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IGM Financial Inc. Reports First Quarter Earnings

IGM Financial Inc. Reports First Quarter Earnings 
WINNIPEG, MANITOBA -- (Marketwired) -- 05/03/13 --   
Readers are referred to the disclaimer regarding Forward-Looking
Statements and Additional IFRS Measures at the end of this Release. 
IGM Financial Inc. (IGM or the Company) (TSX:IGM) today announced
earnings results for the first quarter of 2013. 
Net earnings available to common shareholders for the three months
ended March 31, 2013 were $180.5 million or 72 cents per share
compared to net earnings available to common shareholders of $198.9
million or 77 cents per share for the comparative period in 2012. 
Revenues for the three months ended March 31, 2013 were $652.7
million compared to $673.0 million in the first quarter of 2012.
Expenses were $418.7 million for the first quarter of 2013 compared
to $415.4 million in the first quarter of 2012.  
Total assets under management at March 31, 2013 were $125.8 billion.
This compared with total assets under management of $124.1 billion at
March 31, 2012.  
Shareholders' equity at March 31, 2013 was $4.5 billion, unchanged
from March 31, 2012. Return on average common equity for the three
months ended March 31, 2013 was 16.8% compared to 18.3% for the
comparative period in 2012. 
Investors Group Operations 
"Sales increased over 2012 by 11% for mutual funds and 12% for
insurance as our Consultants continued to serve the financial
planning needs of our clients," said Murray J. Taylor, President and
Chief Executive Officer of Investors Group Inc. "We have announced
the addition of a further regional office in Winnipeg as we continue
to invest in the growth of our Consultant Network." 
Mutual fund sales for the first quarter of 2013 were $2.03 billion
compared to $1.83 billion in the prior year, and mutual fund net
sales for the first quarter were $376 million compared to net sales
of $175 million a year ago.  
The twelve month trailing redemption rate (excluding money market
funds) was 9.8% at March 31, 2013, compared to 10.0% at December 31,
2012. 
Mutual fund assets under management at March 31, 2013 were $63.0
billion compared to $60.6 billion at March 31, 2012. 
Mackenzie Operations 
Total sales for the first quarter of 2013 were $3.28 billion compared
to $2.72 billion in the prior year. Total net sales for the f
irst
quarter were $254 million compared to total net redemptions of $933
million a year ago. 
"Investment performance of our mutual fund family remained strong,
with 73% of our fund assets ranked in the first or second quartile of
their respective asset categories over the five year period ended
March 31, 2013," said Charles R. Sims, FCA, President and Chief
Executive Officer of Mackenzie Financial Corporation.  
Mackenzie's total assets under management at March 31, 2013 were
$64.3 billion compared with total assets under management of $64.4
billion at March 31, 2012. Mutual fund assets under management at
March 31, 2013 were $42.4 billion compared to $41.5 billion a year
ago. 
Dividends 
The Board of Directors has declared a dividend of 53.75 cents per
share on the Company's common shares and has declared a dividend of
$0.36875 per share on the Company's 5.90% Non-Cumulative First
Preferred Shares, Series "B". The common share dividend and the
preferred share dividend are payable on July 31, 2013 to shareholders
of record on June 28, 2013. 
Forward-Looking Statements 
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 to assist 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. 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. While the
Company considers these assumptions to be reasonable based on
information currently available to management, they may prove to be
incorrect.  
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, 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
and its subsidiaries' success in anticipating and managing the
foregoing factors.  
The reader is cautioned that the foregoing list 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 applicable Canadian 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 inf
ormation, future
events or results, or otherwise.  
Additional information about the risks and uncertainties of the
Company's business and material factors or assumptions on which
information contained in forward-looking statements is based is
provided in its disclosure materials filed with the securities
regulatory authorities in Canada, available at www.sedar.com. 
Additional IFRS Measures 
This release contains additional IFRS measures. Terms by which
additional IFRS measures are identified include "earnings before
income taxes and discontinued operations", "net earnings from
continuing operations" and "net earnings available to common
shareholders". Additional IFRS measures are used to provide
management and investors with additional measures to assess earnings
performance. These measures are considered additional IFRS measures
as they are in addition to the minimum line items required by IFRS
and are relevant to an understanding of the entity's financial
performance. 
The Consolidated Financial Statements and Management's Discussion and
Analysis (MD&A) of operating results are available on IGM Financial
Inc.'s website at www.igmfinancial.com.  
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
over $125 billion in total assets under management as of April 30,
2013. 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
First Quarter 2013 will be held Friday May 3, 2013 at 3:30 P.M. (ET)
at www.igmfinancial.com. Media and interested parties may
alternatively choose to listen to the live analyst teleconference
call by dialing 1-866-226-1792 or 416-340-2216. 


