Toronto-based Guardian Capital Group Ltd. reported lower net earnings alongside significant asset growth year over year in the third quarter.
Net earnings attributable to shareholders were $7.1 million for the quarter ended Sept. 30, which compared to $42.2 million in the same quarter last year.
The firm had a net loss in Q3 of $8.1 million compared to a net gain of $35.7 million in Q3 2020, with the largest portion of loss attributed to “decreases in fair values” of holdings exposed to emerging market equities, a release said. The loss was partially offset by growth in operating earnings.
Guardian Capital’s assets under management (AUM) were $53.1 billion at Sept. 30, growing from 32.7 billion in Q3 of 2020 — a 62% increase.
AUM growth was attributed to market performance, a “strong inflow of assets” and the acquisition in October 2020 of a 70% majority interest in Agincourt Capital Management LLC, an investment management firm based in Richmond, Va., the release said.
Assets under administration (AUA) were $30 billion at Sept. 30, a 45% increase from $20.8 billion in Q3 2020.
Total assets (AUM and AUA) were $83.1 billion at Sept. 30, an increase of 22% so far this year and an increase of 55% compared to the same period last year.
The acquisition of BNY Mellon Wealth Management Advisory Services Inc. on Mar. 1, 2021, added $5.4 billion in total client assets, the release said.