Investors Group
Review of Segment Operating Results

Net Investment Income & Other

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 a component of the Corporation’s long-term debt, but excludes interest expense on debt incurred to finance the acquisition of Mackenzie.

Net investment income and other totaled $123.3 million, an increase of $19.3 million or 18.6% from $104.0 million in 2003. This increase was due principally to an increase of $16.5 million in Investors Group’s share of GWL’s earnings as well as increases in gains on the sale of securities and in revenues related to mortgage banking activities.