Posted: 05 Jan 2007 15:37
I bought half a position now and I'm going to buy the other half later if I get a chance to
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https://www.financialwisdomforum.org/forum/viewtopic.php?t=199
Perhaps.boib22 wrote:On Jan 3rd IGM reported sales and assets under management. Investors obviously didn’t like what they saw as they have been dumping the stock ever since.
I've fixed the source: Hi=3.30 Lo=2.50 Avg=2.90 based on the table I included up thread. This isn't an exact science which means that I arbitrarily fiddle with data if I'm so inclined. I tend to exclude apparent outliers which is why the Hi, Lo, Avg here don't match the Hi,Lo, Avg in the table up thread.andyt wrote:"IGMs 10 year Highest Yield is 2.50%, 10 Year Lowest 1.50% and 10 Year Average 2.00%. Toaday's yield is 3.28%, 0.78% above it's 10 Year Highest Yield".
I use a 10 year average to derive my high, low, and average yield. I arbitrarily exclude outliers if I think they might be distorting the average.andyt wrote:Yielder
Thanks for the clarification but I am still somewhat confused (this happens) by the following"
"I checked IGM at fpinfomart and they show a 2003 dividend of 0.99 with a stock price high of $32.00 and a low of $23.60, yielding 4.20%".
Your updated information shows a Hi=3.30%, a discrepancy of 0.9%. Perhaps I am mistaken in assuming that at the low of $23.60, IGM paid a dividend of 0.99?
Thanks
andyt
$291,117,000
That's the sum of the various operational fees and the reported management fee paid by Investors Dividend for the fiscal year 2006. The fund's management-expense ratio, which is in the neighbourhood of 2.8% of assets depending on the series, accounted for 80% of the fund's total expenses. To illustrate how large this sum of money is, more than three-quarters of the funds in Morningstar Canada's database don't even have assets under management that high. It surprises us that with Investors Group's massive asset base, and considering that Investors Dividend is the largest mutual fund in Canada (with over $13 billion in assets), the firm doesn't pass more of the savings from the economies of scale to unitholders.
How sustainable is the dividend/dividend growth if AUM shrink because of market price declines and/or redemptions?zaman wrote:Currently yielding 3.6%, based on yield, this seems like a buy. Although I wonder if a bit more volatility might lower the price some more. In volatile times like this I wonder if IG's share price may get over punished. Any thoughts?
Do you have any facts to support that statement? According to my reading of IGM's press releases, their latest AUM is less than 1% lower than the previous quarter, so it doen't appear there's been "a lot of redemption activity" since their last quarterly report.investor99 wrote:There is going to be a lot of redemption activity reflected in their next earnings report.
Norman Levine said the same thing about CI Financial yesterday on BNN... if you believe anything any of the BNN guests ever say about any stock at any time. He advised waiting because of reductions in AUM due to current market volatility.Arby wrote:Do you have any facts to support that statement? According to my reading of IGM's press releases, their latest AUM is less than 1% lower than the previous quarter, so it doen't appear there's been "a lot of redemption activity" since their last quarterly report.investor99 wrote:There is going to be a lot of redemption activity reflected in their next earnings report.
..perhaps I shouldn't have used the terms 'a lot', however redemptions are never a good thing.By Sean B. Pasternak
Sept. 5 (Bloomberg) -- Royal Bank of Canada and IGM Financial Inc. had net mutual-fund redemptions last month after a global credit crunch prompted Canadian investors to sell money-market funds.
Royal Bank, the country's largest lender, had redemptions of C$64 million ($61 million), according to a statement today. It was the first monthly decline in three years for the Toronto- based bank, according to the Investment Funds Institute of Canada.
Winnipeg, Manitoba-based IGM Financial, the largest fund company, had net withdrawals of C$144.7 million. CI Financial Income Fund, the second-largest, said it had net redemptions of C$137 million.
Investors shunned money-market funds last month after the market for asset-backed commercial paper issued by non-bank dealers seized up on concern the funds may have investments linked to U.S. subprime mortgages.
Well, I sold all of my Mackenzie Cash Management fund until I was able to determine what was in the portfolio. Once I knew, I bought re-established the holding. I wouldn't be surprised to see a surge in money-market fund subscriptions this month. MMF's don't make fundco's much money between the relatively low MERs and high shareholder servicing costs that result from revolving door subscription/redemption activity.investor99 wrote:By Sean B. Pasternak
Sept. 5 (Bloomberg) -- Royal Bank of Canada and IGM Financial Inc. had net mutual-fund redemptions last month after a global credit crunch prompted Canadian investors to sell money-market funds.