IGM Financial Inc. · TSX:IGM
IGM Financial — Investor Presentation (March 2024)
97 slides from IGM Financial's investor presentation, March 2024
Slide 1: IGM Financial Investor Presentation
IGM Financial Investor Presentation March 2024
Slide 2: 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 3: 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 4: Non-IFRS financial measures & other financial measures
Non-IFRS financial measures & other financial measures Other items Other items for the year ended December 31, 2023 consisted of: • A gain on the sale of IPC of $220.7 million recorded in the fourth quarter. • Restructuring and other charges of $76.2 million after-tax ($103.3 million pre-tax), recor
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: Presentation sections
Presentation sections IGM Financial Overview 8 Performance Summary 19 Wealth Management IG Wealth Management 32 Rockefeller Capital Management 49 Wealthsimple 53 Asset Management Mackenzie Investments 56 ChinaAMC 69 Northleaf 72 IGM Financial Q4 and Full-Year 2023 75 6
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 OECD Organization of Economic Cooperation and Development CAGR Compound Annual Growth Rate Portag3 Portag3 Venture
Slide 8: IGM Financial Overview
I Wealth Management Asset Management Financial IGM Financial Overview This way to better KY
Slide 9: IGM Financial: A compelling wealth and asset management company built for growth
IGM Financial: A compelling wealth and asset management company that is built for growth • A wealth and asset management company that is built for growth • IG Wealth and Mackenzie (the “Core”) are extending their industry leadership positions • Strategic investments in complementary wealth and asset
Slide 10: IGM at a glance
IGM at a glance Consolidated AUM&A 2023 Adjusted EPS by Segment2 $389.4B incl. strategic investments1 Mutual Fund AUM Market Top 4 $3.44 Share2 In CANADA Wealth Management Clients ~2 Million Employees3 4,000+ 53.9% 2023 Net earnings available $1,149MM 6 to common shareholders 2023 Adjusted Net earni
Slide 11: Strength and scale as part of the Power Corporation group of companies
Strength and scale as part of the Power Corporation group of companies1 Wealth Asset Corp & management management other 2.4% 20.5% 56.0% 2 24.7% 27.8% Access to Investment Investment management Insurance Investment Benefits intellectual management distribution distribution opportunities capital sub-
Slide 12: Acquisitions, divestments and guiding themes
Acquisitions, divestments and guiding themes August 2020 $243MM1 - Investing themes October 2020 $196MM2 1 Investing in diversified growth December 2020 $175MM May 2021 - $295MM 2 Risk smart M&A July 2021 $4.7MM3 December 2022 $40MM 3 Simplification of Power Group January 2023 - $575MM January 2023
Slide 13: Growth in Consolidated AUM&A incl. strategic investments
Growth in Consolidated AUM&A incl. strategic investments Where we WERE Where we ARE IGM AUM&A1 2018 (Dec 31) 2023 (Dec 31) ($B, IGM proportionate share) $86B $121B n/a $33B $1B $8B 2 $26B n/a 3 $61B $119B $24B $95B n/a $15B Consolidated AUM&A including strategic investments4 ~$200B ~$390B 1) AUM&A f
Slide 14: A compelling wealth and asset management line up
A compelling wealth and asset management line up Leadership positions in Canadian wealth and asset management; diversified earnings drivers in adjacent markets Wealth Management1 (AUA $162B2) Asset Management (AUM $305B2) Corporate & other Publicly traded, international Comprehensive personal financ
Slide 15: 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 can make the greatest impact as asset and wealth managers Ini
Slide 16: Sustainability highlights
Sustainability highlights1 Building Advancing Accelerating diversity, financial well-being sustainable investing equity & inclusion • $4.8B AUM in sustainable solutions, up • Recognized as one of Canada’s Best • 20,000+ attended IG webinars on a Our focus wide range of financial well-being from $4.3
Slide 17: Clear medium-term capital allocation priorities
