SCEPTRE INVESTMENT COUNSEL LIMITED TSX: SZ

TORONTO, ONTARIO--(Marketwire - Jan. 15, 2009) - Sceptre Investment Counsel Limited (TSX:SZ), a leading independent Canadian money management firm, today reported its financial results for the three and 12-month periods ended November 30, 2008.

For the fourth quarter the Company incurred a loss of $103,000 or 1 cent per share fully diluted (1 cent per share basic) after recognizing a charge of $2.16 million before tax ($1.44 million after tax) for the full cost relating to the departure of the Company's former CEO in October 2008 ("Settlement Charge"). Without this charge, fourth quarter earnings would have been $1,335,000 or 9 cents per share (10 cents per share basic). Earnings for the fourth quarter of 2007 were $2,529,000 or 18 cents per share. Earnings for the 12 months ended November 30, 2008 were $5,002,000 or 35 cents per share (36 cents per share basic), compared with $7,354,000 or 52 cents per share (53 cents per share basic) in 2007. Without the Settlement Charge, earnings for the year would have been $6,441,000 or 45 cents per share (46 cents per share basic).

"Our financial results were adversely impacted by the extraordinary declines in equity markets during the year. Despite this challenging environment we were able to secure a significant number of new institutional mandates resulting in positive net cash flow for the year" said Glenn Inamoto, Chief Executive Officer.

Q4 Revenue

The most important driver affecting revenue during the quarter was the significant decline in the level of equity markets compared to a year ago, which impacted the level of assets under management and therefore the fees charged by the Company.

Total revenue for the fourth quarter was $7.69 million, compared with $10.49 million for the fourth quarter of 2007. Total management fee revenue for the fourth quarter was $7.53 million, versus $9.42 million for the fourth quarter last year. Institutional management fee revenue was $4.87 million compared with $5.03 million for the fourth quarter last year as assets at the Billing Point (September 30(i)) decreased from $7.45 billion last year to $6.85 billion this year as a result of declines in equity markets, which more than offset positive cash flows. Mutual fund revenue was $1.52 million in the fourth quarter this year versus $2.91 million in the same quarter last year as average assets decreased from $907.7 million last year to $497.60 million this year, with the majority of the fall resulting from significant declines in equity markets. Private Client revenue was $1.13 million in the fourth quarter this year versus $1.48 million in the same quarter last year as average assets declined from $764.8 million last year to $ 602.0 million this year, with the bulk of the decrease coming from negative returns in equity markets. Investment income of $0.17 million this quarter was lower than last year's $1.06 million as last year's quarter benefited from a gain of $0.83 million from the sale of a management contract.

Q4 Expenses

Revenue related expenses (sub-advisory fees, trailer fees and referral fees) declined by $0.3 million in the fourth quarter versus a year ago, from $1.5 million to $1.2 million, in line with the decline in assets subject to those charges. Other Expenses increased by $1.30 million versus a year-ago, to $6.76 million from $5.46 million due to the Settlement Charge. Without this charge, Other Expenses would have decreased by $0.87 million. Within Other Expenses, compensation expense (excluding this charge) fell $1.33 million due to lower profitability related remuneration. Other expenses in Q4 2008 include an expense of $0.18 million which we do not expect to recur.

Fiscal Year Revenue

Total revenue for the year ended November 30, 2008 was $35.4 million versus $38.4 for the previous year. Total management fee revenue was $34.54 million this year versus $36.66 million in 2007. Institutional management fee revenue was $20.32 million compared with $19.34 million in 2007 as average assets at the Billing Points(i) increased from $7.25 billion in 2007 to $7.34 billion in 2008. Mutual fund revenue was $8.98 million in 2008 versus $11.87 million in 2007 as average assets declined from $954.0 million last year to $721.6 million this year, with the majority of the decrease resulting from significant negative returns in equity markets. Private Client revenue was $5.24 million in 2008 versus $5.45 million last year. Investment income declined from $1.755 million in 2007 to $0.86 million this year as last year benefited from a gain of $0.83 million from the sale of a management contract and higher capital gains on disposal of seed capital investments in underlying funds managed by the Company.

