FT Markets Data
IGM Financial Inc, Power Corporation of Canada, Great-West Lifeco Inc

IGM FINANCIAL REPORTS THIRD QUARTER EARNINGS

Readers are referred to the disclaimer regarding Forward-Looking Statements, Non-IFRS Financial Measures and Other Financial Measures at the end of this Release.

WINNIPEG, MB , Nov. 7, 2024 /CNW/ - IGM Financial Inc. (IGM or the Company) (TSX: IGM) today announced earnings results for the third quarter of 2024.

IGM HIGHLIGHTS

  • Net earnings of $239.2 millioncompared to $209.8 million in the third quarter of 2023. Earnings per share of $1.01 compared to $0.88 in the third quarter of 2023.
  • Adjusted net earnings1 were $244.1 millionfor the third quarter of 2024 compared to $220.5 million in the third quarter of 2023, an increase of 10.7%. Adjusted earnings per share1 were $1.03for the third quarter of 2024 compared to $0.92 in the third quarter of 2023.
  • Record high assets under management and advisement of $264.9 billion, up 16.5% from the third quarter of 20232 and up 4.9% from the prior quarter.
  • IGM's assets under management and advisement including strategic investments were $461.6 billion compared with $431.7 billion at June 30, 2024 and $373.8 billion at September 30, 2023.2
  • Net outflows were $272 million compared to net outflows of $709 million in 2023.2
  • Increase in the value of IGM's investment in Wealthsimple Financial Corp. by $384 million ($1.62 per IGM share) in the quarter to $1.2 billion.

"Record high assets under management and advisement of $264.9 billion increased 16.5% from last year and were a key contributor to our adjusted earnings per share in the quarter of $1.03, one of the highest in the Company's history," said James O'Sullivan, President and Chief Executive Officer of IGM Financial Inc. "IG Wealth Management continues to execute on its strategy, with high net worth client household assets of $1 million or more representing $58.3 billion or 43% of total client assets at IG Wealth Management."

Three months ended


Nine months ended


September 30


September 30


2024

2023

Change


2024

2023

Change

IFRS Financial Measures








Net earnings (millions)

$     239.2

$     209.8

14.0 %


$     678.8

$     729.3

(6.9) %

Earnings per share

$       1.01

$       0.88

14.8 %


$       2.86

$       3.06

(6.5) %









Non-IFRS Financial Measures








Adjusted net earnings(1)(millions)

$     244.1

$     220.5

10.7 %


$     689.0

$     638.2

8.0 %

Adjusted earnings per share(1)

$       1.03

$       0.92

12.0 %


$       2.90

$       2.67

8.6 %









Assets under management and








   advisement (AUM&A)  (billions)








AUM&A(2)

$     264.9

$     227.4

16.5 %


$     264.9

$     227.4

16.5 %

AUM&A including








   strategic investments(2)

$     461.6

$     373.8

23.5 %


$     461.6

$     373.8

23.5 %

WEALTH MANAGEMENT 

Reflects the activities of its core business and strategic investments that are principally focused on providing financial planning and related services. This segment includes the activities of IG Wealth Management , the Company's investments in Rockefeller Capital Management (Rockefeller) and Wealthsimple Financial Corp. (Wealthsimple), and, until the fourth quarter of 2023, Investment Planning Counsel (IPC) which was classified as discontinued operations.

Adjusted net earnings available to common shareholders in the third quarter of 2024 were $124.9 million, an increase of 5.7% compared to the third quarter of 2023, and represented 51.2% of IGM's adjusted net earnings available to common shareholders. 

Assets under advisement including strategic investments at September 30, 2024 were $191.8 billion, an increase of 5.8% from $181.3 billion at June 30, 2024 and an increase of 26.0% from $152.2 billion at September 30, 2023.

IG Wealth Management

Record high assets under advisement at September 30, 2024 were $136.4 billion, an increase of 5.2% from $129.7 billion at June 30, 2024 and an increase of 19.4% from $114.2 billion at September 30, 2023.

Quarterly net client inflows were $330 million, compared to net client outflows of $17 million in the third quarter of 2023.

Record high quarterly gross client inflows were $3.4 billion, an increase of 10.6% from 2023.

Wealthsimple

The fair value of the Company's investment in Wealthsimple was $1,219 million at September 30, 2024 compared to $835 million at June 30, 2024, due to a fair value increase of 46%.  The increase in fair value is consistent with the increase in public market peer valuations, Wealthsimple's business performance and revised revenue expectations, as well as a third party secondary transaction expected to close in the fourth quarter.

ASSET MANAGEMENT

Reflects the activities of its core business and strategic investments primarily focused on providing investment management services. This segment includes the operations of Mackenzie Investments and the Company's investments in China Asset Management Co., Ltd. (ChinaAMC) and Northleaf Capital Group Ltd. (Northleaf).