Clear medium-term capital allocation priorities #1 Invest in our Core businesses to position them for long-term success Strong dividend Share buybacks M&A Sustain strong current Offset dilutive effect of stock Focus on investing in the #2 dividend option program wealth and asset management business
Slide 18: 2024 focus
2024 focus WEALTH MANAGEMENT ASSET MANAGEMENT Focusing on industry wealth drivers, growing the Leveraging investment excellence and product 2024 Areas segmented advice model and leveraging leading innovation to win in Canadian retail and of Focus technologies to drive market share gains provide aven
Slide 19: Performance Summary
IGM Financial Performance Summary 19
Slide 20: Financial market and client investment returns
Financial market and client investment returns IGM Client Return Index1 Investment Performance 2.6 2024 YTD at 2021 2022 2023 Jan 31/24 2.4 2,3 IGM Client Investment Returns 11.9% (9.9%) 9.9% 0.7% Equity Markets: 2.2 Canada (S&P / TSX Composite) 25.1% (5.8%) 11.8% 0.6% 2.0 U.S. (S&P 500) 28.7% (18.1
Slide 21: Industry operating environment and IG and Mackenzie net flows rates
Industry operating environment and IG and Mackenzie net flows rates Annual Industry Long-term Net Sales Long-term Net Flows Rate as at December 31, 2023 ($B) (Last Twelve Month Trailing, % of Average Assets) 2 Mackenzie investment funds 1,2 Mackenzie retail investment funds Total Industry Industry A
Slide 22: Annual net flows
Annual net flows IGM Financial Consolidated Annual Net Flows1 ($MM) Wealth Management • IG Wealth 2023 Gross inflows of $12.7B; +25% of new 8,701 client gross inflows during 2023 from new $1MM+ clients 7,099 • Rockefeller organic and inorganic growth of US$16.1B during 2023 • Wealthsimple grew AUA b
Slide 23: Ending AUM&A (CAD $B)
Ending AUM&A (CAD $B) Consolidated AUM&A incl. strategic Wealth Management Asset Management investments1,5 1,2 1,2 1,2 1,2 35% Sub-advised AUM to Wealth Management: 341.0 389.4 337.6 Q4/23 $76.8B (Q4/22 2022 $73.5B) 2023 288.3 3 Additional AUM&A not 186.6 195.7 included in consolidated 161.6 IGM AUM
Slide 24: Adjusted net earnings available to common shareholders by segment ($MM)
Adjusted net earnings available to common shareholders1 by segment ($MM) Wealth Management2 Asset Management Corporate & Other3 IGM Consolidated4 Year-over-year change includes Year-over-year change includes -5% 2022 the impact of the additional impact of the partial sale of 867.2 equity interest in
Slide 25: 2024 expense guidance
2024 expense guidance Guidance and Outlook1: Combined Operations & Support and Business Development Expenses IGM Consolidated2 2024 expense growth of 3.5% plus (year-over-year change) 0.5% related to expense re- 5-year technology & 2023 expense growth of 1.7%, below alignment (geography change vs. o
Slide 26: Positioned for earnings growth and levered to markets; returning capital to shareholders
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 3 10-year avg. adj. EPS1 of ~$3.15 (2011-2020) 4.05 $537M 3.63 3.44 annual divid
Slide 27: Core businesses medium-term financial objectives
Core businesses medium-term financial objectives1 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% industry2 + ~1% share gain) 2 Efficiency/expense growt
Slide 28: Strategic investments diversify and accelerate earnings growth profile
Strategic investments diversify and accelerate earnings growth profile1 Medium-term objectives & expected benefits Target recruiting of $120M in annual production acquired2 Target organic growth of 6-8%3 Current capacity to scale and create operating leverage 15%+ 5-year earnings CAGR4 Stron
Slide 29: Confidence in achieving our medium-term financial objectives
Confidence in achieving our medium-term financial objectives and creating long-term stakeholder value1 Medium-term Financial Objective – IGM Financial 5-year EPS growth 7%+ 2 Core businesses 5-year earnings CAGR 9%+ 5-year adjusted EPS CAGR2,3 15%+ 2,3 Strategic Sum-of-the-parts investments 5-year e
Slide 30: IGM Financial: Investment highlights
