IGM Financial Inc. · TSX:IGM
IGM Financial — Investor Presentation (March 2022)
87 slides from IGM Financial's investor presentation, March 2022
Slide 1: IGM Financial Investor Presentation
March 2022 IGM FINANCIAL Investor Presentation
Slide 2: Caution concerning forward-looking statements
Caution concerning forward-looking statements Certain statements in this document other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial’s current expectations. Forward-looking statements are provided to assist the reader in un
Slide 3: Non-IFRS financial measures & additional IFRS measures
Non-IFRS financial measures & additional IFRS measures Net earnings available to common shareholders, which is an additional measure in accordance with IFRS, may be subdivided into two components consisting of: • Adjusted net earnings available to common shareholders; and • Other items, which includ
Slide 4: Glossary
Glossary AUM&A: Assets Under Management & Advisement AUA: Assets Under Advisement AUM: Assets Under Management CAGR: Compound Annual Growth Rate DSC: Deferred Sales Charge EPS: Earnings per Share ESG: Environmental, Social and Governance ETF: Exchange Traded Fund FMV: Fair market value FSB: Full-Ser
Slide 5: IGM Financial
IGM Financial 5 | IGM FINANCIAL INVESTOR PRESENTATION
Slide 6: IGM Financial: A diversified wealth and asset management company
IGM Financial: A diversified wealth and asset management company with leading brands in Canada • All-time high 2021 Adjusted EPS of $4.05 up 27% from 20201, driven by strong growth across all businesses Demonstrating Strong Earnings • Continued business momentum combined with prudent expense managem
Slide 7: IGM at a glance
IGM at a glance Assets Under Management & 2021 Adjusted EPS by Segment2 Valuation by Segment $277.1B Advisement Peer IGM $4.05 Average6 Mutual Fund AUM Market Share1 Top 3 IN CANADA Strategic Investments & Other 19.3% ~$5.1B Clients ~2 Million estimated FMV4,5 & other investments Employees3 3,500+ A
Slide 8: Multi-channel distribution
Multi-channel distribution Complemented by strategic investments that diversify earnings and expand capabilities Wealth Management: $153B AUA Asset Management: $210B AUM Comprehensive personal planning Integrated personal financial services Diversified asset management solutions delivered through lo
Slide 9: Strength and scale as part of Power Corporation Group of Companies
Strength and scale as part of Power Corporation Group of Companies1 Note: On January 5, 2022, IGM announced that Mackenzie Investments will acquire Power Corporation of Canada’s 13.9% equity interest in China Asset Management Co. Ltd. IGM’s ownership of ChinaAMC will increase to 27.8% and Power Corp
Slide 10: IGM is focused on responsible management
IGM is focused on responsible management Our Sustainability Strategy Focused on what matters most to our business and stakeholders, and seeks to accelerate positive change where we can make the greatest impact 10
Slide 11: IGM's corporate sustainability recognition and initiatives
IGM’s corporate sustainability recognition and initiatives • IGM has ranked at the • IGM named by Corporate • IGM ranked 26th in Best 50 • IGM included in stock • IGM included in stock leadership level for the Knights as one of the 100 Corporate Citizens in index of global firms with index of 50 Can
Slide 12: IGM Financial 2021 Highlights
IGM Financial 2021 Highlights All-time record high EPS of $4.08 up 27% from reported EPS of $3.21 last Adjusted EPS - Available to Common Shareholders ($)1 1 year Up 27% • Adjusted EPS of $4.05 up 27% year-over-year relative to adjusted EPS of $3.20 cents in 20201 +21% • Driven by strong increases i
Slide 13: Strong annual net flows from wealth and asset management
Strong annual net flows from wealth and asset management IGM Financial Consolidated Annual Net Flows1 ($B) IGM Financial Segmented Annual Net Flows ($MM) 8.7 Asset All-time Wealth Management Management Record High 7.1 IG Wealth IPC Mackenzie Management 6,250 3.7 5,134 3,684 1.4 0.6 0.1 (0.3) (0.2) 7
Slide 14: IGM Q4, 2021 highlights
IGM Q4, 2021 highlights Record fourth quarter adjusted EPS of $1.08; • Reported EPS of $1.11 up 16% year-over-year relative to 96 cents in Q4/20 up 26% from adjusted EPS of 86 cents last year1 Record high AUM&A of $277.1B, • Driven by client investment returns of 4.3% and strong net flows of $1.2B f
Slide 15: Financial market and client investment returns
IGM Q4/21 Financial market and client investment returns IGM Client Return Index1 2.6 Investment Performance Q1/22 at 2.4 2020 Q4/21 2021 Jan 31 IGM Client Investment Returns 2 6.5% 4.3% 11.9% (3.0%) 2.2 Equity Markets: Canada (S&P / TSX Composite) 5.6% 6.5% 25.1% (0.4%) 2.0 U.S. (S&P 500) 18.4% 11.
