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DundeeWealth reports loss after ABCP writedown
Wednesday, May 14, 2008
DundeeWealth Inc. reported a first-quarter loss of $49.8-million after taking a $75.9-million writedown on troubled asset-backed commercial paper (ABCP). The loss of 35 cents a share from continuing operations compares with a profit of $14-million, or 7 cents a share, a year ago, the wealth management company said yesterday. Toronto-based DundeeWealth, which owns the Dynamic fund family as well as a financial planning and brokerage units, had already taken a $96-million writedown on its ABCP, which has a par value of $379-million at maturity. The investment was made as part of its money-losing banking operation, which was sold last fall to Bank of Nova Scotia. Consolidated revenue fell 7 per cent to $211.3-million.DW (TSX) fell 7 cents to $13.67.
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