Igm Financial Inc. · TSX:IGM
Igm Financial — Merger or Acquisition (January 2022)
14 slides from Igm Financial's merger presentation, Jan 6, 2022
Slide 1: Mackenzie Investments to Acquire Additional 13.9% Equity Interest in ChinaAMC
Mackenzie Investments to Acquire Additional 13.9% Equity Interest in ChinaAMC Enhancing IGM Financial’s Growth Profile January 6, 2022
Slide 2: Caution Concerning Forward-Looking Statements and Non-IFRS Financial Measures
Caution Concerning Forward-Looking Statements and Non-IFRS Financial Measures 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 e
Slide 3: 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 $1.15B; 50% funded by partial sale of IGM’s 4% equity interest in Great-West Lifeco (2.4% pro forma) and 50% fu
Slide 4: Strong historical growth in China mutual fund industry AUM driven by high savings and net sales
Strong historical growth in China mutual fund industry AUM driven by high savings and net sales Savings Rate by Country Long-term Mutual Fund Industry Assets Investment Fund Industry Forecasts (2020 gross savings as a % of GDP) Under Management (C$ billions) Compound Annual Growth Rate in Assets Und
Slide 5: ChinaAMC has experienced strong AUM growth and is an industry leader
ChinaAMC has experienced strong AUM growth and is an industry leader; consistently among top three in league tables ChinaAMC Ending AUM1 Chinese Mutual Fund Industry Long-term Mutual (RMB billions) Fund Market Share (% at September 30, 2021)2 7.6 Other (primarily institutional) Money market funds 1,
Slide 6: 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 7: 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 8: ChinaAMC has delivered strong earnings growth since 2017 initial investment
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 9: ChinaAMC provides unique asset management industry exposure within public vehicle
ChinaAMC provides unique asset management industry exposure within public vehicle; will represent ~12% of IGM’s net earnings on a pro forma basis Wealth Management Asset Management Strategic Investments & Other IGM Consolidated Adjusted Net Earnings +26% Available to Common 963 1) ChinaAMC has high
Slide 10: Q&A
Q&A 10 | M a c k e n z i e I n v e s t m e n t s t o A c q u i r e A d d i t i o n a l 1 3 . 9 % E q u i t y I n t e r e s t i n C h i n a A M C
Slide 11: Appendix
Appendix 11 | M a c k e n z i e I n v e s t m e n t s t o A c q u i r e A d d i t i o n a l 1 3 . 9 % E q u i t y I n t e r e s t i n C h i n a A M C
Slide 12: 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 13: Chinese Mutual Fund industry AUM & Net Flows
Chinese Mutual Fund industry AUM & Net Flows Chinese Mutual Fund Industry Ending AUM Chinese Mutual Fund Industry Flows (RMB Trillions)1 (RMB Billions)1 23.8 22.9 Long-term funds Money market funds 21.6 Money market funds 20.0 Total mutual funds Long-term funds 17.8 9.4 1,944 1,836 9.3 16.6 16.9 9.1
Slide 14: 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 14