Slide 16: Industry operating environment and momentum at IG and Mackenzie
IGM Q4/21 Industry operating environment and momentum at IG and Mackenzie Net Flows Rate as at December 31, 2021 Fourth Quarter Industry Long-term Net Sales ($B) (Last Twelve Month Trailing, % of Average Assets) 3,4 4 Total Industry Industry Asset Manager Peers Mackenzie total investment funds Macke
Slide 17: Fourth quarter and full year net flows
IGM Q4/21 Fourth quarter and full year net flows ($MM) Wealth Management Asset Management IGM Consolidated Institutional SMA1 Quarter 2,221 1,673 985 2,296 1,234 485 1,748 1,810 249 123 757 181 (75) (576) 2 (75) (576) 2 Q4/20 Q4/21 Q4/20 Q4/21 Q4/20 Q4/21 Q4/20 Q4/21 Institutional SMA1 8,701 7,099 6
Slide 18: IGM Financial adjusted EBIT & margins
IGM Q4/21 IGM Financial adjusted EBIT & margins IGM Adjusted EBIT1 ($MM) IGM Adjusted EBIT Margin1,2 (% of AUM&A) Direct advisor/dealer 890.9 902.1 compensation3 & sub- 843.9 1.44% 779.5 800.5 advisory expenses 243.5 253.5 Share of associates’ 0.42% 1.26% 1.25% 1.24% 1.24% 232.0 earnings and net 213
Slide 19: Adjusted net earnings by segment and company
IGM Q4/21 Adjusted net earnings available to common shareholders by segment and company ($MM)1 Wealth Management Asset Management Strategic Investments & Other2 IGM Consolidated +28% Quarter 260.8 +20% 204.3 141.1 117.4 +60% +11% +39% 65.3 +44% 40.7 27.3 30.4 4.4 6.1 10.6 15.3 0.8 2.6 Q4/20 Q4/21 Q4
Slide 20: Strong earnings growth demonstrated in 2021
Strong earnings growth demonstrated in 2021, driven by 4.2% net flows rate, positive investment returns, and prudent expense management IGM is focused on net earnings growth through continued business momentum and prudent expense management Strong earnings growth of 27% Strong AUM&A growth in-excess
Slide 21: Adjusted Net Earnings and Valuation by Segment and Company
Adjusted Net Earnings Available to Common Shareholders and Valuation by Segment and Company ($MM) Wealth Management Asset Management Strategic Investments & Other1 IGM Consolidated Adjusted Net Earnings +9% Available to Common 1,059 Shareholders +6% 971 2021 523 554 +10% Not applicable 2022 241 266
Slide 22: Strong growth in Chinese mutual fund industry AUM
Strong growth in Chinese mutual fund industry AUM ChinaAMC is an industry leader, and consistently among the top five in the league tables Chinese Mutual Fund Industry Ending AUM (RMB Trillions)1 25.3 Chinese Mutual Fund Industry Long-term Mutual CAD/RMB = 5.0753 22.9 23.8 Fund Market Share (% at De
Slide 23: ChinaAMC: a leading Chinese asset manager
– a leading Chinese asset manager; Delivering accelerated growth with Q4/21 net earnings increasing ~43% year-over-year ChinaAMC Ending AUM1 IGM Share of ChinaAMC Earnings (RMB billions) (CAD millions) 21.0 4.0 One-time unfavourable tax adjustments of 17.0 17.0 1,662 ~$4MM in Q4/21 1,607 1,581 1,536
Slide 24: Northleaf: A leading mid-market global private markets asset manager
– A leading mid-market global private markets asset management firm About Northleaf Ownership and Strategic Rationale 1. A mid-market global private equity, private credit and 1. Mackenzie & Lifeco jointly own 70% economic interest in Northleaf (49.9% voting) through an acquisition vehicle 80% owned
Slide 25: Wealthsimple: Canada's largest online investment management service
– Canada’s largest online investment management service offering best-in-class digital access, innovation, client service and delivery • Wealthsimple’s AUA nearly doubled during 2021 to $18.8 billion • The number of clients served by Wealthsimple increased 168% during 2021 and currently stands at ov
