By James Langton

(February 2 – 11:50 ET) – The hottest topics on Investors Group’s conference call this morning were its deal with CIBC and the take-over of Mackenzie Financial Corp.

Investors revealed that it is looking to CIBC to add a full suite of banking products. IG also plans to trim its 110-person securities operation down to 60, as many functions are transferred to CIBC. Sandy Riley, Investor’s CEO, says many of those who were deemed redundant, are on contract. The others are likely to be re-deployed into other areas of the firm where more bodies are necessary.

At this point, IG remains unsure of how its relationship with CIBC fits in with the acquisition of Mackenzie and MRS Securities.

Riley vehemently insisted that there will be no cross-pollination of data between Investors and Mackenzie regarding client information held by Mackenzie. “Absolutely not,” he said, when asked if there was any risk of Investors dipping into Mackenzie’s databases. He noted that IG has experience in working with independent advisors and that it will be able to manage that relationship as it brings Mackenzie on board.

Riley also noted that Mackenzie will be left to concentrate on product innovation and marketing, while it works to wring out some efficiencies from the back office. Mackenzie has brought its own fund management costs down to 28 basis points from 47 bps in 1996.

Riley also revealed that Investors racked about $71 million in net sales in January, down from last year. He attributed the result to the firm’s decision to stop selling Scudder funds directly.

As for the sales force, Riley described its mood as upbeat, noting that a few hundred new bodies will be added within the year.