May 2, 2008 / 3:18 PM / 10 years ago

IGM Financial profit flat as sales slide

TORONTO (Reuters) - IGM Financial (IGM.TO), the country’s biggest independent mutual fund manager, said on Friday its first-quarter profit was essentially flat from a year earlier, as lower taxes offset weaker mutual fund sales and declining assets under management.

IGM Financial said it earned C$211.2 million ($207 million), or 79 Canadian cents a share, in the three months ended March 31.

That compared with net income of C$210.5 million, or 79 Canadian cents a share, in the 2007 period.

Analysts had expected the Winnipeg-based company, which manages mutual funds through its Investors Group and Mackenzie Financial units, to earn 80 Canadian cents a share before exceptional items, according to Reuters Estimates.

Revenues slipped to C$714.7 million from C$720.8 million, while operating expenses rose to C$424.4 million from C$410.5 million.

However, lower income taxes, which fell to C$78.6 million from C$99.1 million, enabled the company to report a profit.

Gross fund sales at Investors group eased to C$2 billion in the quarter from C$2.3 billion in the year-before quarter, while Mackenzie’s fund sales slid to C$3.1 billion from C$3.7 billion.

Total assets under management at the end of March were C$119 billion, down from C$123.4 billion a year earlier.

The company’s stock was up 17 Canadian cents at C$47.73.

($1=$1.02 Canadian)

Reporting by Cameron French

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