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.
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.