Seamark Asset Management Ltd. reported Monday that earnings for the first-quarter of 2005 slipped 3.6% as revenue declined 3.8%, but said there are signs of improvement so far this year.

The Halifax-based investment manager said net earnings for the three months to March 31 fell to slightly more than $3.04 million (28¢ a share) from $3.16 million (29¢) a year earlier, while revenues came in at $6.91 million vs $7.19 million.

Assets under management at March 31 were $10.5 billion, down from $10.9 billion at the beginning of the quarter due to net asset withdrawals.

“After a difficult 2004, in which market conditions were not the most favourable for Seamark’s long-term investment footprint, I am pleased to report that there are early signs of improvement so far in 2005,” Bob McKim, president and CEO, said in a statement. “We remain focused on applying our proven investment process to the management of client portfolios and on reviewing the merits of that process with both current and prospective clients.”

In a statement, the company said that relative investment performance during the first quarter of 2005 “is believed to generally have been better than during the same period in 2004. It may likely require a number of quarters of improved relative results, however, to restore overall short-term numbers to the same level as Seamark’s superior long-term relative performance.”