Investors Group to improve fee certainty and transparency for investors

    Fixed administration fee provides reduction in MERs for majority of funds

    WINNIPEG, June 28 /CNW/ - Investors Group today announced that Fund
securityholders will be asked to vote on a proposal to establish a fixed
administration fee for most Investors Group mutual funds. As a result of this
change, the management expense ratios (the "MERs") for each series of units or
shares of most Investors Group Funds will become more fixed and predictable
going forward.
    Implementing a fixed administration fee will change how operating
expenses are charged to each Fund. Operating expenses presently comprise a
portion of the MER that varies from year to year, making it difficult to
predict the MER for most mutual funds in any given year. Investors Group will
replace fund operating expenses with a fixed administration fee. Taxes
(including GST), borrowing costs, Independent Review Committee costs and other
costs for new regulatory requirements will continue to be charged to the
    Generally, fixed administration fee rates for unit trust and corporate
class funds will be set by asset class and will range from 0.01 per cent (for
money market Funds) up to 0.25 per cent for global equity and sector asset
    With this change, Investors Group will bear the applicable operating
expenses of its Funds, in return for a fixed administration fee.
    The fixed administration fee for each series has been set at a level that
ensures that, had the fee been in place since October 1, 2006, all investors
would have experienced the same or lower MER, compared with their Fund's most
recently published MER in March.
    Generally, fixed administration fees for unit trust funds will be set by
asset class as follows:

    Unit Trust Asset Class                    Fixed Administration Fee Range
    Money Market                              0.01%

    Fixed Income                              0.13% to 0.16%

    Balanced                                  0.17% to 0.20%

    Canadian Equity                           0.17% to 0.19%

    US Equity                                 0.18% to 0.20%

    Global Equity                             0.18% to 0.20%

    Regional / Sector / Specialty             0.13% to 0.23%

    In conjunction with the implementation of a fixed administration fee,
Investors Group intends to reduce the management fees on most of Investors
Group's global Corporate Class Funds by .05% to 0.10%. The combination of
these changes would have resulted in the same or lower MERs for these 16
Corporate Class funds as compared to their most recently published MERs.
    Management fees will be reduced by .05% for Investors North American
Equity Class, Investors Global Class, Investors FI Global Equity Class, IG
Mackenzie Cundill Global Value Class(*), Investors European Equity Class,
Investors European Mid-Cap Equity Class, IG Mackenzie Ivy European Class, IG
AGF International Equity Class, IG Templeton International Equity Class,
Investors Greater China Class, Investors Japanese Equity Class, Investors
Pacific International Equity Class, Investors Pan Asian Growth Class,
Investors Mergers & Acquisitions Class.
    Management fees will be reduced by 0.10% for Investors Global Science &
Technology Class, and Investors Global Financial Services Class.
    It is anticipated that securityholders of record (as of August 2, 2007)
for all participating retail series of the Investors Group Funds(xx) will
receive an information circular and proxy materials. A special meeting of
investors for each participating Fund is expected to be convened on or about
September 20, 2007 to vote on the proposal. If the proposal is approved, the
fixed administration fee is expected to be in effect as of October 1, 2007.

    (*) A preliminary simplified prospectus relating to the IG Mackenzie
    Cundill Global Value Class of Investors Group Corporate Class Inc. has
    been filed with certain Canadian securities commissions or similar
    authorities. You cannot buy shares of the fund until the relevant
    securities commissions or similar authorities issue receipts for the
    simplified prospectus of the fund.

    (xx)iProfile and non-retail funds and series are excluded from the

    Investors Group, founded in 1926, is a national leader in delivering
personalized financial solutions to Canadians through a network of over 4,000
Consultants located throughout Canada. In addition to an exclusive family of
mutual funds and other investment vehicles, Investors Group offers a wide
range of insurance, securities, mortgage and banking services. Investors Group
is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM
Financial is one of Canada's premier financial services companies with over
$126 billion in total assets under management.

For further information:

For further information: Media Contact: Ron Arnst, Investors Group,
(204) 956-3364,

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