Igm Financial Inc. · TSX:IGM
Igm Financial — Q1 2025 Earnings Presentation
49 slides from Igm Financial's earnings presentation, May 9, 2025
Slide 1: IGM Financial Q1, 2025 Results
IGM Financial Q1, 2025 Results May 9th, 2025
Slide 2: Conference call participants
Conference call participants JAMES O‘SULLIVAN DAMON MURCHISON LUKE GOULD KEITH POTTER 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 Inc.’s (IGM Financial, IGM or the Company) and, where applicable, its subsidiaries’ and str
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 International Financial Reporting Standards (IFRS) and may not be directly comparable to similar measures used by other compani
Slide 5: Non-IFRS financial measures & other financial measures
Non-IFRS financial measures & other financial measures Other items Other items for the three months ended March 31, 2025 consisted of: • ($4.0) million reflecting the Company’s proportionate share of items Lifeco excludes from its base earnings (Lifeco other items). Lifeco excludes items from its IF
Slide 6: 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 7: Glossary
Glossary AUM&A Assets Under Management & Advisement MF Mutual fund AUA Assets Under Advisement NCI Non-controlling Interest AUM Assets Under Management SI Strategic Investment CAGR Compound Annual Growth Rate SIMA Securities and Investment Management Association EPS Earnings per Share SMA Separately
Slide 8: James O’Sullivan
James O’Sullivan President and CEO IGM Financial 8
Slide 9: IGM Financial Q1, 2025 highlights
IGM Financial Q1, 2025 highlights Financial highlights Operational highlights Reported EPS Adjusted EPS1 • Record high first quarter adjusted EPS $0.98 $1.00 +4.3% vs Q1/24 +6.4% vs Q1/24 • Record high quarter-end client assets at IG Wealth and Mackenzie Strategic investments delivering solid year-o
Slide 10: Financial market and client investment returns
Financial market and client investment returns IGM client return index1 Investment performance Q2/25 2025 YTD 1.9 Q1/25 ending Q4/24 2024 Q1/25 at Apr 30 at Apr 30 2 1.8 IGM client investment return 2.5% 15.5% 0.4% (1.9%) (1.6%) 1.7 Equity markets: 1.6 Canada (S&P/TSX Composite) 3.8% 21.6% 1.5% (0.1
Slide 11: Industry operating environment
Industry operating environment First quarter industry long-term mutual fund net sales ($B) Total Industry Industry Asset Manager Peers 40.9 Industry asset manager peers mutual fund net sales ($B) 23.8 Categories Q1/24 Q1/25 $ Change 16.9 13.0 19.1 16.2 10.0 1.0 7.2 Balanced (3.6) (0.4) 3.1 5.4 3.1 4
Slide 12: Adjusted net earnings available to common shareholders by segment
Adjusted net earnings available to common shareholders1 by segment ($MM) Wealth management2 Asset management Corporate & other3 IGM consolidated Q1/24 Q1/25 +6% 237.8 224.5 +12% 124.3 111.2 0% 86.8 86.5 +2% 26.5 27.0 1) A non-IFRS financial measure - see Non-IFRS financial measures and other financi
Slide 13: Ending AUM&A ($B) including SI proportionate share
Ending AUM&A ($B) including SI proportionate share Consolidated Wealth management Asset management AUM&A incl. SI1 3 2 2 2 2 +19% 503.6 Q1/24 Sub-advised AUM to Wealth Management: Q1/25 Q1/25 $85.1B (Q1/24 422.8 $79.5) 218.6 203.7 +11% +35% +8% 141.5 147.1 128.0 108.8 +23% 45.4 +80% 124.2 133.5 +20%
Slide 14: Wealth Management
WEALTH MANAGEMENT Damon Murchison President & CEO IG Wealth Management 14
Slide 15: Wealth management Q1, 2025 highlights
Wealth management Q1, 2025 highlights Other operational highlights Record quarter • Continued momentum in mortgage and insurance business and pipeline ending AUM&A First quarter client returns1 • Industry wealth drivers: added partner to support philanthropy and legacy planning $141.5B +10.6% vs Q1/
Slide 16: IG Wealth Management net flows
