July 30, 2008 / 11:59 PM / in 10 years

IGM Financial adjusted profit flat, revenue slips

TORONTO, July 30 (Reuters) - IGM Financial (IGM.TO) said second-quarter profit climbed 12 percent as the mutual fund manager benefited from an affiliated company’s one-time gain, but profit was flat without the gain as revenue fell slightly.

IGM, Canada’s largest independent fund company, said on Wednesday net income was C$241.1 million ($236 million), or 91 Canadian cents a share, in the three months ended June 30. That was up from C$215.9 million, or 81 Canadian cents a share, a year earlier.

But adjusted to exclude its C$25 million share of an affiliate insurance company’s one-time gain, the Winnipeg, Manitoba-based fund manager said it earned C$216.1 million, or 81 Canadian cents a share.

Analysts had expected 80 Canadian cents a share before items, according to Reuters Estimates.

IGM, which manages mutual funds through its Investors Group and Mackenzie Financial units, said gross revenue — composed of fees and net investment income — was C$721.1 million in the quarter, down slightly from C$721.9 million a year earlier.

Total assets under management at June 30 fell 5 percent from a year earlier to C$119.7 billion.

Earlier in the day its affiliate, insurer Great-West Lifeco (GWO.TO), said quarterly profit more than doubled to C$1.21 billion, thanks to a C$649 million gain on the sale of its U.S. health-care business.

Both IGM and Great-West Lifeco are controlled by Power Financial Corp (PWF.TO), which is due to report results on Thursday.

IGM also owns 4.2 percent of Great-West Lifeco, according to Power Financial’s website. ($1=$1.02 Canadian) (Reporting by Lynne Olver; Editing by Braden Reddall)

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