SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2006
Commission File Number: 011-16245
W.P. STEWART & CO., LTD.
(Translation of Registrant's Name Into English)
Trinity Hall
43 Cedar Avenue
P.O. Box HM 2905
Hamilton, HM LX
Bermuda
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F |_|
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)1: _____
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)7: _____
Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes |_| No |X|
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-______.
W.P. STEWART & CO., LTD.
See press release attached hereto dated February 23, 2006 regarding recent
market activity.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
W.P. STEWART & CO., LTD.
Date: February 27, 2006 By: /s/ Rocco Macri
---------------------------------
Name: Rocco Macri
Title: Managing Director &
Chief Operating Officer
2
[LETTERHEAD OF W.P STEWART & CO., LTD]
PRESS RELEASE
Contact: Fred Ryan
telephone: 441.295.8585
23 February 2006
Hamilton, Bermuda
W.P. Stewart Issues Comment on Market Activity
W.P. Stewart today released this comment from Henry B. Smith, President
and Chief Executive Officer.
"Over the past several days trading volume in our shares has risen
significantly and the stock price has fluctuated over a fairly wide range. The
increase in our trading volume prompted a significant number of inquiries from
investors. In view of the number and nature of those inquiries, we have decided
that it would be appropriate at this time to review with investors generally
some issues relating to the Company and its ongoing business.
We do not know what caused the recent increase in trading volume - or who
the recent buyers and sellers have been - and we do not think it would be
appropriate for us to speculate about those issues. Based on the inquiries we
have received from shareholders, we recognize however that there is some concern
among investors about whether the resignation of two portfolio managers in early
January has had a material impact on our AUM flows. At this time, I can report
that our net flows, as of the close of business on February 21st, were negative
approximately $40 million so far in the quarter. While we are not happy with the
negative flows so far this quarter, that amount does not materially impact our
business.
As a result of those recent departures, together with other changes in the
balance of our portfolio management activities among various jurisdictions, the
proportion of our activity based in high-tax countries has increased somewhat
relative to the activity based in lower-tax jurisdictions. We believe this
change will be temporary, and we are currently taking steps to restore our
historical geographical mix. However, based on the facts in existence today and
assuming that we are not successful in restoring our historical business mix,
this change in our business could result in an effective tax rate for 2006 in
the range of 17-20% of pre-tax income. We will continue to pursue efforts to
restore our historic balance, and we should be able to report on our progress at
the time of our release of results for the first quarter.
In the meantime, our investment team continues to focus on delivering
consistently superior results for our clients. Our performance got off to a slow
start in the early part of this year relative to the S&P 500, but it is solidly
positive and we remain optimistic for the remainder of this year.
As many of you know, we do not usually disclose this kind of information
about our business at any time other than the time of our quarterly earnings
release and conference call. We intend in the future to continue to adhere to
that policy of quarterly disclosure, but we thought that a review of these
issues with you now, in mid-quarter, would be helpful in light of our increased
trading volume and recent investor inquiries.
On behalf of all my colleagues at W.P. Stewart, I wish to thank our loyal
clients and shareholders for your continued support. We are optimistic that we
will succeed in growing our business, and we remain strongly committed to your
best interests."
W.P. Stewart & Co., Ltd. is an asset management company that has provided
research intensive equity management services to clients throughout the world
since 1975. The Company is headquartered in Hamilton, Bermuda and has additional
operations or affiliates in the United States, Europe and Asia.
The Company's shares are listed for trading on the New York Stock Exchange
(NYSE: WPL) and on the Bermuda Stock Exchange (BSX: WPS).
For more information, please visit the Company's website at
http://www.wpstewart.com, or call W.P. Stewart Investor Relations (Fred M. Ryan)
at 1-888-695-4092 (toll-free within the United States) or +441-295-8585 (outside
the United States) or e-mail to IRINFO@wpstewart.com.