Strong mutual fund sales helped IGM Financial Inc. (TSX:IGM) boost its net income by 33% in the first quarter of 2010, the company reported on Friday.

The financial services company, which operates Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel, reported net income of $178.7 million for the three months ended March 31, up from $133.5 million in the same period last year. Earnings per share were 68 cents compared to 51 cents in 2009.

Gross revenues for the quarter were $649.4 million, up from $562.9 million a year ago. Operating expenses were $402.7 million, up from $377.6 million a year ago.

Total assets under management at the end of the quarter were $123.4 billion, an increase of 25% from $98.7 billion at the end of the first quarter of last year.

Shareholders’ equity at March 31 was $4.5 billion, compared to $4.2 billion at March 31, 2009. Return on average common equity for the three months ended March 31, 2010 was 16.7% compared to 12.9% for the comparative period in 2009.

Within the Investors Group network, mutual fund sales were $1.9 billion, up from $1.4 billion in the prior year, and net sales for the first quarter rose to $560 million from $309 million a year ago.

“First quarter net sales of mutual funds were up 81% over the same period last year based on a significant increase in sales and continued near record low redemption rate,” said Murray Taylor, president and CEO of Investors Group Inc. “Our Consultant network expanded for the 23rd consecutive quarter, up 3.4% since March 31, 2009.”

Mutual fund assets under management at March 31 were $59.2 billion, up 27.2% from $46.6 billion last year.

The number of Investors Group consultants increased to 4,637 from 4,633 during the quarter

Total sales in the firm’s Mackenzie operations were $3.2 billion during the quarter, compared to $2.9 billion in the prior year. Total net sales for the first quarter were $101 million compared to total net redemptions of $299 million in the prior year.

Mackenzie’s total assets under management at the end of the quarter were $64.9 billion, up 23.3% from $52.6 billion a year earlier. Mutual fund assets under management were $41.3 billion, up 22.8% from $33.7 billion a year ago.

IGM’s board of directors declared a dividend of 51.25 cents per share on the company’s common shares, payable July 30th.

IE