September 29, 2005 09:13 ET

Sceptre Investment Counsel Reports Q3 Results

TORONTO, ONTARIO--(CCNMatthews - Sept. 29, 2005) - Sceptre Investment Counsel Limited (TSX:SZ), one of Canada's leading independent money management firms, today reported its financial results for the third quarter ended August 31, 2005.

Revenue for the third quarter was $5,802,000 compared with $5,819,000 for the third quarter last year. Third quarter earnings were $962,000 or 7 cents per share diluted (7 cents per share basic) compared with $1,051,000 or 7 cents per share diluted (7 cents per share basic) for the same period last year. Year to date revenue and earnings were $16,872,000 and $2,706,000 respectively compared to $18,781,000 and $3,164,000 respectively for the same period in the prior year.

Assets under management increased in the quarter as both Institutional and Mutual Fund assets continued to show positive gains. The asset increase in combination with the rate increase put in place April 1, 2005 for balanced mandates, account for the majority of the gain in investment management fees over the second quarter of this year. Revenue for the quarter was enhanced as a result of the realization of an accrued gain on a corporate investment in the Sceptre Canadian Equity Mutual Fund. Proceeds from this sale were used to seed the newly created O Class units for the Sceptre Income Trusts Mutual Fund.

Overall expenses for the nine months declined by 7.1% as compared to the similar period last year. Expenses in the quarter, however, increased 7.5% primarily due to higher sub-advisor fees and increased trailer fees on higher mutual fund assets. Remuneration costs declined by 6.5% for the quarter and 9.2% for the nine month period, reflecting the lower level of staff in the current year.

The combined effect of revenue and expense changes in the quarter resulted in a decline in net earnings of 8.6% from the same period last year. Earnings per share remained unchanged as there are fewer shares outstanding as compared to last year.

"Sceptre's investment performance continued strong across numerous asset classes and specialty products during the quarter. Our long term investment track record is now very competitive in most major asset management categories. New business opportunities are increasing and we remain optimistic about Sceptre's prospects over the next twelve months" stated President and Chief Executive Officer Richard Knowles.

The financial position of the company remains strong with $19 million in cash and liquid investments.

The Company, having considered its financial requirements, has declared a quarterly dividend of 6 cents per share on outstanding Common Shares, payable on October 31, 2005 to shareholders of record October 11, 2005. The previous quarterly dividend was 6 cents.

About Sceptre Investment Counsel

Sceptre Investment Counsel Limited is a leading Canadian independent investment management firm with assets under management of $6.6 billion. The Company's Pension and Institutional Fund group manages investment portfolios for a wide range of clients, including corporations, governments, hospitals, charitable foundations, endowments, universities and unions. Through its Wealth Management group, Sceptre provides discretionary funds and segregated account management for individuals, and offers a family of seven mutual funds and two closed end funds. Sceptre employs approximately 50 people in its office in Toronto. Sceptre's Common shares trade on the Toronto Stock Exchange, under the symbol SZ.

Contact Information

  • Sceptre Investment Counsel Limited
    Richard L. Knowles
    President and Chief Executive Officer
    (416) 866-2380