Fiscal Year Expenses

Revenue related expenses (sub-advisory fees, trailer fees and referral fees) fell by $0.42 million this year versus a year ago, from $5.94 million to $5.52 million, in line with the decrease in assets subject to those charges. Other Expenses increased by $0.99 million versus a year-ago, to $22.35 million from $21.36 million due to the Settlement Charge. Without this charge, Other Expenses would have decreased by $1.18 million. Within Other Expenses, compensation expense (excluding this charge) declined by $1.74 million due to lower profitability related remuneration. Included in other expenses are legal and consulting fees of $0.43 million which we consider to be one-time expenses.

(i)Sceptre recognizes revenue from most institutional clients based on asset levels at the end of each calendar quarter ("the billing points"). Therefore, Q4 institutional revenue is based on institutional assets at September 30th. Q1 institutional revenue is based on institutional assets at December 31, Q2 revenue on assets at March 31 and Q3 revenue on assets at June 30. This applies only to institutional revenues as mutual fund and private client revenues are charged based on daily market values during each fiscal quarter.

The Company, having considered its financial requirements, has declared a quarterly dividend of 6 cents per share on outstanding common shares, payable on January 30, 2009 to shareholders of record January 26, 2009. The previous quarterly dividend was 12 cents per share.

Fiscal Period Asset Continuity
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Q4 2008
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(in $ thousands)                                     Market 
                      Opening    Net Cash      Appreciation 
                          AUM       Flows     (Depreciation)    Closing AUM
                            $           $                 $               $
                 -----------------------------------------------------------
Pension and
 other
 Institutional
 funds           $  7,564,203 $  (178,000) $     (1,570,182) $    5,816,021
Private Client        737,032     (10,594)         (127,313)        599,125
Retail Mutual
 Funds                695,688     (28,878)         (275,487)        391,323
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Total            $  8,996,923 $  (217,472) $     (1,972,982) $    6,806,469
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Annual 2008
----------------------------------------------------------------------------
(in $ thousands)                                     Market 
                                 Net Cash      Appreciation 
                  Opening AUM       Flows     (Depreciation)    Closing AUM
                            $           $                 $               $
                 -----------------------------------------------------------
Pension and
 other
 Institutional
 funds           $  7,401,010 $   312,000  $     (1,896,989) $    5,816,021
Private Client        793,221     (51,410)         (142,686)        599,125
Retail Mutual
 Funds                875,145    (125,968)         (357,854)        391,323
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Total            $  9,069,376 $   134,622  $     (2,397,529) $    6,806,469
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About Sceptre Investment Counsel

Sceptre Investment Counsel Limited is a leading Canadian independent investment management firm with assets under supervision of approximately $6.8 billion. The Company's Pension and Institutional Fund group manages investment portfolios for a wide range of clients, including corporations, governments, hospitals, charitable foundations, endowments, universities and unions. Through its Wealth Management group, Sceptre provides discretionary funds and segregated account management for high net-worth individuals and offers a family of eight mutual funds. Sceptre employs approximately 62 people in its offices in Toronto, Waterloo, Montreal and Vancouver. Sceptre's common shares trade on the Toronto Stock Exchange, under the symbol SZ.

