Saxon Financial Inc. today reported lower profit for the first quarter ended March 31, as management fees declined.
Saxon’s net income for the quarter was $3.3 million, down from $4.1 million in the first quarter of 2007. While operating expenses remained at prior year levels, net income was negatively impacted primarily by a decline in mutual fund management fees.
Saxon’s management fee revenue was $12.3 million during the quarter, down from $13.2 million in the year ago period. The decline in revenue resulted from a decline in mutual fund assets, the largest revenue-generating segment for Saxon.
However, Saxon’s assets under management increased by 2.8% or $363 million in the first quarter to $13.3 billion, as significant flows in the company’s institutional fixed income mandates offset the decline in mutual fund assets.
Net flows of $414 million and market appreciation of $80 million in institutional mandates contributed positively to the first quarter growth in assets under management.
“Saxon’s diversified asset mix and prudent investment management contributed positively to AUM growth while global market instability kept equity investors on the sidelines,” says Allan Smith, president and CEO.
Saxon Financial profit drops in first quarter
Strength in fixed income mandates contributes to growth in assets
- By: IE Staff
- May 5, 2008 December 14, 2017
- 10:40