IGM Financial Inc. Reports Third Quarter Earnings

Readers are referred to the disclaimer regarding Forward-Looking Statements and financial measures not in accordance with Canadian generally accepted accounting principles (Non-GAAP Financial Measures) at the end of this Release.

• Press Release
• Source: IGM Financial Inc.
• On 6:04 pm EDT, Thursday October 29, 2009

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

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Symbol	Price	Change
IGM.TO	41.36	0.00

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Net income for the three months ended September 30, 2009 was $167.4 million compared to $198.7 million a year ago and $144.5 million in the prior quarter. Earnings per share were 63 cents compared to 75 cents a year ago and 55 cents in the prior quarter.

Net income for the nine months ended September 30, 2009 was $445.4 million compared to adjusted net income of $626.0(1) million for the comparative period in 2008. Earnings per share were $1.69 in 2009 compared to adjusted earnings per share of $2.36(1) in 2008.

Gross revenues for the three months ended September 30, 2009 were $622.6 million compared to $684.7 million a year ago and $587.8 million in the prior quarter. Operating expenses were $383.1 million for the third quarter of 2009, compared to $407.6 million a year ago and $384.1 million in the prior quarter.

Gross revenues for the nine months ended September 30, 2009 were $1.77 billion compared to $2.12 billion a year ago. Operating expenses were $1.14 billion for the nine months ended September 30, 2009 compared to $1.25 billion a year ago.

Total assets under management at September 30, 2009 were $117.9 billion. This compared with total assets under management of $118.5 billion at September 30, 2008 and $109.6 billion at June 30, 2009.

Shareholders' equity at September 30, 2009 was $4.3 billion, unchanged from September 30, 2008 and June 30, 2009. Return on average common equity for the nine months ended September 30, 2009 was 14.2% and for the comparative period in 2008 adjusted return on equity was 19.7%.

INVESTORS GROUP OPERATIONS

The number of Investors Group Consultants was 4,616 at September 30, 2009 up from 4,479 at December 31, 2008 and up from 4,411 at September 30, 2008.

"Our Consultant network continued to expand for the 21st consecutive quarter, the longest continuous period of growth in the history of Investors Group," 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 contributed to a record low 12 month redemption rate of 7.3% for our long-term mutual funds."

Mutual fund sales for the third quarter were $1.1 billion compared to $1.3 billion in the prior year and mutual fund net sales for the third quarter were $36 million compared to net sales of $61 million a year ago and net redemptions of $95 million in the prior quarter.

Mutual fund sales for the nine months ended September 30, 2009 were $3.7 billion compared to $4.7 billion in the prior year and mutual fund net sales were $250 million compared to $565 million a year ago.

Investors Group's twelve month trailing redemption rate (excluding money market funds) was 7.3% at September 30, 2009, compared to 7.7% at September 30, 2008 and 7.5% at June 30, 2009.

Investors Group's mutual fund assets under management at September 30, 2009 were $56.6 billion compared to $54.3 billion at September 30, 2008 and $52.5 billion at June 30, 2009.

MACKENZIE OPERATIONS

Total sales for the third quarter of 2009 were $2.4 billion compared to $2.7 billion in the prior year. Total net redemptions for the third quarter were $62 million compared to total net redemptions of $1.2 billion in the prior year and total net redemptions of $535 million in the prior quarter.

Total sales for the nine months ended September 30, 2009 were $8.7 billion compared to $9.2 billion in the prior year. Total net redemptions were $896 million compared to total net redemptions of $1.1 billion in the prior year.

"During the quarter we announced the alignment of our institutional sales and service units into Mackenzie Global Advisors, continuing our work to expand the distribution channels available for our investment advisory services," said Charles R. Sims, President and Chief Executive Officer of Mackenzie Financial Corporation. "During the quarter, we continued to focus on streamlining our operations. Year over year operating expenses for the quarter declined by $18 million or 12%."

