IGM Financial Reports Strong Growth and Strategic Focus in Q2 2024

IGM Financial Inc., a prominent wealth and asset management firm, has reported strong results for the second quarter of 2024, with adjusted earnings per share (EPS) increasing by 4.5% and a notable rise in assets under management (AUM).

The wealth management segment, which includes IG Wealth Management, Rockefeller Capital Management, and Wealthsimple, exhibited substantial growth in both the mass affluent and high net worth categories, contributing significantly to the firm’s positive financial performance. Mackenzie Investments recorded its highest earnings in 15 years for the second quarter, with a 12% increase. Although the company experienced net redemptions in its investment funds, it remains optimistic about improving industry trends and is committed to enhancing shareholder returns through dividends and share buybacks.

Key Highlights:

• Adjusted EPS increased by 4.5% year-over-year.
• Significant growth in wealth management, particularly among mass affluent and high net worth clients.
• Mackenzie Investments reported a 12% earnings surge in the quarter.
• Both China AMC and Northleaf showcased impressive performance and growth.
• Wealthsimple’s valuation rose to $835 million due to outstanding performance.
• The company’s strategic investments are currently valued at $5.3 billion.

Company Outlook:
IGM Financial anticipates a gradual improvement in industry net redemptions in the latter half of the year, focusing on becoming a leader in key sectors such as global equity.

Challenges and Opportunities:

• Investment funds recorded net redemptions of $745 million.
• Adviser fee rates at IG Wealth Management are predicted to decline by approximately 0.5 basis points per quarter due to shifts in product mix.
• Conversely, Mackenzie Investments achieved a 12% earnings boost for the quarter.
• Growth and new commitments were notable for both China AMC and Northleaf.
• Rockefeller Capital Management benefited from increased earnings owing to growth in their global family office business.

Management Insights:
Company executives provided insights during the earnings call, addressing performance variances among different boutiques, commentary on adviser fee rates and their impact, and the long-term strategy for capital allocation and organic growth.

IGM Financial’s performance during this quarter underscores its resilience and strategic focus amidst industry challenges. With a clear growth plan, prudent capital management, and a commitment to returning value to shareholders, the company is well-positioned to leverage market opportunities moving forward. The leadership remains optimistic about improvements in net redemptions and sustained success across its diverse wealth management portfolio.

Overall, IGM Financial continues to demonstrate a robust financial performance trajectory, supported by solid operational fundamentals and enhanced shareholder value provisions.