Assante Corp. has released its financial results for the first quarter ended March 31.

Assante reported a narrowing net loss of $1.9 million for the quarter, compared with a net loss of $12.1 million for the first quarter of 2000. Earnings before interest, income tax, depreciation and amortization before restructuring costs were $18.6 million for the quarter, down 5% from the first quarter of 2000.

After-tax cash flow before restructuring decreased 19.7% to $13.1 million. Assets under administration are down 5.3% to $23.6 billion from $25.9 billion at March 31, 2000.

The firm has made a strong move to increase the sales of its house funds. Net sales from Assante portfolio management services in the quarter totalled $177.3 million, up 272% from the same quarter last year. Canadian assets under management are up 1.4%, versus a decline of 3.6% for the industry. Assets under management are now $4.8 billion, up $928 million since March 31, 2000.

Revenues for the quarter were $99.1 million down from $116 million in the same quarter last year. The firm says this decline is “due primarily to weak market conditions in the financial advisory channel compared with a strong first quarter in 2000 and a continuing trend to fee-based managed money accounts”.

Advisor compensation totalled $53.5 million for the quarter, down 19.1% from a year ago. Advisor compensation was at 54% of revenues in 2001, compared with 57% reported in the first quarter of 2000. In the financial advisory segment, advisor compensation was $47 million, a 24% drop from a year ago. This drop directly relates to the reduced revenues from distribution activities, the company says. The company says its overall adviser compensation-to-revenue ratio declined due to the in its house funds, its higher margin, and the increasing contribution from the sports and entertainment channel that also has a higher margin.