IGM Financial: Investment highlights Well-positioned for sustainable earnings growth through leadership positions & strong execution at IG Wealth and Mackenzie Investments Strategic investments in complimentary asset and wealth managers tilt Company toward stronger, diversified AUM&A and earnings gr
Slide 31: Wealth Management
———— Wealth Management WEALTH ROCKEFELLER a si 2 1G Minn teens NOCSERELEER Wealthsimple This way to better NY)
Slide 32: Key messages – IG Wealth Management
Key messages – IG Wealth Management 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 wit
Slide 33: IG Wealth Management at a glance
IG Wealth Management at a glance Leading wealth management company in Canada; inspiring financial confidence Key statistics Total AUA $121.2B #1 in 10 Dealer $6.8 Billion Total AUM $107.6B Report Card Client Clients categories5 Mortgages 1 Million+ 1,700 - Industry leaders in 95% $1.2 Billion Adviso
Slide 34: 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 Cli
Slide 35: IG Wealth’s leading advisor value proposition
IG Wealth’s leading advisor value proposition 2023 Investment Executive Dealers’ Report Cards1 Strong Position vs. Big 5 Bank FSBs Overall Dealer Report Card Rating2 Net Promoter Score Peer Avg (out of -100 to +100) 8.8 IG Wealth Rating 8.6 8.4 84 84 8.2 8.3 76 8.0 8.0 8.0 7.8 66 7.6 54 12 Bank Bank
Slide 36: 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 37: Canadian financial assets projected to grow to $11.2 trillion by 2032
Canadian financial assets projected to grow to $11.2 trillion by 2032 Canadian discretionary financial assets ($T) By generation By wealth band1 11.2 11.2 0.7 Gen Z 2.0 Millennials 3.3 $10MM+ 1.5 $5MM – 10MM 6.2 3.6 Gen X 6.2 0.5 1.8 1.7 4.1 $1MM – 5MM 0.8 3.0 4.6 Baby Boomers 2.2 1.6 $250K – 1MM 1.
Slide 38: Helping clients navigate industry wealth drivers is fuelling our growth
Helping clients navigate industry wealth drivers is 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
Slide 39: Clear strategic pillars to enable long-term growth
Clear strategic pillars to enable 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 Cana
Slide 40: 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 41: 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 Employee 100% ~$86B 72% ~$109B
Slide 42: Significant opportunity to gain market share
Significant opportunity to gain market share IG AUA by client wealth band1 ($B) New client assets brought 2018 2023 2028 > 90% of assets are Mass Affluent and HNW to IG Wealth Last twelve months trailing ($MM) EMPLOYEE ENTREPRENEURIAL CHANNEL CHANNEL ~$3.8B OPPORTUNITY OPPORTUNITY <$100K & DEDICATED
Slide 43: Well-constructed managed solutions provide advisors with the best opportunity
Well-constructed managed solutions provide advisors with the best opportunity to focus on providing comprehensive financial planning 84% OF LONG-TERM GROSS SALES (LTM) | 71% OF LONG-TERM FUND ASSETS + M A N A G E D S O LU T I O N S F O R UNIQUE PLANNING NEEDS + NEW ENHANCED MONTHLY INCOME PORTFOLIOS
Slide 44: Leading portfolio construction with investment solutions
Leading portfolio construction with investment solutions that include public markets, private markets and alternative strategies Illustration of iProfile Global LIQUID ALTERNATIVES Neutral Balanced Model EXPANDED USE OF PRIVATE CANADIAN PRIVATE CREDIT MARKET EQUITY & REAL ESTATE INVESTMENTS & LIQUID
Slide 45: Leading investment solutions managed by top global asset managers
Leading investment solutions at IG Wealth managed by top global public and private markets asset managers with strong investment performance 59% iProfile managed of assets rated 4 or 5 stars solutions provide by Morningstar1 access to: 92% Well-constructed managed solutions by world-class asset mana
Slide 46: 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 Advance digital origination Enhance carrier Comprehensive advisory partnerships and op
Slide 47: 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 48: Strong advisor productivity