 
                                                                            
IGM FINANCIAL INC.                                                          
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Consolidated Statements of Earnings                                         
                                                                            
(unaudited)                                      Three months ended March 31
(in thousands of Canadian dollars, except shares                            
 and per share amounts)                                   2013          2012
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                                                                    Restated
                                                                            
Revenues                                                                    
  Management fees                                  $   442,870   $   456,618
  Administration fees                                   85,585        85,264
  Distribution fees                                     81,445        85,179
  Net investment income and other                       23,465        26,331
  Proportionate share of affiliate's earnings           19,333        19,641
                                                 ---------------------------
                                                       652,698       673,033
                                                 ---------------------------
                                                                            
Expenses                                                                    
  Commission                                           218,029       221,384
  Non-commission                                       177,898       171,109
  Interest                                              22,749        22,911
                                                 ---------------------------
                                                       418,676       415,404
                                                 ---------------------------
Earnings before income taxes                           234,022       257,629
Income taxes                                            51,298        56,564
                                                 ---------------------------
Net earnings                                           182,724       201,065
Perpetual preferred share dividends                      2,213         2,213
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Net earnings available to common shareholders      $   180,511   $   198,852
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Average number of common shares                                             
(in thousands)                                                              
  - Basic                                              251,971       256,568
  - Diluted                                            252,455       257,383
                                                                            
Earnings per share (in dollars)                                             
  - Basic                                          $      0.72   $      0.78
  - Diluted                                        $      0.72   $      0.77
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IGM FINANCIAL INC.                                                          
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Financial Highlights                                                        
                                                                            
As at and for the three months ended March 31                               
(unaudited)                                     2013       2012     Change  
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Net earnings available to                                                   
 common shareholders ($                                                     
 millions)                                $    180.5  $   198.9       (9.2)%
                                                                            
Diluted earnings per share                      0.72       0.77       (6.5) 
                                                                            
Return on equity                                16.8%      18.3%            
                            
                                                
Dividends per share                           0.5375     0.5375          -  
                                                                            
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Total assets under                                                          
 management(1)  ($ millions)              $  125,796  $ 124,146        1.3% 
    Investors Group                                                         
     Mutual funds                             62,999     60,628        3.9  
    Mackenzie                                                               
      Mutual funds                            42,410     41,535             
      Sub-advisory,                                                         
      institutional and other                                               
      accounts                                21,855     22,831             
     Total                                    64,265     64,366       (0.2) 
    Counsel                                                                 
     Mutual funds                              3,080      2,957        4.2  
                                                                            
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For the three months ended      Investors                                   
 March 31, 2013                     Group  Mackenzie    Counsel   Total(2)  
Mutual Funds and Institutional                                              
 Sales ($ millions)                                                         
     Gross sales               $    2,034 $    3,278  $     131  $   5,051  
     Net sales                        376        254         11        554  
                                                                            
                                                                            
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(1)Total assets under management excluded $4.5 billion of assets sub-advised
   by Mackenzie on behalf of Investors Group and Investment Planning Counsel
   ($3.8 billion at March 31, 2012).                                        
(2)Total Gross Sales and Net Sales excluded $392 million and $87 million    
   respectively in accounts sub-advised by Mackenzie on behalf of Investors 
   Group and Investment Planning Counsel.                                   

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