IGM Financial profit, revenue drop

Fri May 4, 2012 10:55am EDT
 
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(Reuters) - IGM Financial (IGM.TO: Quote), one of Canada's largest mutual fund companies, said on Friday its quarterly earnings fell along with assets under management and sales.

The Winnipeg, Manitoba-based company said net earnings were C$199.7 million ($202.40 million), or 78 Canadian cents a share, in the first quarter ended March 31. That was down from C$212.1 million, or 81 Canadian cents a share, in the year-earlier period but slightly above analyst expectations for a per share profit of 77 Canadian cents.

Shares in IGM, a division of the Montreal-based Desmarais family's Power Corp POW.TO empire, fell 85 Canadian cents in early trade to C$45.15 on the Toronto Stock Exchange.

Revenue fell to C$673.1 million from C$711.4 million a year earlier. Assets under management also declined, slipping 7.4 percent to C$124.1 billion from C$134.1 billion.

Mutual fund sales at IGM's Investors Group operations fell to C$1.83 billion from $2.05 billion as redemptions picked up. Sales of the Mackenzie group of funds fell to C$2.72 billion from C$3.49 billion.

($1=$0.99 Canadian)

(Reporting By Andrea Hopkins; Editing by Peter Galloway)