DundeeWealth(TM) reports second quarter 2009 results



    TORONTO, Aug. 6 /CNW/ - DundeeWealth Inc. ("DundeeWealth" or the
"Company") (TSX: DW) today released interim unaudited financial results for
the three and six months ended June 30, 2009. In the first six months of 2009,
the Company earned $63.7 million before interest, taxes, depreciation and
amortization ("EBITDA") with net earnings of $27.5 million. EBITDA for the
three months ended June 30, 2009 was $40.7 million, compared to EBITDA of
$23.0 million earned in the first three months of this year.
    Net earnings include a fair value adjustment of $46.0 million ($32.7
million after tax) related to DundeeWealth's asset-backed commercial paper
("ABCP") investments. In the second quarter, the Company also received a total
of $30.4 million in principal repayment and interest on its ABCP investments.

    
    Highlights
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    -------------------------------------------------------------------------
               As at:
         (in billions of $)               June 30, 2009   December 31, 2008
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    AUM (Assets Under Management)              29.8              25.4
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    AUA (Assets Under Administration)          23.3              22.1
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    Bank Deposits                               6.2               4.7
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    Total                                      59.3              52.2
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      For the six months ended:
         (in millions of $)               June 30, 2009     June 30, 2008
    -------------------------------------------------------------------------
    Revenues                                  340.3             446.9
    -------------------------------------------------------------------------
    EBITDA                                     63.7              93.1
    -------------------------------------------------------------------------
    

    Consolidated revenues from continuing operations in the quarter ended
June 30, 2009 were $187.6 million, a decrease of 19% compared with $232.7
million in the second quarter last year, and an increase of 23% from $152.7
million for the three months ended March 31, 2009. Management fee revenues
were $100.9 million in the second quarter of 2009 compared with $126.3 million
for the same period last year.
    "Although revenues are down year-over-year as a reflection of the market
itself, DundeeWealth's assets under management have grown significantly in the
quarter," said David Goodman, President and Chief Executive Officer of
DundeeWealth. "Year to date, Dynamic upheld its position as industry leader in
net sales of long-term funds in Canada."
    The disciplined and opportunistic investment approach of DundeeWealth's
portfolio management group, which includes the Dynamic Funds(TM) ("Dynamic")
team, added market appreciation of $3.2 billion to the $1.0 billion in net
additions achieved in the first six months of 2009, an increase of 17% in AUM
since December 31, 2008. The Company's mutual fund market share of 3.33% at
the end of the quarter represents considerable growth from 3.03% at the end of
last year.
    "We still have a distance to go before we see a full recovery from the
sharp decline in assets industry-wide," added Mr. Goodman. "Yet, we managed to
realize two important achievements in the second quarter, which re-emphasize
our fundamental strengths: product creation, distribution and client
relations."
    The Dynamic Strategic Yield Fund, launched in March 2009, maintained
strong sales momentum through to the end of the second quarter. As at June 30,
2009, the fund had $261.0 million in AUM, making it the most successful new
product launch in the Company's 50-year history.
    Also significant, DundeeWealth's capital markets group co-led a public
offering of approximately $380 million, the largest co-led bought deal in its
history.
    Revenues from capital markets activities in the second quarter ended June
30, 2009 were $29.0 million, up from $27.9 million for the same period last
year. The capital markets division continues to focus on strengthening client
relationships and emphasizing sectors of concentration. Its sector expertise
was distinguished from its peers in the second quarter of 2009 when it picked
up top awards in the Metals & Mining, Financial Services, Oil & Gas and Health
Care categories at the 2009 Lipper Fund and StarMine Awards.
    DundeeWealth's retail financial services revenue in the second quarter of
2009 was $61.8 million, down from $86.9 million for the same period last year.
The profitability of this area is positioned to increase as a result of cost
containment measures and a general reshaping of the advisor network.
    Selling, general and administrative ("SG&A") expenses decreased 7% in the
second quarter of 2009 compared with the same quarter last year. Excluding
expenses associated with acquisitions in 2008, SG&A decreased 12% in the
second quarter and 19% in the first six months of 2009 compared with the same
periods last year.
    DundeeWealth continued to reduce its corporate debt in the second quarter
of 2009. Using operating cash flows, ABCP repayments and proceeds from the
disposition of its Quebec-based mutual fund dealer and insurance distribution
operations, corporate debt was reduced by 43% to $96.6 million from $169.6
million at December 31, 2008. As at June 30, 2009, the Company had cash and
marketable securities in excess of its corporate debt.
    "DundeeWealth is distinguished by the quality of its products, the
fundamental analytic expertise of our investment and research teams and our
commitment to client service," said Mr. Goodman. "As investor confidence
increases and the stock markets continue to strengthen, we intend to be a
visible participant in the recovery, delivering value to our shareholders and
helping investors rebuild their wealth."
    For detailed interim unaudited consolidated financial statements, along
with Management's Discussion and Analysis as at and for the three and six
months ended June 30, 2009, please refer to DundeeWealth's website
www.dundeewealth.com or www.sedar.com.

    Conference Call

    President and Chief Executive Officer David Goodman will host a
conference call with analysts on Friday, August 7 at 11:00 a.m. ET to discuss
the results. Joining Mr. Goodman on the call will be John Pereira, Chief
Financial Officer, and other senior executives. Investors may listen to the
discussion by dialing 416-641-6104 or 1-866-696-5894 (passcode: 2430061,
followed by the number sign).
    The call will be available for playback at 1:00 p.m. on August 7 until
August 21, 2009 at (416) 695-5800 or 1-800-408-3053 (passcode: 8706255,
followed by the number sign). Conference call highlights will be archived on
DundeeWealth's website (www.dundeewealth.com).

    About DundeeWealth Inc.

    DundeeWealth is a Canadian owned, independent wealth management company
that oversees $61.1 billion in assets under management and administration. It
provides diversified wealth management and investment solutions including
alternative and tax-advantaged products, capital markets and advisory services
to financial advisors, institutions, corporations and foundations, and
innovative wealth management through independent financial advisors across
Canada. Its award winning investment brand, Dynamic Funds, managed by Goodman
& Company, Investment Counsel Ltd., is also available outside of Canada
through distribution platforms in Europe and the United States. DundeeWealth
is listed on the Toronto Stock Exchange (TSX: DW).





For further information:

For further information: John Pereira, Chief Financial Officer,
DundeeWealth Inc., (416) 365-5180; Myra Reisler, Manager, Public Affairs,
DundeeWealth Inc., (416) 365-5370

Organization Profile

DUNDEEWEALTH INC.

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