Unsettled markets hit revenues and profit at Sceptre Investment Counsel Ltd. during the first quarter, the company said Thursday.
For the first quarter ended Feb. 28, the company earned $914,000, or 7¢ a share. That compared with $1,532,000, or 11¢ share, in the year pearlier period.
The most important driver affecting revenue during the quarter was the significant decline in the level of equity markets compared to a year ago, which impacted the level of assets under management and fees charged by the company, Toronto-based Sceptre said.
Total revenue for the first quarter was $6.50 million, compared with $9.32 million for the first quarter of 2008.
Total management fee revenue for the quarter was $6.36 million, versus $9.09 million for the first quarter last year.
Institutional management fee revenue was $4.22 million compared with $5.05 million for the first quarter last year as assets at Dec. 31 decreased from $7.36 billion last year to $5.93 billion this year as a result of declines in equity markets, which more than offset positive cash flows.
Mutual fund revenue was $1.14 million in this quarter versus $2.63 million in the same quarter last year as average assets decreased from $840 million last year to $375 million this year, with the majority of the fall resulting from significant declines in equity markets.
Private Client revenue was $1 million for the quarter versus $1.40 million in the same quarter last year as average assets declined from $773 million last year to $529 million this year, with the bulk of the decrease coming from negative returns in equity markets.
Total assets under management at the end of the quarter were $6.4 billion, down from $ 6.8 billion at the start of the first quarter.
“Our financial results were adversely impacted by the extraordinary declines in equity markets during the year. Despite the unsettled markets, we continue to see opportunities to add new investment management mandates,” said Glenn Inamoto, CEO, in a release..
Sceptre maintained its quarterly dividend of 6¢ a share.
IE