.9 million represented an increase of $3.9 million (or 35.8%) compared with fourth quarter 2006, reflecting continued growth in commission and fee-based revenue.

For the year, GMP reported record revenue of $473.9 million in fiscal 2007, representing a year-over-year increase of 32.6%.

Net income was $146.1 million, an increase of 21.8% from fiscal 2006, while the fund generated a return on unitholders’ equity (ROE) of 48.9% for the year.

Distributable cash was $171.7 million ($2.73 per unit) in fiscal 2007, up from $131.5 million ($2.20 per unit) in fiscal 2006.

Toronto-based GMP Capital Trust carries on business through its subsidiaries: GMP Securities L.P.; Griffiths McBurney Corp.; GMP Securities Europe LLP; GMP Private Client L.P.; EdgeStone Capital Partners, L.P.; and GMP
Investment Management L.P.