DundeeWealth reports first quarter 2009 results

    TORONTO, May 6 /CNW/ - DundeeWealth Inc. ("DundeeWealth" or the
"Company") (TSX: DW) today released interim unaudited financial results for
the three months ended March 31, 2009. The Company earned $23 million before
interest, taxes, depreciation and amortization ("EBITDA") and incurred a net
loss from continuing operations of $14.6 million. The net loss in the quarter
includes a $9 million pretax adjustment to the Company's carrying value of its
Collateralized Loan Obligation ("CLO") portfolio.


    As at:                                   March 31,       December 31,
    (in billions of $)                         2009              2008
    AUM (Assets Under Management)              25.6              25.4
    AUA (Assets Under Administration)          21.3              22.1
    Bank Deposits                               5.7               4.7
    Total                                      52.6              52.2

    For the period ended:                    March 31,         March 31,
    (in millions of $)                         2009              2008
    Revenues                                  152.8             214.2
    EBITDA                                     22.9              38.4

    Management fee revenues were $88.4 million in the first quarter of 2009
compared with $116.8 million for the same period last year. While management
fee revenues reflect the general collapse of the market that occurred in the
latter part of 2008, AUM at March 31, 2009 increased by a modest $0.2 billion
from the end of 2008.
    "DundeeWealth came in to 2009 reinforced by acquisitions and a resolute
commitment to cost containment," said David Goodman, President and Chief
Executive Officer of DundeeWealth. "This gave us the capacity to focus on
delivering best-in-class client service and innovative products in an
exceptionally difficult market environment. As a result, we continue to lead
the industry in net sales of long-term funds and our market share has shown
considerable growth since December 2008."
    Despite ongoing market deterioration in the first quarter of 2009,
DundeeWealth's award-winning investment brand, Dynamic Funds(TM), ranked first
among all industry participants in net asset gathering activities of long-term
funds, according to the Investment Funds Institute of Canada - a position it
also held for the year ended December 31, 2008. Net additions of long-term
funds for the three months ended March 31, 2009 were $269 million. Total gross
additions and net additions for the same period were $1.3 billion and $378
million respectively. Recently, DundeeWealth announced AUM of $27.0 billion at
April 30, 2009 with net additions of $120 million for the month.
    "We have a half century of experience under our belts and some of the
best money managers in the country, with track records established over
numerous market cycles," added Mr. Goodman.
    DundeeWealth's retail financial services revenue dropped to $59.2 million
in the first quarter 2009 from $97.7 million for the same period last year, as
a result of low investor confidence reducing demand for financial services
products. However, increased profitability for this division is being realized
through a streamlining of costs and improved processing efficiencies as well
as a refining of the advisor network.
    Revenues from capital markets activities in the period ended March 31,
2009 were $15.9 million, up from $13.7 million for the same period last year.
The Company's commitment to the Dundee Capital Markets platform has been
re-emphasized by combining new executive leadership with a reorganization of
the division, primarily configured to reflect sectors of concentration.
    Consolidated selling, general, and administrative ("SG&A") expenses for
the first three months of 2009 decreased by $17.2 million (21.5 per cent) from
the first quarter of 2008. Staff reductions and other measures announced in
previous quarters are expected to produce significant recurring annual
    "General market weakness has resulted in declines in management fees and
financial services revenue," said Mr. Goodman. "Obscured by these
unprecedented and exceptional shortfalls are significant achievements such as
ongoing expense reductions, enhancements to our multichannel distribution
platform and better performance measurement across our wealth management unit.
After a trying six months, we are still Canada's 7th largest independent fund
company, we are still leaders in the gathering of long-term assets and we are
well positioned to capitalize in a market recovery."
    For detailed interim unaudited consolidated financial statements, along
with Management's Discussion and Analysis as at and for the quarter ended
March 31, 2009, please refer to DundeeWealth's website www.dundeewealth.com or

    About DundeeWealth Inc.

    DundeeWealth is a Canadian owned, independent wealth management company
that oversees $55.2 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).

    Dynamic Funds is a registered trademark of Dundee Corporation, used under

For further information:

For further information: Joanne Ferstman, Vice Chairman, Chief Financial
Officer and Head of Capital Markets, DundeeWealth Inc., (416) 365-5010; Myra
Reisler, Manager, Media Relations, DundeeWealth Inc., (416) 365-5370

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