Mavrix Fund Management Inc. posted a wider loss for the second quarter as it took a charge for and investors continued to pull money out the company’s funds.

The loss for the quarter ended June 30, was $2 million, or 23¢ a share, compared with a loss of $200,000, or 3¢ a share, in the year earlier period.

Mavrix recorded a charge of $1.1 million related to the acquisition of the company by Growthworks Ltd. during the quarter.

“We believe our new partnership with Growthworks will allow us to pursue our long-term growth strategy with a focus on strong investment performance,
gaining new mandates for funds, and continuing to provide independent support and advice to nearly 3,000 investment advisors and their clients across
Canada,” said Mal Spooner, president and CEO of Mavrix, in a release.

Total AUM at June 30 was $313.8 million, compared with $255.6 million at March 31, 2009 and $539.1 million at June 30, 2008. The increase was due primarily to improving capital markets.

“Our AUM improved in the quarter as we generated strong performance in many of our funds, particularly the Mavrix Explorer Fund,” Spooner said.

Mavrix recorded net redemptions of $1.4 million on gross sales of $18.6 million for the second quarter of 2009. This compares with $55.4 million in net redemptions on $10.9 million of gross sales for the same period in 2008.

“While the fund industry as a whole experienced growth during the second quarter, the climate remained challenging for managers of equity funds, as this segment continued to experience net redemptions. Mavrix was not immune to these challenges,” said Spooner.

Revenue for the quarter totalled $1.1 million, compared with $3 million for the same period in 2008, due to the decline in AUM. Total expenses for the second quarter were $2 million, a 37% decrease from the prior year.

IE