| Investors
Group
Review of the Business
INTRODUCTION Investors Group’s
core business provides a comprehensive range 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.
- Distribution fees charged to mutual fund account
holders.
Fee income is also earned from the distribution of
insurance products and securities services. Additional
revenue is derived from mortgage, banking and investment
certificate operations.
 Revenues
depend largely on the value and composition of assets
under management. 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 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. For
2003 Investors Group’s redemption rate for long-term
funds was 10.7% compared to 14.1% for all other members
of the Investment Funds Institute of Canada (IFIC).
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