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Review of the Business
Introduction
Investors Group’s core business is
to provide a comprehensive array of financial and investment
planning services to Canadians through its network of highly
trained and well-supported Consultants.
Investors Group earns revenue primarily
from management fees for advising and managing its mutual
funds, fees charged to its mutual funds for administrative
and trustee services, and distribution fees charged to account
holders for the distribution of its mutual funds by Investors
Group’s Consultants. Fee income is also earned from the
distribution of insurance products and securities services.
Additional revenue is derived from mortgage operations and
investment certificate operations.
Revenues depend largely on the value and
composition of assets under management. Fluctuations in financial
markets can affect revenues and operating results. By offering
a broad range of products and services to meet the varied
needs and objectives of individual clients, management believes
that the base of assets under management is secure and able
to withstand downward pressure on revenue caused by market
volatility. The effectiveness of this approach has been demonstrated
by consistent levels of sales over the long-term and by redemption
rates for Investors Group’s mutual funds that are among
the lowest in the industry.
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