Sceptre Investment Counsel Limited has reported its financial results for the third quarter and nine months ended August 31, 2001.

Third quarter earnings were $1,638,000 or 12 cents per share fully diluted compared with $3,077,000 or 23 cents per share fully diluted for the same period last year. Earnings for the nine months ended August 31, 2001 were $5,487,000 or 41 cents per share fully diluted compared with $10,149,000 or 75 cents per share fully diluted for the 2000 comparable period.

Revenue for the third quarter was $9,200,000 compared with $12,329,000 for the third quarter last year. Revenue for the nine months ended August 31, 2001 was $29,023,000 compared with $38,430,000 for the nine months of 2000.

Sceptre has declared a quarterly dividend of 20 cents per share on outstanding Class A Non-Voting Shares and Common Shares, payable on October 15, 2001 to Shareholders of record September 25, 2001. The previous quarterly dividend on both classes was 20 cents.

The company says its third quarter results reflect the lagged effect of client losses experienced in prior quarters, continued reduction in cash flow from retail operations and some decline in market value of client accounts related to the overall downturn in financial markets

“The momentum of the previous quarters continued during the current quarter,” says Sceptre, “with numerous new specialty foreign mandates won in combination with our global partner, Putnam Investments LLP. While we were able to report higher revenue from serviced accountsthis quarter, we must continue to point out that many of the mandates have not yet been fully funded and the portion of actual revenue earned to expected revenues is only 20% at this time. Themajority of new business revenue will not be captured until fiscal 2002. “

Expenses are being closely monitored, says Sceptre. “Remuneration, the largest expense, has declined at the same 25% as revenue, reflecting lower staff levels and incentive compensation that is tied to earnings. Fund expenses, which are closely tied to revenue, have also declined by approximately 25%. Other ongoing operating costs, which include an element of fixed costs, are flat.”

“During the quarter we added to the foreign content of client portfolios and won a number of new mandates in this area. Both of these factors have contributed to an increase in the sub-advisory fees paid to Putnam Investments LLP. Without this cost in the quarter, expenses would have been down by approximately 20% year over year.”