Igm Financial Inc. · TSX:IGM
Igm Financial — Q4 2024 Earnings Presentation
52 slides from Igm Financial's earnings presentation, Feb 7, 2024
Slide 1: IGM Financial Q4, 2024 Results
IGM Financial Q4, 2024 Results February 7th, 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 IFRS and may not be directly comparable to similar measures used by other companies. These measures and ratios are used to prov
Slide 5: Non-IFRS financial measures & other financial measures
Non-IFRS financial measures & other financial measures Other items Other items for the twelve months ended December 31, 2024 consisted of: • Tax loss consolidation of $4.7 million, recorded in the fourth quarter, related to the benefit from tax loss consolidation transactions that the Company has en
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 IFIC The Investment Funds Institute of Canada AUA Assets Under Advisement IMF International Monetary Fund AUM Assets Under Management MA Mass Affluent CAGR Compound Annual Growth Rate NCI Non-controlling Interest EPS Earnings per Share SMA Separate
Slide 8: James O'Sullivan
James O’Sullivan President and CEO IGM Financial 8
Slide 9: IGM Financial 2024 highlights
IGM Financial 2024 highlights Reported EPS Adjusted EPS1 IGM Financial – 2024 adjusted EPS was second highest on record $3.93 $3.95 • Strong execution across core companies and strategic investments, delivering diversified earnings (18.5%) vs 2023 +11.6% vs 2023 and asset growth while returning capi
Slide 10: 2025 forward view
2025 forward view Wealth management Asset management 2025 Areas Extending our momentum targeting high-net- Focusing on investment excellence & product worth and mass affluent, solving for industry innovation, extending our distribution of focus wealth drivers and leveraging a best-in-class advantage
Slide 11: IGM Financial Q4, 2024 highlights
IGM Financial Q4, 2024 highlights Financial highlights Operational highlights Reported EPS Adjusted EPS1 $1.07 $1.05 (39.2%) vs Q4/23 +22.1% vs Q4/23 • Executing on strategy; second best Q4 adjusted EPS on record • Record quarter ending assets at IG Wealth and Mackenzie o Strong flows improvement ac
Slide 12: Financial market and client investment returns
Financial market and client investment returns IGM client return index1 Investment performance Q1/25 2.0 2023 Q4/24 2024 at Jan 31 1.9 2 IGM client investment return 9.9% 2.5% 15.5% 3.1% 1.8 1.7 Equity markets: 1.6 1.5 Canada (S&P/TSX Composite) 11.8% 3.8% 21.6% 3.5% 1.4 1.3 U.S. (S&P 500) 26.3% 2.4
Slide 13: Industry operating environment
Industry operating environment Fourth quarter industry long-term mutual fund net sales ($B) Total Industry Industry Asset Manager Peers Industry asset manager peers mutual fund net sales ($B) 16.7 12.5 Categories Q4/23 Q4/24 $ Change 6.5 5.7 4.1 6.8 Balanced (7.4) (0.6) 6.8 2.8 2.4 4.1 7.2 5.8 2.0 0
Slide 14: Adjusted net earnings available to common shareholders by segment ($MM)
Adjusted net earnings available to common shareholders1 by segment ($MM) Wealth management2 Asset management Corporate & other3 IGM consolidated4 +22% +32% 250.0 132.9 +14% 204.9 100.7 87.5 Q4/23 76.8 +4% Q4/24 28.4 29.6 +11% 939.0 843.1 +12% +8% 477.7 +13% 110.9 428.3 102.3 310.2 350.4 2023 8.5% 20
Slide 15: Ending AUM&A ($B) including SI proportionate share
Ending AUM&A ($B) including SI proportionate share Consolidated AUM&A incl. SI1 Wealth management Asset management 3 2 2 2 2 483.5 +24% Q4/23 Sub-advised AUM to Wealth Management: Q4/24 Q4/24 $83.4B (Q4/23 390.6 $76.8) 213.3 195.7 +16% +9% 140.4 +43% 121.2 +35% +95% 129.9 +20% 118.9 135.2 94.8 17.9
