Independent money management firm Sceptre Investment Counsel Ltd. reported first-quarter earnings, ended Feb. 28, of $1.04 million, or 7¢ per share fully diluted compared with $1.074, or 8¢ per share diluted, for the same period last year.

Revenue for the first quarter was almost $6.2 million compared with slightly more than $5.8 million for the first quarter in 2005. (Sceptre’s first quarter results are based on revenues calculated on market values as of Dec. 31, 2005.)

Assets under management increased in the quarter as mutual fund assets showed positive inflows and institutional assets benefited from market value increases. Revenue in the quarter was also enhanced by a special distribution of $100,000 paid on investments held by the Company.

But overall expenses for the quarter increased by 11.5% as compared to the first quarter of 2005. A substantial portion of this increase was due to higher investment management fees paid to its new sub-advisor, AllianceBernstein.

This expense was offset by a fee increase put into place last year for our institutional clients. Mutual fund trailer fees increased due to higher fund assets. Also, there were a number of one-time expenses relating to Web site development, advertising and consulting services. The total cost of these charges was approximately $100,000 in the first quarter.

The combined effect of revenue and expense changes in the quarter resulted in a slight decline in net earnings of 2.9% from the same period last year. The previous year’s first quarter earnings were augmented by a one-time payment received as a result of the termination of Sceptre’s strategic alliance with Putnam Investments Inc.

“Sceptre’s strong investment performance has continued to gain attention from consultants, institutions and retail investors. Our new business pipeline is building on the institutional side while additional distribution opportunities are developing for our retail products” said Richard Knowles, president and CEO, in a release.

Sceptre also declared a quarterly dividend of 6¢ per share on outstanding common shares, payable on April 28, to shareholders of record as of April 7. The previous quarterly dividend was 6¢.