Slide 1: IGM Financial Q2, 2024 Results
IGM Financial Q2, 2024 Results August 8th, 2024
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 six months ended June 30, 2024 consisted of: • The Company’s proportionate share of items Lifeco excludes from its base earnings (Lifeco other items) of ($2.0) million, including ($0.9) million recorded in the sec
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: James O'Sullivan
James O’Sullivan President and CEO IGM Financial 7
Slide 8: IGM Financial Q2, 2024 highlights
IGM Financial Q2, 2024 highlights Reported EPS Adjusted EPS1 Second quarter adjusted EPS1 of $0.93, up 4.5% vs. Q2/23; second best $0.91 $0.93 Q2 adjusted EPS on record +56.9% vs Q2/23 +4.5% vs Q2/23 AUM&A and flows highlights: Consolidated Net flows IG Wealth Rockefeller Wealthsimple Mackenzie Chin
Slide 9: Financial market and client investment returns
Financial market and client investment returns IGM Client Return Index1 Investment Performance Q3/24 2024 YTD 1.8 2023 Q1/24 Q2/24 at July 31 at July 31 IGM Client Investment Returns 2,3 9.9% 5.7% 1.4% 3.0% 10.5% 1.7 Equity Markets: Canada (S&P / TSX Composite) 11.8% 6.6% (0.5%) 5.9% 12.3% 1.6 U.S.
Slide 10: Industry operating environment
Industry operating environment Second Quarter Industry Long-term Net Sales ($B) Total Industry Industry Asset Manager Peers Industry Asset Manager Peers Net Sales ($B) 28.7 Categories Q2/23 Q2/24 $ Change 14.0 11.4 14.2 Balanced (4.7) (4.2) 0.5 5.5 7.0 3.8 3.7 Foreign Equity (2.9) (0.9) 2.0 1.3 2.8
Slide 11: IGM Financial Q2, 2024 results
IGM Financial Q2, 2024 results Net Earnings Adj. Net Earnings2 ($MM) ($MM) Total AUM&A1 ($B) 216 211 220 Daily AUM&A Annual Average AUM&A Quarterly Average AUM&A 270 138 260 250 240 230 Net Earnings Adj. Net Earnings 220 Per Share ($) Per Share2 ($) 210 0.91 0.89 0.93 200 190 0.58 180 170 160 2022 2
Slide 12: Adjusted net earnings available to common shareholders by segment
Adjusted net earnings available to common shareholders1 by segment ($MM) Wealth Management2 Asset Management Corporate & Other3 IGM Consolidated4 +4% 220.4 211.4 Q2/23 -1% Q2/24 110.2 108.7 +10% 84.8 77.1 +21% 26.9 22.3 1) A non-IFRS financial measure - see Non-IFRS financial measures and other fina
Slide 13: Second quarter ending AUM&A (CAD $B)
Second quarter ending AUM&A (CAD $B) Consolidated AUM&A incl. SI1 Wealth Management Asset Management 3 2 2 2 2 406.5 431.7 +15% Sub-advised AUM to 376.1 Wealth Management: 328.9 Q2/23 Q2/24 $79.4B (Q2/23 $76.7B) Q2/24 Additional AUM&A not 3 included in Consolidated 193.3 202.1 191.6 AUM&A incl. SI 1
Slide 14: Wealth Management
WEALTH MANAGEMENT Damon Murchison President & CEO IG Wealth Management 14
Slide 15: Wealth management Q2, 2024 highlights
Wealth management Q2, 2024 highlights Ending AUM&A of $129.7B increased 11% year-over-year • AUM&A grew 1.3% during the quarter, driven by client returns of 1.6% • Client asset growth of 5% during Q2 gross inflows of $3.6B represent another solid quarter the quarter3 and 25% year-over- • Net outflow
Slide 16: IG Wealth Management net flows
IG Wealth Management net flows IG Wealth Management Gross and Net flows1 ($MM) IG Wealth Management Net Flows2 ($B) Gross Inflows Gross Outflows Net Flows (Last Twelve Month Trailing, as at July 31, 2024) Month of July 1,322 1,073 1,194 658 706 719 806 663 949 Total Net Flows IGM Product Net Flows C
Slide 17: IG Wealth Management Q2, 2024 operating results
IG Wealth Management Q2, 2024 operating results Gross Inflows Gross Outflows Rate Asset Under Advisement Q2/24 Highlights ($MM) (Quarterly annualized) ($B) Cash, GICs, HISAs ▪ Gross inflows of $3.6B, up 3rd party 3,565 IGM Solutions (AUM) 27.5% year-over-year 11.7% 128.0 129.7 2,795 11.1% 116.8 6.1
Slide 18: Strong high-net-worth & mass affluent client acquisition
Strong high-net-worth & mass affluent client acquisition Gross Flows from Newly Acquired Clients (Q2, $MM) Gross Flows from New 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 >$1,000K 5-year 1-year >$250K <$1
