IGM Financial Inc. reports first quarter earnings

Winnipeg -- May 4, 2007: IGM Financial Inc. (IGM or the Company) (TSX:IGM) today announced earnings results for the first quarter of 2007.

Net income for the three months ended March 31, 2007 was $210.5 million compared to $185.3 million in 2006. Earnings per share were 79 cents compared to 69 cents in 2006, an increase of 14.5%.

Total assets under management at March 31, 2007 totalled $123.4 billion. This compares with total assets under management of $107.2 billion at March 31, 2006, an increase of 15.1%.

Gross revenues for the three months ended March 31, 2007 were $720.8 million, compared to $646.3 million in the prior year. Operating expenses were $410.5 million for the quarter, compared to $373.8 million in 2006.

Shareholders' equity at March 31, 2007 was $3.96 billion, compared to $3.82 billion at December 31, 2006. Return on average common equity for the three months ended March 31, 2007 was 21.6% compared with 21.3% for the same period in 2006.

Investors Group Operations

Investors Group's mutual fund assets under management at March 31, 2007 were $60.2 billion compared to $53.8 billion at March 31, 2006, an increase of 11.8%.

The number of Investors Group Consultants was 3,985 at March 31, 2007 up from 3,917 at December 31, 2006. Investors Group has experienced eleven consecutive quarters of growth resulting in an increase of more than 24% in the Consultant network since June 30, 2004.

“With close to 4000 Consultants across Canada we continue to see consistent growth in our Consultant network,” said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. “Strong client relationships built on our approach to long-term financial planning have resulted in record setting assets under management.”

Mutual fund sales for the first quarter were $2.3 billion compared to $2.0 billion in the prior year and mutual fund net sales for the first quarter were $1.0 billion compared to $718 million a year ago.

Investors Group's twelve month trailing redemption rate (excluding money market funds) was at a record low level of 7.7% at March 31, 2007, down from 7.9% at December 31, 2006 and down from 8.5% at March 31, 2006.

Mackenzie Operations

Mackenzie’s total assets under management at March 31, 2007 totalled $63.7 billion. This compares with assets under management of $53.7 billion at March 31, 2006, an increase of 18.6%. The prior period figure does not include assets from Mackenzie’s acquisition of the Cundill Group. That transaction closed September 22, 2006 and the institutional assets were valued at $3.3 billion at that time. Mutual fund assets under management at March 31, 2007 were $47.8 billion, an increase of 8.8%, compared to $44.0 billion one year ago.

“Overall asset growth remained strong with assets up 18.6% year over year. Our business continues to benefit from the diversification of our distribution platform by channel, product type and investment objective,” said Charles R. Sims, President and Chief Executive Officer of Mackenzie Financial Corporation.

Total sales for the first quarter of 2007 were $3.7 billion compared to $3.9 billion in the prior year. Total net sales for the first quarter were $605 million compared to net sales of $1.3 billion in the prior year.

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, 2007 to shareholders of record on May 31, 2007 and has declared a dividend of 42.75 cents per share on the Company’s common shares payable on July 27, 2007 to shareholders of record on June 25, 2007.

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”, “plans”, “believes”, “estimates”, “intends”, “targets”, “projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. 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, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates, the effect of applying future accounting changes, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company's ability to complete strategic transactions and integrate acquisitions and the Company’s success in anticipating and managing the foregoing risks. 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. Other than as specifically required by applicable law, the Company has no specific intention to update any forward-looking statements whether as a result of new information, future events or otherwise.

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 2007 First Quarter Report to Shareholders which should be mailed to shareholders on or about May 14, 2007.

Financial Statements and Notes

Financial Statements and Notes [ PDF: 17 K / 2 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 $124 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 Corporation group of companies.

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Media Note: A live webcast of IGM’s Analyst conference call for the First Quarter 2007 will be held Friday, May 4, 2007, at 3:30 P.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to the live analyst teleconference call by dialing 1-888-789-0089 or (416) 695-5261.