February 6, 2014 / 10:45 PM / 4 years ago

UPDATE 1-Gluskin Sheff to issue special dividend as profit doubles

* Profit of C$2.05/shr tops est C$1.65/shr

* Wealth manager announced C$1.40 special dividend

* Performance fees triple to C$98.5 mln in quarter (Adds details of special dividend, background)

TORONTO, Feb 6 (Reuters) - Canadian asset manager Gluskin Sheff said on Thursday its quarterly profit more than doubled due to rising assets under management and higher performance fees, prompting the company to announce a special dividend of C$1.40 a share.

Gluskin Sheff, which focuses on high net worth and institutional clients, said net income was C$60.4 million ($54.60 million), or C$2.05 a share, for the second quarter ended Dec. 31, up from C$24.7 million, or 85 Canadian cents a share, a year earlier.

The result topped analysts' expectations of a profit of C$1.65, according to Thomson Reuters I/B/E/S.

Gluskin said the special dividend, which is in addition to its regular quarterly dividend of 20 Canadian cents per share, was due to higher performance fees earned during the six months ended Dec. 31.

Those fees, which are earned when the company exceeds pre-specified rates of return, totaled C$100.6 million over the six-month period, and more than tripled to C$98.5 million in the second quarter from C$32.4 million a year earlier.

Assets under management (AUM) jumped 19 percent to C$6.83 billion, while base management fees, which are calculated as a percentage of AUM, rose 16 percent to C$21.7 million.

Total revenue was C$120.9 million, up from C$52.0 million.

The Toronto-based wealth manager also said the Toronto Stock Exchange had approved a share buyback plan that could see the company purchase up to 5 percent of its outstanding common shares over the next year.

The company's shares, which have jumped 83 percent over the past 12 months, rose 5 Canadian cents to C$28.80 on Thursday before the after-markets release of the results.

$1 = 1.11 Canadian dollars Reporting by Andrea Hopkins, additional reporting by Cameron French; Editing by Bernard Orr

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