Slide 19: Strong advisor productivity
Strong advisor productivity Gross Inflows per Advisor Recruit Gross Inflows per Advisor Practice with <4 years experience ($MM) with >4 years experience1 ($MM) Productivity in-focus • Scaling our segmented advice model to help provide consistent services to all 1.92 0.68 clients and create capacity
Slide 20: Focus on industry wealth drivers
Focus on industry wealth drivers Q2/24 – extending capabilities and offerings that support industry wealth drivers Industry wealth drivers Partnerships entered during Q2/24 provide… Philanthropy and Tax Planning and Legacy Planning Optimization Tax optimization tools & training for 6 1 advisors Reti
Slide 21: Rockefeller Q2, 2024 update
Rockefeller Q2, 2024 update Q2, 2024 highlights LTM Client Asset1 Growth Private Advisor Growth (US$B) 3 400 9.8 140.0 358 1 ▪ Q2/24 organic growth drove 2 350 321 US$2.5B in client assets; 13.2 US$4.9B in growth since Q2/23 300 1 258 4.9 250 2 ▪ Strong inorganic growth of 112.2 US$3.4B in client as
Slide 22: Wealthsimple Q2, 2024 update
Wealthsimple Q2, 2024 update Q2, 2024 Highlights AUA by Quarter Client Count by Quarter1,2 ($B) (‘000s) 43.6 1 2,500 2 1▪ Wealthsimple’s AUA grew to 2,393 38.7 2,255 2,228 $43.6B, up 13% sequentially 2,116 2,169 2,031 and 87% year-over-year 1,965 2,002 31.0 2 ▪ Wealthsimple serves 2.5 24.9 million c
Slide 23: Asset Management
ASSET MANAGEMENT Luke Gould President & CEO Mackenzie Investments 23
Slide 24: Asset management Q2, 2024 highlights
Asset management Q2, 2024 highlights Ending AUM of $202.1B increased 4.5% year-over-year • AUM decreased by 0.8% during the quarter; net redemptions partially off set by client returns of 1.2% • ChinaAMC investment fund AUM growth of 25%2 versus Q2/23, Investment fund net redemptions of $745MM in co
Slide 25: Mackenzie Investments net flows
Mackenzie Investments net flows Mackenzie Adjusted Investment Fund Flows1 ($MM) Mackenzie Adjusted Investment Fund Net Flows1 ($B) (Last twelve month trailing, as at July 31, 2024) MF Gross Sales MF Redemptions MF Net Sales ETF Net Flows Month of July Total Retail 784 830 802 868 8.0 536 660 674 475
Slide 26: Mackenzie Q2, 2024 operating results
Mackenzie Q2, 2024 operating results Retail Mutual Fund Gross Sales Morningstar Star Ratings1 13 of top 20 rated mutual Q2/24 Highlights ($MM) (% Proportion of Assets) funds 4/5 star (series F) 1,724 Mackenzie – Jun. 2024 ▪ Retail mutual fund gross Mackenzie – Mar. 2024 51% 52% sales of $1.7B, up 18
Slide 27: Investment boutique retail mutual fund & ETF
Investment boutique retail mutual fund & ETF Fixed Managed 3rd Party Value-Oriented Quality Growth-Oriented Sustainable Core & Dividend Income Solutions & Other North Global Global Fixed Multi-Asset ChinaAMC, Cundill American Ivy Growth Bluewater Resources Greenchip Quantitative Equity & Income Stra
Slide 28: Chinese investment fund industry AUM and net flows
Chinese investment fund industry AUM and net flows; ChinaAMC is an industry leader Chinese Investment Fund Industry Top 10 Long-term Growth Chinese Investment Fund Industry Fund Provider Market Shares (at June 30, 2024) QoQ 1-year Ending AUM1 CAD/RMB = 5.2932 (RMB¥ Trillions) 6% 12% 30.7 • ChinaAMC’
Slide 29: ChinaAMC total AUM and investment fund net flows
total AUM and investment fund net flows continuity Growth ChinaAMC Ending AUM (RMB¥ billions) QoQ 1yr Other (primarily institutional) 2,159 3% 20% Money-market funds 2,089 Long-term investment funds 1,772 1,802 1,826 1,824 4% 25% 1,740 1,733 1,722 1,662 1,507 1,568 1,607 1,581 1,599 1,461 1,253 1,30
Slide 30: Capital Partners Q2, 2024 update
Capital Partners Q2, 2024 update Highlights Northleaf AUM History1 Northleaf LTM AUM Continuity1 ($B) ($B) ▪ Second quarter fundraising of 4.6 0.7 29.1 $1.8B represents the strongest quarter since partnership with (1.4) 29.1 Northleaf2 25.2 26.6 24.1 ▪ LTM fundraising of $4.6B, AUM growth of 15% 19.
