Slide 1: IGM Financial Q1, 2022 Results
IGM Financial Q1, 2022 Results May 6, 2022
Slide 2: Conference Call Participants
Conference Call Participants JAMES O‘SULLIVAN DAMON MURCHISON BARRY MCINERNEY LUKE GOULD PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO EXECUTIVE VICE-PRESIDENT IGM FINANCIAL IG WEALTH MANAGEMENT MACKENZIE INVESTMENTS & CFO IGM FINANCIAL 2
Slide 3: Caution Concerning Forward-looking Statements
Caution Concerning Forward-looking Statements Certain statements in this report 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 unde
Slide 4: Non-IFRS Financial Measures & Other Financial Measures
Non-IFRS Financial Measures & Other Financial Measures This report contains Non-IFRS financial measures and non-IFRS ratios that do not have standard meanings prescribed by IFRS and may not be directly comparable to similar measures used by other companies. These measures and ratios are used to prov
Slide 5: Documents Incorporated By Reference
Documents Incorporated By Reference This summary document and webcast are meant to discuss, not to serve as a substitute for, information included in these documents. The reader is hereby cautioned to refer to the following documents relating to IGM Financial’s results: 1. Documents related to IGM F
Slide 6: IGM Financial
IGM FINANCIAL JAMES O‘SULLIVAN PRESIDENT & CEO IGM FINANCIAL IGM FINANCIAL Q1, 2022 RESULTS
Slide 7: IGM Financial Q1, 2022 Highlights
IGM Financial Q1, 2022 Highlights 1 Record high first quarter EPS of 91 cents; up 7% from last year • Headwinds from $6.6MM pre-tax ($5.3MM after-tax) losses on seed capital1 & typical seasonal items during the first quarter • Continued emphasis on expense management during the first quarter of 2022
Slide 8: Financial Market and Client Investment Returns
Financial Market and Client Investment Returns IGM Client Return Index1 2.6 2.4 Investment Performance Q2/22 at 2022 YTD 2021 Q1/22 Apr 30 at Apr 30 2.2 IGM Client Investment Returns 2 11.9% (4.6%) (4.0%) (8.4%) Equity Markets: 2.0 Canada (S&P / TSX Composite) 25.1% 3.8% (5.0%) (1.3%) U.S. (S&P 500)
Slide 9: Industry Operating Environment
Industry Operating Environment First Quarter Industry Long-term Net Sales ($B) Total Industry Industry Asset Manager Peers 41.1 Categories Q1 2021 Q1 2022 $ Change 24.8 Balanced 4.6 2.8 (1.8) 19.6 22.7 Foreign Equity 8.7 2.9 (5.8) 15.9 18.8 16.3 9.6 12.0 Canadian Equity 0.1 0.3 0.2 6.7 5.9 4.9 7.0 I
Slide 10: IGM Financial Q1, 2022 Results
IGM Financial Q1, 2022 Results Net Earnings ($MM) Net Earnings Per Share ($) Total AUM&A ($B) Up 7% from Daily AUM&A Up 8% from last year Annual Average AUM&A last year Quarterly Average AUM&A 0.91 290 219 0.85 280 202 270 260 250 240 Net acquisitions 230 of $30.3B (GLC/Greenchip/ 220 QGOF) 210 200
Slide 11: Adjusted Net Earnings Available to Common Shareholders by Segment and Company
Adjusted Net Earnings Available to Common Shareholders1 by Segment and Company ($MM) Wealth Management Asset Management Strategic Investments & Other2 IGM Consolidated +8% 219.3 202.2 +6% 117.6 110.5 +9% +9% 48.0 52.1 30.7 +7% 28.1 11.3 12.1 4.3 3.8 0.8 3.4 Q1/21 Q1/22 Q1/21 Q1/22 Q1/21 Q1/22 Q1/21
Slide 12: First Quarter Net Flows ($MM)
First Quarter Net Flows ($MM) Wealth Management Asset Management IGM Consolidated Record high 1 Q1 net flows Institutional SMA +164 2,466 2,302 +451 Record high 1,466 net flows 1,575 2nd highest Q1 in over 20 years 2,893 2,622 1,015 1,895 873 +169 1,300 160 (9) (320) (427) 2 (320) (427) 2 Q1/21 Q1/2
Slide 13: IGM is Focused on Bettering Lives for Tomorrow
