The wealth manager, IGM Financial (IGM), perhaps better known as Investor's Group - Mackenzie reported second quarter earnings after the bell today. IGM's earnings were up about 16% adjusted for items from 2006. Canadian mutual fund sales looked very strong indeed. Total Assets Under Management were up over 21%.
With market conditions worsening considerably over the last few weeks, I would imagine their third quarter might be relatively more challenging. There could be some mutual fund redemptions going on.... Regardless, the business model is superb, as their revenue from MER fees etc. is bound to increase with the market values of assets over time. Also, the demographic conditions that exist today in Canada can only help them as a great number of people are entering into the stage of their lives where saving and investing becomes a necessity.
IGM also hiked it's dividend 7.6%. IGM actually raises it's dividend twice annually, and has raised at a staggering compounded rate of about 18% over the past 6 years.