Mackenzie's total assets under management at September 30, 2009 totalled $62.0 billion. This compares with total assets under management of $64.8 billion at September 30, 2008 and $57.8 billion at June 30, 2009. Mutual fund assets under management at September 30, 2009 were $39.9 billion compared to $41.8 billion a year ago and $37.2 billion at June 30, 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 December 31, 2009 to shareholders of record on November 27, 2009 and has declared a dividend of 51.25 cents per share on the Company's common shares payable on January 29, 2010 to shareholders of record on December 28, 2009.

(1) Adjusted net income for the nine month period ended September 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 $651.0 million for the nine month period and earnings per share on this basis were $2.45.

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. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. 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", "seeks", "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".

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.

A variety of material factors, many of which are beyond the Company's, and its subsidiaries' control, affect the operations, performance and results of the Company, and its subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of 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 (including adoption of International Financial Reporting Standards), operational and reputational risks, 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, integrate acquisitions and implement other growth strategies, and the Company's success in anticipating and managing the foregoing factors.

The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements.

Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Company's business is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedar.com.

This release contains non-GAAP financial measures. Terms by which non-GAAP financial measures are identified include but are not limited to "adjusted net income", "adjusted earnings per share", "adjusted return on average common equity", "net income without adjustment" and other similar expressions. Non-GAAP financial measures are used to provide management and investors with additional measures of performance. However, non-GAAP financial measures do not have standard meanings prescribed by GAAP and are not directly comparable to similar measures used by other companies. Please refer to the attached Financial Highlights for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP.

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 2009 Third Quarter Report to Shareholders which should be mailed to shareholders on or about November 12, 2009.

IGM Financial Inc. is one of Canada's premier personal financial services companies, and one of the country's largest managers and distributors of mutual funds and other managed asset products, with $118 billion in total assets under management as of September 30, 2009. Its activities are carried out principally through Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.

Media Note: A live webcast of IGM's Analyst conference call for the Third Quarter 2009 will be held Friday October 30, 2009, at 9:30 A.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to the live analyst teleconference call by dialing 1-866-223-7781 or (416) 340-8018.

IGM FINANCIAL INC.
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Consolidated Statements of Income

(unaudited)                 Three months ended           Nine months ended
                     ---------------------------------  --------------------
(in thousands of
 dollars, except       September       June  September  September  September
 shares and                   30         30         30         30         30
 per share amounts)         2009       2009       2008       2009       2008
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Fee and net
 investment income
 Management             $432,190   $399,340   $476,929 $1,196,949 $1,470,898
 Administration           88,537     86,902     88,098    257,761    265,001
 Distribution             62,001     62,337     70,598    186,674    218,680
 Net investment income
  and other               39,910     39,184     49,027    128,071    164,894
                     -------------------------------------------------------

Total fee and net
 investment income       622,638    587,763    684,652  1,769,455  2,119,473
                     -------------------------------------------------------

Operating expenses
 Commission expense      205,293    197,309    230,053    594,978    699,850
 Non-commission expense  148,723    158,252    155,377    465,490    485,288
 Interest expense         29,125     28,582     22,176     80,600     66,156
                     -------------------------------------------------------

Total operating
 expenses                383,141    384,143    407,606  1,141,068  1,251,294
                     -------------------------------------------------------

Income before income
 taxes and
 proportionate share
 of affiliate's gain     239,497    203,620    277,046    628,387    868,179
Income taxes              72,147     59,116     78,352    183,006    242,184
                     -------------------------------------------------------

Net income before
 proportionate share
 of affiliate's gain     167,350    144,504    198,694    445,381    625,995
Proportionate share
 of affiliate's gain           -          -          -          -     25,003
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Net income              $167,350   $144,504   $198,694   $445,381   $650,998
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Average number of
 common shares
 (in thousands)
  - Basic                264,026    262,925    263,185    263,127    263,635
  - Diluted              265,562    264,102    264,768    264,217    265,357

