IGM Financial Inc. reports second quarter earnings
Winnipeg – August 5, 2010: IGM Financial Inc. (IGM or the Company) (TSX:IGM) today announced earnings results for the second quarter of 2010.
Net earnings available to common shareholders for the three months ended June 30, 2010 were $179.1 million compared to $144.5 million in 2009. Earnings per share were 68 cents compared to 55 cents in 2009, an increase of 23.6%.
Net earnings available to common shareholders for the six months ended June 30, 2010 were $357.8 million compared to $278.0 million in 2009. Earnings per share were $1.36 compared to $1.05 in 2009, an increase of 29.5%.
Revenues for the three months ended June 30, 2010 were $643.2 million compared to $591.6 million a year ago. Revenues for the six months ended June 30, 2010 were $1.29 billion compared to $1.15 billion a year ago. Expenses were $404.1 million for the second quarter of 2010, compared to $388.0 million a year ago and $806.8 million for the six month period compared to $765.6 million in 2009.
Total assets under management at June 30, 2010 were $115.7 billion. This compared with total assets under management of $109.6 billion at June 30, 2009, an increase of 5.5%.
Shareholders' equity at June 30, 2010 was $4.4 billion, compared to $4.3 billion at June 30, 2009. Return on average common equity for the six months ended June 30, 2010 was 16.7% compared to 13.4% for the comparative period in 2009.
Investors Group Operations
The number of Investors Group Consultants was 4,667 at June 30, 2010 up from 4,633 at December 31, 2009.
Mutual fund sales for the second quarter were $1.3 billion compared to $1.1 billion in the prior year and mutual fund net redemptions for the second quarter were $103 million compared to net redemptions of $95 million a year ago.
Mutual fund sales for the six months ended June 30, 2010 were $3.2 billion compared to $2.5 billion in the prior year and mutual fund net sales were $458 million compared to $214 million a year ago.
The twelve month trailing redemption rate (excluding money market funds) was 7.7% at June 30, 2010, compared to 7.5% at June 30, 2009.
“Our Consultant network expanded for the 24th consecutive quarter to 4,667 at June 30, 2010, up 3.5% since June 30, 2009,” said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. “Ongoing surveys of our clients continue to show they greatly appreciate the value of advice provided by our Consultants through varying economic conditions.”
Mutual fund assets under management at June 30, 2010 were $55.5 billion compared to $52.5 billion at June 30, 2009, an increase of 5.7%.
Total sales for the second quarter of 2010 were $3.3 billion compared to $3.4 billion in the prior year. Total net redemptions for the second quarter were $516 million compared to total net redemptions of $535 million a year ago.
Total sales for the six months ended June 30, 2010 were $6.6 billion compared to $6.3 billion in the prior year. Total net redemptions were $415 million compared to total net redemptions of $834 million a year ago.
“Our relative investment performance across our family of mutual funds remains extremely strong, with more than 69% of our mutual fund assets ranked in the first or second quartile of their respective asset categories over the three year period,” said Charles R. Sims, President and Chief Executive Officer of Mackenzie Financial Corporation.
Mackenzie’s total assets under management at June 30, 2010 were $60.9 billion compared with total assets under management of $57.8 billion at June 30, 2009, an increase of 5.3%. Mutual fund assets under management at June 30, 2010 were $38.9 billion compared to $37.2 billion a year ago, an increase of 4.3%.
The Board of Directors has declared a dividend of 51.25 cents per share on the Company’s common shares and has declared a dividend of $0.36875 per share on the Company’s 5.90% Non-Cumulative First Preferred Shares, Series “B”. The common share dividend is payable on October 29, 2010 to shareholders of record on September 27, 2010 and the preferred share dividend is payable on November 1, 2010 to shareholders of record on September 27, 2010.
Certain statements in this Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial’s current expectations. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Company’s financial position and results of operations as at and for the periods ended on certain dates and to present information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, ”seeks”, “intends”, “targets”, “projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances.
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.
A variety of material factors, many of which are beyond the Company’s, and its subsidiaries’ control, affect the operations, performance and results of the Company, and its subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes (including adoption of International Financial Reporting Standards), operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company’s success in anticipating and managing the foregoing factors.
The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements.
Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the Company’s business is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedar.com.
A review of activities and performance for IGM Financial Inc., together with financial details and a management discussion, will be published in the Company’s 2010 Second Quarter Report to Shareholders which should be mailed to shareholders on or about August 19, 2010.
Financial Statements and Notes
IGM Financial Inc. is one of Canada's premier personal financial services companies, and one of the country’s largest managers and distributors of mutual funds and other managed asset products, with $119 billion in total assets under management as of July 31, 2010. Its activities are carried out principally through Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.
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Media Note: A live webcast of IGM’s Analyst conference call for the Second Quarter 2010 will be held Thursday August 5, 2010, at 3:00 P.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to the live analyst teleconference call by dialing 1-866-226-1792 or 416-340-2218.