IGM Financial fourth-quarter profit slips, but fund sales stronger

Fri Feb 14, 2014 12:10pm EST
 
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TORONTO (Reuters) - IGM Financial Inc (IGM.TO: Quote), one of Canada's top mutual fund companies, said on Friday that fund sales and assets under management surged in the fourth quarter, but net profit fell as the year-before period included a favorable tax benefit.

The Winnipeg, Manitoba-based company earned C$197.1 million ($179.56 million), or 78 Canadian cents per share, in the quarter. That was down from a year-earlier profit of C$202 million, or 80 Canadian cents a share, which included a C$24.4 million favorable change in income tax provision estimates.

Shares of IGM were up 22 Canadian cents at C$55.19. The company, a division of the Montreal-based Desmarais family's Power Corp POW.TO empire, operates primarily under the Investors Group and Mackenzie Investments banners.

Excluding two small items, IGM earned 79 Canadian cents a share. Analysts had expected a profit of 80 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Mutual fund gross sales at Investors Group were C$1.69 billion in the quarter up from C$1.42 billion a year earlier. At Mackenzie, fund sales hit C$2.02 billion, up from C$1.85 billion.

Total assets under management at December 31 were C$131.8 billion, up from C$120.7 billion.

(Reporting by Cameron French; Editing by Jeffrey Benkoe and Chizu Nomiyama)