| Winnipeg -- August 5, 2005: IGM Financial Inc. (IGM) (TSX:IGM) today announced earnings
results for the second quarter of 2005.
Net income for the three months ended June 30, 2005 was $167.9 million, compared to $152.6
million in 2004, an increase of 10.0%. Earnings per share were 63 cents compared to 57 cents, an
increase of 10.5%.
For the six months ended June 30, 2005 net income was $328.6 million compared to $300.5 million
in 2004, an increase of 9.4%. Earnings per share were $1.23 compared to $1.13 in 2004, an increase
of 8.8%.
Gross revenues for the three months ended June 30, 2005 were $579.2 million, compared to $523.5
million in the prior year. Gross revenues for the six months ended June 30, 2005 were $1.15 billion,
compared to $1.04 billion last year. Operating expenses were $336.1 million for the quarter and
$676.9 million for the six months, compared with $304.2 million and $608.7 million, respectively, in
2004.
Mutual fund assets under management at June 30, 2005 totalled $87.5 billion, compared to $79.7
billion at June 30, 2004, an increase of 9.8%. Total assets under management at June 30, 2005
totalled $92.5 billion, compared to $82.2 billion at June 30, 2004, an increase of 12.5%.
Shareholders' equity at June 30, 2005 was $3.29 billion, compared to $3.15 billion at December 31,
2004. Return on average common equity for the six months was 19.7% compared with 19.8% for the
same period in 2004.
Investors Group Operations
Mutual fund sales for the second quarter were $1.25 billion compared to $1.06 billion in the prior
year. For the quarter, mutual fund net sales were $40 million compared to net redemptions of $71
million in 2004 and net redemptions of long-term mutual funds (excluding money market funds)
were $17 million compared to net redemptions of $92 million in 2004.
Year-to-date mutual fund sales were $2.9 billion compared to $2.6 billion in the prior year and
mutual fund net sales were $468 million compared to $315 million a year ago. Net sales of long-term
funds were $351 million compared to $243 million in the prior year.
"Continued growth in our Consultant network has led to a 10% increase in the number of
Consultants over the last 12 months", said Murray J. Taylor, President and Chief Executive Officer
of Investors Group Inc. "A 48% increase in mutual fund net sales over 2004 combined with strong
investment performance has resulted in record levels of assets under management."
Investors Group's twelve month trailing redemption rate (excluding money market funds) was 9.1% at the end of the quarter, down from 9.6% at the same time last year. The corresponding rate at June
30, 2005 for all other members of the Investment Funds Institute of Canada (IFIC) was 16.5%.
Investors Group's mutual fund assets under management at June 30, 2005 were $46.9 billion, an
increase of 10.3%, compared to $42.5 billion at June 30, 2004.
The number of Investors Group Consultants was 3,537 at June 30, 2005 compared to 3,207 at June 30, 2004, an increase of 10.3%.
Mackenzie Operations
Mackenzie Financial recorded mutual fund sales of $1.9 billion for the second quarter compared to
$1.6 billion for the same quarter last year. Mutual fund net sales for the period were $207 million,
compared to $219 million in the prior year. Net sales of long-term funds (excluding money market
and managed yield funds) were $231 million for the quarter, compared with $191 million in 2004.
Year-to-date mutual fund sales were $4.2 billion compared to $3.7 billion in the prior year. Mutual
fund net sales were $553 million compared to $562 million in the prior year. Net sales of long-term
funds (excluding money market and managed yield funds) were $599 million for the period
compared to $597 million in 2004.
"Client confidence has increased along with recent gains in equity markets", said Charles R. Sims,
President and Chief Executive Officer of Mackenzie Financial. "Mackenzie had another strong
quarter, sales of long-term mutual funds were 23.6% higher than in 2004."
Mackenzie Financial's twelve month trailing redemption rate for long-term funds was 14.7% at the
end of June 2005, compared to 13.5% at the end of June 2004. The corresponding rate at June 30,
2005 for all other members of IFIC was 15.9%.
Mackenzie Financial's mutual fund assets under management at June 30, 2005 were $38.9 billion, an
increase of 8.7%, compared to $35.8 billion one year ago. Total assets under management at June
30, 2005 totalled $45.9 billion compared to $39.9 billion at June 30, 2004, an increase of 15.1%.
Dividends
The Board of Directors has declared a quarterly dividend of $0.359375 per share on the Company’s
5.75% Non-Cumulative First Preferred Shares, Series “A” payable on September 30, 2005 to
shareholders of record on August 30, 2005 and has declared an increase of 2.25 cents per share in the
quarterly dividend from 32.25 cents to 34.5 cents per share on the Company’s common shares
payable on October 28, 2005 to shareholders of record on September 26, 2005.
Forward-Looking Information
This Release may contain forward-looking statements about the Company, 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 Company 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 Company, 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 Company 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 Company'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.
Financial Statements and Notes
Financial Statements and Notes [ PDF: 433 K / 13 pages ] 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 Company group of
companies.
For more information contact:
Ron Arnst
Media Relations
(204) 956-3364
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Media Note: A live webcast of IGM’s Analyst conference call for the Second Quarter 2005 will be
held today, Friday, August 5, 2005, at 9:30 A.M. (ET) at www.igmfinancial.com. Media and
interested parties may alternatively choose to listen to today's live analyst teleconference call by
dialing 1-888-789-0089 or (416) 695-5261. |
