/EINPresswire.com/ -- WINNIPEG, MANITOBA -- (Marketwired) -- 08/04/16 -- Readers are referred to the disclaimer regarding Forward-Looking Statements 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 second quarter of 2016.

Net earnings available to common shareholders for the three months ended June 30, 2016 were $172.9 million or 72 cents per share compared to net earnings available to common shareholders of $198.5 million or 80 cents per share for the comparative period in 2015.

Net earnings available to common shareholders for the six months ended June 30, 2016 were $339.9 million or $1.40 per share compared to net earnings available to common shareholders of $398.8 million or $1.59 per share for the comparative period in 2015.

Revenues for the three months ended June 30, 2016 were $744.3 million compared to $763.2 million a year ago. Revenues for the six months ended June 30, 2016 were $1.47 billion compared to $1.52 billion a year ago. Expenses were $521.8 million for the second quarter of 2016 compared to $506.5 million a year ago and $1.03 billion for the six month period compared to $1.01 billion a year ago.

Total assets under management at June 30, 2016 were $134.7 billion compared to $136.0 billion at June 30, 2015. Mutual fund assets under management at June 30, 2016 were $128.7 billion compared to $129.7 billion at June 30, 2015.

Shareholders' equity at June 30, 2016 was $4.7 billion, compared to $4.8 billion at June 30, 2015. Return on average common equity for the six months ended June 30, 2016 was 14.7% compared to 17.0% for the comparative period in 2015.

Investors Group Operations

"Mutual fund assets under management at June 30, 2016 reached $76.2 billion, largely on the strength of strong investment returns in the quarter," said Jeffrey R. Carney, President and Chief Executive Officer of Investors Group Inc. and IGM Financial Inc. "The Maestro Portfolio funds, which combine a long-term investment management outlook with dynamic asset allocation strategies, continued to grow in the quarter, reaching $2.2 billion at June 30, 2016 since their launch one year ago."

Mutual fund sales for the second quarter of 2016 were $1.8 billion, a decrease of 6.1% compared to $1.9 billion in the prior year and mutual fund net redemptions for the second quarter of 2016 were $168 million compared to net sales of $27 million a year ago.

Mutual fund sales for the six months ended June 30, 2016 were $4.0 billion, a decrease of 5.0% compared to $4.3 billion in the prior year and mutual fund net sales were $299 million compared to net sales of $615 million a year ago.

The twelve month trailing redemption rate (excluding money market funds) was 8.8% at June 30, 2016, compared to 8.7% at March 31, 2016.

Mutual fund assets under management at June 30, 2016 were $76.2 billion compared to $75.8 billion at June 30, 2015.

Mackenzie Operations

Mutual fund sales for the second quarter of 2016 were $1.5 billion compared to $1.9 billion in the prior year. Mutual fund net redemptions for the second quarter were $375 million compared to net redemptions of $545 million a year ago.(1)

Mutual fund sales for the six months ended June 30, 2016 were $3.3 billion compared to $3.8 billion in the prior year. Mutual fund net redemptions were $573 million compared to net redemptions of $651 million a year ago. (1)

Total net redemptions for the second quarter of 2016 were $291 million compared to total net redemptions of $10.7 billion a year ago. Total net redemptions for the six months ended June 30, 2016 were $678 million compared to total net redemptions of $10.1 billion a year ago. Excluding rebalance activities,(1)(2) total net sales in 2015 were $84 million for the second quarter and $653 million for the six months ending June 30, 2015.

"Mackenzie continued to focus on meeting investor needs through high quality and innovative product solutions with the inaugural launch of six exchange traded funds as well as four new mutual funds during the quarter," said Jeffrey R. Carney, President and Chief Executive Officer of IGM Financial Inc. "As previously announced, Barry McInerney has now assumed the role of CEO of Mackenzie and I look forward to working with him closely as he leads the company into the future."

Mackenzie's total assets under management at June 30, 2016 were $61.7 billion compared to $63.0 billion at June 30, 2015. Mutual fund assets under management at June 30, 2016 were $48.2 billion compared to $49.9 billion a year ago.

(1) During the second quarter of 2015, certain third party programs which
    include Mackenzie mutual funds made fund allocation changes which
    resulted in net redemptions of $456 million.
(2) During the second quarter of 2015, MD Financial Management ("MD")
    reassigned 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.

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 and the preferred share dividend are payable on October 31, 2016 to shareholders of record on September 30, 2016.

