Igm Financial Inc. · TSX:IGM
Igm Financial — Investor Day (December 2023)
132 slides from Igm Financial's investor day presentation, Dec 5, 2023
Slide 1: Investor Day
Investor Day December 5, 2023 1
Slide 2: Welcome and opening remarks
Welcome and opening remarks Kyle Martens Senior Vice-President, Finance & Treasurer IGM Financial Inc. 2
Slide 3: Territorial land acknowledgement
Territorial land acknowledgement Before we begin, we will take a moment to share a territorial acknowledgement, a small but essential step toward reconciliation. I’d like to acknowledge the original stewards of this land we call “Toronto”. We are gathered today on the traditional territory of many n
Slide 4: 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”), Rockefeller Capital Management L.P.’s (“R
Slide 5: Non-IFRS financial measures and other financial measures
Non-IFRS financial measures and 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 pr
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: • Documents related to IGM Fi
Slide 7: Agenda
Agenda 8:30 am Welcome and opening remarks Kyle Martens IGM Financial – Built for growth James O’Sullivan WEALTH MANAGEMENT IG Wealth Management Damon Murchison Rockefeller Capital Management Gregory J. Fleming Wealthsimple Michael Katchen Q&A Session Break (15 minutes) 10:30 am ASSET MANAGEMENT Mac
Slide 8: Built for growth
Built for growth James O’Sullivan President and Chief Executive Officer IGM Financial Inc. 8
Slide 9: Key messages
Key messages Growth: Clear path to growing earnings with a commitment to growing dividend over time Talent: Proven and deep bench Execution: Strengthening core value proposition and evident discipline in expense management 9
Slide 10: Compelling wealth management and asset management lineup
Compelling wealth management and asset management lineup 10
Slide 11: CAD$4.1B of M&A transactions executed since 2020
CAD$4.1B of M&A transactions executed since 2020 August 2020 $243M1 - Investing themes October 2020 $196M2 1 Investing in diversified growth December 2020 $175M May 2021 - $295M 2 Risk smart M&A July 2021 $4.7M3 December 2022 $40M 3 Simplification of Power Group January 2023 - $575M 4 Sale of non-co
Slide 12: Growth in look through AUM&A
Growth in “look through” AUM&A Where we WERE Where we ARE GROWTH IGM AUM&A1 2020 (Sept 30) 2023 (Sept 30) (C$B, IGM proportionate share) $98B $114B n/a $31B $3B $6B 2 $27B $30B 3 $75B $112B $35B $94B n/a $15B Total “look-through” AUM&A ~$240B ~$400B 1) AUM&A for companies other than IG Wealth Manage
Slide 13: Recent AUM&A growth rates are strong
Recent AUM&A growth rates are strong GROWTH 1 - Ye a r 3 - Ye a r ( C A G R ) AUM&A growth rates* Historical Historical (Q3 2022 – Q3 2023) (Q3 2020 – Q3 2023) 9% 5% 23% 26% 42% 47% 1 3% 15%2 5% 12% 16% 22% * Growth rates are calculated • Using each managers reporting currency (e.g. CAD, USD, RMB) •
Slide 14: IG Wealth and Mackenzie continue to be the Core of IGM Financial
IG Wealth and Mackenzie continue to be the “Core” of IGM Financial GROWTH Share of earnings1 2023 LTM: 76% Core Extend our leadership position in Canadian wealth and asset management businesses Continue to strengthen our value proposition and drive organic growth 2028F: High 60s (%) Most signi
Slide 15: Progress extends well beyond capital deployment for growth
Progress extends well beyond capital deployment for growth… GROWTH Seamless leadership 5 new c-suite executives 1 changes Major projects Deep partnerships established completed CIBC Mellon CGI Microsoft Google Salesforce Expense discipline 2% annual expense growth over last 5 years 2 Strong
Slide 16: Deep management bench with breadth of insight and experience
Deep management bench with breadth of insight and experience… TALENT James O’Sullivan Damon Murchison Luke Gould Keith Potter President & CEO President & CEO President & CEO EVP & CFO Joined: 2020 2014 1997 1994 Cynthia Currie Mike Dibden Rhonda Goldberg Kelly Hepher Doug Milne EVP & Chief Human EVP
Slide 17: Industry recognition and ongoing commitments
… which has driven industry recognition and ongoing commitments TALENT Industry recognition Active participation 1 Recognized for the Ranked #33 across Top 50 index 4th year in a row Canadian firms in 2023 constituent 88th percentile in A- leadership ranking for 94th percentile in diversified financ
Slide 18: Driving connectivity and opportunity with strategic partnership leaders
Driving connectivity and opportunity with strategic partnership leaders TALENT Gregory J. Fleming Michael Katchen Yimei Li Stuart Waugh President & CEO Co-founder & CEO CEO Managing Partner Examples of strategic partnership Sharing of HNW best Mackenzie ETFs included Mackenzie mutual funds M
Slide 19: Executing well in strengthening our core value proposition
