(July 26 – 16:40 ET) – Mackenzie Financial Corp. is reporting improved earnings for the first quarter ended June 30. The fund company says it earned $40.1 million, or 31¢ a share, an increase of 22% from earnings of $33 million, or 26¢ a share a year ago. It says the increase reflects recent reductions in Federal and Ontario corporate income tax rates.

First quarter revenue rose 10% to $210.3 million, an increase of $19.3 million. Distribution revenues jumped by $5.1 million to $15.3 million in the current quarter, a result of higher fees earned on the redemption of Mackenzie’s Canadian mutual funds.

Expenses for the three month period were $159.1 million, an increase of $27.2 million from the corresponding period last year. Mackenzie says the increase reflects increased costs to launch nine new funds during the quarter, and higher compensation and benefit costs at its U.S. subsidiary.

Assets under administration during the quarter rose to $39.7 billion, an increase of $5 billion from June 30, 1999.
-IE Staff