Slide 26: Capital allocation priorities
Capital allocation priorities • Drive innovation and new product development REINVEST IN THE • Execute initiatives to improve efficiency and profitability BUSINESS • Operational excellence across the organization MAINTAIN • Maintain strong liquidity STRONG • Value “A” credit rating CREDIT PROFILE •
Slide 27: IGM investment highlights
IGM investment highlights • Diversified financial services provider, focused on financial planning and investment management services • IGM is one of the top 3 mutual fund managers in Canada, with assets under management of $245.3B at December 31, 2021 A leading Canadian financial • Strong operating
Slide 28: IG Wealth Management
IG Wealth Management 28 | I G M F I N A N C I A L I N V E S T O R P R E S E N T A T I O N
Slide 29: Key Messages – IG Wealth Management
Key Messages – IG Wealth Management Competitive advantage Our advantage is further with strong Actions taken have enabled by hiring top A leading wealth entrepreneurial enhanced the client New client-centric quality advisors, management company in Consultant network to experience and sales strategy
Slide 30: IG Wealth Management At A Glance
IG Wealth Management At A Glance Leading wealth management company in Canada inspiring financial confidence Key statistics Total AUA $119.6 Billion $8.4 Billion $3.9 Billion Total AUM $110.5 Billion Client All-in-One accounts Clients 1 Million+ Mortgages (available credit) Consultant Practices1 1,76
Slide 31: IG Wealth Management journey
IG Wealth Management journey Q3 2019 • Q2/21 New private • Q3 2017 Investors Group’s in-house Launched new IG Living investment mandate Sep 2016 portfolio management team becomes Oct 2018 Investors Group relaunched Plan SnapshotTM, a in iProfile managed Announced elimination part of Mackenzie’s inve
Slide 32: Continued Net Flow Momentum at IG Wealth Management
Continued Net Flow Momentum at IG Wealth Management IG Wealth Management Gross and Net Flows1 ($MM) IG Wealth Management Flows2 Gross Inflows Gross Outflows Net Flows (Last Twelve Month Trailing, $B) Month of January: Record high January Gross & Net Flows Total Net Flows IGM Product Net Flows 1,166
Slide 33: IG Wealth Management Q4, 2021 operating results
IG Wealth Management Q4, 2021 operating results Gross Outflows Rate Assets Under Gross Inflows ($MM) (quarterly annualized) Net Flows ($MM) Advisement ($B) +17% 985 3rd party IG mutual funds 3,437 9.8% 485 2,938 114.0 119.6 8.3% 103.3 7.4 9.1 5.6 Q4/20 Q4/21 Net Flows Q4/20 Q4/21 106.6 110.5 97.7 IG
Slide 34: Accelerating Consultant productivity
Accelerating Consultant productivity Gross Inflows per Consultant Gross Inflows per Consultant Recruit with <4 years experience Practice with >4 years experience Key Initiatives ($MM) ($MM) Driving Productivity 1.69 • Elimination of DSC (2017), removing competitive impediment 0.60 1.38 • Tightened r
Slide 35: Sales growth driven by high-net-worth client acquisition
Sales growth driven by accelerating high-net-worth client acquisition Gross Flows from Newly Acquired Clients Gross Flows from Newly Acquired Clients (Annual, $MM) (Last Twelve Month Trailing, $MM) By Client Assets Brought to IG Wealth By Client Assets Brought to IG Wealth Growth >$500K $100-500K <$
Slide 36: IG Wealth's clients remaining committed to financial plans