Executing well in strengthening our core value proposition while prudently managing expenses EXECUTION IG Wealth Mackenzie IGM Financial #2 in 2023 dealer report card 1 Strong results from 2023 Prudent expense management advisor perception study3 Overall dealer report card rating2 #2 in advisor sale
Slide 20: Re-engineering our business processes
Re-engineering our business processes EXECUTION Where we WERE (2018) Where we ARE Where we are GOING Our initial challenge Digitally transformed Material opportunities remain Out-dated technology and manual Focus on introducing global providers Complete automation and processes integration I
Slide 21: Medium-term objectives
Medium-term objectives1 STAKEHOLDERS Employees Client and Advisors Shareholders Focus on IG Wealth: annual Investment Focus on employee engagement Executive Dealer Report Card sustained profitable growth Measured by results of annual Mackenzie: annual Environics Annual EPS growth employee engagement
Slide 22: The path forward
The path forward Strategy focused on Strategic investments deliver Capital priority over the next two investing in/growing Diversification years is supporting the execution of IG and Mackenzie strategy IG and Mackenzie and Growth complementing them Knowledge sharing with strategic, fast- Bus
Slide 23: Investing for further growth
Investing for further growth Damon Murchison President and Chief Executive Officer IG Wealth Management 23
Slide 24: Key messages
Key messages Accelerating growth through a clear strategy led by an energized and experienced leadership team Targeting key high net worth segments by aligning our capabilities to industry wealth drivers Utilizing a segmented advice model to align IG’s best-in-class advice with Canadians’ financial
Slide 25: Our unique model gives us a competitive advantage for growth
Our unique model gives us a competitive advantage for growth IG Wealth Management is in a leadership position and beyond market standard in many categories. We advise our clients’ financial lives across many dimensions allowing them to achieve financial confidence. What makes us unique How we know C
Slide 26: IG Wealth Management transformation journey
IG Wealth Management transformation journey Strategic shift to Mass Affluent and High Net Worth Where we WERE (Jan 1, 2018) Where we ARE (Jan 1, 2023) Where we are GOING (Jan 1, 2028) Competed for Mass and MA segments Serving MA and HNW clients with fee- Target key HNW segments through advisor expan
Slide 27: Experienced leadership team driving IG Wealth management strategy
Experienced leadership team driving IG Wealth management strategy Damon Murchison Mark Kinzel Claude Paquin Brent Allen Christine Van Cauwenberghe President & CEO, Head of Sales President, Head of Strategy and Head of IG Wealth Management and Distribution IGM, Quebec Business Operations Financial Pl
Slide 28: Industry wealth drivers fuelling our growth
Industry wealth drivers fuelling our growth Philanthropy and Tax Planning and Legacy Planning Optimization Adults 65+ contribute ~45% of charitable donations annually 6 1 8 provinces have combined highest tax rate > 50%2 (~$11B in 2020 from all age groups)1 HNW Financial Retirement Readiness Literac
Slide 29: Clear strategic pillars to enable our long-term growth strategy
Clear strategic pillars to enable our long-term growth strategy 1 2 3 Driving Elevating Investing best-in-class advice platforms, products and in people and driving experience in a segmented services that resonate with productivity through way HNW digitalization and partnerships Our goal is to help
Slide 30: Best-in-class advice experience targeting key HNW segments
Best-in-class advice experience targeting key HNW segments IG Regional Family Office Advice Model HNW client segments PLANNING SKILLS PLANNING TOOLS 1 | Business owners ~1,700 CFP/Pl. Fin Living Plan Portal Professionals Advisor Portal 2 | Professionals Team based practices 3 | Pre-retirees/
Slide 31: Our segmented advice model will allow us to scale our advice experience
Our segmented advice model will allow us to scale our advice experience across the client spectrum 20181 20232 Benefits ENTREPRENURIAL TEAM ADVICE Create a better experience ENTREPRENURIAL 1 FOCUS = > $250K 1 ADVISORS for our current Mass Market clients with expanded 100% ~$86B 72% ~$109B Employee
Slide 32: Significant opportunity to gain market share
Significant opportunity to gain market share IG AUA by client wealth band1 ($B) New client assets brought 2018 2023 2028 > 90% of assets are Mass Affluent and HNW to IG Wealth Last twelve months trailing ($M) ENTREPRENEURIAL ~$3.8B EMPLOYEE CHANNEL CHANNEL OPPORTUNITY OPPORTUNITY & DEDICATED ADVICE
Slide 33: Significant opportunity to elevate investment, mortgage and insurance services offerings
Significant opportunity to elevate investment, mortgage and insurance services offerings Investment Mortgage and Insurance Private Company services banking services services Advisory HNW platform expansion Deepen nesto relationship, Enhance carrier Comprehensive advisory advance digital orig
