Slide 1: IGM Financial Q2, 2023 Results
IGM Financial Q2, 2023 Results August 3, 2023
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’s current expectations. Forward-looking statements are provided to assist the reader in und
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 month period ending June 30, 2023 consisted of: • Restructuring and other charges of $76.2 million after-tax ($103.3 million pre-tax), recorded in the second quarter, related to further streamlining and simpli
Slide 6: Documents Incorporated By Reference
Documents Incorporated By Reference This summary document and webcast are meant to discuss, not to serve as a substitute for, information included in these documents. The reader is hereby cautioned to refer to the following documents relating to IGM Financial’s results: 1. Documents related to IGM F
Slide 7: IGM Financial
IGM FINANCIAL JAMES O‘SULLIVAN PRESIDENT & CEO IGM FINANCIAL IGM FINANCIAL Q2, 2023 RESULTS
Slide 8: IGM Financial Q2, 2023 Highlights
IGM Financial Q2, 2023 Highlights 1 Reported EPS of 58 cents; adjusted EPS of 86 cents1 • Reported EPS includes restructuring and other charges, a decrease in the gain on the sale of a portion of IGM’s investment in Lifeco and a Lifeco IFRS 17 adjustment representing a change of estimate 2 Ending AU
Slide 9: Financial Market and Client Investment Returns
Financial Market and Client Investment Returns IGM Client Return Index1 2.6 Investment Performance Q3/23 at 2023 YTD at 2.4 2022 Q1/23 Q2/23 Jul 31/23 Jul 31/23 2 IGM Client Investment Returns (9.9%) 4.4% 1.2% 2.2 Equity Markets: Canada (S&P / TSX Composite) (5.8%) 4.6% 1.1% 2.6% 8.4% U.S. (S&P 500)
Slide 10: Industry Operating Environment
Industry Operating Environment Second Quarter Industry Long-term Net Sales ($B) Total Industry Industry Asset Manager Peers 28.8 13.5 14.0 5.5 11.4 7.2 Categories Q2 2022 Q2 2023 $ Change 14.3 Balanced (2.3) (4.8) (2.5) 3.4 3.8 3.7 2.8 Foreign Equity (2.3) (2.9) (0.6) 1.3 Canadian Equity (0.5) (1.1)
Slide 11: IGM Financial Q2, 2023 Results
IGM Financial Q2, 2023 Results Total AUM&A ($B) Net Earnings ($MM) Net Earnings Per Share ($) Daily AUM&A 207 0.87 Daily AUM&A Ex Disc Ops Annual Average AUM&A Quarterly Average AUM&A 138 0.58 290 280 270 260 250 240 230 Adjusted Net Adjusted Net Earnings 220 Earnings1,2 ($MM) Per Share1,2 ($) 210 2
Slide 12: Adjusted Net Earnings Available to Common Shareholders by Segment and Company
Adjusted Net Earnings Available to Common Shareholders1 by Segment and Company ($MM) Wealth Asset Wealth Management - Management Management Strategic Investments & Other2 Discontinued Operations3 IGM Consolidated4 Recorded based on analyst estimates for Q2/23 earnings with an adjustment -1% to true-
Slide 13: Second Quarter Ending AUM&A (CAD $B)
Second Quarter Ending AUM&A (CAD $B) Consolidated AUM&A inc. Wealth Asset Wealth Management - IGM strategic Management Management1 Discontinued Operations Consolidated Strategic Investments investments IGM Proportionate Share2 +32%3 Q2/22 Q2/23 403 Q2/23 -2% Q2/22 335 329 305 +8% 261 242 IPC 261 IPC
Slide 14: Second Quarter Net Flows ($MM)
