IGM Financial Inc. saw its net income tumble 66% to $79.8 million in the fourth quarter of 2008, the company reported on Friday.
The drop in profit, from $234.3 million in the fourth quarter of 2007, includes a $60.3-million charge representing IGM’s proportionate equity interest in Great-West Lifeco Inc.’s after-tax impairment charge related to goodwill and indefinite life intangible assets.
IGM’s gross revenue in the fourth quarter was $584 million, down from $721.6 million in 2007.
Total assets under management as of Dec. 31 were $101.7 billion, down 17.3% $123 billion a year earlier.
For the year, the company earned net income of $730.8 million, down from $879.1 million in 2007. Gross revenues in 2008 were $2.7 billion, compared to $2.90 billion in the prior year.
At the company’s Investor Group Inc. operations, annual mutual fund sales were down sharply, falling to $5.9 billion from $7.2 billion in 2007. Mutual fund net sales for the year tumbled to $625 million from $2.2 billion a year ago.
The number of Investors Group consultants rose to 4,479 in 2008, up from 4,331 in 2007.
“Our Consultant network continued to expand for the 18th consecutive quarter to a new record level,” said Murray J. Taylor, president and CEO of Investors Group Inc.
At the company’s Mackenzie Financial Corp. operations, total sales for 2008 were $12.3 billion compared to $12.7 billion in the prior year. Total net redemptions for 2008 were $2.7 billion compared to net sales of $1 billion in the prior year.
In the fourth quarter alone, Mackenzie saw total net redemptions of $1.5 billion compared to net sales of $189 million in the prior year.
Mackenzie’s total assets under management as of Dec. 31 totalled $54.7 billion, down 13.6% from $63.3 billion in 2007.
“During the fourth quarter, global stock market volatility impacted assets under management,” said Charles R. Sims, president and CEO of Mackenzie Financial Corp.
IE
IGM profit drops on charges, falling fund sales
Assets under management hit by volatile markets
- By: Megan Harman
- February 16, 2009 February 16, 2009
- 14:10