Slide 34: Continued investment in technology, digitalization and partnerships
Continued investment in technology, digitalization and partnerships Driving a better advisor and client experience and fueling future productivity Investing in our client portal to modernize and Exploring additional Fintech accelerators create an interactive, personalized user interface K E Y F E AT
Slide 35: IG Wealth Management future KPIs
IG Wealth Management future KPIs External Disclosure KPIs by 2028 Advisor engagement (IE Dealer Report Card) Ranking in the top 3 Engagement and Employee engagement (Annual Emp. Survey) Consistent above peer average brand Share of Voice, earned media Ranking in the top 3 Digital enablement % o
Slide 36: Key takeaways
Key takeaways We have confidence in growing earnings EXPANDING our GAINING market INCREASING other segmented advice share with mass financial planning model and linking affluent and HNW revenues (mortgage, financial planning Canadians by helping insurance and needs with our them navigate industry ba
Slide 37: Gregory J. Fleming
Gregory J. Fleming President and Chief Executive Officer Rockefeller Capital Management 37
Slide 38: Key messages
Key messages Leveraging an iconic global brand with demonstrated ability to gain share of HNW/UHNW clients in the world’s largest and deepest wealth market Driving industry-leading client and advisor digital experience through a best-in- class operating and technology platform and a comprehensive su
Slide 39: Rockefeller Capital Management snapshot
Rockefeller Capital Management snapshot Trusted advisors to HNW/UHNW investors, businesses and institutions navigating the complexities of family and wealth Respected brand with extensive footprint Offices covering 28 markets in major U.S. wealth centres Founded 2018 IGM % economic interest 20.5% Cl
Slide 40: Overview of our differentiated services
Overview of our differentiated services Rockefeller Global Family Office business is complemented by Strategic Advisory and Asset Management, increasing organic growth opportunities across the firm Rockefeller Global Family Office Strategic Advisory Asset Management Multigenerational Open archit
Slide 41: Unique competitive advantages
Unique competitive advantages Comprehensive service offering Elite wealth advisors uniquely positioned to serve HNW and UHNW client segments Personalized Holistic Family through Rockefeller brand Investment Advisory Office Solutions Customized Proactive, Tax-Focused Investment Wealth Strategy Servic
Slide 42: Clear strategy to drive profitable growth
Clear strategy to drive profitable growth Client asset and revenue acceleration through growth drivers Business model and growth strategy Demonstrated ability to grow revenue and adj. EBITDA1 Premier wealth management franchise, aligned with asset Proven business model and growth strategy: manag
Slide 43: Key performance indicators
Key performance indicators Organic Organic growth1 target at annual rate of 6-8%2 (excludes market growth appreciation) Inorganic Selectively add advisor teams representing ~$120M growth production acquired3 per year ($15-$20B of client assets per year) Revenue Target 2024 growth rate of 25-35%2 gro
Slide 44: IGM and Rockefeller strategic benefits
IGM + Rockefeller Capital Management strategic benefits Collaboration Distribution Strategic advisory1 Create knowledge-sharing Two-way flow of world-class Leverage expertise of opportunities between investment solutions from seasoned investment bankers respective organizations Rockefeller Ass
Slide 45: Key takeaways
Key takeaways Preeminent U.S. State-of-the-art Clear and compelling financial advisory technology stack growth strategy firm for elite private driving a best-in-class complementary to advisors focused on client and advisor IGM’s wealth and asset HNW/UHNW clients digital experience management support
Slide 46: Michael Katchen
Michael Katchen Co-Founder and Chief Executive Officer Wealthsimple 46
Slide 47: Key messages
Key messages Wealthsimple is one of Canada's fastest growing and most trusted financial services companies Aim to be the only financial relationship our clients need, offering a full suite of products Long-term profitable growth requires a sustained focus on technology and brand leadership 47
Slide 48: Wealthsimple snapshot
Wealthsimple snapshot Key success metrics Key differentiators Scale: Serving over 2M1 Canadians Client count by (000s) 2,255 Wealthsimple offers a Client Majority of customer base full suite of financial 2,002 1,518 are Millennials products: trading, investing, crypto, tax, 448 91 163 Sep-18 Sep-1
Slide 49: Wealthsimple's strategy
Wealthsimple’s strategy Client trust Technology-driven Diversified business Brand-led 49
Slide 50: Winning the next-generation of clients
