IA Financial Group grew its assets under administration in 2016, reaching $126.2 billion at the end of the year, up 9% from $115.8 billion at the end of 2015.
Reporting its fourth-quarter results for the period ending December 31, 2016, the company said net income for its individual wealth management segment was $120 million for fiscal 2016, down slightly compared to $136 million in 2015.
The results did not include Industrial Alliance’s acquisition of HollisWealth, a deal expected to close in the third quarter of 2017. The firm said last year it would be taking on HollisWealth’s $34 billion in AUA and 800 licensed advisors.
In December, IA completed an offering of 2.75 million common shares for gross proceeds of $153 million. The net proceeds will be used, in part, to fund the acquisition of HollisWealth.
Yvon Charest, president and CEO, said on a conference call with analysts that the acquisition integration in 2017 will likely cost $0.06 per share. That, plus the stock issuance, leads to an estimated combined cost of $0.16 per share.
The combination of IA Financial and HollisWealth will “propel us to the top of non-bank mutual fund distribution in Canada in terms of geographic footprint and assets under administration,” the company said in a release.
In retail wealth management, the company said gross sales of mutual funds increased, with net inflows reaching $77.2 million in 2016 compared to net outflows of $247.5 million in 2015.
Overall, IA reported net income attributed to common shareholders of $537 million for 2016, up from $364 million in 2015.