Slide 31: Keith Potter
Keith Potter Executive Vice-President & CFO IGM Financial 31
Slide 32: IGM Financial Q2, 2024 financial highlights
IGM Financial Q2, 2024 financial highlights Reported EPS $0.91 • Second quarter adjusted EPS1 of $0.93, up 4.5% year-over-year +56.9% vs Q2/23 • Q2/24 adjusted EPS excludes the proportionate share of associates earnings from: • Lifeco other items which represented ($0.9MM) during the quarter Adjuste
Slide 33: Total assets under management & advisement
Total assets under management & advisement IGM Assets Under Management & Advisement1 Change in IGM Assets Under Management & Advisement1 ($B) ($B) Daily AUM&A Annual Average AUM&A Quarterly Average AUM&A Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 LTM Opening AUM&A excluding sub-advisory to Canada Life 185.5 186.
Slide 34: IGM Financial consolidated profitability
IGM Financial consolidated profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q2/23 Q1/24 Q2/24 $ % $ % Days in the period Average AUM & AUA ($ Billions) 91 91 91 0.0% 0.0% 1▪ Higher AUM&A, up 7.4% year-over-year and 2.4% Wealth Management AUM & AUA A
Slide 35: IG Wealth Management – key profitability drivers
IG Wealth Management – key profitability drivers 1 Driven by strong market performance, strength Daily Average Assets ($B), Advisory and Product Key Revenue & Expenses as bps of in high-net-worth client & Program Fee Rate (bps)1 Respective Driver (AUA or AUM)1 acquisition and composition of AUA 128.
Slide 36: IG Wealth Management profitability
IG Wealth Management profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IG Wealth Management Q2/23 Q1/24 Q2/24 $ % $ % Advisory and product and program fee revenue up Days in the period 91 91 91 0.0% 0.0% Average assets under advisement ($B) 116.1 124.0 128.1 4.2 3.4% 12.1 10.4
Slide 37: Mackenzie – key profitability drivers
Mackenzie – key profitability drivers Average AUM ($B), Net Asset Management Fee Rate Net Asset Management Fee Rates1 (bps)1 (as bps of respective AUM) Sub-advisory and 198.9 201.8 193.1 AUM to Wealth 191.9 189.3 80.9 81.1 Management 80.4 79.4 78.7 Third Party AUM 77.9 79.0 Third-party 76.7 76.4 75.
Slide 38: Mackenzie profitability
Mackenzie profitability $ Millions (unless otherwise noted): Change QoQ Change YoY Mackenzie Investments Q2/23 Q1/24 Q2/24 $ % $ % Days in the period 91 91 91 0.0% 0.0% Net asset management fees up 3.2% year-over- Average assets under management ($B) Third Party AUM 116.3 121.0 122.8 1.8 1.5% 6.5 5.
Slide 39: ChinaAMC – AUM and earnings
ChinaAMC – AUM and earnings ChinaAMC Ending AUM1 IGM Financial Share of ChinaAMC Earnings (RMB¥ billions) (CAD millions) Other (primarily institutional) 1-Year Money-market funds Growth Long-term investment funds 2,159 20% 28.3 2,089 27.7 26.9 1,826 1,824 24.6 23.7 1,802 592 8% 582 549 526 506 531 5
Slide 40: Adjusted net earnings by segment and company ($MM)
Adjusted net earnings available to common shareholders1 by segment and company ($MM) Wealth Asset Corporate IGM Management2 Management3 & Other2,4 Consolidated5 +4% Q2/23 220.4 211.4 Q2/24 -1% 112.8 111.7 FVTOCI +12% 50.1 55.9 +2% +21% 24.9 25.5 +68% 22.3 26.9 0.4 2.5 4.2 (1.9) (2.8) (0.5) 1) A non-
Slide 41: Summary: Segment breakdown
Summary: Segment breakdown Adj. Earnings by Segment Strategic Investments – Ownership and value Q2/23 Adj. Q2/24 Adj. YoY Ownership Accounting Q2/24 Net Q2/24 Value Assumption $ millions Earnings1 Earnings1 Change Q2/23 | Q2/24 Basis Carrying Value Fair Value WEALTH MANAGEMENT2 IG $112.8 $111.7 (1%)
Slide 42: Returning capital to shareholders with financial flexibility
Returning capital to shareholders with financial flexibility Return of Capital to Leverage Balanced approach to capital Shareholders (Debt/LTM EBITDA1) allocation: ($MM) Short-term financing Dividends Return of capital to shareholders: related to acquisition of Share repurchases a stake in Rockefell
Slide 43: Q&A
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Slide 44: Appendix
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Slide 45: 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 2023 843 6 913 Analyst Consensus2 432 470 2024 204 253 FVTOCI 94 99 89 80 14 17 8 3 (1) (6) 2024 Analyst 4 UNALLOCATED 4 OTHER CAPITAL Estimates2 EPS $1.97 -$
Slide 46: IGM Financial Debt/EBITDA
IGM Financial Debt/EBITDA1 Total Debt ($MMs) Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Long-term Debt 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 Credit facility 550.0 550.0 - - Total debt 2,950.0 2,950.0 2,400.0 2,400.0 2,400.0 EBITDA before sales commissions1 (LTM, ending) Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 EBIT2 ($MM