IG Wealth’s clients remaining committed to financial plans, IG focused on client engagement & gamma Redemption Rates1 (Last Twelve Month Trailing % of Average Assets) 20% 18% 16% Industry 14% IG Investment Return Index 13.5% (as at Dec 31, 2021; long-term funds; excluding IG Wealth) 12% 10% IG Wealt
Slide 37: Canadian financial assets projected to grow by >$4 trillion
Canadian financial assets projected to grow by >$4 trillion over the next decade Canadian Discretionary Financial Assets ($ Trillions, at Dec 31) 5.6% Compound 9.6 • Net contribution rate of ~3.0% of assets Annual Growth Rate per year expected ($200 billion per year) 2.0 Millennials • Increasing pop
Slide 38: Managed solutions and financial advisors projected to remain important
Managed solutions and financial advisors projected to remain most important part of Canadian savings Canadian Discretionary Financial Assets ($ Trillions, at Dec 31) By savings vehicle By distribution channel Compound annual growth rate Compound annual growth rate Investment Financial 9.6 6% advisor
Slide 39: Opportunity within mass affluent & high net worth households
Opportunity within mass affluent & high net worth households IG Wealth Management Market Share IG’s financial planning offering is By Household Wealth well-suited to the needs of the IG Wealth Management Market Share mass affluent and HNW segments Canadian Financial Assets ($ billions) 5% $2,008 IG
Slide 40: Our Value Proposition is differentiated
Our Value Proposition is differentiated FINANCIAL & BEHAVIOURAL ADVICE BIGGEST IMPACT OUR MANAGED SOLUTIONS PROVIDE ON FINANCIAL OUTCOMES OF CONSULTANTS WITH THE BEST OPPORTUNITY TO OUR CLIENTS FOCUS ON PROVIDING GAMMA BET TER BETTER GAMMA BETA BETTER ALPHA ~65% OF CLIENT OUTCOME ~25% OF CLIENT OUTC
Slide 41: Differentiated value proposition aligned with how we charge clients
Our differentiated value proposition is aligned with how we charge clients; Our segmented advisory fee & product fee rates are competitive Actions taken during the 2010’s position IG with competitive fees (Wealth management fees in bps) FINANCIAL & BEHAVIOURAL OUR WELL-CONSTRUCTED, ADVICE (GAMMA) HA
Slide 42: Well constructed managed solutions provide consultants with best opportunity
Well constructed managed solutions provide consultants with the best opportunity to focus on providing gamma 87% OF LONG-TERM GROSS SALES (LTM) | 67% OF LONG-TERM FUND ASSETS INVESTORS PORTFOLIOS 42 As of December 31, 2021
Slide 43: Investment solutions leverage top global asset managers
Our investment solutions leverage top global asset managers, including Mackenzie 43
Slide 44: Leading portfolio construction with public, private and alternative strategies
Leading portfolio construction with investment solutions that include public markets, private markets and alternative strategies EXPANDED USE OF PRIVATE MARKET INVESTMENTS AND LIQUID ALTERNATIV ES IN IPROFILE MANAGED SOLUTIONS DURING 2021 ILLUSTRATION OF iPROFILE GLOBAL NEUTRAL BALANCED MODEL L I Q
Slide 45: IG Wealth top performer in 2021 Investment Executive Dealer Report Card
IG Wealth top performer in 2021 Investment Executive Dealer Report Card IG Wealth Industry Average (ex-IG Wealth) 9.2 9.2 8.9 9.1 8.7 8.4 Continued leading position in our highly 8.2 8.2 7.8 differentiated financial planning & 7.7 training programs Support for Support for wills and Support for tax S
Slide 46: Mackenzie Investments
Mackenzie Investments 46 | I G M F I N A N C I A L I N V E S T O R P R E S E N T A T I O N
Slide 47: Key Messages – Mackenzie Investments