IG Wealth Management net flows IG Wealth Management adjusted gross and net flows1,2 ($MM) IG Wealth Management net flows2,3 ($B) (LTM, as at April 30, 2025) Gross Inflows Gross Outflows Net Flows First quarter Total Net Flows IGM Product Net Flows Cash, GICs, & HISAs 3,636 4,000 3,663 3,699 4,166 3,
Slide 17: IG Wealth Management Q1, 2025 operating results
IG Wealth Management Q1, 2025 operating results Gross inflows Gross outflows rate Assets under advisement ($MM) (Quarterly annualized1) ($B) Q1/25 highlights IGM Solutions (AUM) 3rd party ▪ Gross inflows of $4.2B, up 12.6% 4,166 3,699 Cash, GICs, HISAs 141.5 year-over-year 140.4 11.2% 128.0 6.7 6.3
Slide 18: Record inflows, driven by strong high-net-worth & mass affluent client acquisition
Record inflows, driven by strong high-net-worth & mass affluent client acquisition Gross flows from newly acquired clients (Q1, $MM) Gross flows from newly acquired clients (LTM, $B) By client assets brought to IG Wealth By client assets brought to IG Wealth Growth 1 Mass market Mass affluent HNW 5-
Slide 19: Continued momentum in mortgage and insurance
Continued momentum in mortgage and insurance Mortgage funding New annualized insurance premiums ($MM) ($MM) 19 237 17 155 12 83 Q1/23 Q1/24 Q1/25 Q1/23 Q1/24 Q1/25 • Mortgage funding up 53% year-over-year • New annualized insurance premiums up 15% year-over-year • IG Mortgages serviced at $6.8B as o
Slide 20: 2024 earned media – #1 wealth brand in Canada
2024 earned media – #1 wealth brand in Canada1 Increasing our presence, communicating our difference Most visible industry spokespeople #1 (Top 20) IG Wealth spokespeople Others Ranked IG Wealth among independents & national 6 7 spokespeople represent: banks in earned media share of voice | • Advanc
Slide 21: Rockefeller Q1, 2025 update
Rockefeller Q1, 2025 update Q1, 2025 highlights LTM client asset1 growth Private advisor growth (US$B) 3 450 2 1▪ Organic client asset growth of 1 11.4 4.1 154.4 399 400 US$5.5B since Q1/24; US$0.2B 5.5 375 133.4 in growth sequentially 350 321 2▪ Inorganic client asset growth of 300 US$11.4B since Q
Slide 22: Wealthsimple Q1, 2025 update
Wealthsimple Q1, 2025 update Q1, 2025 highlights AUA by quarter Client count by quarter1,2 ($B) (‘000s) 73.0 2,753 2 1 2,607 2,577 1 ▪ Wealthsimple’s AUA grew to 2,393 2,500 64.0 $73.0B, up 89% year-over-year 2,169 2,255 2,228 2,116 and 14% sequentially 52.1 ▪ AUA growth of $9.0B during 43.6 the qua
Slide 23: Asset Management
ASSET MANAGEMENT Luke Gould President & CEO Mackenzie Investments 23
Slide 24: Asset management Q1, 2025 highlights
Asset management Q1, 2025 highlights Other operational highlights Record quarter First quarter ending AUM&A • Onboarded $3.6B in institutional wins during Q1/25; ~$1.0B to be onboarded during Q2/253 client returns1 $218.6B • Continued momentum with wealth management partnerships and Northleaf +7.3%
Slide 25: Mackenzie Investments net sales
Mackenzie Investments net sales Mackenzie adjusted investment fund flows1 ($MM) Mackenzie adjusted investment fund net flows1 ($B) (LTM, as at April 30, 2025) MF Gross Sales MF Redemptions MF Net Sales ETF Net Flows Total Retail 8.0 First quarter 4,031 3,283 6.0 2,548 2,629 2,505 2,256 2,921 2,357 2
Slide 26: Mackenzie Q1, 2025 operating results
Mackenzie Q1, 2025 operating results Retail mutual fund gross sales Morningstar star ratings1 Q1/25 highlights ($MM) (% Proportion of Assets) 11 of top 20 rated mutual funds 4/5 star (series F) 2,090 Mackenzie – Mar. 2025 ▪ Retail mutual fund gross Mackenzie – Dec. 2024 1,885 sales of $2.1B, up 11%
Slide 27: Investment boutique retail mutual fund & ETF
Investment boutique retail mutual fund & ETF Fixed Managed Value-Oriented Quality Growth-Oriented Sustainable Core & Dividend Other Income Solutions North Global Putnam Global Equity Multi-Asset ChinaAMC & Cundill American Ivy Growth Bluewater Resources Greenchip Quantitative Fixed Income (sub-advis
