Despite a drop in revenue, Jovian Capital Corp. reduced its net loss in its fourth fiscal quarter compared to last year, the company announced on Wednesday.

For the quarter ended March 31, Jovian posted a net loss of $4.5 million, or 54¢ a share, compared to a net loss of $11.4 million, or $1.55 a share for the same quarter last year.

Revenue for the fourth quarter was $22.3 million, down from $24.7 million in the same period in 2008.

For the fiscal year, Jovian incurred a net loss of $24.1 million, or $2.91 a share, compared to a net loss of $16.1 million, or $2.51 a share in fiscal 2008.

Revenue for the year was $91.3 million, down from $103.9 million in the prior year, thanks to the weak performance of the financial markets and the resulting impact on revenue generating client assets, Jovian said.

Client assets decreased to $12 billion at the end of the fiscal year, down from $15 billion in 2008.

The company’s increased stake in BetaPro Management Inc. contributed to revenue and assets under management. In its second fiscal quarter, Jovian boosted its stake in BetaPro to 60% from 45% and consolidated BetaPro earnings into its results. This stake contributed revenue of $14.9 million in fiscal 2009, the company said.

“While our investment dealer and investment management companies were significantly affected by the adverse market conditions, our Horizons BetaPro Exchange Traded Funds business has continued to grow through our BetaPro subsidiary, which contributed an additional $700 million in assets under management over the prior year, offsetting the 20% decrease in AUM experienced by our investment managers,” said Philip Armstrong, CEO of Jovian.

The company is focused on continuing to expand its ETF business going forward, according to Armstrong.

“Jovian continues to grow its ETF business through organic initiatives, such as the actively-managed AlphaPro ETF business, which recently launched the Horizons AlphaPro Gartman Fund and the Horizons AlphaPro Managed S&P/TSX 60(R) ETF,” said Armstrong. “In addition to these efforts, we are looking to augment our position in the ETF market through acquisition.”

He noted that Jovian’s subsidiary, Jovian Asset Management Inc., recently entered into a letter of intent to acquire 50% of Hahn Investment Stewards & Company Inc. — a manager and builder of diversified portfolios through the utilization of ETFs.

IE