Slide 16: Wealth Management
WEALTH MANAGEMENT Damon Murchison President & CEO IG Wealth Management 16
Slide 17: Wealth management Q4, 2024 highlights
Wealth management Q4, 2024 highlights Other operational highlights Record quarter ending AUM&A Fourth quarter • Providing clients with leading-edge estate planning, settlement and executor client returns1 services through strategic partnership with ClearEstate $140.4B +15.8% vs Q4/23 2.7% • #1 earne
Slide 18: IG Wealth Management net flows
IG Wealth Management net flows IG Wealth Management gross and net flows1 ($MM) IG Wealth Management net flows2 ($B) Gross Inflows Gross Outflows Net Flows (LTM, as at January 31, 2025) Month of January2 1,349 999 1,166 1,066 1,179 Total Net Flows IGM Product Net Flows Cash, GICs, & HISAs 834 879 739
Slide 19: IG Wealth Management Q4, 2024 operating results
IG Wealth Management Q4, 2024 operating results Gross inflows Gross outflows rate Asset under advisement Q4/24 highlights ($MM) (Quarterly annualized) ($B) Cash, GICs, HISAs ▪ Gross inflows of $3.9B, up 26.8% 3,917 3rd party year-over-year IGM Solutions (AUM) 136.4 140.4 ▪ LTM trailing net flows rat
Slide 20: 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 (Annual, $MM) Gross flows from newly acquired clients (LTM, $B) By client assets brought to IG Wealth By client assets brought to IG Wealth Growth <$100K $100-250K $250-1,000K >
Slide 21: Strong momentum in mortgage and insurance
Strong momentum in mortgage and insurance Mortgage funding New annualized insurance premiums ($MM) ($MM) 971 74 833 57 2023 2024 2023 2024 • Mortgage funding up 17% year-over-year • New annualized insurance premiums up 31% year-over-year • IG Mortgages serviced at $6.8B as of Dec 31/24 • In-force po
Slide 22: Focus on industry wealth drivers
Focus on industry wealth drivers Providing clients with leading-edge estate planning, settlement and executor services Minority interest and Industry wealth drivers partnership with ClearEstate supports… Philanthropy and legacy Tax planning and Comprehensive planning optimization estate & insurance
Slide 23: Rockefeller Q4, 2024 update
Rockefeller Q4, 2024 update Q4, 2024 highlights LTM client asset1 growth Private advisor growth (US$B) 3 400 10.6 151.2 375 1▪ Q4/24 organic growth drove 2 350 US$0.6B in client assets; 11.9 321 US$6.6B in growth during 2024 1 300 6.6 258 2▪ Inorganic client asset growth of 122.1 250 US$2.4B during
Slide 24: Wealthsimple Q4, 2024 update
Wealthsimple Q4, 2024 update Q4, 2024 highlights AUA by quarter Client count by quarter1,2 ($B) (‘000s) 64.0 1 2,607 2,577 2 2,500 1 ▪ Wealthsimple’s AUA grew to 2,393 2,255 2,228 $64.0B, up 23% sequentially 52.1 2,116 2,169 2,031 and 106% year-over-year 43.6 ▪ Record AUA growth of $11.9B 38.7 durin
Slide 25: Asset Management
ASSET MANAGEMENT Luke Gould President & CEO Mackenzie Investments 25
Slide 26: Asset management Q4, 2024 highlights
Asset management Q4, 2024 highlights Other operational highlights Record quarter • Significant institutional wins totalling ~$4B in AUM expected to fund in Q1/25, representing Fourth quarter multiple geographies and strategies across Global Quant and other boutiques ending AUM&A • Mackenzie’s four N
Slide 27: Mackenzie Investments net sales
