/EINPresswire.com/ -- WINNIPEG, MANITOBA -- (Marketwired) -- 11/05/15 -- Readers are referred to the disclaimer regarding Forward-Looking Statements, Non-IFRS Financial Measures and Additional IFRS Measures at the end of this Release.

IGM Financial Inc. (IGM or the Company) (TSX: IGM) today announced earnings results for the third quarter of 2015.

Operating earnings and net earnings available to common shareholders for the three months ended September 30, 2015 were $199.0 million or 81 cents per share compared to operating earnings and net earnings available to common shareholders of $219.7 million or 87 cents per share in 2014.

Operating earnings available to common shareholders for the nine months ended September 30, 2015 were $597.8 million or $2.40 per share compared to operating earnings available to common shareholders, excluding other items,(1) of $618.0 million or $2.44 per share in 2014.

Net earnings available to common shareholders for the nine months ended September 30, 2015 were $597.8 million or $2.40 per share compared to net earnings available to common shareholders of $604.4 million or $2.39 per share for the comparative period in 2014.

Revenues for the three months ended September 30, 2015 were $751.7 million compared to $750.2 million a year ago. Revenues for the nine months ended September 30, 2015 were $2.28 billion compared to $2.19 billion a year ago. Expenses were $494.8 million for the third quarter of 2015 compared to $463.8 million a year ago and $1.50 billion for the nine month period compared to $1.41 billion a year ago.

Total assets under management at September 30, 2015 were $130.9 billion compared to $140.6 billion at September 30, 2014. Mutual fund assets under management at September 30, 2015 were $124.9 billion compared to $125.2 billion at September 30, 2014.

Shareholders' equity at September 30, 2015 was $4.8 billion, compared to $4.9 billion at September 30, 2014. Return on average common equity based on operating earnings for the nine months ended September 30, 2015 was 17.0% compared to 17.7% for the comparative period in 2014.

Investors Group Operations

"Mutual fund quarterly gross sales are the highest level of third quarter sales in the history of the Company. This strong result was due in part to the successful launch in the quarter of the Maestro Portfolio of funds, which had grown to $225 million at September 30, 2015," said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. "The growth in our Consultant network remained strong reaching an all time high of 5,221 at September 30, 2015."

Mutual fund sales for the third quarter of 2015 were $1.8 billion, an increase of 5.0% compared to $1.7 billion in the prior year, and mutual fund net sales for the third quarter were $139 million compared to net sales of $86 million a year ago.

Mutual fund sales for the nine months ended September 30, 2015 were $6.1 billion, an increase of 8.0% compared to $5.6 billion in the prior year, and mutual fund net sales were $754 million compared to net sales of $457 million a year ago.

The twelve month trailing redemption rate (excluding money market funds) was 8.4% at September 30, 2015, compared to 8.5% at June 30, 2015.

Mutual fund assets under management at September 30, 2015 were $73.5 billion compared to $72.7 billion at September 30, 2014.

Mackenzie Operations

Mutual fund sales for the third quarter of 2015 were $1.5 billion compared to $1.4 billion in the prior year. Mutual fund net redemptions for the third quarter were $180 million compared to net redemptions of $207 million a year ago.

Mutual fund sales for the nine months ended September 30, 2015 were $5.3 billion compared to $5.5 billion in the prior year. Mutual fund net redemptions were $831 million compared to net sales of $262 million a year ago.(2)

Total net redemptions for the third quarter of 2015 were $126 million compared to total net redemptions of $1.1 billion a year ago. Total net redemptions for the nine months ended September 30, 2015 were $10.2 billion compared to total net sales of $1.1 billion a year ago. Excluding rebalance activities,(2)(3) total net redemptions for the third quarter of 2015 were $126 million compared to total net redemptions of $196 million a year ago and total net sales for the nine months ended September 30, 2015 were $527 million compared to total net sales of $1.1 billion a year ago.

"Mutual fund gross sales of $1.5 billion are the highest level of third quarter sales since 2008," said Jeffrey R. Carney, President and Chief Executive Officer of Mackenzie Financial Corporation. "The strength of gross sales in the quarter was led by sales in the global equity category, which were up 42%."

