LOGiQ Asset Management Inc. Announces 2017 Second Quarter Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 05/16/17 -- LOGiQ Asset Management Inc. ("LOGiQ" or the "Company") (TSX: LGQ) announces it has released its Condensed Consolidated Interim Financial Statements for the quarter ended March 31, 2017 and related Management's Discussion and Analysis.
For the second quarter ended March 31, 2017, LOGiQ revenues increased by 10 per cent to $7.5 million over the prior quarter revenues of $6.8 million. The revenue increase reflects the impact of the combination of LOGiQ (formerly Aston Hill Financial Inc.) and Front Street Capital in December 2016 for its first full quarter. Revenue generated by LOGiQ-managed investment funds decreased as a percentage of total revenue (currently 80% compared to 93% in the prior quarter).
In the second financial quarter ending March 31, 2017, LOGiQ saw assets under management or advisement ("AUM") decrease to $2.3 billion from $2.5 billion at December 31, 2016. The lower AUM is mainly the result of net redemptions of open-end funds. During the second quarter, gross sales of mutual funds were $23 million and redemptions were $285 million with $175 million from one special low fee account relationship.
At March 31, 2017, LOGiQ also had $2.5 billion of institutional advisory sales-related fee earning arrangements ("Global Advisory"). These are incremental to the $2.3 billion AUM.
Total expenses (excluding finance expense) for the second quarter were higher at $10.1 million compared to $8.1 million for the prior quarter. The higher corporate expense is mainly due to the full-quarter impact of combining LOGiQ and Front Street Capital. There were also non-recurring expenses of approximately $1 million incurred in the quarter ended March 31, 2017 associated with the integration of the businesses.
Adjusted EBITDA for the second quarter was negative $559,000, a decrease from the prior quarter adjusted EBITDA of $2.0 million. This was due mainly to the combination of LOGiQ and Front Street Capital. Net loss for the quarter was $2.8 million, as compared to a net loss in the prior quarter of $1.3 million.
Highlights of the Quarter
LOGiQ has taken a number of steps to reinforce the foundation for its future growth as a fully-integrated and diversified investment management firm:
"This quarter should be characterized as a transitional quarter as this is LOGiQ's first full quarter with all four businesses under our umbrella," said LOGiQ CEO, Joe Canavan. "Merging these three firms and acquiring institutional fee-earning arrangements brings many benefits to advisors and their clients, including strong leadership, leverage with vendors to reduce fund and corporate costs, scale within the fund lineup, synergies at the corporate level and sophisticated investment solutions."
Investors and readers of the Condensed Consolidated Interim Financial Statements for the quarter ended March 31, 2017 and related Management's Discussion and Analysis are cautioned that the results for the comparative quarter ended December 31, 2016 are not necessarily indicative of the ongoing operations of the business because the results include a full quarter of former Front Street Capital, 24 days each of LOGiQ Asset Management Inc. and Tuscarora Capital Inc., and eight days of results from the Global Advisory business. The results for the comparative quarter ended March 31, 2016 include only the results of former Front Street Capital.
Financial Highlights
Notes:
Impacts on Q2 2017 Results
Updates Subsequent to Quarter End
Frank Mersch to Retire from Company
The Company announces that Frank Mersch will retire from the firm effective June 30, 2017. Mr. Mersch has decided to scale back his professional activities and to exit the retail mutual fund business. The company and Mr. Mersch will work together to ensure a smooth transition of his portfolio management duties, which may include entering into a subadvisory agreement with Mr. Mersch on a transitional basis. As Mr. Mersch retains a substantial ownership position in LOGiQ Hedge Fund, Management of the Company anticipates a transfer of the management contract for LOGiQ Hedge Fund to another registered firm. We are very supportive of Mr. Mersch as he charts a path forward into retirement after decades of portfolio management success and we are grateful for his ongoing commitment to unitholders during the transition period.
About LOGiQ:
LOGiQ (logiqasset.com) is a diversified asset management company with a suite of retail mutual funds, closed end funds, hedge funds and pooled funds, and also provides segregated institutional managed accounts and institutional advisory sales. LOGiQ has assets under management or advisement and institutional advisory sales-related fee earning arrangements that are not managed or advised, totaling approximately $4.8 billion as at March 31, 2017.
The Company will host a conference call on Tuesday May 16, 2017 at 8:30am EDT. The conference call will be chaired by Joe Canavan, President and Chief Executive Officer. The number to use for this call is Toronto local (416) 764-8608 or toll-free (+1) 888-664-6370, Conference ID: 70523796. Please call in at least 10 minutes prior to the call.
Notice to Reader: Use of Non IFRS Measures and Forward-Looking Statements
For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the annual financial statements and management discussion and analysis for the year ended September 30, 2016 of Front Street Capital, both of which are available on SEDAR under the Company's profile at in addition to the unaudited condensed consolidated interim financial statements for the three and six month periods ended March 31, 2017 together with the corresponding Management's Discussion and Analysis for additional risk factors described under "Risk Management".
The TSX has neither approved nor disapproved the information contained herein.
Contacts:
Joe Canavan
President & Chief Executive Officer
LOGiQ Asset Management Inc.
(416) 583-2300
Mary Anne Palangio
Chief Financial Officer
LOGiQ Asset Management Inc.
(416) 583-2300
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 16.05.2017 - 04:43 Uhr
Sprache: Deutsch
News-ID 543554
Anzahl Zeichen: 0
contact information:
Town:
TORONTO, ONTARIO
Kategorie:
Investment Services & Trading
Diese Pressemitteilung wurde bisher 99 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"LOGiQ Asset Management Inc. Announces 2017 Second Quarter Results"
steht unter der journalistisch-redaktionellen Verantwortung von
LOGiQ Asset Management Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
