Three-month trading for IGM Financial

IGM Financial Inc., Canada's second-largest mutual fund company, reported a 37 per cent drop in first-quarter profit Friday to $133.5 million.

Earnings amounted to 51 cents a share, down from $211.2 million, or 79 cents a share, for the same period a year ago.

Revenue fell 22 per cent to $559.1 million from $714.2 million a year earlier.

Assets under management in IGM's Investors Group, Mackenzie and other funds shrank 17 per cent to $98.7 billion, down from $119 billion as of March 31 last year.

Investors Group said it continued to expand its sales force, with the number growing to 4,486 at the end of March 31 from 4,342 a year ago.

"Although our clients' fund values have been affected by the global stock market volatility, total redemption amounts for the first quarter of 2009 were the lowest in the last 10 years' comparative periods and demonstrate our clients' continued confidence in their overall plans and consultant support," Investors Group CEO Murray Taylor said in a release.

Investors Group net sales were $309 million in the quarter, down from $510 million a year earlier.

At Mackenzie, net redemptions during the quarter hit $299 million, up from $102 million a year ago. However, that was an improvement from the fourth quarter of 2008, when net redemptions reached $1.5 billion.

Shares of IGM Financial, a subsidiary of Power Financial Corp., rose 16 cents to $35.73 on the TSX.