Mackenzie's total assets under management at September 30, 2015 were $60.3 billion compared to $70.0 billion at September 30, 2014. Mutual fund assets under management at September 30, 2015 were $47.4 billion compared to $48.8 billion a year ago.

Dividends

The Board of Directors has declared a dividend of 56.25 cents per share on the Company's common shares and has declared a dividend of $0.36875 per share on the Company's 5.90% Non-Cumulative First Preferred Shares, Series "B". The common share dividend is payable on January 29, 2016 to shareholders of record on December 31, 2015. The preferred share dividend is payable on February 1, 2016 to shareholders of record on December 31, 2015.

1.  Other items for the nine months ended September 30, 2014 consisted of an
    after-tax charge of $13.6 million related to restructuring and other
    charges.

2.  During the nine months ended September 30, 2015, there was a mutual fund
    rebalance by an institutional client which resulted in net redemptions
    of $12 million, and third party programs which include Mackenzie mutual
    funds made fund allocation changes which resulted in net redemptions of
    $444 million.

3.  During the nine months ended September 30, 2015, MD Financial Management
    ("MD") re-assigned sub-advisory responsibilities on four fixed income
    mandates (totalling $10.3 billion) advised by Mackenzie. The impact on
    Mackenzie's pre-tax earnings from these mandate changes is not
    meaningful. Following the changes, Mackenzie continues to advise MD on a
    number of fixed income, balanced and equity mandates.

    During the third quarter of 2014, there were tactical rebalances by an
    institutional client that resulted in redemptions of $905 million.

    During the nine months ended September 30, 2014, there were tactical
    rebalances by an institutional client that resulted in net sales of $35
    million into separately managed account investment mandates advised by
    Mackenzie.

Forward-Looking Statements

Certain statements in this Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial's current expectations. Forward-looking statements are provided to assist the reader in understanding the Company's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.

A variety of material factors, many of which are beyond the Company's and its subsidiaries' control, affect the operations, performance and results of the Company, and its subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company's and its subsidiaries' success in anticipating and managing the foregoing factors.

The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements.

Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Non-IFRS Financial Measures and Additional IFRS Measures

This release contains non-IFRS financial measures and additional IFRS measures. Net earnings available to common shareholders, which is an additional measure in accordance with International Financial Reporting Standards (IFRS), may be subdivided into two components consisting of:

--  Operating earnings available to common shareholders; and
--  Other items, which include the after-tax impact of any item that
    management considers to be of a non-recurring nature or that could make
    the period-over-period comparison of results from operations less
    meaningful.

Terms by which additional IFRS measures are identified include "earnings before income taxes" and "net earnings available to common shareholders". Additional IFRS measures are used to provide management and investors with additional measures to assess earnings performance. These measures are considered additional IFRS measures as they are in addition to the minimum line items required by IFRS and are relevant to an understanding of the entity's financial performance.

The Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) of operating results are available on IGM Financial Inc.'s website at www.igmfinancial.com.

IGM Financial Inc. is one of Canada's premier personal financial services companies, and one of the country's largest managers and distributors of mutual funds and other managed asset products, with approximately $134 billion in total assets under management as of October 31, 2015. Its activities are carried out principally through Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.

Media Note: A live webcast of IGM's Analyst conference call for the Third Quarter 2015 will be held on Friday November 6, 2015 at 10:00 A.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to the live analyst teleconference call by dialing 1-866-223-7781 or 416-340-2218.

