In a conference call with analysts today, executives from IGM Financial Inc. expressed optimism about the prospects for the upcoming RRSP season.

IGM Financial’s co-presidents and co-CEOs, Murray Taylor and Charlie Sims, noted that investors have been reluctant to get back into equity funds, even as they’ve returned to mutual funds in the past year or so. Investors have largely focused on income-yielding funds such as bond, dividend and equity income funds.

The banks have been the primary beneficiaries of this trend, they noted. Through the first half of 2005, while the banks’ net sales are up 7%, net sales in the advice channel are only up 1%, and sales are down 25% in the direct channel. And, excluding IGM, net sales in the advice channel were down 2% in the first half.

However, looking ahead to the upcoming RRSP season, they note that equity markets are continuing to deliver strong returns. Canadian equities have been particularly strong. The S&P/TSX Composite Index is leading the world’s major equity markets, up an impressive 7.3% so far in the third quarter.

IGM hopes that as investors recognize the strong performance in stock markets, they return to more pure equity funds, too; and, that firms selling through the advice channel benefit as a result.

As for the size of that channel, IGM noted that its Investors Group sales force is now at 3,537 consultants, up by 34 from the first quarter. The executives declined to give data on consultant turnover, except to say that recruiting is strong, and that it now rarely loses its sales people to other firms for purely financial reasons.

The IGM executives were also invited to comment on CI Investments’ move to fixed expenses. They noted that they are very comfortable with their track record of controlling expenses, and driving them down over time. And, they said they have no plans to change. That said, they didn’t rule out a competitive response, saying they’ll “keep an open mind” to new sorts or products and services available in the market place.