Strong advisor productivity Gross Inflows per Advisor Recruit Gross Inflows per Advisor Practice with <4 years experience ($MM) with >4 years experience1 ($MM) Productivity in-focus 1.69 1.60 • Scaling our segmented advice model to 0.68 1.49 0.66 help provide consistent services to all 1.38 clients
Slide 49: Rockefeller Capital Management snapshot
Rockefeller Capital Management snapshot Trusted advisors to HNW/UHNW investors, businesses and institutions navigating the complexities of family and wealth Respected brand with extensive footprint Offices covering 28 markets in major U.S. wealth centres Founded 2018 IGM % economic interest 20.5% Co
Slide 50: Unique competitive advantages
Unique competitive advantages Comprehensive service offering Elite wealth advisors uniquely positioned to serve HNW and UHNW client segments Personalized Holistic Family through Rockefeller brand Investment Advisory Office Solutions Customized Proactive, Tax-Focused Investment Wealth Strategy Servic
Slide 51: Client assets and key performance indicators
Client assets and key performance indicators Client Assets (US$B) Key Performance Indicators 122 Organic growth1 target at annual Organic rate of 6-8%2 (excludes market 98 growth appreciation) 97 Selectively add advisor teams 67 Inorganic representing ~$120M production growth acquired3 per year ($15
Slide 52: IGM + Rockefeller Capital Management strategic benefits
IGM + Rockefeller Capital Management strategic benefits Collaboration Distribution Strategic advisory1 Create knowledge-sharing Two-way flow of world-class Leverage expertise of opportunities between investment solutions from seasoned investment bankers respective organizations Rockefeller Ass
Slide 53: Wealthsimple Snapshot
Wealthsimple Snapshot Key differentiators AUA ($B) Client Count1 (000s) 31.0 2,228 Client 2,031 Majority of customer base are Millennials 1,753 18.4 18.3 Technology Forward-looking innovation drives business growth 9.3 597 4.7 Brand 2.5 182 102 Distinct identity, strong loyalty and awareness metrics
Slide 54: Winning the next-generation of clients through product innovation
Winning the next-generation of clients by increasing accessibility through product innovation Focus on product “firsts” Accessibility focus with Next-generation clients that make financial tools an innovation mindset more accessible ~50% of clients say Intuitive accessible user Wealthsimple was
Slide 55: Asset Management
a Asset Management fPX& MACKENZIE — @ cninaame Northleaf Investments This way to better KY
Slide 56: Key messages – Mackenzie Investments
Key messages – Mackenzie Investments 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
Slide 57: Mackenzie Investments at a glance
Mackenzie Investments at a glance Key stats Institutional and Retail partnerships Founded 1967 Regions served Background Investment solutions provider Partnerships with wealth Total AUM1 $195.7B of choice to financial advisors managers >30K financial advisor Sub-advisory and institutional re
Slide 58: Mackenzie is gaining ground in client engagement scores and market position
Mackenzie is gaining significant ground in client engagement scores and market position Advisor perception study1 – mutual funds Advisor channel overall sales penetration Mackenzie overall results (% of advisors actively selling fund manager’s products) 90 Clear 2013 2023 80 #2 Consistently in 70 To
Slide 59: Mackenzie Investments transformation journey
Mackenzie Investments transformation journey Assets under management Adj. Earnings before interest and taxes (“EBIT”)3 ($B) ($M) 5-year CAGR: 5-year CAGR: 25.6% GLC 345.4 11.2% 210.3 IG 2 17.0 313.1 195.7 303.4 185.1 186.6 Ex-acquisition 2019 – Sub-advisory relationship with IG Total 81.2 Wealth Man
Slide 60: Mackenzie’s target market is large and growing
Mackenzie’s target market is large and growing Canadian discretionary financial assets ($T) By savings vehicle1 By distribution channel 11.2 6% 11.2 6% Total CAGR Total CAGR 3% 4% 2.7 3.1 Deposits Bank Branches 6% 2.0 Non-Disc. Securities 9% 1.9 6.2 6.2 Online/Discount 9% 7% 1.9 Discretionary 1.4 1.