Adjusted net earnings available to common shareholders in the third quarter of 2024 were $91.3 million, an increase of 15.7% compared to the third quarter of 2023, and represented 37.4% of IGM's adjusted net earnings available to common shareholders. 

Assets under management including strategic investments at September 30, 2024 were $354.7 billion, an increase of 7.1% from $331.1 billion at June 30, 2024 and an increase of 20.0% from $295.6 billion at September 30, 2023.

Mackenzie Investments

Record high total assets under management were $212.1 billion, an increase of 4.9% from $202.1 billion at June 30, 2024 and an increase of 13.8% from $186.3 billion at September 30, 2023. Third party assets under management were $128.5 billion at September 30, 2024, an increase of 4.7% from June 30, 2024 and an increase of 14.7% from September 30, 2023.

Investment fund net redemptions were $296 million compared to net redemptions of $699 million in the third quarter of 2023.

Mutual fund gross sales were $1.8 billion, up 20.6% from the third quarter of 2023.

ETF business – ETF assets under management totalled $14.9 billion at September 30, 2024, up from $14.4 billion at June 30, 2024 and $12.5 billion at September 30, 2023. Excluding investment in ETFs by IGM's managed products, ETF assets under management were $6.9 billion at September 30, 2024, compared to $6.3 billion at June 30, 2024 and $5.1 billion at September 30, 2023.

ChinaAMC

The Company's proportionate share of ChinaAMC's third quarter earnings was $32.9 million compared to $24.6 million in the third quarter of 2023.

CORPORATE AND OTHER

Represents the investments in Great-West Lifeco Inc. (Lifeco) and Portage Ventures LPs, as well as unallocated capital.

Lifeco – The Company's proportionate share of Lifeco's third quarter earnings was $20.4 million3 compared to $12.7 million in the third quarter of 2023. The Company's proportionate share of Lifeco's base earnings was $25.3 million compared to $23.4 million in the third quarter of 2023.

DIVIDENDS

The Board of Directors has declared a dividend of 56.25 cents per share on the Company's common shares which is payable on January 31, 2025 to shareholders of record on December 31, 2024.

1

A non-IFRS measure – see Non-IFRS Financial Measures and Other Financial Measures section of this press release. Adjusted net earnings exclude Other items.


In 2024, Other items consisted of:



•

Lifeco other items of ($4.9) million recorded in the third quarter and ($6.9) million for the nine months ended September 30 reflecting the Company's proportionate share of items Lifeco excludes from its base earnings (Lifeco other items). Base earnings is an alternate measure Lifeco uses to understand the underlying business performance compared to IFRS net earnings.



•

The Company's proportionate share of Rockefeller's one-time debt refinancing costs of $3.3 million, recorded in the second quarter, related to the early repayment of one of Rockefeller's financing facilities.


In 2023, Other items consisted of:



•

Restructuring and other charges of $76.2 million after-tax ($103.3 million pre-tax) recorded in the second quarter resulting from streamlining and simplifying the business to more effectively align with business priorities.



•

A gain on the sale of a portion of the Company's investment in Lifeco of $168.6 million after-tax ($172.9 million pre-tax) consisting of $174.8 million recorded in the first quarter and a decrease of $6.2 million that was recorded on a prospective basis in the second quarter.



•

Lifeco IFRS 17 adjustment of $15.1 million, recorded in the second quarter, representing a change of estimate which has been recorded on a prospective basis.



•

Lifeco other items of ($10.7) million recorded in the third quarter and ($16.4) million for the nine months ended September 30.

2

Assets under management and advisement and net flows exclude discontinued operations (IPC). Including discontinued operations:



•

IGM assets under management and advisement were $253.4 billion at September 30, 2023.



•

IGM assets under management and advisement including strategic investments were $399.7 billion at September 30, 2023.



•

IGM net outflows including discontinued operations were $549 million in the third quarter of 2023.

3

In 2024, the Company has recorded its proportionate share of Lifeco earnings based on actual earnings.

FORWARD-LOOKING STATEMENTS

Certain statements in this Release, 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 strategic investments', current expectations. Forward-looking statements are provided to assist the reader in understanding the Company's, and its subsidiaries and strategic investments, financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, and its subsidiaries and strategic investments,  as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.

A variety of material factors, many of which are beyond the Company's and its subsidiaries' and strategic investments' control, affect the operations, performance and results of the Company and its subsidiaries and strategic investments, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, outbreaks of disease or pandemics (such as COVID-19), the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company's and its subsidiaries' and strategic investments' success in anticipating and managing the foregoing factors.

The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements. 

Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedarplus.ca .

