YMG Capital Management Inc. announced today the extension of its joint venture arrangement with First Quadrant LP until December 31, 2004.

First Quadrant, a U.S. based quantitative investment manager, provides Global Tactical Asset Allocation and Foreign Currency Overlay management technology which YMG uses to manage portfolios for Canadian pension plans and mutual funds. YMG currently manages approximately $2.1 billion in assets under management using First Quadrant proprietary investment models.

At the same time, the YMG/FQ venture was restructured for the Investors
Group Asset Allocation Fund. YMG has acted as portfolio advisor to the IGAAF since its inception and YMG has paid First Quadrant a percentage of the advisory fees it receives from Investors Group. Effective as of October 1, First Quadrant will act as the principal portfolio advisor to the IGAAF.

YMG will now provide services to First Quadrant in connection with its new portfolio advisory role to the IGAAF. As a result of this change, YMG expects that annual net revenue will decrease from $1.66 million to $1.02 million.

YMG has taken steps to reduce operating costs no longer required to service the Investors Group relationship. As a result of this action and other recent cost reduction initiatives, management does not expect earnings from continuing operations before interest, amortization, income taxes to be materially affected by this restructuring.

http://www.newswire.ca/releases/October2002/08/c8971.html