Second Quarter Net Flows ($MM) Wealth Wealth Management - Management Asset Management1 Discontinued Operations IGM Consolidated Strategic Investments 2 Q2/23 Q2/22 1,100 748 389 11 (88) (343) (424) (527) (821) (952) Q2/22 Q2/23 1) Excludes sub-advisory to Wealth Management segment and Canada Life. 2
Slide 15: IGM Financial Streamlines Organization to Unlock Savings and Drive Growth
IGM Financial Streamlines Organization to Unlock Savings and Drive Growth Further Reinvest in our Extension of streamlining of future to enhance ongoing focus to operations to client experience optimize operations structurally reduce and accelerate costs growth • Further align our structure to advan
Slide 16: Wealth Management
WEALTH MANAGEMENT DAMON MURCHISON PRESIDENT & CEO IG WEALTH MANAGEMENT IGM FINANCIAL Q2, 2023 RESULTS
Slide 17: Wealth Management Q2, 2023 Highlights
Wealth Management Q2, 2023 Highlights 1 IG Wealth ending AUM&A of $116.8B increased 0.8% during the quarter • Driven by client investment returns of 1.2% 2 IG Wealth Q2 gross inflows of $2.8B represent another solid quarter • Net outflows of $424MM in Q2/23 • IG Wealth total net inflows of $196MM du
Slide 18: Net Flows at IG Wealth Management
Net Flows at IG Wealth Management IG Wealth Management Gross and Net Flows1 ($MM) IG Wealth Management Flows (in $B) Gross Inflows Gross Outflows Net Flows (Last Twelve Month Trailing, as at June 30, 2023) Month of June 1,149 Total Net Flows IGM Product Net Flows 1,052 1,027 671 805 742 734 548 620
Slide 19: IG Wealth Management Q2, 2023 Operating Results
IG Wealth Management Q2, 2023 Operating Results Gross Outflows Rate Assets Under Gross Inflows ($MM) (quarterly annualized) Net Flows ($MM) Advisement ($B) 389 Cash, GICs, HISAs 3rd party 3,068 11.1% IGM Solutions (AUM) 2,795 9.7% 115.9 116.8 105.5 5.8 5.7 3.2 6.0 6.4 4.9 (424) Q2/22 Q2/23 97.4 104.
Slide 20: Sales Growth Driven by Strong High-Net-Worth & Mass Affluent Client Acquisition
Sales Growth Driven by Strong High-Net-Worth & Mass Affluent Client Acquisition Gross Flows from Newly Acquired Clients Gross Flows from Newly Acquired Clients (Q2, $MM) (Last Twelve Month Trailing, $MM) By Client Assets Brought to IG Wealth By Client Assets Brought to IG Wealth Growth <$100K $100-5
Slide 21: Strong Advisor Productivity
Strong Advisor Productivity Gross Inflows per Advisor Gross Inflows per Advisor Recruit with <4 years Practice with >4 years experience experience Key Initiatives Driving Productivity ($MM) ($MM) • Tightened recruiting standards 1.56 1.50 • Corporate advice channel that provides 1.38 consistent serv
Slide 22: Rockefeller Capital Management Q2 and YTD 2023 Highlights
Q2 and YTD 2023 Highlights YTD 2023 Client Asset1 Growth ($US B) Advisor Team Growth 1▪ Strong year-to-date organic 2 128 growth drove a US$2.8B 3 116 increase in client assets, including US$0.9B during Q2/23 1 91 ▪ Rockefeller’s inorganic growth engine continues to attract top advisors and add sign
Slide 23: Wealthsimple Highlights
Highlights AUA by Quarter ($B) Client Count by Quarter1 (000s) 1▪ Wealthsimple’s AUA grew to 2,169 2 23.4 1 2,116 $23.4B, up 10% sequentially 2,031 1,965 2,002 and 38% year-over-year 21.3 1,910 19.4 1,753 18.4 18.3 2▪ Wealthsimple serves 2.2 million 16.9 17.5 1,518 16.3 clients, up 10% during the la
Slide 24: Asset Management