Key Messages – Mackenzie Investments We have successfully executed Mackenzie Supporting team success Sustained performance turnaround; shift from Executing on foundational and cost efficiency based on top talent and Clear line of sight for 2022 equity mutual fund strategy; nimble approach through di
Slide 48: Mackenzie Investments At A Glance
Mackenzie Investments At A Glance Diversified asset management solutions provider Key statistics AUM by asset class2 Vehicle Agnostic Total AUM1 $210.3 Billion SPECIALTY ✓ Mutual funds INCOME Clients 1 Million+ ✓ ETFs CANADIAN EQUITY Advisors Served 30,000+ ✓ HNW pools Employees4 1,163 ASSET ALLOCAT
Slide 49: Mackenzie's journey since 2016
Mackenzie’s journey since 2016 Shift from equity mutual fund firm to global, future-oriented investment solutions firm • 1997: Joined IG Wealth • Progressed in organization Barry McInerney Luke Gould through roles in business and strategic analysis, PRESIDENT AND CEO PRESIDENT AND CEO investor relat
Slide 50: Continued strong momentum at Mackenzie
Continued strong momentum at Mackenzie Mackenzie Adjusted Investment Fund Flows1 ($MM) Investment Fund Net Sales 2 Gross Sales Redemptions MF Net Sales ETF Net Flows QGOF Gross Sales January January Launched private label 2021 2022 Wealthsimple North America Month of January: Second Best Net Flows i
Slide 51: Mackenzie Q4, 2021 operating results
Mackenzie Q4, 2021 operating results Retail Mutual Fund ▪ $653MM retail investment fund net sales, Gross Sales ($MM) Net Sales ($MM)1,2 second highest on record Q4/19 Q4/20 Q4/21 ▪ Gaining share; 9.0% long-term investment 2,587 2,229 Retail mutual Funds 222 1,010 478 fund net sales rate over the twe
Slide 52: Mackenzie strategy
Mackenzie strategy OBJECTIVE Become Canada’s preferred global asset management solutions provider & business partner PURPOSE Creating a more invested world, together Our strategic focus Goals 1. Win in Retail TOP INVESTMENT FIRM IN CANADA in a segmented way 2. Build global Institutional business ENG
Slide 53: Opportunity for Mackenzie to access Money in Motion
Opportunity for Mackenzie to access “Money in Motion” with third party distribution model Industry Long Term Mutual Fund Assets Non-Bank Long Term Mutual Fund Sales ($ Billions) ($ Billions) Bank-Owned Non-Bank Gross Sales Net Sales 2,500 240 5 year CAGR 2,000 190 Significant 9.2% at “Money in Dec/2
Slide 54: 2021 is a year of significant business momentum for Mackenzie retail
2021 is a year of significant business momentum for Mackenzie retail Mackenzie Retail Investment Fund Flows ($B) Last twelve month trailing Quarterly Mutual Fund Net Sales Mutual Fund Gross Sales Investment Fund Net Sales Mutual Fund Net Sales 7.0 #2 Rated Sales Organization in ETF Net Sales Canada
Slide 55: Marketing transformation helped drive the business in 2020
Marketing transformation helped drive the business in 2020 Elevating Mackenzie’s Brand Image And Driving Growth Catalyst Sales Building brand image & reputation with a new purpose Transforming the brand Driving sales with growth catalyst campaigns Digital & learning excellence 55
Slide 56: 2021 Advisor Perception results show continued momentum
2021 Advisor Perception results show continued momentum Mutual Fund Advisor Perception Study – 2013 2015 2017 2018 2019 2020 2021 Mackenzie Results Overall Perception Rank 12th 5th 3rd 3rd 3rd 2nd 3rd* Brand Equity Rank N/A 2nd 2nd 2nd 2nd 2nd 2nd Overall Quality of Sales 2 2 2 12th 7th 2nd 1st 2nd
Slide 57: Continue to build-out institutional business with targeted approach
