Gluskin Sheff profit up on higher fees, founders to quit board

Thu Nov 7, 2013 1:08pm EST
 
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TORONTO Nov 7 (Reuters) - Canadian asset manager Gluskin Sheff announced a higher quarterly profit on Thursday as fees and assets under management rose, and it said founders Gerald Sheff and Ira Gluskin would retire from the company's board of directors.

Shares of the Toronto-based wealth manager climbed 4.1 percent to C$21.85 after release of the results for the company's first quarter, which were stronger than expected.

Gluskin Sheff, which focuses on the high net worth and institutional clients, said net income was C$8.3 million ($7.9 million), or 29 Canadian cents a share, for the three months ended Sept. 30, up from C$5.9 million, or 21 Canadian cents a share, a year earlier.

Diluted earnings were 28 Canadian cents a share, up from 20 Canadian cents a share a year earlier and well above analysts' estimates of 23 Canadian cents a share.

Assets under management rose to C$6.3 billion, up from C$5.6 billion a year earlier, while base management fees rose 10 percent to C$20.3 million from C$18.5 million and performance fees nearly doubled to C$2.1 million from C$1.1 million.

The company said founders Sheff and Gluskin intend to retire from the board of directors, effective Dec. 18, but Gluskin will continue to manage a portfolio of assets and clients.

Gluskin and Sheff, two of Toronto's best-known money managers, said in September they were selling their stakes in the wealth management firm they founded.

($1=$1.045 Canadian) (Reporting by Andrea Hopkins; Editing by Peter Galloway)