IGM Financial Inc.’s net income for the three months ended June 30, excluding a non-cash income tax benefit, was $186.7 million compared to net income of $167.9 million in 2005, an increase of 11.2%.
Earnings per share on the same basis were 70¢ compared to earnings per share of 63¢ in 2005. A non-cash income tax benefit of $13.7 million (5¢ per share) resulted from decreases in the federal corporate income tax rates and their effect on the future income tax liability related to indefinite life intangible assets arising from the acquisition of Mackenzie Financial Corp. in 2001. There is no expectation that the future tax liability will become payable as the company has no intention of disposing of these assets. As a result, net income for the three months ended June 30, including the non-cash income tax benefit described above, totalled $200.4 million and earnings per share on the same basis were 75¢.
Net income for the six months ended June 30, excluding the non-cash income tax benefit described above, was $372 million compared to net income of $328.6 million in 2005, an increase of 13.2%. Earnings per share on the same basis were $1.39 compared to earnings per share of $1.23 in 2005. Net income for the six months ended June 30, 2006, including the non-cash income tax benefit totalled $385.7 million and earnings per share on the same basis were $1.44.
Gross revenues for the three months ended June 30 were $636.6 million, compared to $579.2 million in the prior year. Gross revenues for the six months ended June 30 were $1.28 billion, compared to $1.15 billion in the prior year. Operating expenses were $369.7 million for the quarter and $743.5 million for the six months, compared to $336.1 million and $676.9 million, respectively, in 2005.
Mutual fund assets under management at June 30 totalled $96.2 billion, compared to $87.5 billion at June 30, 2005, an increase of 9.9%. Total assets under management at June 30, totalled $103.7 billion, compared to $92.5 billion at June 30, 2005, an increase of 12.1%.
Shareholders’ equity at June 30, was $3.64 billion, compared to $3.45 billion at Dec. 31, 2005. Return on average common equity for the six months ended June 30, excluding a non-cash income tax benefit, was 20.4% compared with return on average common equity of 19.7% for the same period in 2005.
Investors Group Inc. mutual fund sales for the second quarter were $1.5 billion compared to $1.3 billion in the prior year and mutual fund net sales were $165 million compared to $40 million a year ago. Net sales of long-term funds were $106 million compared to net redemptions of $17 million in the prior year.
Year-to-date mutual fund sales were $3.4 billion compared to $2.9 billion in the prior year and mutual fund net sales were $883 million compared to $468 million a year ago. Net sales of long-term funds were $727 million compared to $351 million in the prior year.
“An increase of 89% in net sales over last year’s first six months arises from continued growth of our Consultant network, a broad investment fund array and an appreciation by our clients of our approach to long-term financial planning,” said Murray J. Taylor, president and CEO.
Investors Group’s mutual fund assets under management at June 30 were $51.8 billion, an increase of 10.5%, compared to $46.9 billion at June 30, 2005.
Mackenzie recorded mutual fund sales of $2 billion for the second quarter compared to $1.9 billion in the prior year. Mutual fund net sales were $32 million compared to $207 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $51 million for the period compared to $231 million in 2005.
Year-to-date mutual fund sales were $4.8 billion compared to $4.2 billion in the prior year. Mutual fund net sales were $644 million compared to $553 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $642 million for the period compared to $599 million in 2005.
Mackenzie’s mutual fund assets under management at June 30 were $42.4 billion, an increase of 8.9%, compared to $38.9 billion one year ago. Total assets under management at June 30 totalled $52.2 billion compared to $45.9 billion at June 30, 2005, an increase of 13.8%.
@page_break@IGM’s board of directors also declared a quarterly dividend of $0.359375 per share on the company’s 5.75% Non-Cumulative First Preferred Shares, Series “A” payable on Sept. 30 to shareholders of record on Aug. 30 and has declared an increase of 2.75¢ per share in the quarterly dividend from 37.0¢ to 39.75¢ per share on the company’s common shares payable on Oct. 27 to shareholders of record on Sept. 25.
IGM reports increase net income in Q2, first half of 2006
Investors Group, Mackenzie see AUM increase in 10% range year-over-year
- By: IE Staff
- August 3, 2006 August 3, 2006
- 09:04