Continue to build-out institutional business with targeted approach Strategic Partnerships Institutional Canada: Sub-advisory, Fund Administration (GWL, IPC), Dealer Platforms (SMA), DB Currency and Asset Allocation, Global Equity, Emerging Markets, Fixed Plans, DCIO, Endowments & Foundations, Consu
Slide 58: Five Areas of Product Emphasis for Mackenzie
Five Areas of Product Emphasis for Mackenzie – 2021 Highlights Areas of Emphasis Macro Thesis Select 2021 Highlights $44T1 market with diversified • Mackenzie Greenchip Global All Cap Fund achieves 5-star Morningstar 1. Sustainable Investing retail and institutional interest rating + $1.2B net sales
Slide 59: Global capabilities; Boutique structure and well resourced
Global capabilities; Boutique structure and well resourced Dublin ▪ 150+ investment professionals Beijing Toronto Mackenzie Sales Office globally Montreal and CAMC Winnipeg ▪ 17 Investment Teams New Hampshire Calgary PAX London ▪ $210.3 Billion1 Vancouver ▪ Capabilities Menlo Park Shanghai ▪ Fundame
Slide 60: Mackenzie's unique multi-boutique structure
Mackenzie’s unique multi-boutique structure Capabilities suited for portfolio construction and solutions selling ETF Traditional Symmetry Portfolios Balanced Monthly Mackenzie Alts Strategies / Northleaf Resources Income Mackenzie Monthly Income Portfolios Portfolios Alternative TOBAM Mackenzie Alts
Slide 61: World-class investment talent spanning 17 boutiques
World-class investment talent spanning 17 boutiques Two CIOs providing oversight & leadership STEVE LOCKE LESLEY MARKS CIO, Fixed Income & Multi-Asset CIO, Equities Investment Boutiques – Investment Boutiques – Equities Fixed Income & Multi-Asset Todd Mattina Multi-Asset Cundill Richard Wong Europea
Slide 62: Investment boutique retail mutual fund performance & net sales
Investment boutique retail mutual fund performance & net sales Fixed Managed 3rd Party Value-Oriented Quality Growth-Oriented Sustainable Core & Dividend Income Solutions & Other North Global Global ChinaAMC, Fixed Multi-Asset Putnam, Cundill American Ivy Growth Bluewater Resources Greenchip Quantit
Slide 63: Mackenzie Investments to Acquire Additional 13.9% Equity Interest in ChinaAMC
Mackenzie Investments to Acquire Additional 13.9% Equity Interest in ChinaAMC As presented January 6, 2022 63 | I G M F I N A N C I A L I N V E S T O R P R E S E N T A T I O N
Slide 64: Strategic Rationale
Strategic Rationale Enhancing IGM’s growth profile and providing greater clarity to investors with Mackenzie acquiring an additional 13.9% equity interest in ChinaAMC (27.8% pro forma) for $1.15B; 50% funded by partial sale of IGM’s 4% equity interest in Great-West Lifeco (2.4% pro forma) and 50% fu
Slide 65: ChinaAMC is a leading, broadly diversified asset manager
ChinaAMC is a leading, broadly diversified asset manager RMB 1.607 trillion in total assets under management (C$309 billion) as at June 30, 20211 Rank #2 in long-term mutual fund AUM in China2 #1 asset management brand in China and among the top 50 asset manager brands globally3 Industry Leader in E
Slide 66: Strong historical growth in China mutual fund industry AUM
Strong historical growth in China mutual fund industry AUM driven by high savings and net sales Savings Rate by Country Long-term Mutual Fund Industry Assets Investment Fund Industry Forecasts (2020 gross savings as a % of GDP) Under Management (C$ billions) Compound Annual Growth Rate in Assets Und
Slide 67: Mackenzie capitalizing on ChinaAMC opportunity
