IGM Financial Inc. today reported that its first-quarter profit rose 8.7% from the previous year thanks to strong fund sales.

Canada’s largest independent fund company said net income was $160.7 million, or 60¢ a share, during the quarter, up from $147.9 million, or 56¢ per share, in the year-before period.

Revenue rose 10.1% to $573.1 million.

Shareholders’ equity at March 31, 2005, was $3.2 billion, unchanged from December 31, 2004. Return on average common equity for the three months was 19.4% compared with 19.8% for the same period in 2004.

Mutual fund assets were $85.2 billion at the end of the quarter, up from $78.1 billion a year earlier, helped by strong mutual fund sales and a 12% year-over-year increase in stock markets, as measured by the S&P/TSX composite index.

“Positive net sales and rising equity markets pushed the Company’s mutual fund assets under management above the $85 billion mark during the quarter,” said Jeffrey Orr, president and CEO.

At the Investors Group operations, mutual fund sales for the quarter were $1.7 billion compared to $1.6 billion in the prior year and mutual fund net sales were $428 million compared to net sales of $386 million last year.

At the Mackenzie Financial operations, mutual fund sales for the three month period were $2.3 billion compared to $2 billion in the prior year.