YMG Capital Management Inc. is reporting improved earnings for the first quarter ended March 31.

The company provides investment counselling to pension funds, financial institutions, foundations and high net worth individuals.

Net income from continuing operations was $298,000, compared to net income of $33,000 for the same quarter of 2001.

Earnings from continuing operations before interest, amortization, income taxes and investment income came in at $640,000, a decrease of $49,000 compared with $689,000 for the same period in 2001.

Assets under management decreased $200 million to $13.9 billion from $14.1 billion at December 31, 2001. This was the first decline experienced since the third quarter of 1998. This resulted in a decrease in fee revenues for the first quarter of 2002 of $200,000 or 5% over the first quarter of 2001.

The corporation’s fee revenue from active fixed income, active equity and balanced mandates increased over the comparable quarter of 2001, but this was offset by lower revenue from quantitative investment mandates.

Cost control measures implemented in the second half of 2001 resulted in a 4.6% reduction in selling, general and administrative expenses for this quarter over the same period in 2001. The operating margin from continuing operations was 17% for the quarter compared to an operating margin from continuing operations of 17.3% for the same period of 2001.