NON-IFRS FINANCIAL MEASURES AND 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 provide management, investors and investment analysts with additional measures to assess earnings performance.

Non-IFRS financial measures include, but are not limited to, "adjusted net earnings available to common shareholders", "adjusted net earnings", "adjusted earnings before income taxes", "adjusted earnings before interest and taxes" (Adjusted EBIT), "earnings before interest, taxes, depreciation and amortization before sales commissions" (EBITDA before sales commissions), and "earnings before interest, taxes, depreciation and amortization after sales commissions" (EBITDA after sales commissions). These measures exclude other items which are items of a non-recurring nature, or that could make the period-over-period comparison of results from operations less meaningful. Effective in the first quarter of 2024, these measures also exclude the Company's proportionate share of items that Great-West Lifeco Inc. (Lifeco) excludes from its IFRS reported net earnings in arriving at Lifeco's base earnings. Base earnings is an alternate measure Lifeco uses to understand the underlying business performance compared to IFRS net earnings. Lifeco's financial information can be obtained in its disclosure materials filed on www.sedarplus.ca. Comparative periods have been restated to reflect this change. EBITDA before sales commissions excludes all sales commissions. EBITDA after sales commissions includes all sales commissions and highlights aggregate cash flows.

Non-IFRS ratios include the following: 

Ratio

Numerator

Denominator

Adjusted earnings per share (Adjusted EPS)

Adjusted net earnings available to common shareholders

Average number of outstanding common shares on a diluted basis

Return (Adjusted return) on equity (ROE, Adjusted ROE)

Net earnings (Adjusted net earnings) available to common shareholders

Average shareholders' equity excluding non-controlling interest

ROE (Adjusted ROE) excluding the impact of fair value through other comprehensive income investments

Net earnings (Adjusted net earnings) available to common shareholders

Average shareholders' equity excluding non-controlling interest and the impact of fair value through other comprehensive income investments net of tax

Refer to the appropriate reconciliations of non-IFRS financial measures, including as components of non-IFRS ratios, to reported results in accordance with IFRS included in IGM Financial Inc.'s most recent Management's Discussion and Analysis.

This report also contains other financial measures which include:

  • Assets Under Management and Advisement (AUM&A) represents the consolidated AUM and AUA of IGM Financial's core businesses IG Wealth Management and Mackenzie Investments. In the Wealth Management segment, AUM is a component part of AUA. All instances where the Asset Management segment is providing investment management services or distributing its products through the Wealth Management segment are eliminated in our reporting such that there is no double-counting of the same client savings held at IGM Financial's core businesses. AUM&A excludes IPC's AUM, AUA, sales, redemptions and net flows which have been disclosed as discontinued operations.
  • Assets Under Advisement (AUA) are the key driver of the Wealth Management segment. AUA are savings and investment products held within client accounts of our Wealth Management segment core business.
  • Assets Under Management (AUM) are the key driver of the Asset Management segment. AUM are an additional driver of revenues and expenses within the Wealth Management segment in relation to its investment management activities. AUM are client assets where we provide investment management services, and include investment funds where we are the fund manager, investment advisory mandates to institutions, and other client accounts where we have discretionary portfolio management responsibilities.
  • Assets Under Management and Advisement Including Strategic Investments (AUM&A Including SI) represents AUM&A including the Company's proportionate share of the AUM&A of strategic investments based on the Company's direct and indirect ownership of the strategic investments. The strategic investments included are those whose activities are primarily in asset and wealth management, and include ChinaAMC, Northleaf, Rockefeller and Wealthsimple. Rockefeller client assets include assets under management and advisement as well as assets held for investment purposes and only receiving administrative services.

THIRD QUARTER WEBCAST AND CONFERENCE CALL

IGM Financial Inc.'s Third Quarter 2024 results conference call and webcast will be held on Friday, November 8, 2024 at 8:00 a.m. ET. The webcast and conference call can be accessed respectively through igmfinancial.com/en or you may register to obtain a calendar booking with your dial in numbers, PIN and webcast links. Alternatively, dial 1-844-763-8274.

The most recent Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) of operating results are available on IGM Financial Inc.'s website at igmfinancial.com/en.

ABOUT IGM FINANCIAL INC.

IGM Financial Inc. ("IGM", TSX: IGM) is a leading Canadian diversified wealth and asset management organization with approximately $ 265  billion in total assets under management and advisement as of October 31, 2024.  The company is committed to bettering the lives of Canadians by better planning and managing their money. To achieve this, IGM provides a broad range of financial planning and investment management services to help approximately two million Canadians meet their financial goals. IGM's activities are carried out principally through IG Wealth Management and Mackenzie Investments and are complimented by strategic positions in wealth managers Rockefeller Capital Management and Wealthsimple and asset managers ChinaAMC and Northleaf Capital. These strengthen IGM's capabilities, reach and diversification. IGM is a member of the Power Corporation group of companies. For more information, visit igmfinancial.com. 