Mackenzie Investments net sales Mackenzie adjusted investment fund flows1 ($MM) Mackenzie adjusted investment fund net flows1 ($B) MF Gross Sales MF Redemptions MF Net Sales ETF Net Flows (LTM, as at January 31, 2025) Month of January Total Retail 1,261 8.0 804 994 981 862 698 716 683 664 743 509 12
Slide 28: Mackenzie Q4, 2024 operating results
Mackenzie Q4, 2024 operating results Retail mutual fund gross sales Morningstar star ratings1 Q4/24 highlights ($MM) (% Proportion of Assets) 17 of top 20 rated mutual funds 4/5 star (series F) 1,717 Mackenzie – Dec. 2024 ▪ Retail mutual fund gross Mackenzie – Sep. 2024 Industry – Dec. 2024 49% 48%
Slide 29: 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 30: Spotlight: Global Quantitative Equity boutique
Spotlight: Global Quantitative Equity boutique Background • Boston-based (added in 2017) • ~$13B total AUM “Holistic Quant” approach promotes all-weather performance across cycles and environments • 11-person experienced team • 25 institutional mandates Assets Under Management ($B) Trailblazing in C
Slide 31: 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 December 31, 2024) QoQ 1-year Ending AUM1 CAD/RMB = 5.1382 (RMB¥ Trillions) 2% 18% • ChinaAMC’s
Slide 32: 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) 2,465 5% 35% Money-market funds 2,358 Long-term investment funds 2,089 2,159 3% 36% 1,740 1,733 1,722 1,772 1,802 1,826 1,824 1,739 1,791 1,662 1,461 1,599 1,507 1,5
Slide 33: Capital Partners Q4, 2024 update
Capital Partners Q4, 2024 update Highlights Northleaf AUM history1 Northleaf LTM AUM continuity1 ($B) ($B) ▪ Fundraising of $0.9B for the quarter end December 31, 2024 4.9 2.0 32.0 32.0 -1.5 2024 fundraising of $4.9B, AUM (1.5) ▪ 26.6 growth of 20% 26.6 24.1 ▪ Northleaf AUM has grown at a 22% CAGR s
Slide 34: Keith Potter
Keith Potter Executive Vice-President & CFO IGM Financial 34
Slide 35: IGM Financial Q4, 2024 financial highlights
IGM Financial Q4, 2024 financial highlights Reported EPS $1.07 • Fourth quarter adjusted EPS1 of $1.05, up 22% year-over-year; second best Q4 on record (39.2%) vs Q4/23 • Strong quarterly result driven by core business performance; adjusted net earnings increased by 33% at IG Wealth and 25% at Macke
Slide 36: Total assets under management & advisement
Total assets under management & advisement IGM assets under management & advisement Change in IGM assets under management & advisement ($B) ($B) Daily AUM&A Annual Average AUM&A Quarterly Average AUM&A Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 LTM 290 Opening AUM&A excluding sub-advisory to Canada Life 181.5 19
Slide 37: IGM Financial consolidated profitability
IGM Financial consolidated profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q4/23 Q3/24 Q4/24 $ % $ % Days in the period 92 92 92 1▪ Higher average AUM&A, up 16.0% year- over-year and 4.1% sequentially, supporting Average AUM & AUA ($ Billions) Weal
Slide 38: 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)1 139.4 132.9 128.1 102.1 100.3 124.0 16.1 98.9 98.4 97.7 15.2 Other AUA 117.1 14.6 14.0 123.3 12.9 117.7 85.5 85.
Slide 39: IG Wealth Management profitability
IG Wealth Management profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IG Wealth Management Q4/23 Q3/24 Q4/24 $ % $ % 1▪ Advisory and product and program fee revenue up 15.7% year-over-year and 4.4% sequentially, driven by Days in the period 92 92 92 Average assets under advis
Slide 40: 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) 213.9 207.5 Sub-advisory and 198.9 201.8 AUM to Wealth 189.3 Management 80.4 79.4 78.7 78.5 78.0 83.9 Third Party AUM 81.8 77.9 79.0 Third-party 75.
