Seamark Asset Management Ltd. reported yesterday that it earned 55¢ a share for the full year 2006, of which 11¢ is attributable to the fourth quarter ended Dec. 31, 2006. This compares to $1.02 per share in 2005, 25¢ a share in the fourth quarter a year ago.
Revenue for the fourth quarter fell to $4.2 million from $6.7 million a year ago. For the full year revenue dropped to $20.5 million from $27.1 million in 2005.
Revenue declined in 2006 compared to 2005 primarily as a result of a decline in assets under management (AUM). As of Dec. 31, 2006, AUM was $5.2 billion, down from $9.3 billion on Dec. 31, 2005.
Seamark said the decline in AUM during 2006 reflects net asset withdrawals of $4.98 billion, primarily as a result of the termination of the investment management agreement with ClaringtonFunds Inc, partially offset by market value appreciation of $850 million. In 2005, net asset withdrawals were $2.19 billion with market value appreciation contributing $670 million.
“In 2006 we took steps to strengthen Seamark and improve our ability to deliver results for clients and shareholders,” said Stuart Raftus, President & CEO, in a news release. “We thoroughly evaluated our organization, strengthened our investment management team through a series of key appointments, and enhanced our client service efforts.”
“Early indications are that these measures are beginning to deliver positive results. Investment performance was strong in both the fourth quarter and the full year 2006, with above index performance for the year in all asset classes managed by Seamark. Annual operating costs were reduced, while investing for our future through a compensation plan designed to increase employee ownership.”
“For 2007 we remain committed to taking the steps necessary to continue to deliver improving results for both clients and shareholders.”
Seamark provides investment management services across Canada to institutional clients, mutual funds, private clients, and the managed portfolio advisory programs (wrap programs) of many of Canada’s leading investment dealers.
Seamark earnings fall sharply
Revenue plunges following termination of Clarington agreement
- By: IE Staff
- February 9, 2007 February 9, 2007
- 08:15