IGM Financial reports rise in Q3 earnings

IGM Financial Inc. (TSX:IGM) Thrusday announced improved earnings for the third quarter of 2011.

Net earnings available to common shareholders, including other items, for the three months ended September 30, were $244.0 million or 94 cents per share compared to net earnings available to common shareholders of $173.4 million or 66 cents per share in 2010.

Operating earnings for the quarter rose 18.8% to $213.0 million or 82 cents per share compared to $181.11 million or 691 cents per share in 2010.

On September 2, IGM’s Mackenzie Financial Corp. unit announced that it had entered into an agreement to sell M.R.S. Trust Company and M.R.S. Inc. (MRS). Other items for the three ended September 30, consisted of the net earnings for MRS which have been classified as discontinued operations. Net earnings for MRS, excluding a one-time tax adjustment, totalled $2.3 million for the three ended September 30.

Revenues for the quarter were $674.2 million compared to $632.5 million a year ago. Expenses rose to $398.2 million up from $385.6 million a year.

Total assets under management at September 30, slipped 4.8% to $116.7 billion, down from $122.7 billion at September 30, 2010.

Shareholders’ equity at September 30 was $4.4 billion compared to $4.3 billion at September 30, 2010.

At September 30, 2011 there were 2,674 Consultants with 4 years or more of Investors Group experience, up from 2,659 at June 30, 2011. The number of Investors Group Consultants was 4,595 at September 30, 2011, up from 4,592 at June 30, 2011.

Investors Group operations

“Sales increased over 2010 by 9% for mutual funds, 13% for insurance and 17% for mortgage originations as our consultants served the diverse financial planning needs of our clients,” said Murray Taylor, president and CEO of Investors Group Inc. in a relealse.

Mutual fund sales for the third quarter were $1.29 billion compared to $1.17 billion in the prior year, and mutual fund net redemptions for the third quarter were $162 million compared to net redemptions of $166 million a year ago.

Mackenzie operations

Total sales for the third quarter of 2011 were $2.05 billion compared to $2.46 billion in the prior year. Total net redemptions for the third quarter were $1.20 billion compared to total net redemptions of $771 million a year ago.