IGM is Focused on Bettering Lives for Tomorrow IGM’s sustainability strategy Our sustainability strategy keeps us focused on what matters most to our business and our stakeholders, and seeks to accelerate positive change in areas where we – as wealth and asset managers – can make the greatest impact
Slide 14: IG Wealth Management
IG WEALTH MANAGEMENT DAMON MURCHISON PRESIDENT & CEO IG WEALTH MANAGEMENT IGM FINANCIAL Q1, 2022 RESULTS
Slide 15: IG Wealth Management Q1, 2022 Highlights
IG Wealth Management Q1, 2022 Highlights 1 Ending AUM&A of $116.3B was down 2.7% during Q1 • Due to client returns of negative 4.1% partially offset by record Q1 net flows of $1.5B 2 Record high Q1 net flows of $1.5B were up from $1.0B last year • Net sales into IGM managed products were $1.3B durin
Slide 16: Continued Net Flow Momentum at IG Wealth Management
Continued Net Flow Momentum at IG Wealth Management IG Wealth Management Gross and Net Flows1 ($MM) IG Wealth Management Flows Gross Inflows Gross Outflows Net Flows (Last Twelve Month Trailing, $B) First Quarter 4,000 Total Net Flows IGM Product Net Flows 3,636 3,006 5.0 2,932 2,895 2,034 2,229 2,3
Slide 17: IG Wealth Management Q1, 2022 Operating Results
IG Wealth Management Q1, 2022 Operating Results Gross Outflows Rate Assets Under Gross Inflows ($MM) (quarterly annualized) Net Flows ($MM) Advisement ($B) +10% 1,466 3rd party IG mutual funds 1,015 4,000 10.2% 3,636 119.6 116.3 8.8% 107.0 9.1 9.1 6.3 Q1/21 Q1/22 Net Flows Q1/21 Q1/22 110.5 107.2 10
Slide 18: Sales Growth Driven by Accelerating 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 (Q1, $MM) (Last Twelve Month Trailing, $MM) By Client Assets Brought to IG Wealth By Client Assets Brought to IG Wealth Growth 5-year 1-year >$500K $1
Slide 19: Accelerating Advisor Productivity
Accelerating Advisor Productivity Gross Inflows per Advisor Gross Inflows per Advisor Recruit with <4 years experience Practice with >4 years experience ($MM) ($MM) Key Initiatives Driving Productivity • Elimination of DSC (2017), removing competitive impediment 0.71 1.98 • Tightened recruiting stan
Slide 20: New Product Launches Further Expand Our Capabilities for HNW Clients with U.S. Assets
New Product Launches Further Expand Our Capabilities for HNW Clients with U.S. Assets IG Mackenzie U.S. Dollar Funds IG U.S. Taxpayer Portfolios Comprehensive, well-diversified portfolios Sophisticated portfolio solution for U.S. dollars with simplified tax reporting For Canadian investors, a simple
Slide 21: Continued Momentum Advancing Client, Advisor and Employee Value Proposition
Continued Momentum Advancing Client, Advisor and Employee Value Proposition IG Wealth was a top performer in 2021 J.D. Power 2022 Canada Full-Service Investor Satisfaction Study Investment Executive Dealer Report Card Overall Customer Satisfaction Index Ranking (based on 1,000-point scale) Overall R
Slide 22: Mackenzie Investments
MACKENZIE INVESTMENTS BARRY MCINERNEY PRESIDENT & CEO MACKENZIE INVESTMENTS IGM FINANCIAL Q1, 2022 RESULTS
Slide 23: Mackenzie Investments & Strategic Investments Q1, 2022 Highlights
Mackenzie Investments & Strategic Investments Q1, 2022 Highlights 1 Ending AUM of $205.5B, down 2.3% from December 31, 2021 • Due to investment returns of negative 5.1% partially offset by positive net flows of $873 million 2 Investment fund net flows of $1.3B were the second best Q1 on record • 22n
Slide 24: Continued Strong Net Flows at Mackenzie
Continued Strong Net Flows at Mackenzie Mackenzie Adjusted Investment Fund Flows1 ($MM) Mackenzie Adjusted Investment Fund Net Flows1 Gross Sales Redemptions MF Net Sales ETF Net Flows (Last Twelve Month Trailing, $MM) First Quarter 4,031 Total Retail 3,283 8,000 2,921 2,374 2,548 2,629 2,505 2,256
Slide 25: Mackenzie Q1, 2022 Operating Results