Earnings per share
 (in dollars)
 Excluding
 proportionate share
 of affiliate's gain
  - Basic                  $0.63      $0.55      $0.75      $1.69      $2.37
  - Diluted                $0.63      $0.55      $0.75      $1.69      $2.36
 Including
  proportionate share
  of affiliate's gain
  - Basic                  $0.63      $0.55      $0.75      $1.69      $2.47
  - Diluted                $0.63      $0.55      $0.75      $1.69      $2.45
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IGM FINANCIAL INC.
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Financial                   Three months ended           Nine months ended
 Highlights     -----------------------------------   ----------------------
                                          % Change                % Change
                                      ------------             -----------
                 2009    2009    2008  2009   2008      2009    2008  2008
                 Sep.    Jun.    Sep.  Jun.   Sep.      Sep.    Sep.  Sep.
(unaudited)        30      30      30    30     30        30      30    30
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Net income
 ($ millions)
 Adjusted(1)  $ 167.4 $ 144.5 $ 198.7  15.8% (15.8)% $ 445.4 $ 626.0 (28.8)%
 GAAP           167.4   144.5   198.7  15.8  (15.8)    445.4   651.0 (31.6)

Diluted earnings
 per share
 Adjusted(1)     0.63    0.55    0.75  14.5  (16.0)     1.69    2.36 (28.4)
 GAAP            0.63    0.55    0.75  14.5  (16.0)     1.69    2.45 (31.0)

Return on
 equity
 Adjusted(1)                                            14.2%   19.7%
 GAAP                                                   14.2%   20.5%


Dividends
 per share     0.5125  0.5125  0.5125     -      -    1.5375  1.4875   3.4
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                                                                  % Change
                                                       ---------------------
                           2009       2009       2008      2009       2008
($ millions)            Sep. 30    Jun. 30    Sep. 30   Jun. 30    Sep. 30
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Total assets under
 management(2)        $ 117,904  $ 109,647 $  118,535       7.5%      (0.5)%
 Investors Group
  Mutual funds           56,560     52,498     54,306       7.7        4.2
 Mackenzie
  Mutual funds           39,854     37,249     41,823
  Sub-advisory,
   institutional and
   other accounts        22,176     20,550     22,953
  Total                  62,030     57,799     64,776       7.3      (4.2)
Counsel Group of Funds
  Mutual funds            2,030      1,838      1,931      10.4        5.1
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                                                          Counsel
Mutual Funds and                  Investors             Group of
 Institutional Sales                  Group  Mackenzie     Funds   Total(3)

 For the three months ended
  September 30, 2009
  Gross sales                       $ 1,134  $   2,440    $   87 $ 3,604
  Net sales (redemptions)                36        (62)       32     (16)

 For the nine months ended
  September 30, 2009
  Gross sales                        $ 3,666    $ 8,692    $  223 $ 12,305
  Net sales (redemptions)                250       (896)       52     (709)

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(1) Non-GAAP Financial Measures:
    Results for the nine months ended September 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.
(2) Total assets under management excluded $2.7 billion of assets
     sub-advised by Mackenzie on behalf of Investors Group and Investment
     Planning Counsel ($2.5 billion at June 30, 2009 and at September 30,
     2008).
(3) Total Gross Sales and Net Redemptions for the three months ended
     September 30, 2009 excluded $57 million and $22 million respectively in
     accounts sub-advised by Mackenzie on behalf of Investors Group and
     Investment Planning Counsel.
    Total Gross Sales and Net Redemptions for the nine months ended
     September 30, 2009 excluded $276 million and $115 million respectively
     in accounts sub-advised by Mackenzie on behalf of Investors Group and
     Investment Planning Counsel.

Ron Arnst
IGM Financial Inc.
Media Relations
(204) 956 3364
ron.arnst@igmfinancial.com