Asset manager Gluskin Sheff's profit slips as costs rise, fees drop
TORONTO Nov 6 (Reuters) - Canadian asset manager Gluskin Sheff + Associates Inc reported a lower quarterly profit on Thursday, as expenses rose and performance fees fell during a volatile quarter.
Gluskin Sheff, which focuses on high net worth and institutional clients, said net income was C$7.4 million, or 24 Canadian cents per share, diluted, for the first quarter of fiscal 2015. This compares with the C$8.3 million, or 28 Canadian cents per share, diluted, earned a year earlier.
Assets under management climbed to C$8.01 billion during the three months ended Sept 30, from C$7.49 billion in the previous quarter and from C$6.34 billion a year ago.
The growth was attributed to the acquisition of Blair Franklin Asset Management Holdings Inc in August and C$25 million in positive investment performance, but was partly offset by $78 million in withdrawals.
Revenue, derived from base management fees and performance fees, grew to 28.3 million from C$23.1 million.
Base management fees rose to C$25.9 million, from C$20.3 million, while performance fees fell to C$1.2 million from C$2.1 million a year ago.
Expenses increased by C$6.1 million, due to costs related to Blair Franklin and an increase in bonus restricted share unit amortization. (Reporting by Solarina Ho; Editing by Bernadette Baum)
© Thomson Reuters 2016 All rights reserved.