Slide 61: Mackenzie strategy
Mackenzie strategy 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 st
Slide 62: 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 investment investors philosop
Slide 63: Global investment capabilities, diversified across asset classes and geographies
Global investment capabilities, diversified across asset classes and geographies Opportunity to grow client base outside of Canada Total AUM $195.7 >90% of clients are Canadian (by AUM) Multiple delivery vehicles Multiple support services 150+ investment professionals in seven locations around the
Slide 64: World-class investment talent spanning 16 boutiques
World-class investment talent spanning 16 boutiques 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 breadth of capabilities no 2 Betterworld1 Andr
Slide 65: Mackenzie has a diversified suite of capabilities
Mackenzie has a diversified suite of capabilities, ensuring that there is something relevant and compelling for all client needs and across market environments Mackenzie assets by Morningstar Rating (At December 31, % of assets, all series) In Canada, performance peer groups for Morningstar rating
Slide 66: Demonstrated track record of innovation
Demonstrated track record of 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 oriented values-ba
Slide 67: Meaningful opportunity to increase strategic partnerships
Meaningful opportunity to increase strategic partnerships SPOTLIGHT: Mackenzie is one of two exclusive providers to >$15B and growing ~$77B strategic partner ~$50B strategic partner wealth manager with >7,000 advisors and sister company and sister company Launched exclusive Mackenzie FuturePath prod
Slide 68: Developing presence in institutional channels
Developing presence in institutional channels Spotlight: Global Quant Equity boutique 19 institutional mandates Excess Returns to Benchmark Mandate Inception 3-year 5-year Since Inception Background Small Cap May 18 6.4% 5.6% 5.1% Large Cap Jun 18 4.6% 4.8% 3.7% #1 Quant Emerging All Cap 5.2% 4.3% 2
Slide 69: ChinaAMC snapshot
ChinaAMC snapshot Strong, supportive shareholders Founded 1998 IGM % ownership interest 27.8% AUM Tianjin Haipeng Sci-Tech 1.8 T RMB/ ~$341B1 Investment 27.8% 62.2% 10% Investment professionals 250+ Retail: 210M+ # of investors Institutional: 240K+ Strategic benefits + Enhances Mackenzie’s Enabl
Slide 70: Enormous growth opportunities
Enormous growth opportunities Both for China’s mutual fund industry and ChinaAMC Household Savings (2022) Investment Fund Assets Investment Fund Industry Forecasts1 as % of GDP (2022) Compound Annual Growth Rate in AUM 112.2% China Canada 46.2% a household 99.2% 14.2% 14.5% saving rate of 13.9% 46%
Slide 71: ChinaAMC growth is outpacing robust industry expansion
ChinaAMC growth is outpacing robust industry expansion Assets under management1 (RMB billions) Chinese Mutual Fund Industry Top 10 Long-term Mutual Fund2 Provider Market Shares (% at December 31, 2023) 1,824 5-year Mutual • ChinaAMC’s long-term fund market share increased to 5.1% from 4.6% year over
Slide 72: Northleaf snapshot
Northleaf snapshot Investors choose to work with Northleaf to access private investments in mid- market companies and assets globally Founded 2002 9 GLOBAL OFFICES IGM % economic interest 56% AUM $27B1 Investment professionals 250 Institutional investors 250+ Private Equity Private Credit Infrastruc
Slide 73: An integrated platform and partnerships drive capital raising growth
An integrated platform and partnerships with leading institutional investors drive capital raising growth Integrated platform focused on mid-market companies Private Equity Infrastructure Private Credit Value creation in companies globally Direct investments in private infrastructure Direct le
Slide 74: Northleaf’s strategic partnership with IGM and GWL
