Investors Group
Review of Segment Operating Results

Net investment income and other includes interest and dividends earned on cash and cash equivalents, securities and mortgage loans. It also includes gains and losses on the sale of securities, Investors Group’s share of an affiliate’s earnings as well as income related to mortgage banking activities. Investors Group measures net investment income as the difference between investment income and interest expense. Interest expense includes interest on deposit liabilities, certificates and debt, but excludes interest expense on debt incurred to finance its acquisition of Mackenzie.

Net investment income and other totaled $104.0 million, an increase of 3.5% from $100.5 million in 2002. The increase is due principally to the increase in Investors Group’s share of GWL’s earnings offset in part by lower mortgage banking revenue.