Sceptre Investment Counsel
MONTREAL, Oct. 6 /CNW Telbec/ - Fiera Sceptre Inc. (TSX:FSZ) ("Fiera Sceptre" or "the Firm") today reported financial results for Sceptre Investment Counsel Limited ("Sceptre") for the third quarter ended August 31, 2010. Sceptre combined with Fiera Capital Inc. ("Fiera Capital") on September 1, 2010 to create Fiera Sceptre, a leading independent Canadian money management firm.
Dividend Declared -----------------
The Board of Directors of Fiera Sceptre also declared today a dividend of $0.06 per Class A and Class B Fiera Sceptre share, payable November 16, 2010 to Class A and Class B Fiera Sceptre shareholders of record at the close of business on October 19, 2010. The dividend is an eligible dividend for income tax purposes.
The dividend covers the three-month period ending August 31, 2010, being the final quarter during which Sceptre Investment Counsel Limited operated as a public company before combining with Fiera Capital to form Fiera Sceptre. The previous quarterly dividend was $0.06 per Sceptre common share.
Financial Results -----------------
The following financial results are for Sceptre for the third quarter ending August 31, 2010, and do not include financial results for Fiera Capital or Proforma results for Fiera Sceptre, the successor company.
Total revenue for Sceptre for the third quarter of 2010 was $6.47 million compared to $7.41 million in the second quarter of 2010, representing a decrease of $0.94 million or 13%. This was the combined result of a $0.38 million decrease in investment management revenue and a decrease in investment income of $0.56 million.
Revenue related expenses (sub-advisory fees, trailer fees and referral fees) were $1.05 million in the third quarter ended August 31, 2010, a decrease of $98,000 from $1.14 million in the third quarter of 2009. The decrease was in line with a decrease in assets under administration from $7.3 billion to $6.9 billion during the third quarter, due almost entirely to a decline in equity markets. Other operating expenses increased by $2.8 million compared to $7.1 million in the same quarter last year. The increase is primarily due to one-time transaction costs associated with the merger.
During the third quarter of 2010, Sceptre reported a net loss of $1.427 million or ($0.10) cents per basic and fully diluted Sceptre common share. The loss includes $2.3 million of transaction costs, $0.37 million of one-time operating costs and $0.52 million of investment losses following the sale of short-term securities in order to satisfy Sceptre's future merger-related obligation. Without the above one-time expenses, net of income taxes, Sceptre would have earned $1.0 million of net income or $0.07 per basic and fully diluted Sceptre common share, compared to $0.07 per share in the third quarter of 2009.
The main drivers affecting the third quarter net loss were transaction costs related to the announced merger transaction along with the negative performance of the equity markets at the institutional billing point of June 30, 2010. Equity markets turned around in the second part of the quarter to generate an appreciation as at August 31st, 2010.
(Sceptre recognizes revenue from most institutional clients based on asset levels at the end of each calendar quarter ("the billing points"). Therefore, Q3 institutional revenue is based on institutional assets at June 30th. This applies only to institutional revenues as mutual fund and private client revenues are charged based on average daily market values during each fiscal quarter.)
This document may contain certain forward-looking statements. These statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events including business and economic conditions and Fiera Sceptre's growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend" or the negative of these terms or other comparable terminology.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement.
These factors include, but are not limited to, market and general economic conditions, the nature of the financial services industry and the risks and uncertainties detailed from time to time in Fiera Sceptre's interim and annual consolidated financial statements and its Annual Report and Annual Information Form filed on www.sedar.com. These forward-looking statements are made as of the date of this document, and Fiera Sceptre assumes no obligation to update or revise them to reflect new events or circumstances.
About Fiera Sceptre
Fiera Sceptre is a leading publicly traded, independent money manager with approximately $30 billion in assets under management. The Firm is one of only a handful of full service, multi-product investment firms in Canada, offering clients a proven top tier track record in equity and fixed income management as well as depth and expertise in asset allocation and alternative investments. www.fierasceptre.ca