WINNIPEG, MANITOBA--(Marketwire - July 29, 2009) - IGM Financial Inc. (IGM or the Company) (TSX:IGM) today announced earnings results for the second quarter of 2009.

Net income for the three months ended June 30, 2009 was $144.5 million compared to adjusted net income of $216.1(1) million a year ago and net income of $133.5 million in the prior quarter. Earnings per share were 55 cents compared to adjusted earnings per share of 81(1) cents a year ago and earnings per share of 51 cents in the prior quarter.

Net income for the six months ended June 30, 2009 was $278.0 million compared to adjusted net income of $427.3(1) million for the comparative period in 2008. Earnings per share were $1.05 in 2009 compared to adjusted earnings per share of $1.61(1) in 2008.

Gross revenues for the three months ended June 30, 2009 were $587.8 million compared to $720.7 million a year ago and $559.1 million in the prior quarter. Operating expenses were $384.1 million for the second quarter of 2009, compared to $419.3 million a year ago and $373.8 million in the prior quarter.

Gross revenues for the six months ended June 30, 2009 were $1.15 billion compared to $1.43 billion a year ago. Operating expenses were $757.9 million for the six months ended June 30, 2009 compared to $843.7 million a year ago.

Total assets under management at June 30, 2009 were $109.6 billion. This compared with total assets under management of $119.7 billion at June 30, 2008 and $98.7 billion at March 31, 2009.

Shareholders' equity at June 30, 2009 was $4.3 billion, unchanged from June 30, 2008 and compared to $4.2 billion at March 31, 2009. Return on average common equity for the six months ended June 30, 2009 was 13.4% and for the comparative period in 2008 adjusted return on equity was 20.2%.

INVESTORS GROUP OPERATIONS

The number of Investors Group Consultants was 4,511 at June 30, 2009 up from 4,479 at December 31, 2008 and up from 4,360 at June 30, 2008.

"Our Consultant network continued to expand for the 20th consecutive quarter," said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. "Increasing stock market values in the second quarter led to our average client investment values being up 12.9%, the strongest quarter in 26 years."

Mutual fund sales for the second quarter were $1.1 billion compared to $1.5 billion in the prior year and mutual fund net redemptions for the second quarter were $95 million compared to net redemptions of $6 million a year ago and net sales of $309 million in the prior quarter.

Mutual fund sales for the six months ended June 30, 2009 were $2.5 billion compared to $3.4 billion in the prior year and mutual fund net sales were $214 million compared to $504 million a year ago.

Investors Group's twelve month trailing redemption rate (excluding money market funds) was 7.5% at June 30, 2009, compared to 7.6% at June 30, 2008 and 7.7% at March 31, 2009.

Investors Group's mutual fund assets under management at June 30, 2009 were $52.5 billion compared to $59.0 billion at June 30, 2008 and $46.6 billion at March 31, 2009.

MACKENZIE OPERATIONS

Total sales for the second quarter of 2009 were $3.4 billion compared to $3.3 billion in the prior year. Total net redemptions for the second quarter were $535 million compared to total net sales of $199 million in the prior year and total net redemptions of $299 million in the prior quarter.

Total sales for the six months ended June 30, 2009 were $6.3 billion compared to $6.5 billion in the prior year. Total net redemptions were $834 million compared to total net sales of $97 million in the prior year.

"As the markets have improved this quarter, we have been pleased with the investment performance of our products relative to their benchmarks. We continued to focus on streamlining a number of activities while enhancing our future operating capabilities. Year over year operating expenses for the quarter declined by $24 million or 15%," said Charles R. Sims, President and Chief Executive Officer of Mackenzie Financial Corporation.

Mackenzie's total assets under management at June 30, 2009 totalled $57.8 billion. This compares with total assets under management of $61.2 billion at June 30, 2008 and $52.6 billion at March 31, 2009. Mutual fund assets under management at June 30, 2009 were $37.2 billion compared to $43.7 billion a year ago and $33.7 billion at March 31, 2009.

DIVIDENDS

The Board of Directors declared a quarterly dividend of $0.359375 per share on the Company's 5.75% Non-Cumulative First Preferred Shares, Series "A" payable on September 30, 2009 to shareholders of record on August 28, 2009 and has declared a dividend of 51.25 cents per share on the Company's common shares payable on October 30, 2009 to shareholders of record on September 28, 2009.

(1) Adjusted net income for the three and six month periods ended June 30, 2008 excluded a $25.0 million gain which represented the Company's proportionate share of Great-West Lifeco Inc.'s after-tax gain on the sale of its healthcare business, Great-West Healthcare. Net income without adjustment was $241.1 million and $452.3 million for the three and six month periods. Earnings per share on this basis were 91 cents and $1.70, respectively.

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

Certain statements in this Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial's current expectations. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Company's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.