Slide 28: Product innovation – focused on emerging growth areas & shelf optimization
Product innovation – focused on emerging growth areas & shelf optimization Themes Liquid Shelf Team Mandate Quant ETF alts completion Global Mackenzie global dividend enhanced yield ✓ Global Quantitative Equity Building upon 5 star 1 Global Dividend Fund with equity & option strategy to enhance yiel
Slide 29: Chinese investment fund industry AUM and net flows; ChinaAMC is an industry leader
Chinese investment fund industry AUM and net flows; ChinaAMC is an industry leader Chinese investment fund industry top 10 long-term Growth Chinese investment fund industry fund provider market shares (at March 31, 2025) QoQ 1-year Ending AUM1 CAD/RMB = 5.0632 (RMB¥ Trillions) 31.6 32.3 31.6 (2%) 10
Slide 30: ChinaAMC total AUM and investment fund net flows
total AUM and investment fund net flows continuity Growth ChinaAMC ending AUM1 (RMB¥ billions) QoQ 1yr Other (primarily institutional) 2,670 8% 28% Money-market funds 2,358 2,465 Long-term investment funds 2,159 2,089 7% 27% 1,824 1,919 1,662 1,740 1,733 1,722 1,772 1,802 1,826 1,739 1,791 1,599 1,4
Slide 31: Capital Partners Q1, 2025 update
Capital Partners Q1, 2025 update Highlights Northleaf AUM history1 Northleaf LTM AUM continuity1 ($B) ($B) 5.3 1.5 32.7 ▪ Fundraising of $1.1B for the -1.4 (1.4) quarter ended March 31, 2025 32.0 32.7 27.3 ▪ LTM fundraising of $5.3B, AUM 26.6 growth of 20% 24.1 19.5 ▪ Northleaf AUM has grown at a 21
Slide 32: Keith Potter
Keith Potter Executive Vice-President & CFO IGM Financial 32
Slide 33: IGM Financial Q1, 2025 financial highlights
IGM Financial Q1, 2025 financial highlights Reported EPS $0.98 4.3% vs Q1/24 • Record high first quarter adjusted EPS1 of $1.00, up 6.4% year-over-year • Q1/25 adjusted EPS excludes proportionate share of Lifeco other items Adjusted EPS1 $1.00 6.4% vs Q1/24 Return of capital • IGM returned $213MM to
Slide 34: Total assets under management & advisement
Total assets under management & advisement IGM assets under management & advisement Change in IGM assets under management & advisement ($B) ($B) Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 LTM Daily AUM&A Annual Average AUM&A Quarterly Average AUM&A Opening AUM&A excluding sub-advisory to Canada Life 190.5 200.9
Slide 35: IGM Financial consolidated profitability
IGM Financial consolidated profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q1/24 Q4/24 Q1/25 $ % $ % Days in the period 91 92 90 (2.2%) (1.1%) ▪1 Higher average AUM&A, up 12.1% year- Average AUM & AUA ($ Billions) over-year, supporting increases in
Slide 36: IG Wealth Management – key profitability drivers
IG Wealth Management – key profitability drivers Daily average assets ($B), advisory and product & Key revenue & expenses as bps of program fee rate (bps)1 respective driver (AUA or AUM)1 142.5 139.4 132.9 100.3 98.9 98.4 Advisory fees 2 128.1 97.7 97.4 16.1 17.0 Other AUA 124.0 15.2 14.6 125.5 85.6
Slide 37: IG Wealth Management profitability
IG Wealth Management profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IG Wealth Management Q1/24 Q4/24 Q1/25 $ % $ % Days in the period 91 92 90 (2.2%) (1.1%) 1▪ During the seasonally light first quarter, insurance revenue is up from last year, offset by a decrease in Average
Slide 38: Mackenzie – key profitability drivers
Mackenzie – key profitability drivers Average AUM ($B), net asset management fee rate1 (bps) Net asset management fee rates1 (as bps of respective AUM) 213.9 217.5 207.5 Sub-advisory and 198.9 201.8 AUM to Wealth Management 79.4 78.7 78.5 78.0 75.8 83.9 85.3 Third Party AUM 81.8 Third-party 77.9 79.
