IGM outperforms mutual fund industry

Article Excerpt

IGM FINANCIAL INC. $39 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 262.4 million; Market cap: $10.2 billion; Price-to-sales ratio: 4.4; Dividend yield: 5.3%; SI Rating: Above Average) reported that its clients redeemed $219.7 million of investments in May 2010, mainly because of stock-market volatility caused by the European debt crisis. Still, as of May 31, 2010, IGM’s assets under management were up 9.2%, to $118.5 billion from $108.5 billion a year earlier. That’s mainly because, despite recent volatility, stock markets are up about 10% from a year ago. IGM’s performance was much better than that of the Canadian mutual-fund industry, which posted an average 3.4% drop in assets under management for the same period. IGM’s fees rise and fall with the value of the mutual funds and other securities it manages, so the company’s revenue and earnings benefit when the value of these assets rise. IGM Financial is a buy. buy…