Winning the next-generation of clients ~50% of clients say Wealthsimple was their introduction to investing1 Ranked “Most trusted financial Roughly 1-in-5 institution among Vast majority young Canadians” Canadians under of clients are age 40 use -Globe and Mail3 Millennials Wealthsimple2 Two socia
Slide 51: Increasing accessibility for clients through product innovation
Increasing accessibility for clients through product innovation Intuitive, accessible user Innovation is key to client experience delights clients, acquisition and future builds trust business growth Focus on product “firsts” that make financial tools more accessible Commission-free trading platfo
Slide 52: Diversifying revenue with balanced growth through multiple product lines
Diversifying revenue with balanced growth through multiple product lines Offer ongoing ~25B in AUA, 42% benefits to clients who year-over-year growth We aim to consolidate assets, use (Q3 2023) be the only multiple products financial Balanced revenue mix across business relationship Continued produc
Slide 53: Increasing awareness with approachable, trusted and well-defined brand
Increasing awareness with approachable, trusted and well- defined brand Brand awareness High NPS signals healthy brand loyalty and Clients identify with Wealthsimple client word-of-mouth values, appreciate that we: 1. Save them money Industry-leading brand awareness vs peer group (online brokers and
Slide 54: Measuring success
Measuring success Wealthsimple AUA growth ($B) 100.0 Strategic focus Client 30% CAGR 44% CAGR Technology 25.0 60% CAGR Brand 2.4 Sep-18 Sep-23 FY28 Target 54
Slide 55: Key takeaways
Key takeaways Winning the next- Increasing Diversifying revenue Increasing generation of accessibility for with balanced awareness with clients clients through growth through approachable, Millennials hungry innovation multiple product trusted and well- for choice and Delightful lines Interconnected
Slide 56: Financial Q&A
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Slide 57: Break
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Slide 58: Invested for growth
Invested for growth Luke Gould President and Chief Executive Officer Mackenzie Investments 58
Slide 59: Key messages
Key messages Strong execution to date towards becoming Canada’s preferred global investment management solutions provider and business partner Leveraging foundational qualities that provide competitive advantage within Canadian financial advisor channel and provide avenues to expand distribution rea
Slide 60: Mackenzie Investments snapshot
Mackenzie Investments snapshot Key stats Retail Institutional and partnerships Founded 1967 Regions served Background Investment solutions provider Partnerships with wealth Total AUM1 $186.3B of choice to financial advisors managers >30K financial advisor Sub-advisory and institutional relat
Slide 61: Creating a more invested world together
Mission Creating a more invested world, together. Foundational Boutique approach and Power Group Brand Fostering Culture qualities breadth of capabilities ecosystem leadership sustainability and talent Strategic Building meaningful Developing presence in Winning Canadian retail strategic partnership
Slide 62: Global investment capabilities, diversified across asset classes and geographies
Global investment capabilities, diversified across asset classes and geographies Boutique approach & breadth of capabilities Opportunity to grow client base outside of Canada >90% of clients are Canadian (by AUM) 150+ investment professionals in Multiple delivery vehicles Multiple support services
Slide 63: World-class investment talent spanning boutiques
World-class investment talent spanning 16 boutiques Boutique approach & breadth of capabilities Lesley Marks Steve Locke Chief Investment Officer, Chief Investment Officer, Fixed Equities Income & Multi-Asset Strategies 1 Asia Konstantin Nick Scott 1 Fixed Income Boehmer Diversity of styles and br
Slide 64: Mackenzie has a diversified suite of capabilities
Mackenzie has a diversified suite of capabilities, Boutique approach & ensuring that there is something relevant and compelling for all client needs breadth of capabilities and across market environments Mackenzie assets by Morningstar Rating (At December 31 (except Oct/23), % of assets, all series)
Slide 65: Strength and scale as part of Power Corporation
Strength and scale as part of Power Corporation Power Group ecosystem Mackenzie benefits from Power Group ecosystem 24.3% 20.5% 27.8% 56% 2.4% Access to Investment Distribution Partnering on intellectual management arrangements with investment solutions capital sub-advisory Canada Life, IG and with
Slide 66: Mackenzie Investments transformation journey
Mackenzie Investments transformation journey Power Group ecosystem Assets under management Earnings before interest and taxes (“EBIT”)3 ($B as at December 31) ($M years ended December 31) Ex acquisitions 5-year 210.3 5-year CAGR: IG CAGR: 345.4 23.7% 17.0 2 185.1 186.6 11.7% 313.1 GLC 81.2 141.8 74.
