Bermuda asset managers W.P. Stewart & Co. Ltd. reported a slight growth in profits for the year 2000, up 4.6 percent to $99.2 million.

The company, which is based in Hamilton and went global last year, reported net income for the full year 2000, as $2.18 per share (diluted) and $2.37 per share (basic), on revenues of $203.3 million.

Net income in 1999 was $94.8 million, or $2.21 per share (diluted) and $2.37 (basic), on revenues of $193.3 million.

William P. Stewart, Chairman and Chief Executive Officer said: "This past year has been a most significant one in our proud history. We have successfully completed the transition to a global investment company with a solid public shareholder base and a strong, dedicated team of shareholder employees.

"We remain committed to our proven investment principles and to achieving continued growth in the earning power behind our clients' portfolios.'' W.P. Stewart & Co., Ltd. is an asset management company based and grown in Hamilton with assets under management in excess of $10 billion. The company, which is listed on the New York Stock Exchange, has provided research intensive equity management services to clients across the world since 1975.

The company has additional operations or affiliates in the United States, Europe and Asia.

Mr. Stewart added: "The company will continue to pursue the development of our complementary investment advisory service in Europe and encourage the expansion of our 40 percent owned affiliate, Bowen Asia. Our enhanced client service group should help us achieve much improved levels of client assets in the coming year.'' The company reported cash earnings for 2000 were $105.9 million, or $2.33 per share (diluted) versus $98.3 million or $2.29 per share (diluted), in the prior year.

For the year 2000, there were 45,523,621 common shares outstanding on a weighted average fully diluted basis compared to 42,863,538 common shares outstanding for 1999 on the same weighted average fully diluted basis.

Performance in the W.P. Stewart & Co., Ltd. equity composite for 2000 was substantially better than the S&P 500 at minus 1.3 percent pre-fee and minus 2.5 percent post-fee, versus minus 9.1 percent for the broad market average.

W.P. Stewart said that 2000 was only the second year in its 26-year history in which it had negative performance in clients' accounts which, on both occasions, was modest.

W.P. Stewart's five-year performance record for the period ending 31 December 2000 averaged plus 21.4 percent pre-fee (20.0 percent post-fee), compounded annually, compared to an average of plus 18.3 percent for the S&P 500 in the period, and is substantially ahead of the company's five-year, absolute benchmark, or minimum goal, of 15 percent compounded annually.

Assets under management were approximately $10.3 billion at 31 December 2000 compared to $10.8 billion at 30 September 2000 and $12.3 billion at 31 December 1999.

The client retention rate in 2000 was 90.7 percent and revenues were $203.3 million for the year ended 31 December 2000, up 5.2 percent from $193.3 million for the year ended 31 December 1999.

CHART See microfilm W.P. STEWART & CO., LTD.

Consolidated Statements of Operations