Jovian Capital Corp. endured a wider loss for the third quarter as “unprecedented volatility in the markets” reduced the value of assets under management at its subsidiaries, the company said Wednesday.
Client assets fell to $14.2 billion at Sept. 30, versus $14.7 billion at the end of September 2007, and $16 billion at June 30, 2008.
Jovian said the net loss for the third quarter was $3.8 million, or 2¢ a share, compared with a loss of $2.7 million, or 2¢ a share, in the year-earlier period.
Revenue increased 2% to $23.3 million, compared with $22.9 million a year ago
Revenue for the quarter included $16.3 million from the asset management division and $6.9 million from its wealth management division, MGI Wealth.
Jovian increased its ownership in BetaPro Management Inc. during the quarter to 60% with the acquisition of an additional 15% interest. BetaPro’s earnings are consolidated into Jovian’s financial results effective July 2.
Excluding the $4.1 million revenue from BetaPro (consolidated into the financial results since July 2), revenue from the asset management division decreased by 9% due to the decline in client assets and market activity. Revenue from MGI Wealth decreased by 26%, or $2.4 million, as a result of lower transactional revenue at MGI Securities.
“We were not immune to the unprecedented volatility in the markets, which negatively impacted the value of assets under management and administration in our portfolio companies,” said Philip Armstrong, CEO of Jovian, in a release.
“Jovian and its subsidiaries are reviewing their operations, with the aim of reducing overall costs while positioning for growth once the current market uncertainty passes.”
In October, Jovian announced the co-branding of MGI Financial Inc. (currently Rice Financial Group Inc.) and MGI Securities Inc. under the MGI Wealth banner banner,
Jovian is a financial services holding company specializing in wealth and asset management. The Jovian group of companies includes MGI Securities Inc., Rice Financial Group Inc., BetaPro Management Inc., Horizons Funds Inc., JovFunds Management Inc., JovFunds Inc., Leon Frazer & Associates Inc., T.E. Wealth and Felcom Data Services Inc.
Jovian loss widens during market turmoil
Revenue edges up 2% in Q3 despite drop in assets
- By: IE Staff
- November 12, 2008 November 12, 2008
- 14:45