IGM Financial Inc. Reports First Quarter Results
Readers are referred to the disclaimer regarding Forward-Looking Information at the end of this Release.
Winnipeg, May 6, 2005: IGM Financial Inc., (TSX: IGM), today announced first quarter earnings.
Net income for the three months ended March 31, 2005 was $160.7 million compared to $147.9 million for the same period in 2004, an increase of 8.7%. Earnings per share were 60 cents compared with 56 cents in 2004.
"During this year's RRSP season, Canadians continued to choose mutual funds as a core component of their savings plans", said Jeffrey Orr, President and Chief Executive Officer. "Positive net sales and rising equity markets pushed the Company's mutual fund assets under management above the $85 billion mark during the quarter".
Gross revenues for the first three months of 2005 were $573.1 million, compared to $520.4 million last year. Operating expenses were $340.8 million for the three months compared to $304.5 million for the first quarter in 2004.
Mutual fund assets under management at March 31, 2005 totalled $85.2 billion, compared to $78.1 billion at March 31, 2004 .
Shareholders' equity at March 31, 2005 , was $3.2 billion, unchanged from December 31, 2004. Return on average common equity for the three months was 19.4% compared with 19.8% for the same period in 2004.
Investors Group Operations
Mutual fund sales for the three month period were $1.7 billion compared to $1.6 billion in the prior year and mutual fund net sales were $428 million compared to net sales of $386 million last year.
Investors Group's redemption rate at March 31, 2005, excluding money market funds, was 9.1% compared to 10.2% a year ago. The redemption rate for all other members of the Investment Funds Institute of Canada at March 31, 2005 was 16.0%.
The number of Investors Group Consultants was 3,503 at March 31, 2005, compared to 3,219 at March 31, 2004 .
"Our Consultant network grew by 8.8% over the last 12 months based on strong recruiting and retention", said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. "This distribution network strength combined with market appreciation has resulted in record level mutual fund assets."
Mutual fund assets under management at March 31, 2005 were $45.5 billion compared to $42.7 billion at March 31, 2004.
Mackenzie Financial Operations
Mutual fund sales for the three month period were $2.3 billion compared to $2.0 billion in the prior year. Mutual fund net sales for the period were $346 million compared to $344 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $368 million for the period, compared with net sales of $406 million in 2004.
"Mackenzie continues to benefit from the relationships it has built over many years with the advisor channel, a strong team of experienced portfolio managers and its service oriented culture," said Charles Sims, President and Chief Executive Officer, Mackenzie Financial Corporation.
Mackenzie's redemption rate at March 31, 2005, excluding money market and managed yield funds, was 14.3% compared to 13.2% a year ago. The corresponding rate at March 31, 2005 for all other members of the Investment Funds Institute of Canada was 15.4%.
Mutual fund assets under management at March 31, 2005 were $38.2 billion compared to $35.4 billion at March 31, 2004.
Dividends
The Board of Directors has declared a quarterly dividend of $0.359375 on the Corporation's 5.75% Non-Cumulative First Preferred Shares, Series "A" payable on June 30, 2005 to shareholders of record on May 31, 2005 and has declared a quarterly dividend of 32 ¼ cents per share on the Corporation's common shares payable July 29, 2005 to shareholders of record on June 27, 2005.
Forward-Looking Information
This Release may contain forward-looking statements about the Corporation, including its business operations, strategy and expected financial performance and condition. 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", "intends", "plans", "believes", "estimates" or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future corporate action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Corporation, economic factors and the financial services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation due to, but not limited to, important factors such as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation's ability to complete strategic transactions and integrate acquisitions. We caution that the foregoing list of important factors is not exhaustive. The reader is also cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements.
IGM Financial Inc. is one of Canada's premier personal financial services companies, and the country's largest manager and distributor of mutual funds and other managed asset products. Its activities are carried out principally through Investors Group, Mackenzie Financial and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.
| For more information contact: | ||
|---|---|---|
| R. Jeffrey Orr President & CEO IGM Financial Inc. (204) 956-3332 jeff.orr@investorsgroup.com |
Greg D. Tretiak Chief Financial Officer, IGM Financial Inc. (204) 956-8748 greg.tretiak@investorsgroup.com |
Ron Arnst Media Relations IGM Financial Inc. (204) 956-3364 ron.arnst@investorsgroup.com |
