Investors Group Inc. is reporting six months earnings of $164.9 million or 71.2¢ per share prior to goodwill amortization and a restructuring charge related to the acquisition of Mackenzie Financial Corp., compared to last year’s six months net income of $127.7 million or 60.5¢ per share.

Net income for the second quarter on the same basis was $100.7 million compared with $73.2 million in the same period of 2000. Earnings per share on the same basis were 39.9¢, compared to 34.7¢ for the second quarter of last year.

IG says the results for the six months reflect the acquisition of Mackenzie as of April 20, 2001, and a change in accounting estimates related to amortization of sales commissions which reduced expenses by $11.8 million after tax.

After accounting for a restructuring charge related to the Mackenzie acquisition of $95.6 million pre-tax, earnings for the six months were $110.8 million or 47.8¢ per share prior to goodwill amortization and $90.4 million or 39¢ per share after goodwill amortization.

Gross revenues for the first six months of 2001 were $771.2 million compared to $567.2 million last year. Gross revenues for the second quarter were $474.8 million compared to $290.5 million in the prior year. Operating expenses were $574.4 million for the six months and $392.8 million for the quarter compared with $335.9 million and $159.1 million respectively in 2000.

Assets under management and administration at June 30, 2001 totalled $80.8 billion, compared to $45.2 billion at June 30, 2000 reflecting the increase in assets resulting from the Mackenzie acquisition.

Return on average common equity for the six months, excluding goodwill amortization and restructuring, was 20.7% compared with 26.2% for the same period in 2000.

Mutual fund net sales at Investors Group for the six month period were $760 million compared to $771 million in the prior year. In the second quarter mutual fund net sales were $179 million compared to $67 million last year.

Jeffrey Orr, president and CEO commented “Investors Group’s Consultant Network realized significant increases in net sales up 72% to $592 million from $344 million last year. This was offset against lower net sales into the independent and broker dealer channels. This provides further evidence that we are building momentum despite the weak markets and depressed sales across the industry.”

Mutual fund assets at June 30, were $43.8 billion compared to $43.9 billion a year ago. IG’s redemption rate at June 30, 2001, excluding money market funds, was 10.6% compared to 11.4% a year ago.

Mutual fund net sales for the period at Mackenzie were $180 million compared to $877 million in the prior year. In the second quarter mutual fund net sales were negative $161 million compared to $240 million last year.

James Hunter, president & CEO of Mackenzie commented “Mackenzie’s gross sales have held up fairly well. Net sales in the quarter reflect two large redemptions and the reality that equity markets have been poor.”

Mackenzie’s redemption rate at June 30, excluding money market funds, was 12% compared to 14.1% a year ago.