Sceptre Investment Counsel Ltd. today reported its lower profit for the third quarter ended August 31.

Third quarter earnings were $962,000, or 7¢ per share, compared with $1,051,000 or 7¢ per share diluted for the same period last year.

Revenue for the third quarter was $5,802,000 compared with $5,819,000 for the third quarter last year.

Assets under management increased in the quarter as both institutional and mutual fund assets continued to show positive gains. The asset increase in combination with the rate increase put in place April 1, 2005 for balanced mandates, account for the majority of the gain in investment management fees over the second quarter of this year.

Revenue for the quarter was enhanced as a result of the realization of an accrued gain on a corporate investment in the Sceptre Canadian Equity Mutual Fund. Proceeds from this sale were used to seed the newly created O Class units for the Sceptre Income Trusts Mutual Fund.

Expenses in the quarter, however, increased 7.5% primarily due to higher sub-advisor fees and increased trailer fees on higher mutual fund assets. Remuneration costs declined by 6.5% for the quarter, reflecting the lower level of staff in the current year.

The combined effect of revenue and expense changes in the quarter resulted in a decline in net earnings of 8.6% from the same period last year. Earnings per share remained unchanged as there are fewer shares outstanding as compared to last year.

“Sceptre’s investment performance continued strong across numerous asset classes and specialty products during the quarter,” said president and CEO Richard Knowles.

The financial position of the company remains strong with $19 million in cash and liquid investments.

Sceptre is an independent investment management firm with assets under management of $6.6 billion.