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IGM Financial posts lower first-quarter profits

Total assets under management for Winnipeg-based IGM tumbled 8 per cent to $118.7-billion from a year earlier.

J.P. Moczulski/Reuters/J.P. Moczulski/Reuters

IGM Financial Inc. reported a 6-per-cent decline in first-quarter profit as investors withdrew $853-million from its mutual funds during the key registered retirement savings plan (RRSP) season.

The wealth-management firm's Mackenzie Financial unit, which sells funds through independent financial advisers, suffered from $933-million in net fund outflows in the quarter versus net sales of $121-million a year ago.

Winnipeg-based IGM's Investors Group subsidiary, which sells funds through its own adviser network, saw net sales plunge to $175-million in first three months from $504-million a year earlier.

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During its last quarterly conference last, IGM executives had telegraphed that sales would be softer because of investor jitters stemming from last year's stock market volatility.

Profit for the wealth-management firm fell to $199.7-million, or 78 cents a share, in the first quarter from $212.1-million, or 81 cents a share, a year earlier. Total revenue fell to $671-million from $711.4-million a year ago.

Total assets under management for IGM, a subsidiary of Power Financial Corp., dropped 7.4 per cent to $124.1-billion at March 31 from a year earlier.

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