Mackenzie Q1, 2022 Operating Results Retail Mutual Fund Gross Sales ($MM) Net Sales ($MM)1,2 ▪ Retail mutual fund net sales were Q1/20 Q1/21 Q1/22 $592MM 3,404 Retail mutual Funds 180 1,613 592 ▪ Institutional investment fund net sales 2,490 Retail ETFs 14 300 (172) 2,136 were $880MM Retail investme
Slide 26: 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 27: Five Areas of Product Emphasis for Mackenzie – Q1 2022 Highlights
Five Areas of Product Emphasis for Mackenzie – Q1 2022 Highlights Areas of Emphasis Macro Thesis Q1 2022 Highlights • Mackenzie sustainable solutions AUM reached $4.5B across all $44T1 market with diversified 1. Sustainable Investing retail and institutional interest channels. Within retail we rank
Slide 28: ChinaAMC is an Industry Leader in Chinese Mutual Fund Industry
Strong Net Sales in Chinese Mutual Fund Industry; ChinaAMC is an Industry Leader, and Consistently Among the Top Five in the League Tables Chinese Mutual Fund Industry Ending AUM (RMB Trillions)1 25.1 24.6 ↓1.8% Chinese Mutual Fund Industry Long-term Mutual CAD/RMB = 5.0123 22.9 23.8 Fund Market Sha
Slide 29: Key Milestone Reached for Establishing 3rd Pillar of China's Pension System
Key Milestone Reached for Establishing 3rd Pillar Of China’s Pension System (Private Pensions); ChinaAMC Well-Positioned is Well-Positioned to Participate in the Growth of China’s Private Pension System China’s Pension System ▪ ChinaAMC is ranked #2 in long- term mutual fund market share1 ▪ ChinaAMC
Slide 30: Capital Partners
Capital Partners • Strong Q1 fundraisings of $1.1B, increasing AUM by 4% in the quarter • IGM Financial and Great-West Lifeco have committed capital across each of Northleaf’s three global mid-market private market platforms (private equity, private credit and infrastructure) Northleaf Capital Raise
Slide 31: Financial Highlights
IGM FINANCIAL Financial Highlights LUKE GOULD EXECUTIVE VICE-PRESIDENT & CFO IGM FINANCIAL IGM FINANCIAL Q1, 2022 RESULTS
Slide 32: Total Assets Under Management & Advisement
Total Assets Under Management & Advisement IGM Assets Under Management & Advisement ($B) Change in IGM AUM&A ($B) Daily AUM&A Annual Average AUM&A Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 LTM AUM&A excluding sub-advisory to Canada Life Quarterly Average AUM&A Opening AUM&A 192.8 199.7 210.9 214.1 224.3 199.7 I
Slide 33: IGM Financial Adjusted EBIT & Margins
IGM Financial Adjusted EBIT & Margins IGM Adjusted EBIT1 ($MM) IGM Adjusted EBIT Margin1,2 (% of AUM&A) Direct advisor/dealer 890.9 902.1 compensation3 & sub- 843.9 857.2 800.5 advisory expenses 243.5 253.5 Share of associates’ 1.26% 1.25% 1.24% 1.24% 1.22% 232.0 253.7 earnings and net 224.8 0.37% 0
Slide 34: IGM Financial Consolidated Profitability
IGM Financial Consolidated Profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q1/21 Q4/21 Q1/22 $ % $ % 1▪ Seed capital losses of $6.6MM pre- Days in the period 90 92 90 (2.2%) 0.0% Average AUM & AUA ($ Billions) tax ($5.3MM after-tax) during Q1/22; W
Slide 35: IG Wealth Management Key Profitability Drivers
1▪ Advisory fees include net interest income on client deposits effective Jan 1, 2022. Q1/22 IG Wealth Management advisory fee rate of 101.9bps declined 0.5bps quarter-over-quarter when the prior quarter is adjusted for this change (Q4/21 advisory fee rate would be 102.4bps on this basis). Key Profi
Slide 36: IG Wealth Management Profitability
IG Wealth Management Profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IG Wealth Management Q1/21 Q4/21 Q1/22 $ % $ % Days in the period 90 92 90 (2.2%) 0.0% Average assets under advisement ($B) 105.5 117.4 116.3 (1.1) (0.9%) 10.8 10.2% Average assets under management ($B) 99.
