August 4, 2011 / 4:33 PM / 6 years ago

UPDATE 2-IGM profit beats expectations, raises dividend

* Q2 EPS C$0.84 vs analyst forecast C$0.81

* Revenue rises to C$710.2 mln from C$636.7 mln

* Shares down 0.69 pct on TSX amid broad market decline

TORONTO, Aug 4 (Reuters) - IGM Financial (IGM.TO), one of Canada's largest mutual fund companies, reported a higher quarterly profit on Thursday on the back of stronger fee revenues and investment income.

The Winnipeg, Manitoba-based asset manager also said it raised its quarterly dividend to 53.75 Canadian cents a share from 51.25 Canadian cents.

IGM said it earned a net C$216.9 million ($223.6 million), or 84 Canadian cents a share, in the second quarter, ended June 30. That compared with a year-before profit of C$178.3 million, or 68 Canadian cents a share.

Analysts had expected earnings of 81 Canadian cents a share, according to Thomson Reuters I/B/E/S.

IGM, which is around 60 percent owned by Power Financial Corp, said revenue rose to C$710.2 million from C$636.7 million.

Fund management fees rose to C$491.7 million from C$455.5 million, while distribution fees climbed to C$84 million from C$71.9 million.

Investment income was C$41.5 million during the quarter, up from C$20.1 million.

Total assets under management rose 12.5 percent from a year earlier to C$130.2 billion.

Combined commission, noncommission, and interest expenses rose to C$427 million from C$399 million.

Shares in the company were were down 0.69 percent at C$47.30 on the Toronto Stock Exchange shortly after the results were announced around midday in a broad-based market decline.

$1=$0.97 Canadian Reporting by John McCrank; editing by Rob Wilson

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