Slide 39: Mackenzie profitability
Mackenzie profitability $ Millions (unless otherwise noted): Change QoQ Change YoY Mackenzie Investments Q1/24 Q4/24 Q1/25 $ % $ % ▪1 Net asset management fees up 6.4% year-over- Days in the period 91 92 90 (2.2%) (1.1%) Average assets under management ($B) year, driven by asset growth, including $3
Slide 40: ChinaAMC – AUM and earnings
ChinaAMC – AUM and earnings ChinaAMC ending AUM1 IGM Financial share of ChinaAMC earnings (RMB¥ billions) (CAD millions) 1-Year Q1/25 includes positive FV Other (primarily institutional) Growth Q3/24 includes seed capital marks of $3.6MM marks and other one-time Money-market funds 32.9 2,670 28% ite
Slide 41: Adjusted net earnings available to common shareholders by segment and company
Adjusted net earnings available to common shareholders1 by segment and company ($MM) Corporate IGM Wealth management Asset management2 & other3 consolidated +6% 237.8 Q1/24 224.5 Q1/25 +10% 128.4 117.2 FVTOCI (8%) 57.3 52.6 +14% +2% 24.2 27.5 17% 26.5 27.0 0.6 5.7 6.7 (4.4) (4.3) (0.7) 1) A non-IFRS
Slide 42: Summary: segment breakdown
Summary: segment breakdown Adj. earnings1 by segment Strategic investments – interest and value Q1/24 Adj. Q1/25 Adj. YoY Interest Accounting Q1/25 Net Fair value Q1/25 $ millions earnings earnings change Q1/24 | Q1/25 basis carrying value assumption Fair value Wealth management2 IG $117.2 128.4 10%
Slide 43: Returning capital to shareholders with financial flexibility
Returning capital to shareholders with financial flexibility Return of capital to Leverage Balanced approach to capital shareholders (Debt/LTM Adj. EBITDA1) allocation ($MM) Return of capital to shareholders: Dividends Share repurchases • Dividend of $0.5625 per share declared 212.6 during Q1/25 179
Slide 44: ¢ Wealth Wealth Management
¢ Wealth Wealth Management Asset Management Financial Q&A This way to better > y,
Slide 45: Appendix
I Wealth Management Asset Management Fi 1 ‘inancial This way to S better y
Slide 46: Adjusted net earnings available to common shareholders and valuation by company
Adjusted net earnings available to common shareholders1 and valuation by company ($MM) Adjusted net earnings available to common shareholders1 6 1,003 2024 939 Analyst 490 534 Consensus2 2025 5 235 235 FVTOCI 102 103 100 112 16 15 6 3 (10) 2025 analyst 4 UNALLOCATED 4 OTHER CAPITAL estimates2 EPS $2
Slide 47: IGM Financial adjusted cash earnings & dividend payout ratio
IGM Financial adjusted cash earnings & dividend payout ratio IGM Financial adjusted cash earnings1,2 Dividend payout ratio2,3 ($MM) (LTM) 71% 69% Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 LTM 68% 64% 64% Adjusted Net Earnings1 224.5 220.4 244.1 250.0 237.8 952.1 62% 62% 60% Add: capitalized sales commission 25.
Slide 48: 2025 expense guidance
2025 expense guidance Guidance and outlook1: combined operations & support and business development expenses IGM consolidated2 (year-over-year change) 5-year technology & operations transformation 7% announced 6% 5% 3.8% 4% 3% 4 2.2% 2.3% 3 1.7% 1% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 G
Slide 49: IGM Financial debt/ LTM adj. EBITDA
IGM Financial debt/ LTM adj. EBITDA1 Total Debt ($MM) Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Long-term Debt 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 Total debt 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 Adj. EBITDA before sales commissions1 (LTM, $MM) Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Adj. EBIT1 1,255.4 1,264.2 1,29