• Asset management company, IGM Financial Inc (TSX:IGM) has seen a drop in first quarter earnings, as COVID-19 hit global markets
  • Net earnings were down to C$160.9 million, compared to $167.5 million in 2019’s same quarter
  • IGM’s assets under management dropped 8.4 per cent in the first quarter to $81.9 billion
  • The company stated the drop in assets was caused by COVID-19’s impact on the economy
  • IGM Financial Inc (IGM) is up 1.41 per cent, with shares trading for $28.09 and a market cap of $6.72 billion

Asset management company IGM Financial Inc (TSX:IGM) has seen a drop in first quarter earnings, as COVID-19 hits global markets.

Net earnings were down to C$160.9 million, compared to $167.5 million in 2019’s same quarter.

The company did not comment directly on the cause of the earnings drop.

However, IGM’s assets under management decreased 8.4 per cent in the quarter to $81.9 billion and the company did state this was the result of COVID-19’s economic impact.

Assets under administration also saw a similar 7.6 per cent drop, to $86.0 billion.

Looking forward, the company conceded that the recent uncertainty in the market is expected to continue.

Consequently, IGM has not released any estimates or predictions regarding the impact of COVID-19 on its operations in the coming quarters.

Jeffrey R. Carney, President and CEO of IGM did comment on the crisis’s impact on the company’s clients.

“Our focus throughout the COVID‐19 outbreak has been on serving our clients, supporting our people and ensuring safety and business continuity across our companies.

“We have been working with our clients to ensure that they have the support they need and remain focused on their financial plans. Our strong business results during the period, despite the impact of COVID‐19, reflect our focus on financial planning throughout different market environments,” he said. 

The company’s market share has reflected the recent economic downturn. Since late February, when the impact of the pandemic first began hitting global markets, the company’s share price has fallen by almost a third.

IGM Financial Inc (IGM) is up 1.41 per cent, with shares trading for $28.09 at 2:09pm EDT.

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