Stronger sales helped NexGen Financial Corp. (TSXV:NFX) reduce its net loss for the third quarter ended Sept. 30, the Toronto-based mutual fund company says.
NexGen reported a net loss of $0.16 million ($0.03 loss per share) for the quarter, an improvement from a net loss of $0.18 million ($0.05 loss per share) for the same period in the prior year.
Net sales were $18.5 million during the quarter a significant improvement from net redemptions of $79.5 million in the year earlier period.
Assets under management (AUM) increased 2.3% during the quarter, driven primarily by net sales.
Equity and balanced fund AUM increased by 42% to $571 million at quarter end, from $402 million as of Sept. 30, 2013.
“We are pleased by the continued positive trend in net sales experienced throughout the third quarter as our equity fund offerings continue to prove popular with financial advisors and their clients,” said Jeff Young, co-CEO of NexGen.
“We are also very excited at the prospect of joining the Natixis Global Asset Management family and gaining access to their global investment capabilities.”
On October 24, NexGen announced that it has entered into an agreement with a wholly owned subsidiary of Paris-based Natixis Global Asset Management in which Natixis will acquire all of the outstanding common shares of NexGen for consideration consisting of $7.25 cash per common share.
The deal is expected to closing in late December or January 2015.