LOGiQ Asset Management reported a surge in AUM, increasing to $2.8 billion at the end of 2016 from $738 million a year earlier.
The company attributes the growth to combining the businesses of LOGiQ (formerly Aston Hill Financial Inc.) and Front Street Capital.
LOGiQ, reporting its results for the quarter ended December 31, 2016, saw a net loss of $1.27 million in the quarter, down from a profit of $31,000 in the same period a year earlier.
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Total revenues were $6.8 million during the three-month period ending December 31, up from $4 million in the same quarter a year earlier. Revenues also gained 74% from $3.9 million in the previous quarter ended September 30, 2016.
LOGiQ cited a merger involving the former Front Street Capital and Tuscarora Capital Inc., announced in December 2016. The goal was to create “a new, leading independent asset management firm,” a release says.
Total expenses, excluding finance expenses, were $8 million, up from $4 million in the same period a year earlier.
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“Combining these three firms and then acquiring the Institutional Advisory Group, from Integra Capital Limited, with $2.5 billion in institutional fee earning assets adds important scale benefits,” LOGiQ CEO Joe Canavan says in a statement. “We brought all these firms and decades of portfolio management experience together under the LOGiQ banner, which has numerous benefits for advisors and their clients.”
LOGiQ gives the following breakdown of its Q1 revenue: 92.4% from managed investment funds; 3.7% from institutional sales and related activity; 2.3% from its sub-advisory mandates; and 1.6% from brokerage activity.
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