Mackenzie capitalizing on ChinaAMC opportunity 2021 Mackenzie/IGM-ChinaAMC strategic partnership highlights • C$750MM sub-advised by Mackenzie for ChinaAMC • Overall, ChinaAMC sub-advises ~$285MM for Mackenzie Investments & IG Wealth’s investment solutions • Mackenzie All China Equity Fund rated 5-s
Slide 68: Transaction Summary
Transaction Summary 1) Mackenzie to purchase 13.9% of ChinaAMC for C$1.15 billion from Power Corporation of Canada (PCC) Current Ownership a) Transaction increases Mackenzie’s ownership from 13.9% to 27.8% Selling shareholder Acquiring shareholder b) Targeting first half of 2022 closing, subject to
Slide 69: ChinaAMC has delivered strong earnings growth since 2017
ChinaAMC has delivered strong earnings growth since 2017 initial investment with accelerated growth in the last two years ChinaAMC Quarterly Net ChinaAMC Annual Net Valuation of the 13.9% ChinaAMC Interest Purchased from PCC for C$1.15Bn Earnings (RMB millions) Earnings (RMB millions) (Implied China
Slide 70: Appendix
Appendix 70 | I G M F I N A N C I A L I N V E S T O R P R E S E N T A T I O N
Slide 71: 2022 Expense Guidance – Continued Focus on Prudent Expense Management
2022 Expense Guidance – Continued Focus on Prudent Expense Management Guidance and Outlook: Combined Operations & Support and Business Development Expenses IGM Consolidated1 By Company (year-over-year change) (year-over-year change) 1 2021 actual came in slightly below guidance 1) 5-year technology
Slide 72: 2022 Guidance - Mackenzie Business Development Expense Sensitivity
2022 Guidance - Mackenzie Business Development Expense Sensitivity Mackenzie Business Development Expense Sensitivity to Retail Mutual Fund Sales Levels ($MM, unless otherwise noted) Retail mutual fund gross sales ↑30% Retail mutual fund net sales ↑17.5% 13,200 ↑6% 12,000 ↓4% 10,800 10,206 9,800 ↓20
Slide 73: IGM Financial Q4, 2021 results
IGM Financial Q4, 2021 results Up 16% from last year Net Earnings ($MM) Net Earnings Per Share ($) Daily Total AUM & AUA ($B) Daily AUM&A 269 1.11 229 0.96 Annual Average AUM&A Quarterly Average AUM&A 290 280 270 260 250 Q4/20 Q4/21 Q4/20 Q4/21 240 Net acquisitions 230 of $30.3B Adjusted Net Adjuste
Slide 74: Q4, 2021 IGM Financial consolidated profitability
Q4, 2021 IGM Financial consolidated profitability1 $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q4/20 Q3/21 Q4/21 $ % $ % ▪1 Combination of operations & Days in the period 92 92 92 0.0% 0.0% Average AUM & AUA ($ Billions) support and business Wealth Managemen
Slide 75: IGM Financial common dividends
IGM Financial common dividends ▪ Traditionally IGM has increased dividends at pay-out of 60-65% of earnings ▪1 IGM’s dividend pay-out is high relative to peers ▪ There is currently ~$150 million difference between reported net earnings ▪2 Dividend yield of 5.0% is attractive1 and cash earnings ▪ IGM
Slide 76: IG Wealth Management Q4, 2021 highlights
IG Wealth Management Q4, 2021 highlights 1 Record high quarter end AUM&A of $119.6B, up 4.9% during Q4 and 15.8% for full year 2021 • Client returns of 4.1% and strong Q4 net flows of $1.0B 2 Record high Q4 and full year 2021 net flows of $1.0B and $3.7B, respectively • Strong net sales to IGM manag
Slide 77: IG Wealth Management key profitability drivers
IG Wealth Management key profitability drivers Average Assets ($B), Advisory and Key Revenue & Expenses as bps of Respective Product & Program Fee Rate (bps)1 Driver (AUA or AUM or Gross Inflows)1 117.4 105.0 114.8 104.3 104.2 102.6 101.8 109.7 7.9 105.5 7.2 6.6 Other AUA Advisory 100.3 109.5 85.8 8
