Toronto-based Integrated Asset Management Corp. (TSX:IAM) Tuesday reported a net loss for the fiscal third quarter as revenues declined after a segregated fund agreement ended.
IAM said the net loss for the quarter ended June 30 was $0.7 million or $0.02 per share in versus net income of $3.8 million or $0.13 per share in the prior year’s quarter.
Assets under management fell by approximately $410 million during the nine months ended June 30, 2012 from $2,306 million as at September 30, 2011. The reasons for the decline are the end of a seg fund agreement managed by Real Estate Asset Management effective February 2012 and the distribution to investors of the principal repayments received on loans in Private Corporate Debt’s funds.
Management fees and other income were $3.4 million in the latest quarter, down $0.6 million from $4.0 million in the comparable quarter of fiscal 2011. About half of this decline is due to the end of the segregated account, and a decline in management fees in retail alternative Investments.
Performance fees of approximately $0.9 million were recognized in the latest quarter, compared with performance fees of $5.4 million in the prior year’s quarter. Most of the performance fees in both quarters were from Real Estate Asset Management.
IAM posted an investment loss of $0.2 million in the current quarter compared with investment gains of $3.3 million in the prior year’s quarter, because the IAM sold its real estate investment.
IAM has approximately $1.9 billion in assets and committed capital under management in real estate, private corporate debt, private equity, managed futures and retail alternative investments.
“Management has taken steps to address continued operating losses in certain subsidiaries. We are also well advanced in the marketing of three institutional funds which should increase AUM significantly, said Victor Koloshuk, chairman and CEO.
IAM also announce that John Crocker has agreed to join the board of directors. Crocker has a 40 year career in the pension and investment industries. He retired recently as president and CEO of the Hospital of Ontario Pension Plan (HOOPP), Canada’s largest private trust with 265,000 members and $40 billion in assets.
IAM is one of Canada’s leading alternative asset management company with approximately $1.9 billion in assets and committed capital under management in real estate, private corporate debt, private equity, managed futures and retail alternative investments.