Slide 67: Invested in advancing brand leadership
Invested in advancing brand leadership Brand leadership Encouraging people to invest in the things that matter in their lives, while investing their money so that their goals are realized. Mackenzie Brand Equity #2 amongst peers 2023 Environics Advisor Perception Study Mackenzie recognized as one of
Slide 68: Mackenzie is a Canadian leader in sustainable practices and solutions
Mackenzie is a Canadian leader in sustainable practices and solutions, and is focused on engaging at a standard it would Fostering Sustainability Culture & Talent expect from investee companies Fostering sustainability Culture and talent Canadian leader in Mackenzie Investments ranked among top
Slide 69: Strong and experienced leadership team
Strong and experienced leadership team Culture & Talent Luke Gould Lesley Marks Steve Locke Kristi Ashcroft President & CEO, Chief Investment Officer, Chief Investment Officer, Fixed Head of Product Mackenzie Investments Equities Income & Multi-Asset Strategies & Solutions Fate Saghir Gary Chateram
Slide 70: Clear and complementary strategic mandates
Clear and complementary strategic mandates enabling long-term, profitable growth 1 Winning Canadian retail 2 Building meaningful strategic partnerships, leveraging our strengths 3 Developing presence in institutional market, with a targeted approach Current Leadership within financial Credible and e
Slide 71: Our target market is large and growing
Our target market is large and growing Win Canadian Retail Canadian discretionary financial assets ($T) By savings vehicle1 By distribution channel 6% Savings concentrated 11.2 6% 11.2 Total CAGR with households with Total CAGR complex needs, 3% 4% 2.7 Deposits 3.1 Bank favouring advice Branches 6
Slide 72: Seeking market share gains with surplus net sales
Seeking market share gains with a consistent surplus net sales rate to peers Win Canadian Retail Canadian industry mutual fund net sales1 (LTM, % of average AUM, long-term funds) Mackenzie surplus of 2-4% 12% (2017-2021) Target market share gains 10% with a surplus net sales 8% rate to peers of ~2
Slide 73: Mackenzie is gaining significant ground in client engagement scores
Mackenzie is gaining significant ground in client engagement scores and market position Win Canadian Retail Advisor perception study1 – mutual funds Advisor channel overall sales penetration Mackenzie overall results (% of advisors actively selling fund manager’s products) 90 Clear 2013 2023 80 #2 C
Slide 74: Investment excellence
Investment excellence Investment excellence through institutional quality processes and capabilities 1 Talent management excellence 2 Institutional quality processes 3 Well-resourced to foster great client outcomes Foster careers of exceptional Clear investment “edge” and Best-in-class investm
Slide 75: Demonstrated track record of innovation
Demonstrated track record of innovation Product Innovation Focused on relevant areas with greatest growth potential Delivery Exceptional investment capabilities Range of vehicles Tax and operational efficiency Focus Emphasis Alternative and Outcome- Sustainable and Portfolio Areas diversifying asset
Slide 76: Expanding relationships and segmenting client offerings and support
Expanding relationships and segmenting client Expanding Relationships offerings and support 1 Segmentation 2 Support and partnership 3 Reach and effectiveness Number of wholesalers 28 46 Service, product and Support advisors and Expand presence in 2013 2023 support tailored to dealers to help
Slide 77: Meaningful opportunity to increase strategic partnerships
Meaningful opportunity to increase strategic partnerships Build meaningful strategic partnerships, leveraging our strengths SPOTLIGHT: Mackenzie is one of two exclusive providers to >$15B and growing wealth manager with >7,000 advisors ~$73B strategic partner ~$46B strategic partner and sister compa
Slide 78: Developing presence in institutional channels
Developing presence in institutional channels Spotlight: Global Quant Equity boutique Develop presence in institutional channels, with a targeted approach 19 institutional mandates Excess Returns to Benchmark2 (Oct 31/23) Mandate Inception 3-year 5-year Since Inception Background Small Cap May 18 6.