ASSET MANAGEMENT LUKE GOULD PRESIDENT & CEO MACKENZIE INVESTMENTS IGM FINANCIAL Q2, 2023 RESULTS
Slide 25: Asset Management Q2, 2023 Highlights
Asset Management Q2, 2023 Highlights 1 Ending AUM of $193.3B, relatively flat versus March 31, 2023 2 Investment fund net redemptions of $616MM, in-line with industry outflows 3 New Mackenzie fund launches focus on PFSL, sustainability and US dollar exposure • PFSL True USD US Core Fund and PFSL Sha
Slide 26: Mackenzie Investments Net Flows
Mackenzie Investments Net Flows Mackenzie Adjusted Investment Fund Flows1 ($MM) Mackenzie Adjusted Investment Fund Net Flows1 (in $MM) MF Gross Sales MF Redemptions MF Net Sales ETF Net Flows (Last Twelve Month Trailing, as at June 30, 2023) 1,183 Month of June 955 804 835 837 630 Total Retail 584 5
Slide 27: Mackenzie Q2, 2023 Operating Results
Mackenzie Q2, 2023 Operating Results Retail Mutual Fund Gross Sales ($MM) Net Sales ($MM)1,2 ▪ Total net redemptions were $343MM 1,518 1,458 Q2/22 Q2/23 ▪ (3.4%) long-term investment fund Retail mutual Funds (553) (630) net sales rate over the twelve Retail ETFs (126) (80) months ending June 30, 202
Slide 28: 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 Global ChinaAMC, Fixed Multi-Asset Cundill American Ivy Growth Bluewater Resources Greenchip Quantitative Eq
Slide 29: Chinese Mutual Fund Industry AUM and Net Flows; ChinaAMC Among Top Five
Chinese Mutual Fund Industry AUM and Net Flows; ChinaAMC is an Industry Leader, and Consistently Among the Top Five in the League Tables Growth Chinese Mutual Fund Industry Long-term Mutual Chinese Mutual Fund Industry QoQ 1yr Fund Market Share (% at June 30, 2023) Ending AUM1 27.4 4% 4% (RMB Trilli
Slide 30: ChinaAMC – A Leading Chinese Asset Manager – Total AUM Continuity
– A Leading Chinese Asset Manager – Total AUM Continuity ChinaAMC Ending AUM1 (RMB billions) Growth QoQ 1yr 1,802 2% 4% 1,740 1,733 1,722 1,772 1,662 1,607 1,581 1,599 1,536 1,461 1,294 5% 10% 1,248 1,253 1,193 1,137 1,142 1,137 1,032 1,038 1,004 976 971 440 3% 23% 870 880 895 359 382 383 426 805 29
Slide 31: Capital Partners
Capital Partners • Strong fundraisings of $0.7B and AUM growth of 2.0% for the quarter ended June 30, 2023 • Northleaf AUM has grown at a 24% compound annual growth rate (CAGR) since the partnership with Mackenzie was formed in late 2020, driven by strong fundraising activity across each of the firm
Slide 32: Financial Highlights
IGM FINANCIAL Financial Highlights KEITH POTTER EXECUTIVE VICE-PRESIDENT & CFO IGM FINANCIAL IGM FINANCIAL Q2, 2023 RESULTS
Slide 33: Total Assets Under Management & Advisement
Total Assets Under Management & Advisement IGM Assets Under Management & Advisement ($B) Change in IGM AUM&A ($B) Daily AUM&A Daily AUM&A ex Disc Ops AUM&A excluding sub-advisory to Canada Life Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 LTM Opening AUM&A 216.8 195.5 193.1 202.4 211.9 195.5 Annual Average AUM&A Q
Slide 34: IGM Financial Adjusted EBIT & Margins
IGM Financial Adjusted EBIT & Margins Excludes discontinued operations IGM Adjusted EBIT1 ($MM) IGM Adjusted EBIT Margin1,2 (% of AUM&A) Direct advisor/dealer compensation3 & sub- advisory expenses 744.7 748.1 767.6 754.9 762.7 Share of associates’ 1.24% 1.26% 1.25% 1.23% 1.25% earnings and net 193.
