(November 17 – 11:50 ET) – Dundee Wealth Management has announced its earnings for its third quarter which ended on September 30. Net earnings for the quarter were down to 1¢ per share from 2¢ in the quarter last year. But the year to date earnings are 14¢, up from 9¢ last year.

Revenue was up sharply to $64.7 million from $43 million last year, yet expenses also rose from $28.7 million to $50.2, keeping cash flow virtually unchanged. Management fees are up to $89.3 million from $73.5 million in the quarter last year. Redemption fee revenue grew to $13.1 million from $10.6 million last year. Financial services revenue showed the strongest growth up to $113 million from $31.5 million in the 1999 third quarter.

Increased costs took a bite out of earnings. Selling costs took the biggest jump from $56.6 million to $138.2 million. Increased expenses from commission amortization, goodwill, depreciation and interest expense, pushed net earnings to just $470,000 in the period from $2.9 million last year.

Mutual fund assets under management at September 30, were $6.3 billion. Retained market appreciation since December 31, 1999 is $565 million, offset by net redemptions of $364 million.
-IE Staff