Slide 78: IG Wealth Management profitability
IG Wealth Management profitability $ Millions (unless otherwise noted): 1 Change QoQ Change YoY IG Wealth Management Q4/20 Q3/21 Q4/21 $ % $ % Days in the period 92 92 92 0.0% 0.0% Average assets under advisement ($B) 100.3 114.8 117.4 2.6 2.2% 17.1 17.0% Average assets under management ($B) 95.2 10
Slide 79: Mackenzie Investments Q4, 2021 highlights
Mackenzie Investments Q4, 2021 highlights 1 Record high quarter end AUM of $210.3B, up 3.4% from September 30, 2021 • Organic growth through investment returns of 4.5% and net flows of $181 million Q4 investment fund net flows of $757MM were the second best on record; full year 2021 2 investment fun
Slide 80: Mackenzie AUM & Sales Disclosure Enhancements
Mackenzie AUM & Sales Disclosure Enhancements We have enhanced disclosures to detail the sub-advisory relationship to Canada Life and related revenues Mackenzie Ending AUM ($B) Mackenzie Sub-advisory to Canada Life 210.3 210.3 Key Metric 203.3 1-Yr % Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 change Canada Life
Slide 81: Asset Management key profitability drivers
Asset Management key profitability drivers Net Asset Management Fee Rates1 Average AUM ($B), Net Asset Management Fees (bps)1 (as bps of respective AUM) 204.9 207.1 Sub-advisory AUM 196.6 81.7 82.0 82.1 Third-party to Wealth 80.4 187.2 Excluding Management Canada Life Third Party AUM 70.8 Overall Th
Slide 82: Asset management segment profitability
Asset management segment profitability $ Millions (unless otherwise noted):1 Change QoQ Change YoY Asset Management Q4/20 Q3/21 Q4/21 $ % $ % Days in the period 92 92 92 0.0% 0.0% Average assets under management ($B) Excluding sub-advisory to Wealth Management 77.2 125.2 126.8 1.6 1.3% 49.6 64.2% Su
Slide 83: IG Living Plan Portal, the next generation in planning
IG Living Plan Portal, the next generation in planning Helping Canadians achieve true financial well-being Our holistic approach to financial planning is comprehensive and goes beyond traditional investment advice to consider all aspects of your financial life. We are committed to providing the righ
Slide 84: New digital advisor application for tailored client investment proposals
New digital advisor application to deliver tailored client investment proposals with integrated compliance management INTEGRATED Product shelf details hosted on CapIntel PROUCT SHELF Concentration limits for specific MANAGER securities inside portfolios and households Integrated approved product she
Slide 85: New IG climate action portfolios aligned with net zero by 2050
New IG climate action portfolios aligned with net zero by 2050 Enables clients to positively impact the world while taking advantage of sustainable investing opportunities 85
Slide 86: IG Wealth Management Series U Funds competitively priced
IG Wealth Management Series U Funds are competitively priced with industry Series F Funds IG Series U vs. Industry Series F MERs – Active Mutual Fund Pricing (Percentages) 2.00 PRICING GOAL MERs priced at 50th Percentile or Better vs. Industry Series F 1.50 1.36 1.32 1.28 1.19 1.26 1.22 1.14 1.16 1.
Slide 87: China demographics
China demographics Chinese Population by Age 2019 Population Expected 2050 ‘Diamond’ Population ‘Cone’ Aging Chinese population stimulates the need for retirement savings and asset management 75 50 25 0 25 50 75 75 50 25 0 25 50 75 Population (M) Population (M) Source: World Bank 87