DundeeWealth(R) Reports 2009 Results

TORONTO, March 23 /CNW/ - DundeeWealth Inc. ("DundeeWealth" or the "Company") (TSX: DW) today released financial results as at and for the year ended December 31, 2009. In 2009, the Company earned $184.7 million before interest, taxes, depreciation and amortization ("EBITDA") with net earnings of $51.6 million. Included in EBITDA is $21.7 million of performance fee revenue, net of third party allocations and costs ($14.5 million after tax).

Net earnings for the year ended December 31, 2009 also include fair value adjustments related to the Company's investments in floating rate notes (formerly, asset- backed commercial paper) and collateralized loan obligations of $14.1 million ($10.6 million after tax).

EBITDA for the three months ended December 31, 2009 were $78.1 million and net earnings from continuing operations were $11.2 million compared to EBITDA of $13.1 million and a net loss from continuing operations of $126.3 million for the same period last year. Furthermore, consolidated revenues for the fourth quarter were $248.2 million, a 45% increase from $171.7 million earned in the last quarter of 2008.

    
    Highlights
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                 As at:                December 31, 2009   December 31, 2008
           (in billions of $)
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    AUM (Assets Under Management)             36.1                25.4
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    AUA (Assets Under Administration)         25.5                22.1
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    Bank Deposits                              7.2                 4.7
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    Total                                     68.8                52.2
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           For the year ended:         December 31, 2009   December 31, 2008
           (in millions of $)
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    Revenues                                   779                 819
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    EBITDA                                     185                 139
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"Our commitment to increase shareholder value in 2009 is evidenced in our financial results," said David Goodman, President and Chief Executive Officer of DundeeWealth. "We have reduced costs while continuing to deliver the products and services that distinguish us in the marketplace, resulting in more revenues being carried through to the bottom line."

December 31, 2009 AUM of $36.1 billion represents 42% growth year over year and an all time high for the Company. The considerable growth in AUM is a result of industry-leading net sales of $2.6 billion, combined with market appreciation of $7.5 billion. According to data provided by the Investment Funds Institute of Canada, the Company's mutual fund market share, represented by Dynamic Funds(R), increased to 3.76% from 3.03% at the end of 2008.

"We are the fastest growing company among the 20 largest asset managers in Canada with a 24% increase in market share in 2009," added Mr. Goodman. "We intend that our broad and innovative product line up, industry-leading portfolio management team and client-centric approach will enable us to sustain this momentum through 2010."

Management fee revenues were $462.4 million in 2009, essentially flat compared with last year, but include $32.6 million in gross performance fee revenue, whereas 2008 management fee revenues include no performance fees. Revenues from capital markets activities for the year were $91.1 million, up from $69.0 million in 2008. DundeeWealth's retail financial services revenue for the year ended December 31, 2009 was $229.5 million, compared to $303.9 million last year.

Consolidated revenues (excluding performance fees) for the fourth quarter of 2009 were $215.6 million, a 13% increase from $191.0 million earned in Q3 2009 and 26% increase from $171.7 million earned in the last quarter of 2008.

For the year ended December 31, 2009, selling general and administrative ("SG&A") expenses were $284.8 million, a decrease of 10% from last year.

Significant achievements in 2009 include winning the title of Advisors' Choice Investment Fund Company of the Year and the top award for both investor and advisor education at the 2009 Canadian Investment Awards.

Among several corporate milestones, the Company entered 2010 with a healthy balance sheet following the repayment of all amounts outstanding under its credit facility using existing cash and a portion of net proceeds from a long-term note issue. It also holds over $400 million in cash, cash equivalents and marketable securities.

In 2009, DundeeWealth upgraded its dividend policy so that shareholders would not only see a quarterly dividend increase, but also receive a portion of net performance fees earned each year. On March 22, 2010, the Company announced a further quarterly dividend increase of $0.035 per common and special share for a new total of $0.070 per share.

"Going forward, we are absolutely committed to growing revenue at a faster pace than SG&A, increasing market share further by maintaining strong sales momentum and capitalizing on upside in equity markets and improving margins across all business lines," said Mr. Goodman. "And, we will pursue these objectives while delivering on our promise to increase transparency and enhance our stakeholder relations."

For detailed consolidated financial statements, along with Management's Discussion and Analysis as at and for the quarter and year ended December 31, 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 today at 10:00 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 416-849-6167 or 1-866-339-5645 (no passcode required).

The call will be available for playback from 12:00 noon on March 23 until April 6, 2010 at 416-915-1035 or 1-866-245-6755 (passcode: 695582, followed by the number sign). The conference call will also be archived on DundeeWealth's website: www.dundeewealth.com.

About DundeeWealth Inc.

DundeeWealth is a Canadian owned, independent wealth management company that currently oversees $69.9 billion in fee earning assets. 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: John Pereira, Chief Financial Officer, DundeeWealth Inc., [phone]; Myra Reisler, Manager, Public Affairs, DundeeWealth Inc., [phone]