Northleaf’s strategic partnership with IGM and GWL 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 wealth management Maintain superior investme
Slide 75: Q4 and Full-Year 2023
IGM Financial Q4 and Full-Year 2023 75
Slide 76: IGM Financial 2023 highlights
IGM Financial 2023 highlights 2023 operational highlights Positioned for growth EPS • Adjusted EPS1 of $3.44 $4.82 • Reported EPS includes one-time items related to gains on sales, organizational restructuring and • Realigned segments, focusing IGM Financial as a Wealth and Asset Management company
Slide 77: IGM Financial Q4, 2023 highlights
IGM Financial Q4, 2023 highlights Fourth quarter operational highlights Additional highlights EPS • Adjusted EPS1 of $0.84 • Re-instated Normal Course Issuer Bid $1.76 • Includes a negative fair value adjustment in mortgage banking operations • IGM Financial 2023 Investor Day hosted on +87.2% vs Q4/
Slide 78: IGM Financial Q4, 2023 results
IGM Financial Q4, 2023 results Net Earnings Adj. Net Earnings2 ($MM) ($MM) Total AUM&A 1 ($B) 225 Daily AUM&A Annual Average AUM&A 420 199 Quarterly Average AUM&A 260 225 250 240 230 220 Net Earnings Adj. Net Earnings 210 Per Share ($) Per Share2 ($) 200 1.76 0.94 0.84 190 180 0.94 170 160 2021 2022
Slide 79: 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 Year-over-year change includes impact of 224.7 -11% Year-over-year change includes the impact of the partial sale of IGM’s equity interest in 198.9 the ad
Slide 80: IGM Financial common dividends – annual view
IGM Financial common dividends – annual view ▪ Traditionally IGM has increased dividends at pay-out of 60-65% of earnings ▪1 IGM’s dividend pay-out is high relative to peers ▪ Currently a ~$410 million difference between reported net earnings and cash earnings, driven by sale of IPC, partial sale of
Slide 81: IGM Financial common dividends – quarterly view
IGM Financial common dividends – quarterly view ▪ IGM will consider dividend increase closer to 60% pay-out of adjusted cash earnings given other productive uses of capital ▪ Pay-out ratio is currently 72% of last twelve month trailing adjusted cash earnings IGM Financial Adjusted Cash Earnings1 ($M
Slide 82: Wealth management Q4, 2023 highlights
Wealth management Q4, 2023 highlights IG Wealth ending AUM&A of $121.2B increased 6.1% during the quarter • Increase is driven by strong client returns of positive 6.7% • Q4/23 client asset growth up 9.4% with year-to-date growth of 24.7%2 IG Wealth Q4 gross inflows of $3.1B represent another • IG W
Slide 83: Net flows at IG Wealth Management
1 In January 2024, the IG defined benefit pension plan redeemed $177MM from Net flows at IG Wealth Management IG funds that were re-allocated into an SMA managed by Mackenzie. Excluding this activity, IG Wealth’s net outflows were $91MM in January 2024. IG Wealth Management Gross and Net flows1 ($MM
Slide 84: IG Wealth Management Q4, 2023 operating results
IG Wealth Management Q4, 2023 operating results Asset Under Gross Inflows ($MM) Gross Outflows Rate Net Flows ($MM) Advisement ($B) (Quarterly annualized) 429 Cash, GICs, HISAs 11.3% 3rd party 3,031 3,089 9.4% IGM Solutions (AUM) 3 114.2 121.2 (228) 110.8 5.7 6.1 5.3 7.5 5.4 6.6 Q4/22 Q4/23 Net Flow
Slide 85: IG Wealth Management - key profitability drivers
IG Wealth Management - key profitability drivers Daily Average Assets ($B), Advisory and Product & Key Revenue & Expenses as bps of Respective Program Fee Rate (bps)1 Driver (AUA or AUM)1 114.7 116.1 116.9 117.1 109.6 1 12.2 12.9 102.4 102.8 102.2 102.1 102.1 11.3 11.8 Other AUA 10.4 103.3 104.2 104
Slide 86: IG Wealth Management profitability
IG Wealth Management profitability $ Millions (unless otherwise noted): IG Wealth Management Q4/22 Q3/23 Q4/23 Change QoQ $ % $ Change YoY % 1▪ Q4/23 mortgage operations revenues decrease Average assets under advisement ($B) 109.6 116.9 117.1 0.2 0.1% 7.5 6.8% driven by a $9MM (pre-tax) negative fai