INTERIM CONSOLIDATED BALANCE SHEETS
In thousands of dollars
(Unaudited)
                                                            As at
                                                   November 30  November 30
                                                          2008         2007
--------------------------------------------------------------  ------------


Assets


Current Assets
 Cash                                               $      160         $ 35
 Available-for-sale financial assets                    15,553       20,697
 Accounts receivable                                     1,717        2,496
 Income taxes recoverable                                  219            -
 Current portion of future income taxes                    346            -
 Current portion of deferred compensation                    -        1,337
 Current portion of loans to related parties                25           38
                                                    -----------  -----------
                                                        18,020       24,603


Furniture, equipment and leaseholds                        932        1,063
Loans to related parties                                    21           19
Future income taxes                                        453            -
Value of customer relationships and other
 intangibles net of accumulated amortization             3,911        4,331
Goodwill                                                 3,575        3,575
                                                    -----------  -----------
                                                    $   26,912     $ 33,591
                                                    -----------  -----------
                                                    -----------  -----------


Liabilities


Current Liabilities
 Accounts payable
  and accrued liabilities                           $    3,528      $ 4,754
 Bonuses due to employees                                1,453        2,500
 Income taxes payable                                        -        1,346
 Current portion of future income taxes                      -          450
                                                    -----------  -----------
                                                         4,981        9,050


Accrued liabilities                                      1,057            -
Future income taxes                                          -          165
                                                    -----------  -----------
                                                         6,038        9,215
                                                    -----------  -----------


Shareholders' Equity


Capital stock                                           16,228       15,913
Contributed surplus                                      1,749        1,518
Retained earnings                                        4,706        6,437
Accumulated other comprehensive income                  (1,809)         508
                                                    -----------  -----------
                                                        20,874       24,376
                                                    -----------  -----------
                                                    $   26,912     $ 33,591
                                                    -----------  -----------
                                                    -----------  -----------



INTERIM CONSOLIDATED STATEMENTS OF EARNINGS 
In thousands of dollars except per share amounts 
(Unaudited)


                                                       For the three months
                                                                      ended
                                                   November 30     November
                                                          2008         2007
--------------------------------------------------------------  ------------


Revenue
Investment management fees                          $    7,525   $    9,424
Gain on sale of management contract                          -   $      830
Investment income                                          165          231


                                                    -----------  -----------


                                                         7,690       10,485
                                                    -----------  -----------
                                                    -----------  -----------


Expenses
Operating expenses                                       6,601        5,283
Trailer and referral fees                                  333          570
Sub-advisory fees                                          872          928
Amortization of furniture, equipment and
 leaseholds                                                 56           76
Amortization of intangible assets                          105          105


                                                    -----------  -----------
                                                         7,967        6,962
                                                    -----------  -----------
                                                    -----------  -----------


Earnings before income taxes                              (277)       3,523
                                                    -----------  -----------


Provision for income taxes                                 554        1,074
Provision for future income taxes                         (728)         (80)
                                                    -----------  -----------
                                                          (174)         994


                                                    -----------  -----------
Net earnings for the period                         $     (103)  $    2,529
                                                    -----------  -----------
                                                    -----------  -----------


Earnings per share
Basic                                               $    (0.01)  $     0.18
Diluted                                             $    (0.01)  $     0.18



                                                        For the years ended
                                                   November 30  November 30
                                                          2008         2007


--------------------------------------------------------------  ------------


Revenue
Investment management fees                          $   34,537   $   36,658
Gain on sale of management contract                          -          830
Investment income                                          861          925
                                                    -----------  -----------
                                                        35,398       38,413
                                                    -----------  -----------


Expenses
Operating expenses                                      21,705       20,686
Trailer and referral fees                                1,873        2,267
Sub-advisory fees                                        3,646        3,671
Amortization of furniture, equipment and leaseholds        223          294
Amortization of intangible assets                          420          385
                                                    -----------  -----------
                                                        27,867       27,303
                                                    -----------  -----------


Earnings before income taxes                             7,531       11,110
                                                    -----------  -----------
Provision for income taxes                               3,489        4,180
Provision for future income taxes                         (960)        (424)
                                                    -----------  -----------
                                                         2,529        3,756
                                                    -----------  -----------
Net earnings for the period                           $  5,002     $  7,354
                                                    -----------  -----------
                                                    -----------  -----------


Earnings per share
Basic                                                 $   0.36     $   0.53
Diluted                                               $   0.35     $   0.52