Bermuda-based investment firm W.P. Stewart reported virtually flat net income for the first quarter of 2006 while assets under management rose by $500 million year over year.

W.P. Stewart said net income for the three months to March 31 was $12.7 million, or 28 cents per share compared with net income in the first quarter of the prior year of $12.8 million or 28 cents per share.

The company had cash earnings of $14.5 million before non-cash expenses of depreciation, amortisation and other non-cash charges on a tax-effected basis compared to $15.3 million a year earlier.

W.P. Stewart, which takes long-term investments in generally non-cyclical businesses, said performance in the W.P. Stewart & Co., Ltd. US Equity Composite for the first quarter was +1.5 percent pre-fee and +1.2 percent post-fee compared to a 4.2 percent gain for the S&P 500. For the year to Mach 31, performance in the Composite was up 14 percent pre-fee and 12.8 percent post-fee compared with 11.7 percent for the S&P 500.

Assets under management (AUM) at quarter-end were approximately $9.4 billion, compared with approximately $9.5 billion at December 31, 2005, and approximately $8.9 billion at March 31, 2005.