IGM Financial Inc IGM
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/09/2012

Operator: Good morning and welcome to the IGM Financial Third Quarter 2012 Earnings Results Conference Call for Friday, November 9th, 2012.

Your host for today will be Charlie Sims and Murray Taylor. Please go ahead Mr. Sims.

Charles R. Sims - Co-President and CEO, IGM Financial Inc.: Thank you, Dave. Good morning. We are also joined today in Winnipeg by Kevin Regan, IGM's CFO. Thank you for joining us today as we review the 2012 third quarter results for IGM Financial and its main operating subsidiaries; Mackenzie Investments and Investors Group.

Before we get started on our presentation, I'd like to draw your attention to our caution concerning forward-looking statements on Page 3 of our material, and ask that you read and familiarize yourself with them.

Also, we have set out for your on Page 4 an explanation of non-IFRS financial measures that are used within our presentation material, and referenced by us from time to time in our comments. Finally, we have set out the documents that are incorporated by reference in our material today. This summary presentation and webcast are meant to discuss, not serve as a substitute for information included in the documents listed on Page 5.

Please note that IGM Financial commenced an automatic securities purchase plan on October 4th, to repurchase its common shares based on standard instructions during predetermined trading blackout periods. Outside of these blackout periods, repurchases will continue to be completed based upon management's discretion.

Now, we will begin with the financial highlights of IGM Financial on Page 7 of our material. Operating earnings for the third quarter were $186.9 million, or $0.73 per share compared to $213 million or $0.82 per share for the same period in 2011.

Operating earnings for the nine months ended September 30th, were $565 million, or $2.21 per share compared to operating earnings of $637 million or $2.46 per share for the year-to-date in 2011.

Yesterday, the Board of Directors of IGM declared a dividend of $53.75, maintaining the level of the dividend declared and paid last quarter. The dividends declared and paid for the nine months ended September 30th 2012 were up 3.2% over the same period for the prior here. Based on Wednesday's closing comments, share price of IGM Financial, its dividend level implies an annualized yield of 5.47%.

Moving to Page 8 of our presentation, gross sales for the Company were $3.1 billion for the quarter with mutual fund sales contributing $2.4 billion of this total. Year-to-date sales for IGM were $10.6 billion. Mutual fund year-to-date sales were $8.3 billion.

Turning to Page 9, IGM Financial experienced net redemptions for the quarter of $1.8 billion on a consolidated basis and we'll have more discussion around that at the operating company level and $4.3 billion on a year-to-date basis.

On Page 10, in the first highlighted box, you'll see in the second column from the right side of the page that our assets under management increased to 1.1% from the prior quarter to $119.3 billion. In the last column, we see that AUM is up 2.2% from September 30th, 2011. We had average assets under management of $118.2 billion for the quarter which is down 0.9% from the prior quarter and also down 4.7% from the same period in the prior year.

Read our Earnings Call Transcript disclaimer.
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