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.

Additional IFRS Measures

This release contains additional IFRS measures. 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 over $138 billion in total assets under management as of July 31, 2016. 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 Second Quarter 2016 will be held on Thursday August 4, 2016 at 2:00 P.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 416-340-2216.

IGM FINANCIAL INC.
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Consolidated Statements of Earnings
(unaudited)
(in thousands of Canadian               Three months              Six months
 dollars, except shares                ended June 30           ended June 30
 and per share amounts)             2016        2015        2016        2015
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Revenues
  Management fees              $ 497,386   $ 517,279   $ 981,222 $ 1,026,390
  Administration fees            104,328     105,995     204,678     208,231
  Distribution fees               96,342      95,286     191,310     189,819
  Net investment income and
   other                          22,409      15,161      38,286      44,242
  Proportionate share of
   affiliate's earnings           23,876      29,508      51,684      55,410
                            ------------------------------------------------
                                 744,341     763,229   1,467,180   1,524,092
                            ------------------------------------------------

Expenses
  Commission                     267,128     267,687     528,643     534,554
  Non-commission                 231,740     215,853     459,607     429,475
  Interest                        22,913      22,964      45,826      45,714
                            ------------------------------------------------
                                 521,781     506,504   1,034,076   1,009,743
                            ------------------------------------------------
Earnings before income taxes     222,560     256,725     433,104     514,349
Income taxes                      47,457      56,051      88,825     111,116
                            ------------------------------------------------
Net earnings                     175,103     200,674     344,279     403,233
Perpetual preferred share
 dividends                         2,212       2,212       4,425       4,425
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Net earnings available to
 common shareholders           $ 172,891   $ 198,462   $ 339,854   $ 398,808
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Average number of common
 shares
(in thousands)
  - Basic                        241,071     248,957     242,100     250,076
  - Diluted                      241,221     249,128     242,197     250,266

Earnings per share (in
 dollars)
  - Basic                         $ 0.72      $ 0.80      $ 1.40      $ 1.59
  - Diluted                       $ 0.72      $ 0.80      $ 1.40      $ 1.59
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IGM FINANCIAL INC.
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Financial Highlights
                         For the three months        As at and for the six
                                ended June 30         months ended June 30
                     ------------------------  ---------------------------
(unaudited)             2016     2015  Change       2016      2015  Change
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Net earnings
 available to common
 shareholders
($ millions)         $ 172.9  $ 198.5   (12.9)%  $ 339.9   $ 398.8   (14.8)%

Diluted earnings per
 share                  0.72     0.80   (10.0)      1.40      1.59   (11.9)

Return on equity                                    14.7%     17.0%

Dividends per share   0.5625   0.5625       -      1.125     1.125       -

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Total assets under
 management (1)
($ millions)                                   $ 134,681 $ 135,971    (0.9)%
  Investors Group
    Mutual funds                                  76,203    75,844     0.5
  Mackenzie
      Mutual funds                                48,210    49,853
      Sub-advisory,
       institutional
       and other
       accounts                                   13,457    13,172
    Total                                         61,667    63,025    (2.2)
  Counsel
    Mutual funds                                   4,316     4,053     6.5

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Mutual Funds and
 Institutional Sales        Investors                                Total
 ($ millions)                   Group          Mackenzie   Counsel      (2)
                            ----------------------------------------------
  For the three
   months ended                        Mutual
   June 30, 2016                        Funds      Total
    Gross sales               $ 1,778 $ 1,494    $ 3,013     $ 213 $ 4,519
    Net sales
     (redemptions)               (168)   (375)      (291)       31    (501)

  For the six
   months ended
   June 30, 2016
    Gross sales               $ 4,045 $ 3,335    $ 5,696     $ 475 $ 9,191
    Net sales
     (redemptions)                299    (573)      (678)      110    (435)

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(1) Total assets under management excluded $7.5 billion of assets sub-
    advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel ($6.9 billion at June 30, 2015).
(2) Total Gross Sales and Net Sales for the three months ended June 30, 2016
    excluded $485 million and $73 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 six months ended June 30, 2016
    excluded $1.0 billion and $166 million, respectively, in accounts sub-
    advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel.

Contacts:
Media Relations:
Ron Arnst
204-956-3364
ron.arnst@igmfinancial.com

Investor Relations:
Paul Hancock
204-956-8103
paul.hancock@igmfinancial.com

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