Slide 79: Key performance indicators
Key performance indicators (KPIs) KPI Current Target Client engagement Environics advisor perception study overall Top 3 #1 score Investment performance and 48% (Oct‘23) 60% client outcomes (consistent 40–60% last eight years) (consistent 40–60%) % of AUM with 4/5-star Morningstar ratings Market sha
Slide 80: Key takeaways
Key takeaways Clear and compelling Unique foundational Significant progress strategy with positive qualities to capture achieved; clear strategic execution momentum and market share in Canadian focus with a path to large addressable market financial advisor channel, accelerated earnings in Canada an
Slide 81: Yimei Li
Yimei Li Chief Executive Officer China Asset Management, Co. 81
Slide 82: Key messages
Key messages A pioneering, world-class Chinese multi-asset manager Leading position in performance, AUM and strategy Growth driven by unique advantages 82
Slide 83: ChinaAMC snapshot
ChinaAMC snapshot A full-service multi-asset platform with expertise built over 25 years Leading AUM and experience in industry Strong, supportive shareholders Founded 1998 IGM % ownership interest 27.8% Tianjin Haipeng AUM 1.8 T RMB/ ~C$340B1 Sci-Tech Investment Investment professionals 250+ Retail
Slide 84: A pioneer in business innovation
A pioneer in business innovation Leading the industry with many “Firsts” since 1998 2014 Innovative products First onshore manager for 2013 HK-SH connect ETF 2022 Investment manager for a foreign Launched the first sovereign wealth fund and the batch of REITs and 2012 China Insurance Security Fund b
Slide 85: A pioneer in multi-asset management
A pioneer in multi-asset management Robust platform to create and redefine assets Research-based Financial technology investment product Alternative Active Equity Asset by theme & style empowerment system Onshore bond ABS Active equity Broad-based product Convertibles by sector Unified data base Sty
Slide 86: A pioneer in digital transformation
A pioneer in digital transformation Technology applications empower business innovation Firm-wide digital transformation to accelerate innovation Digitalization Automation Artificial Intelligence Data Platform Automated Ops Governance Ops Management Fusion Automated Valuation Smart Research Digital
Slide 87: A pioneer in ESG and sustainable investing
A pioneer in ESG and sustainable investing Underlying value of investment and research Full-Cycle ESG Integration ChinaAMC has actively engaged our investee companies to improve their corporate governance and low-carbon transition ChinaAMC “Firsts” in Chinese Asset Management Industry 1st Full-servi
Slide 88: A leader in performance
A leader in performance Delivering outstanding return consistently ChinaAMC's return on equity investment in the past 3 years ranked 2/123 A leading track record in active equity1 2-yr performance ranking by Haitong Securities Overall 10-yr annualized return 9.1% Fund Name Fund Type Ranking Over
Slide 89: A leader in market share
A leader in market share An industry leader with growth rate beating industry average ChinaAMC Growth is Outpacing Robust Industry Expansion1 ChinaAMC has Leading Market Share1 ChinaAMC: ~23% CAGR | Industry: ~16% CAGR1 (2017 – Q3/23) #2 Long-term funds | #3 Total funds Long-term Funds Annual Net Sa
Slide 90: A strategy that drives growth
A strategy that drives growth Elevating Growing Capturing + product innovation with AUM to capture greater market share and well a focus on designing share and maintain positioned for emerging products to meet client industry leadership industry themes investment needs position Strategic benefits
Slide 91: A leader in market position
A leader in market position Long-term Mutual Funds Growth Catalysts ETF Maintain #1 market share in ETFs. The largest ETFs manager in China, 23% market share2 Private Pension 2 Maintain #1 market share in private pension market, Top lead the development of the pension industry Alternative asset inve
Slide 92: A leader in ETF and pension
A leader in ETF and pension ChinaAMC’s ETF dominance and pension Opportunity ChinaAMC has grown its ETF business proportionately China’s pension asset/GDP ratio is substantially lower with the growing Chinese ETF market (RMB Billions) than other major economies1 1,684 ChinaAMC Total Assets/GDP Ratio
Slide 93: Enormous growth opportunities
Enormous growth opportunities Both for China’s mutual fund industry and ChinaAMC Chinese Mutual Fund Industry Ending AUM1 Household Savings and Investment Fund Investment Fund Industry Forecasts2 (RMB trillions) Assets as % of GDP (2022) Compound Annual Growth Rate in AUM China Canada Money market f
Slide 94: Sustainable growth drivers from unique competitive advantages
Sustainable growth drivers from 6 unique competitive advantages Product Investment A full suite of investment 1 2 Investing: Strategy-centered, upgraded instruments across styles. investment system Diversified product lines A full-service multi-asset platform. Keep covering multiple strategies disco
Slide 95: Key takeaways
Key takeaways Deliver the envisioned future together Always a trailblazer in Opportunity to capture Clear strategic benefits China’s asset management additional share in a to Mackenzie through industry with the ability to rapidly growing market participation in rapidly create and redefine with all-a
Slide 96: Stuart Waugh
Stuart Waugh Managing Partner Northleaf Capital Partners 96
Slide 97: Key messages
Key messages Northleaf is IGM’s “growth catalyst” in the global private markets Consistent AUM Strong growth trajectory since 2002; 23% CAGR1 since IGM investment (2020) growth supported by LTM flows of ~C$4.1B (to Sept 30/23) in challenging fundraising market global capital trends Continued i