Slide 87: Asset management Q4, 2023 highlights
Asset management Q4, 2023 highlights Mackenzie ending AUM of $195.7B, up 5.0% versus September 30, 2023 • Increase is driven by market return of positive 6.5% • ChinaAMC long-term mutual fund AUM growth of 3% during Q4, exceeding industry growth1,2 Investment fund net redemptions of $826MM, • ChinaA
Slide 88: Mackenzie Investments net flows
Mackenzie Investments net flows Mackenzie Adjusted Investment Fund Flows1 ($MM) Mackenzie Adjusted Investment Fund Net Flows1 (in $MM) MF Gross Sales MF Redemptions MF Net Sales ETF Net Flows (Last Twelve Month Trailing, as at January 31, 2024) Month of January Total Retail 1,261 698 804 716 994 981
Slide 89: Mackenzie Q4, 2023 operating results
Mackenzie Q4, 2023 operating results Retail Mutual Fund Gross Sales ($MM) Net Sales ($MM)1,2 Q4/22 Q4/23 1,352 1,382 Retail mutual Funds (815) (890) ▪ Total net redemptions were $1.0B Retail ETFs 118 33 ▪ (3.5%) long-term investment fund net sales rate Retail investment funds (697) (857) over the tw
Slide 90: Investment boutique retail mutual fund performance & net sales
Investment boutique retail mutual fund performance & net sales Fixed Managed 3rd Party Value-Oriented Quality Growth-Oriented Sustainable Core & Dividend Income Solutions & Other North Global ChinaAMC, Global Equity Multi-Asset Cundill American Ivy Growth Bluewater Resources Greenchip Quantitative F
Slide 91: Mackenzie - key profitability drivers
Mackenzie - key profitability drivers Net Asset Management Fee Rates1 Average AUM ($B), Net Asset Management Fees (bps)1 (as bps of respective AUM) Sub-advisory and 193.1 AUM to Wealth Third-party 192.0 191.9 189.3 82.3 80.8 80.9 81.1 186.3 Management 80.4 Excluding Canada Life Third Party AUM Overa
Slide 92: Mackenzie profitability
Mackenzie profitability $ Millions (unless otherwise noted): Change QoQ Change YoY Mackenzie Investments Q4/22 Q3/23 Q4/23 $ % $ % Average assets under management ($B) Third Party AUM 112.7 115.5 114.1 (1.4) (1.2%) 1.5 1.3% 1▪ 2023 full-year expense growth of 1.4% below Sub-advisory and AUM to Wealt
Slide 93: IGM Financial Q4, 2023 financial highlights
IGM Financial Q4, 2023 financial highlights • Adjusted EPS1 of $0.84 EPS • Includes a $9MM (pre-tax) negative fair value adjustment in mortgage banking operations $1.76 • Reported EPS includes gains related to the closing of the sale of IPC to Canada Life • AUM&A now reflects closing on IPC sale +87
Slide 94: IGM Financial consolidated profitability
IGM Financial consolidated profitability Lower Wealth management revenues relative to $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q4/22 Q3/23 Q4/23 $ % $ % 1▪ Average AUM & AUA ($ Billions) Wealth Management AUM & AUA 109.6 116.9 117.1 0.2 0.1% 7.5 6.8% Q3 d
Slide 95: Adjusted net earnings by segment and company ($MM)
Adjusted net earnings available to common shareholders1 by segment and company ($MM) Wealth Asset Corporate IGM Management2 Management3 & Other4 Consolidated5,6 Year-over-year change Year-over-year change includes the impact of includes impact of the -11% partial sale of IGM’s 224.7 the additional e
Slide 96: Summary: Segment breakdown
Summary: Segment breakdown Adj. Earnings by Segment Strategic Investments – Ownership and value 2022 Adj. 2023 Adj. YoY Ownership Accounting Q4/23 Net Q4/23 Value Assumption Earnings1 Earnings1 Change Q4/23 | Q4/22 Basis Carrying Value Fair Value All $ in millions WEALTH MANAGEMENT IG $437.4 $432.4
Slide 97: Adjusted net earnings and valuation by company ($MM)
Adjusted net earnings available to common shareholders and valuation by company ($MM) Adjusted Net Earnings Available to Common Shareholders1 4 887.1 2023 820.7 Analyst 459.6 Consensus2 432.4 2024 204.4 210.0 8.9 FVTOCI 93.7 103.9 13.9 15.4 66.9 89.3 3 7.7 (0.7) Figures in table may not add due to r