IGM FINANCIAL INC.
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Consolidated Statements of Earnings

(unaudited)
(in thousands of Canadian         Three months ended       Nine months ended
dollars, except shares                  September 30            September 30
and per share amounts)                2015      2014        2015        2014
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Revenues
  Management fees                $ 508,531 $ 517,063 $ 1,534,921 $ 1,506,716
  Administration fees              104,595   101,997     312,826     296,529
  Distribution fees                 92,695    84,968     282,514     263,492
  Net investment income and other   19,545    21,257      63,787      50,180
  Proportionate share of
   affiliate's earnings             26,362    24,877      81,772      68,316
                                 -------------------------------------------
                                   751,728   750,162   2,275,820   2,185,233
                                 -------------------------------------------

Expenses
  Commission                       263,158   249,833     797,712     738,701
  Non-commission                   208,471   190,802     637,946     597,741
  Interest                          23,200    23,200      68,914      68,913
                                 -------------------------------------------
                                   494,829   463,835   1,504,572   1,405,355
                                 -------------------------------------------
Earnings before income taxes       256,899   286,327     771,248     779,878
Income taxes                        55,660    64,456     166,776     168,883
                                 -------------------------------------------
Net earnings                       201,239   221,871     604,472     610,995
Perpetual preferred share
 dividends                           2,213     2,213       6,638       6,638
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Net earnings available to common
 shareholders                    $ 199,026 $ 219,658   $ 597,834   $ 604,357
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Average number of common shares
(in thousands)
  - Basic                          246,953   252,089     249,025     252,247
  - Diluted                        247,059   252,788     249,169     253,079

Earnings per share (in dollars)
  - Basic                           $ 0.81    $ 0.87      $ 2.40      $ 2.40
  - Diluted                         $ 0.81    $ 0.87      $ 2.40      $ 2.39
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IGM FINANCIAL INC.
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Financial Highlights
 (unaudited)             For the three months       As at and for the nine
                           ended September 30    months ended September 30
                    -------------------------  ---------------------------
                         2015    2014  Change       2015     2014   Change
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Earnings available
 to common
 shareholders
($ millions)
  Operating
   Earnings(1)        $ 199.0 $ 219.7    (9.4)%  $ 597.8  $ 618.0     (3.3)%
  Net Earnings          199.0   219.7    (9.4)     597.8    604.4     (1.1)

Diluted earnings per
 share
  Operating
   Earnings(1)           0.81    0.87    (6.9)      2.40     2.44     (1.6)
  Net Earnings           0.81    0.87    (6.9)      2.40     2.39      0.4

Return on equity
  Operating
   Earnings(1)                                      17.0%    17.7%
  Net Earnings                                      17.0%    17.4%

Dividends per share    0.5625  0.5375     4.7     1.6875   1.6125      4.7

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Total assets under
 management(2) ($ millions)                     $130,923 $140,617     (6.9)%
  Investors Group
  Mutual funds                                    73,532   72,686      1.2
  Mackenzie
    Mutual funds                                  47,420   48,774
    Sub-advisory,
     institutional and other
     accounts                                     12,871   21,180
  Total                                           60,291   69,954    (13.8)
  Counsel
  Mutual funds                                     4,005    3,769      6.3
                                                                .
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Mutual Funds and
 Institutional Sales      Investors
($ millions)                  Group      Mackenzie        Counsel Total (3)
                          ------------------------------------------------
  For the three months
   ended September 30,                Mutual
   2015                                Funds      Total
    Gross sales             $ 1,810  $ 1,485    $ 2,623     $ 185  $ 3,791
    Net sales
     (redemptions)              139     (180)      (126)       54      (92)

  For the nine months
   ended September 30,
   2015
    Gross sales             $ 6,069  $ 5,313    $ 9,345     $ 538 $ 13,738
    Net sales
     (redemptions)              754     (831)   (10,229)      135   (9,930)


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(1) Non-IFRS Financial Measures: 2014 operating earnings excluded an after-
    tax charge of $13.6 million, recorded in the second quarter, related to
    restructuring and other charges.
(2) Total assets under management excluded $6.9 billion of assets sub-
    advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel ($5.8 billion at September 30, 2014).
(3) Total Gross Sales and Net Sales for the three months ended September 30,
    2015 excluded $827 million and $159 million, respectively, in accounts
    sub-advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel.
    Total Gross Sales and Net Sales for the nine months ended September 30,
    2015 excluded $2.2 billion and $590 million, respectively, in accounts
    sub-advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel.

Contacts:
Ron Arnst
Media Relations
IGM Financial Inc.
(204) 956-3364
ron.arnst@igmfinancial.com

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