Slide 98: Differentiators
Investors choose to work with Northleaf to access private investments in mid-market companies and assets globally Founded 2002 9 GLOBAL OFFICES Capital Raised C$32B PROFILE Northleaf Team Members 250 offices Institutional Investors 250+ Responsible Investment (UNPRI score1) Private Equity Private Cr
Slide 99: Leading institutional investors have partnered with Northleaf
Leading institutional investors have partnered with Northleaf across their private markets investment programs Capital raised since inception C$B Investor breakdown by type Pension Fund – Public 30% Multi-Employer Pension Plan 23% Pension Fund – Corporate 22% Financial Institution/Wealth 17% Manager
Slide 100: Investors benefit from the scale and deal flow
Investors benefit from the scale, deal flow and informational advantages generated by Northleaf’s global platform Our integrated platform Value creation in mid-market companies globally Direct investments in senior and junior loans to private equity-backed and independent Flexible strategy int
Slide 101: Northleaf's strategies provide diversified private investments
Examples Northleaf’s strategies provide investors with diversified private investments that perform well through cycles Private Equity Private Credit Infrastructure Accurus VetCare AMAROK Manufacturer of engineered Largest independently-owned Provider of contracted perimeter aerospace and defense ma
Slide 102: Northleaf's open-end fund structures
Northleaf’s open-end fund structures are well-suited to deliver HNW and retail client solutions Northleaf Global Private Equity (NGPE) Open-end fund structures can provide investors: Secondary Investments Primary Investments Direct Investments Diversification benefits (60-80%) (10-20%) (10-20%)
Slide 103: Strategic partnership with IGM and GWL
Northleaf’s strategic partnership with IGM and GWL is benefitting our investors and our partners Northleaf’s current growth …enables IGM and GWL to provide institutional global private strategy… markets solutions to wealth management and insurance investors Wealth and asset management Insurance and
Slide 104: Execution of Northleaf's current strategy
Execution of Northleaf’s current strategy is expected to drive AUM growth and deliver long-term shareholder value for IGM Assets under management1 (C$B) Strong long-term AUM growth trajectory Strategic Strategic Partnership with Partnership with 10%+ CAGR from current business strategy 15%+ CAGR I
Slide 105: Key takeaways
Key takeaways Consistent AUM growth 20+ years of strong Foundation of IGM “private supported by global capital performance alternatives” strategy trends Strong growth trajectory since 2002; 23% Consistent investment returns through Proprietary access to institutional strategies CAGR1 since IGM
Slide 106: Financial overview and outlook
Financial overview and outlook Keith Potter Executive Vice-President and Chief Financial Officer IGM Financial 106
Slide 107: Key messages
Key messages Well-positioned for sustainable earnings growth through strong execution at IG Wealth and Mackenzie Investments High quality strategic investment portfolio tilts company towards stronger, diversified AUM&A and earnings growth Priority to invest in core operating companies, while continu
Slide 108: Made meaningful investments to position the company for growth
Made meaningful investments to position the company for growth over past 5 years Core businesses execution Strategic investments Efficiency Invest in core Higher growth meaningful investments to strengthen with quality wealth and asset structural changes and managed costs our value proposition manag
Slide 109: Core business execution translated into prudent expense management
Core business execution translated into prudent expense management and positive net flows IGM Financial consolidated expense growth YOY change (%)1 IGM Financial total consolidated AUA net flows2 ($M) 9% $8,701 $7,099 7% $4,802 6% Five-year avg. 5% ~$3B Five-year avg. $1,157 $838 3% ~2% $43 2.2% 2.3
Slide 110: Positioned for diversified and higher growth
…and during this time we have positioned the company for diversified and higher growth Repositioned for growth $4.8B1 in M&A transactions since 2017 Consolidated AUM&A8 $3.1B Acquisition (CAD$B) $400 ~6x increase in proportionate ChinaAMC share of AUM&A $638M 2 $196M 4 $175M $4.7M 5 $40M $840M 6 fro
Slide 111: Positioned for earnings growth and returning capital
Positioned for earnings growth and levered to markets; returning capital to shareholders Maintained solid adjusted EPS through market volatility partly due to focus on expense management Capital returned to shareholders Step change increase in 3 10-year avg. adj. EPS1 of ~$3.15 (2011-2020) adj. EPS1
Slide 112: IG and Mackenzie remain core to earnings
IG and Mackenzie remain core to earnings Strategic investments have complemented and diversified earnings Repositioned for growth and diversified earnings 2017 Adjusted Net Earnings (%)1,2 2023 LTM Adjusted Net Earnings (%)2,3 2% 12% 19% 1% 10% $728M $846M 52% 21% 59% 24% IG Wealth Management Macken
Slide 113: Maintaining solid credit profile and financial flexibility
Maintaining solid credit profile and financial flexibility Significant tangible assets Strong investment grade credit rating Flexibility in financing Balance sheet cash and investments DBRS: A (High), S&P: A Access to capital markets Strong liquidity Under 2.0x debt/EBITDA1 Conservative
Slide 114: Clear capital allocation priorities
