IGM Financial Inc. today reported its fourth-quarter profit rose 25%, as strong stock markets spurred fund sales and boosted assets under management.

Revenue rose 11% to $608.3 million from $548.1 million, while mutual fund assets under management at the end of December were $94.1 billion, up from $83.3 billion at the end of 2004.

IGM sells most of its funds under the Investors Group and Mackenzie Financial banners.

Mutual fund sales at Investors Group for 2005 were $5.5 billion compared to $4.7 billion in the prior year and mutual fund net sales were $778 million compared to $218 million a year ago. Net sales of long-term funds were $529 million compared to $52 million in the prior year.

For the fourth quarter of 2005, mutual fund sales were $1.4 billion compared to $1.1 billion in the prior year. For the quarter, mutual fund net sales were $254 million compared to net redemptions of $46 million in 2004 and net sales of long-term mutual funds (excluding money market funds) were $168 million compared to net redemptions of $94 million in 2004.

“During 2005 we significantly expanded our field management to support our growing Consultant network,” says Murray Taylor, president and CEO of Investors Group Inc. “A 257% increase in mutual fund net sales over 2004 combined with strong investment performance has resulted in record levels of assets under management.”

Investors Group’s mutual fund assets under management at December 31, 2005 were $50.7 billion, an increase of 13.9%, compared to $44.5 billion at December 31, 2004.

The number of Investors Group Consultants was 3,668 at Dec. 31, 2005. Investors Group has experienced six consecutive quarters of growth resulting in an increase of 14.4% in the Consultant Network since June 30, 2004.

Mackenzie recorded mutual fund sales of $8.1 billion for 2005 compared to $6.8 billion in the prior year. Mutual fund net sales were $1.2 billion compared to $795 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $1 billion for the period compared to $819 million in 2004.

For the fourth quarter of 2005, mutual fund sales were $2.2 billion compared to $1.7 billion for the same quarter last year. Mutual fund net sales were $512 million for the fourth quarter of 2005 compared to $123 million in 2004. Net sales of long-term funds (excluding money market and managed yield funds) were $341 million for the quarter, compared with $89 million in 2004.

“Industry net sales of long-term funds in the quarter represented the best fourth quarter results since 1998 indicating that the industry is still benefiting from positive investor confidence,” said Charles Sims, president and CEO of Mackenzie Financial Corp. “Mackenzie’s gross sales for the year were the highest in the company’s history.”

Mackenzie’s mutual fund assets under management at December 31, 2005 were $41.6 billion, an increase of 11.5%, compared to $37.3 billion one year ago. Total assets under management at December 31, 2005 totalled $49.9 billion compared to $42.3 billion at December 31, 2004, an increase of 17.7%.

IGM also raised its quarterly dividend by 7.2% to 37¢ a share.