IGM Financial Inc. Reports Quarterly Results

Winnipeg, October 29, 2004: IGM Financial Inc. (IGM) (TSX: IGI) today announced earnings results for the first nine months and the third quarter of 2004.

Net income attributable to common shareholders for the nine months ended September 30, 2004 was $454.3 million compared to $389.7 million in 2003, excluding a dilution gain in 2003 as noted below. Earnings per share were $1.71 compared with $1.47 in 2003, an increase of 16.3%.

For the three months ended September 30, 2004 net income attributable to common shareholders was $153.8 million compared to $140.6 million in 2003, excluding the dilution gain in 2003. Earnings per share were 58 cents compared with 53 cents in 2003, an increase of 9.4%.

Net income and earnings per share for the nine and three months ended September 30, 2003 exclude a dilution gain of $14.8 million resulting from the reduction in the Corporation's percentage ownership of Great-West Lifeco Inc. related to their acquisition of Canada Life. Net income attributable to common shareholders for the nine and three months ended September 30, 2003 including the dilution gain noted above, was $404.5 million and $155.4 million respectively. Earnings per share were $1.53 and $0.59 for the nine and three month periods ending September 30, 2003.

"Increased mutual fund assets from higher financial market levels and positive mutual fund sales were the principal contributors to earnings growth at IGM Financial." said Jeffrey Orr, President and Chief Executive Officer. "The quarter was marked by strong growth in the number of Consultants in the Investors Group network and industry leading mutual fund sales by Mackenzie Financial within the financial advisor channel."

Gross revenues for the first nine months for 2004 were $1.6 billion, compared to $1.4 billion last year. Gross revenues for the third quarter were $527.1 million compared to $474.4 million in the prior year. Operating expenses were $898.9 million for the nine months and $300.6 million for the quarter compared with $784.3 million and $258.7 million respectively in 2003.

Mutual fund assets under management at September 30, 2004 totalled $78.6 billion, including $1.3 billion held by Counsel Group of Funds Inc., a wholly owned subsidiary of recently acquired Investment Planning Counsel. This compares to $69.9 billion at September 30, 2003, an increase of 12.4%.

Shareholders' equity at September 30, 2004 was $3.46 billion, compared to $3.22 billion at December 31, 2003. Return on average common equity for the nine months was 19.7% compared with 18.7% for the same period in 2003, excluding the dilution gain noted previously.

INVESTORS GROUP'S OPERATIONS
Year-to-date mutual fund sales were $3.6 billion compared to $3.0 billion in the prior year and net sales were $264 million, compared to last year's net redemptions of $746 million. Net sales of long-term funds (excluding money market funds) were $146 million compared to net redemptions of $719 million last year.

Investors Group recorded mutual fund sales of $995 million for the third quarter, compared to $888 million in the prior year. For the quarter, mutual fund net redemptions were $52 million compared to net redemptions of $284 million in 2003 and net redemptions of long-term funds were $96 million compared to net redemptions of $276 million in 2003.

Redemption rates (excluding money market funds) were 9.2% at the end of the quarter, down from 11.4% at the same time last year. The corresponding rate at September 30, 2004 for all other members of the Investment Funds Institute of Canada was 15.0%.

Investors Group's mutual fund assets at September 30, 2004 were $42.3 billion, an increase of 10.0%, compared to $38.4 billion at September 30, 2003.

The number of Investors Group Consultants was 3,391 at September 30, 2004 compared to 3,223 at year-end.

MACKENZIE FINANCIAL'S OPERATIONS
Year-to-date mutual fund sales were $5.1 billion compared to $3.7 billion in the prior year and net sales were $672 million compared to last year's net redemptions of $258 million. Net sales of long-term funds (excluding money market and managed yield funds) were $730 million for the period compared with net sales of $17 million in 2003.

Mackenzie recorded sales of mutual funds of $1.4 billion for the quarter compared to $1.1 billion last year. Mutual fund net sales for the period were $110 million, compared to net redemptions of $39 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $133 million for the period, compared with net sales of $17 million in 2003.

Mackenzie's redemption rate for long-term funds was 13.7% at the end of September 2004, compared to 12.5% at the end of September 2003. The corresponding rate at September 30, 2004 for all other members of the Investment Funds Institute of Canada was 14.5%.

Mackenzie's mutual fund assets under management at September 30, 2004 were $35.0 billion, compared to $31.5 billion one year ago.

DIVIDENDS
The Board of Directors has declared a quarterly dividend of $0.359375 on the Corporation's 5.75% Non-Cumulative First Preferred Shares, Series "A" payable on December 31, 2004 to shareholders of record on November 29, 2004 and declared a quarterly dividend of 30 cents per share on the Corporation's common shares payable January 31, 2005 to shareholders of record on December 31, 2004.

FORWARD-LOOKING INFORMATION AND NON-GAAP FINANCIAL MEASURES
This Release may contain forward-looking statements about the Corporation, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Corporation action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Corporation, economic factors and the financial services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation due to, but not limited to, important factors such as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation's ability to complete strategic transactions and integrate acquisitions. We caution that the foregoing list of important factors is not exhaustive. The reader is also cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements.

Net income, earnings per share and return on common equity for the nine and three month periods ending September 30, 2003 are presented excluding a dilution gain. Investors Group purchased $100 million of common shares of Great-West Lifeco Inc. ("GWL") which were issued as part of the funding of the Canada Life acquisition by GWL. Investors Group's percentage ownership of GWL was slightly reduced to 4.2%, resulting in a dilution gain for the quarter of $14.8 million. These non-GAAP financial measures are used to provide management and investors with additional measures to assess earnings performance. However, non-GAAP financial measures do not have standard meanings and are not directly comparable to similar measures used by other companies.

IGM Financial Inc. is one of Canada's premier personal financial services companies, and the country's largest manager and distributor of mutual funds and other managed asset products. Its activities are carried out principally through Investors Group, Mackenzie Financial and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.

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Media Note : A live webcast of IGM's Analyst conference call for the Third Quarter 2004 will be held Friday, October 29, 2004, at 2:00 P.M. (ET) at www.investorsgroup.com . Media and interested parties may alternatively choose to listen to today's live analyst teleconference call by dialing 1-877-888-3490 or (416) 695-5261.