IGM Financial Inc. net income for the first quarter of fiscal 2006, ended March 31, increased by 15.3% to $185.3 million compared to $160.7 million in 2005, with earnings per share at 69¢ compared to 60¢, an increase of 15%.

Gross revenue for the three months 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 totalled $99.8 billion compared to $85.2 billion at March 31, 2005, an increase of 17%. Total AUM at March 31 totalled $107.2 billion compared to $89.8 billion at March 31, 2005, an increase of 19.3%.

Shareholders’ equity at March 31 was $3.53 billion compared to $3.45 billion at Dec. 31, 2005. Return on average common equity for the three months ended March 31 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 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 CEO of Investors Group Inc.

Investors Group’s 12-month trailing redemption rate — excluding money market funds — was 8.5% at March 31, down from 9.1% at the same time last year. The corresponding rate at March 31 for all other members of the Investment Funds Institute of Canada was 15.9%.

Investors Group’s mutual fund assets under management at March 31 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. 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 Financial Corp. 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 CEO of Mackenzie. “We continue to benefit from strong relationships with the financial advisors we service.”

Mackenzie’s 12-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, for all other members of IFIC was 15.2%.

Mackenzie’s mutual fund assets under management at March 31 were $44 billion, an increase of 15.1%, compared to $38.2 billion one year ago. Total assets under management at March 31 totalled $53.7 billion compared to $44.6 billion at March 31, 2005, an increase of 20.4%.

Dividends

IGM’s board of directors also 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 to shareholders of record on May 31 and has declared a dividend of 37¢ per share on the company’s common shares payable on July 28 to shareholders of record on June 26.