Clear capital allocation priorities #1 Invest in our core businesses to position them for long-term success Strong dividend Share buybacks M&A Sustain strong current Offset dilutive effect of stock Focus on investing in the #2 dividend option program wealth and asset management business we own today
Slide 115: Investing in our core businesses
Investing in our core businesses to position them for long-term success IG Wealth segmented model IG Employee Channels to Significant productivity Capital investment grow from ~5% AUM&A and expense saving required over 3 years up to 15% by 2026 benefits Current employee Advisor productivity Up
Slide 116: Positive outlook for industry over medium to long term
Positive outlook for industry over medium to long term IGM is well positioned to win Canadian discretionary financial assets ($T, at Dec 31)1 Forecast industry net contribution rate of ~2%1 $11.2 IGM’s Canadian businesses well positioned to Gen Z participate in industry growth across demographics $0
Slide 117: Core businesses medium-term financial objectives
Core businesses medium-term financial objectives Focusing efforts on what is within our control and AUM&A ~8% growth in AUM&A 1 5% market appreciation assumption based on company asset mix ~3% average net flows rate over market cycle (~2% industry1 + ~1% share gain) 7%+ Efficiency/expense grow
Slide 118: Strategic investments diversify and accelerate earnings growth
Strategic investments diversify and accelerate earnings growth profile Medium-term objectives & expected benefits Expected industry AUM growth 13-15% medium/long term Maintain/gain share with demonstrated strong net sales 15%+ 5-year earnings CAGR1 Fundraising to drive AUM growth of 10%+ Cur
Slide 119: Confidence in achieving our medium-term financial objectives
Confidence in achieving our medium-term financial objectives and creating long-term stakeholder value Medium-term Financial Objective – IGM Financial 5-year EPS growth 7%+ 1 Core businesses 5-year earnings CAGR 9%+ 5-year adjusted EPS CAGR1,2 15%+ 1,2 Strategic Sum-of-the-parts investments 5-year ea
Slide 120: Key takeaways
Key takeaways Well positioned core Focused capital Positive momentum with businesses and higher- allocation strategy will plenty of runway to growth strategic drive long-term value achieve our medium- investments to deliver and position IGM for term financial targets sustainable, long-term success a
Slide 121: Financial Q&A
7 Financial Q&A IgM This way to better >) y,
Slide 122: Closing remarks
Closing remarks Kyle Martens Senior Vice-President, Finance & Treasurer IGM Financial Inc. 122
Slide 123: Appendix
Appendix IM | IG Widens ROCKEFELLER Wealthsimple | /*% MACKENZIE @eninaame Northleat
Slide 124: James O'Sullivan
James is the President and Chief Executive Officer of IGM Financial Inc., effective September 14, 2020. James brings his experience and proven leadership skills to build upon IGM’s successful business strategy and momentum in the wealth and asset management businesses. James is a well-respected indu
Slide 125: Luke Gould
Luke was appointed President and Chief Executive Officer of Mackenzie Investments on July 1, 2022. Prior to this role, Luke held the position of Executive Vice-President and Chief Financial Officer for IGM Financial, from 2018 to 2022 where he was responsible for all finance functions of IGM Financi
Slide 126: Damon Murchison
Damon is the President and Chief Executive Officer of IG Wealth Management where he has responsibility for Canada’s oldest and largest independent wealth management organization with $114B in assets under administration, serving more than one million Canadians through relationships with 3,000+ finan
Slide 127: Keith Potter
Keith was appointed Executive Vice-President and Chief Financial Officer for IGM Financial Inc. on July 1, 2022. He is responsible for all finance functions of IGM Financial Inc. and its subsidiaries: IG Wealth Management, Mackenzie Investments and Investment Planning Counsel. Prior to this role, Ke
Slide 128: Gregory J. Fleming
Greg is the Chief Executive Officer of Rockefeller Capital Management, a role he has held since the firm, formerly known as Rockefeller & Co., launched in March 2018. He is also a member of the Board of Directors. Prior to leading Rockefeller Capital Management, Greg was the President of Morgan Stan
Slide 129: Michael Katchen
Michael is Co-Founder and CEO of Wealthsimple, Canada’s leading financial services innovator which serves over three million Canadians today. He has been called an Industry Mover, a Change Agent, and one of Toronto’s 50 most influential people. Michael has received the Entrepreneur of the Year award
Slide 130: Yimei Li
Yimei joined ChinaAMC in 2001. Before becoming the CEO of ChinaAMC in 2018, she was the CMO of the firm leading the Sales and Marketing function. Yimei also serves as the Vice Chair of Asset Management Association of China (AMAC). In addition, she has been among the CFA Board of Governors since 2020
Slide 131: Stuart Waugh
Stuart serves as the Managing Partner of Northleaf, responsible for the direction and development of the firm’s private markets investment strategies and fund management capabilities. He is Chair of the Investment Committees, oversees the origination, evaluation and monitoring of Northleaf’s private
Slide 132: Glossary
Glossary AI Artificial Intelligence NSSF National Social Security Fund (China) CAGR Compound Annual Growth Rate OECD Organisation for Economic Cooperation and Development. CFP Certified Financial Planner PL.Fin Le planificateur financier ESG Environmental, Social and Governance PRI Principal for Res