UPDATE 1-DundeeWealth posts Q1 profit on higher AUM

Tue May 11, 2010 8:57am EDT

* Assets under management up to C$38.80 bln from C$25.61 bln

* Q1 profit C$33 mln vs loss/shr C$14.6 mln yr ago

* Revenue up 54 pct to C$234.7 mln

May 11 (Reuters) - Canadian wealth management company DundeeWealth Inc (DW.TO) posted a quarterly profit, as assets under management (AUM) soared and it earned higher management fees.

For the first quarter, AUM rose to C$38.80 billion from C$25.61 billion last year. Management fee revenue rose 52 percent to C$134.4 million.

Net income for the quarter was C$33.0 million ($32.26 million). The company posted a net loss from continuing operations of C$14.6 million last year.

Last year, the company incurred a C$9 million pretax adjustment from its collateralized loan obligations (CLO).

Revenue rose 54 percent to C$234.7 million.

DundeeWealth said it made C$21.9 million from the sale of a part of its stake in CLOs in the first quarter.

Shares of the Toronto-based company closed at C$14.00 Monday on the Toronto Stock Exchange. ($1=1.023 Canadian Dollar) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Ratul Ray Chaudhuri)

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