Slide 35: IGM Financial Consolidated Profitability
IGM Financial Consolidated Profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q2/22 Q1/23 Q2/23 $ % $ % Days in the period 91 90 91 1.1% 0.0% 1▪ Net investment income & other up Average AUM & AUA ($ Billions) $8.6MM year-over-year primarily due Wealth
Slide 36: IG Wealth Management Key Profitability Drivers
Reminder: Asset-based compensation is paid based on the simple IG Wealth Management ▪1 average of opening & ending monthly AUA and based on the # of months in a period (whereas advisory and product & program fee revenue is Key Profitability Drivers earned on daily average AUA based on the # of days
Slide 37: IG Wealth Management Profitability
IG Wealth Management Profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IG Wealth Management Q2/22 Q1/23 Q2/23 $ % $ % Days in the period 91 90 91 1.1% 0.0% Average assets under advisement ($B) 110.7 114.7 116.1 1.4 1.2% 5.4 4.8% Average assets under management ($B) 101.8 103.3
Slide 38: Asset Management Key Profitability Drivers
Asset Management 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 AUM to Wealth 82.0 82.3 Third-party 195.5 192.0 193.1 80.5 80.8 80.9 Excluding 187.3 186.3 Management Canada Life Third Party AUM
Slide 39: Asset Management Segment Profitability
Asset Management Segment Profitability $ Millions (unless otherwise noted): Change QoQ Change YoY Asset Management Q2/22 Q1/23 Q2/23 $ % $ % Days in the period 91 90 91 1.1% 0.0% ▪1 Year-over-year increase in net Average assets under management ($B) Third Party AUM 118.5 115.7 116.3 0.6 0.5% (2.2) (
Slide 40: ChinaAMC AUM and Earnings
AUM and Earnings ChinaAMC Ending AUM1 (RMB billions) IGM Share of ChinaAMC Earnings2 (CAD millions) Original 13.9% ownership 1-Year Additional share due to Growth increased ownership 28.1 27.7 1,772 1,802 4% 1,740 1,733 1,722 On January 12, 2023, IGM closed on the acquisition of an additional 579 54
Slide 41: Adjusted Net Earnings Available to Common Shareholders by Segment and Company
1 The indicative value of ChinaAMC is estimated based on the January Adjusted Net Earnings Available to Common 12, 2023 acquisition price, adjusted for the RMB depreciation relative to CAD and the estimated impact of fee changes on certain Shareholders by Segment and Company ($MM) mutual funds annou
Slide 42: Adjusted Net Earnings and Valuation by Segment and Company
Adjusted Net Earnings Available to Common Shareholders and Valuation by Segment and Company ($MM) Adjusted Net Earnings Available to Common Shareholders1 867 855 Wealth Asset Wealth Management IPC IPC Management Management Strategic Investments & Other - Discontinued Ops 2022 437 442 Analyst Other a
Slide 43: Q&A
Q&A IGM FINANCIAL Q2, 2023 RESULTS
Slide 44: Appendix
Appendix IGM FINANCIAL Q2, 2023 RESULTS
Slide 45: 2023 Expense Guidance – Continued Focus on Prudent Expense Management
2023 Expense Guidance – Continued Focus on Prudent Expense Management Guidance and Outlook: Combined Operations & Support and Business Development Expenses IGM Consolidated1 (year-over-year change) 5-year technology & operations Full-year expense 9% 9% transformation announced guidance revised to 2%
Slide 46: Reconciliation of adjusted to IFRS earnings and EPS
Reconciliation of adjusted to IFRS earnings and EPS ($ millions except EPS) Q2/22 Q1/23 Q2/23 Adjusted net earnings available to common shareholders1 $207.1 $206.5 $205.5 Restructuring and other, net of tax - - (76.2) Gain on sale of Lifeco, net of tax - - (6.2) Lifeco IFRS 17 adjustment - 174.8 15.