Slide 37: Asset Management Key Profitability Drivers
Asset Management 1 Quarter-over-quarter change in third-party net asset management fee rate: • ~0.5bps - higher DSC sales commissions and lower redemption fees Key Profitability Drivers • ~0.3bps - seasonality related to trailer fees being paid based on the # of months in the period rather than the
Slide 38: Asset Management Segment Profitability
Asset Management Segment Profitability $ Millions (unless otherwise noted): Change QoQ Change YoY Asset Management Q1/21 Q4/21 Q1/22 $ % $ % Days in the period 90 92 90 (2.2%) 0.0% ▪1 Net investment income & Average assets under management ($B) Excluding sub-advisory to Wealth Management 112.7 126.8
Slide 39: ChinaAMC – A Leading Chinese Asset Manager
ChinaAMC – A Leading Chinese Asset Manager – AUM up 4% and Earnings up 25% (excluding seed capital losses) ChinaAMC Ending AUM1 IGM Share of ChinaAMC Earnings (RMB billions) (CAD millions) 21.0 One-time unfavourable tax 4.0 adjustments of ~$4MM in Q4/21 17.0 17.0 1,662 1,607 1,581 1,599 15.8 1,536 1
Slide 40: Wealthsimple AUA and Clients
• Wealthsimple’s AUA increased 58% year-over-year to $19.4 billion • The number of clients served by Wealthsimple increased 62% in the last year to ~1.7 million (excluding Wealthsimple Tax users)1 Wealthsimple AUA of CAD $19.4B1 Wealthsimple Clients Surpass 1.6 million1 (AUA, $B) (000s of clients, e
Slide 41: Adjusted Net Earnings by Segment and Company
1 Change in Fair Value: Wealthsimple valuation adjustment reduces fair value of corporate investments from $1.3B to $1.1B, Adjusted Net Earnings Available to Common consistent with declines in public fintech peer valuation multiples Q4 2021 Q1 2022 Change Shareholders by Segment and Company ($MM) $1
Slide 42: Adjusted Net Earnings and Valuation by Segment and Company
Adjusted Net Earnings Available to Common Shareholders and Valuation by Segment and Company ($MM) Wealth Management Asset Management Strategic Investments & Other1 IGM Consolidated Adjusted Net Earnings +5% Available to Common 1,016 Shareholders8 +2% 971 2021 523 533 +4% Not applicable 2022 241 251
Slide 43: Q&A
Q&A IGM FINANCIAL Q1, 2022 RESULTS
Slide 44: Appendix
Appendix IGM FINANCIAL Q1, 2022 RESULTS
Slide 45: ESG highlights and release of 2021 IGM Sustainability Report
ESG highlights and release of 2021 IGM Sustainability Report Building Advancing Accelerating Supporting a just financial sustainable diversity, equity transition to a net- confidence investing & inclusion zero economy • 4,000+ IG and IPC advisors • $4.3B AUM in sustainable • Diversity, equity and in
Slide 46: Continued Focus on Prudent Expense Management
Continued Focus on Prudent Expense Management Revising full-year expense guidance to ~3.5% growth year-over-year from ~5% Original Guidance and Outlook: Combined Operations & Support and Business Development Expenses IGM Consolidated1 By Company (year-over-year change) (year-over-year change) Post-p