IGM Financial Inc. reports first quarter earnings

Toronto -- May 5, 2006: IGM Financial Inc. (IGM or the Company) (TSX:IGM) today announced earnings results for the first quarter of 2006.

Net income for the three months ended March 31, 2006 was $185.3 million compared to $160.7 million in 2005, an increase of 15.3%. Earnings per share were 69 cents compared to 60 cents, an increase of 15.0%.

Gross revenues for the three months ended March 31, 2006 were $646.3 million, compared to $573.1 million in the prior year. Operating expenses were $373.8 million for the quarter, compared to $340.8 million in 2005.

Mutual fund assets under management at March 31, 2006 totalled $99.8 billion, compared to $85.2 billion at March 31, 2005, an increase of 17.0%. Total assets under management at March 31, 2006 totalled $107.2 billion, compared to $89.8 billion at March 31, 2005, an increase of 19.3%.

Shareholders' equity at March 31, 2006 was $3.53 billion, compared to $3.45 billion at December 31, 2005. Return on average common equity for the three months ended March 31, 2006 was 20.5% compared with 19.4% for the same period in 2005.

Investors Group Operations

Mutual fund sales for first quarter of 2006 were $2.0 billion compared to $1.7 billion in the prior year and mutual fund net sales were $718 million compared to $428 million a year ago. Net sales of long-term funds were $621 million compared to $368 million in the prior year.

“An increase of 68% in net sales from last year's first quarter results arises from our growing Consultant network, strong investment returns and an appreciation by our clients of our commitment to financial planning,” said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc.

Investors Group's twelve month trailing redemption rate (excluding money market funds) was 8.5% at March 31, 2006, down from 9.1% at the same time last year. The corresponding rate at March 31, 2006 for all other members of the Investment Funds Institute of Canada (IFIC) was 15.9%.

Investors Group's mutual fund assets under management at March 31, 2006 were $53.8 billion, an increase of 18.3%, compared to $45.5 billion at March 31, 2005.

The number of Investors Group Consultants was 3,676 at March 31, 2006. Investors Group has experienced seven consecutive quarters of growth resulting in an increase of 14.6% in the Consultant Network since June 30, 2004.

Mackenzie Operations

Mackenzie recorded mutual fund sales of $2.8 billion for the first quarter of 2006 compared to $2.3 billion in the prior year. Mutual fund net sales were $612 million compared to $346 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $591 million for the period compared to $368 million in 2005.

“Investor confidence remained high through the quarter, and sales through the advice channels remained strong. Mackenzie's mutual fund sales were up 25.2% this quarter compared to the same period in the prior year,” said Charles R. Sims, President and Chief Executive Officer of Mackenzie Financial Corporation. “We continue to benefit from strong relationships with the financial advisors we service.”

Mackenzie's twelve month trailing redemption rate for long-term funds was 15.1% at the end of March 2006, compared to 14.3% at the end of March 2005. The corresponding rate at March 31, 2006 for all other members of IFIC was 15.2%.

Mackenzie's mutual fund assets under management at March 31, 2006 were $44.0 billion, an increase of 15.1%, compared to $38.2 billion one year ago. Total assets under management at March 31, 2006 totalled $53.7 billion compared to $44.6 billion at March 31, 2005, an increase of 20.4%.

Dividends

The Board of Directors has declared a quarterly dividend of $0.359375 per share on the Company's 5.75% Non-Cumulative First Preferred Shares, Series “A” payable on June 30, 2006 to shareholders of record on May 31, 2006 and has declared a dividend of 37 cents per share on the Company's common shares payable on July 28, 2006 to shareholders of record on June 26, 2006.

Forward-Looking Information

This Release may contain forward-looking statements about the Company, 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 Company 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 Company, 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 Company 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, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, and the Company's ability to complete strategic transactions and integrate acquisitions. The reader is cautioned 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.

A review of activities and performance for IGM Financial Inc., together with financial details and a management discussion, will be published in the Company's 2006 First Quarter Report to Shareholders which should be mailed to shareholders on or about May 15, 2006.

Financial Statements and Notes

Financial Statements and Notes [ PDF: 51 K / 10 pages ]

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, with over $107 billion in total assets under management. 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 Company group of companies.

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Media Note: A live webcast of IGM's Analyst conference call for the First Quarter 2006 will be held today, Friday, May 5, 2006, at 3:00 P.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to today's live analyst teleconference call by dialing 1-888-789-0089 or (416) 695-5261.