Slide 41: Mackenzie profitability
Mackenzie profitability $ Millions (unless otherwise noted): Change QoQ Change YoY Mackenzie Investments Q4/23 Q3/24 Q4/24 $ % $ % Days in the period 92 92 92 1▪ Net asset management fees up 11.3% year-over- year, driven by asset growth and mix shift Average assets under management ($B) Third Party
Slide 42: 2025 expense guidance
2025 expense guidance Guidance and outlook1: combined operations & support and business development expenses IGM consolidated2 (year-over-year change) 5-year technology & operations transformation 7% announced 6% 5% 3.8% 4% 3% 4 2.2% 2.3% 3 1.7% 1% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 G
Slide 43: ChinaAMC – AUM and earnings
ChinaAMC – AUM and earnings ChinaAMC ending AUM1 IGM Financial share of ChinaAMC earnings (RMB¥ billions) (CAD millions) Other (primarily institutional) Q3/24 relatively in-line with Money-market funds 1-Year 32.9 Q2/24 excluding marks relating Growth to seed capital and other one- Long-term investm
Slide 44: Adjusted net earnings available to common shareholders by segment and company ($MM)
Adjusted net earnings available to common shareholders1 by segment and company ($MM) Corporate IGM Wealth management Asset management2 & other3 consolidated3,4 +22% 250.0 Q4/23 Q4/24 204.9 +33% 135.3 101.7 FVTOCI +25% 61.9 49.4 +7% +4% 21.3 22.9 -55% 28.4 29.6 6.9 3.1 0.0 0.1 (2.5) (0.8) 1) A non-IF
Slide 45: Summary: segment breakdown
Summary: segment breakdown Adj. earnings1 by segment Strategic investments – ownership and value Q4/23 Adj. Q4/24 Adj. YoY Ownership Accounting Q4/24 Net Fair value Q4/24 $ millions earnings earnings change Q4/23 | Q4/24 basis carrying value assumption Fair value Wealth management2 IG $101.7 $135.3
Slide 46: Returning capital to shareholders with financial flexibility
Returning capital to shareholders with financial flexibility Return of capital to Leverage Balanced approach to capital shareholders (Debt/LTM Adj. EBITDA1) allocation ($MM) Return of capital to shareholders: Dividends Share repurchases • Dividend of $0.5625 per share declared during Q4/24 179.8 • 1
Slide 47: Q&A
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Slide 48: Appendix
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Slide 49: Adjusted net earnings available to common shareholders and valuation by company ($MM)
Adjusted net earnings available to common shareholders1 and valuation by company ($MM) Adjusted net earnings available to common shareholders1 1,042 6 2024 939 Analyst 490 534 Consensus2 2025 235 260 10 FVTOCI 102 119 100 104 16 15 6 3 (10) 2025 analyst 4 UNALLOCATED 4 OTHER CAPITAL estimates2 EPS $
Slide 50: Adjusted net earnings available to common shareholders by segment and company ($MM)
Adjusted net earnings available to common shareholders1 by segment and company ($MM) Asset Corporate IGM Wealth management management2 & other3 consolidated3,4 +11% 939.0 843.1 2023 2024 +13% 489.7 432.4 FVTOCI +15% 234.5 204.4 +9% +8% 93.7 102.1 +13% 102.3 110.9 13.9 15.7 (0.7) (2.6) (0.1) (10.0) 1
Slide 51: 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 ($MM) (LTM) 72% 71% 69% 68% Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 LTM 64% 64% 62% 62% Adjusted Net Earnings 204.9 224.5 220.4 244.1 250.0 939.0 60% Add: capitalized sales commission 57
Slide 52: IGM Financial debt/adj. EBITDA
IGM Financial debt/adj. EBITDA1 Total Debt ($MM) Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 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 commissions 1 (LTM, $MM) Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Adj. EBIT1 1,225.9 1,255.4 1,264.2