Assante Corp. is reporting a wider loss in the second quarter ended June 30, coming in at $3.1 million, compared with a net loss of $1.4 million in the quarter a year ago.

Revenues for the quarter were $88.1 million, off 4.9% from the same quarter last year. Assante attributes the decline to a $1.2 million decrease in redemption fees, lower revenues resulting from the drop in assets under administration, lower commission revenues resulting from a shift toward money market funds and no load funds, and a decrease in overall sales of third party mutual funds.

The drop was partially offset by an increase in revenues from the sports and entertainment business and net sales of portfolio management services.

Earnings before interest, income tax, depreciation and amortization before restructuring costs were $17.4 million for the quarter, a decrease of $1 million over the second quarter of 2000.

The wider net loss is attributed to restructuring charges, higher interest costs, increased amortization of capital assets, lower redemption fee revenues and an increase in good will amortization.

Assets under management at June 30, totalled $5.1 billion, up 19% from a year ago. Expressed as a percentage of assets under administration, assets under management were 21.4%, compared with 16.3% at the same time last year.

Assets under administration were $23.8 billion, down from $25.4 billion a year ago. The decline is represented by a decrease in Canadian assets under administration of $2.2 billion and an increase in U.S. assets of $0.6 billion.

Assante attributes the reduction in Canadian assets to falling equity markets, the departure of some advisers during the integration phase, offset in part by net sales of third party funds. It says the increase in U.S. assets reflects strong growth in directed assets of the business management firms, offset by market performance over the previous year.

Martin Weinberg, chairman, president and CEO, noted, “Our performance reflected the company’s positive momentum, healthy fund performance, wide distribution and appropriate mix of investments toward the value end of the spectrum. The communication of our life management services philosophy combined with solid financial advice provided by our advisers have generated a loyal and stable client base that continues to expand.”

Asante’s remaining Canadian financial distribution firms are to be integrated and branded during the third quarter of 2001. The branding program is also being extended to the company’s U.S. operations.

Plans are under way to brand the company’s four sports representation agencies and three business management firms. Branding and integration are expected to be completed by the end of the fourth quarter.

Assante says it continues to look for strategic partners to accelerate development of a leading-edge back office platform and to broaden its service offering.