 IGM FINANCIAL INC.



 Consolidated Statements of Earnings









(unaudited)

Three months ended September 30


Nine months ended September 30

(in thousands of Canadian dollars, except per share amounts)

2024


2023


2024


2023









 Revenues







Wealth management

$    616,037


$   563,068


$   1,788,648


$  1,649,661

Asset management

253,333


239,952


741,045


714,758

Dealer compensation expense

(82,778)


(78,648)


(243,942)


(237,397)

Net asset management 

170,555


161,304


497,103


477,361

Net investment income and other

10,106


8,010


35,703


27,067

Gain on sale of Lifeco shares 

-


-


-


172,977

Proportionate share of associates' earnings

56,455


38,474


159,670


149,494


853,153


770,856


2,481,124


2,476,560









 Expenses







Advisory and business development

278,250


253,224


822,404


752,929

Operations and support

211,405


196,450


621,196


696,896

Sub-advisory

19,978


16,876


56,882


49,044

Interest

32,438


32,519


96,916


90,694


542,071


499,069


1,597,398


1,589,563

Earnings before income taxes

311,082


271,787


883,726


886,997

Income taxes

71,229


60,410


201,816


159,209

Net earnings from continuing operations

239,853


211,377


681,910


727,788

Net earnings from discontinued operations

-


(1,511)


-


3,407

Net earnings

239,853


209,866


681,910


731,195

Non-controlling interest

(672)


(110)


(3,157)


(1,900)

 

Net earnings available to common shareholders

$    239,181


$   209,756


$      678,753


$   729,295









Earnings per share (in dollars)






Net earnings available to common shareholders from continuing operations



- Basic

$          1.01


$        0.89


$           2.86


$        3.05

- Diluted

$          1.01


$        0.89


$           2.86


$        3.04

Net earnings available to common shareholders





- Basic

$          1.01


$        0.88


$           2.86


$        3.06

- Diluted

$          1.01


$        0.88


$           2.86


$        3.06

 

IGM FINANCIAL INC.



















Financial Highlights




















For the three months ended September 30


As at and for the nine months ended September 30


(unaudited)




2024


2023


Change


2024


2023


Change



















Net earnings available to















     common shareholders ($ millions)














Net Earnings 



$  239.2


$  209.8


14.0

%

$      678.8


$     729.3


(6.9)

%


Adjusted Net Earnings(1)


244.1


220.5


10.7


689.0


638.2


8.0



















Diluted earnings per share
















Net Earnings



1.01


0.88


14.8


2.86


3.06


(6.5)



Adjusted Net Earnings(1)


1.03


0.92


12.0


2.90


2.67


8.6



















Return on equity

















Net Earnings









12.9 %


15.6 %





Adjusted Net Earnings(1)








13.1 %


13.7 %





















Dividends per share 



0.5625


0.5625


-


1.6875


1.6875


-





















































Consolidated assets under management and advisement (AUM&A) (2)(3) ($ millions)

$  264,914


$ 227,448


16.5

%

Consolidated assets under management (2) 






249,294


215,189


15.8


     Wealth Management (IG Wealth Management)











Assets under management(4)




120,788


101,945





Other assets under advisement




15,620


12,259





Assets under advisement




136,408


114,204


19.4


     Asset Management (Mackenzie Investments)











Investment funds






67,819


59,000





Institutional SMA






8,079


7,102





Sub-advisory to Canada Life




52,608


45,906





Total excluding sub-advisory to Wealth Management

128,506


112,008





Sub-advisory and AUM to Wealth Management


83,584


74,325





Total assets under management



212,090


186,333


13.8



















Consolidated AUM&A including strategic investments




461,584


373,810


23.5



Consolidated AUM&A






264,914


227,448





Strategic investments(5)






196,670


146,362






































Net Flows












 Asset 




($ millions)











Wealth Management(4)


Management(6)


Total (3)


     For the three months ended September 30, 2024











Investment fund net sales






$         313


$       (296)


$       17



Institutional SMA net sales






-


(306)


(306)



IGM product net sales






313


(602)


(289)



Other dealer net flows






17


-


17



Total net flows (2)







330


(602)


(272)



















     For the nine months ended September 30, 2024











Investment fund net sales






$        (614)


$    (1,235)


$ (1,849)



Institutional SMA net sales






-


(457)


(457)



IGM product net sales






(614)


(1,692)


(2,306)



Other dealer net flows





817


-


817



Total net flows (2)







203


(1,692)


(1,489)


(1)

Non-IFRS Financial Measures 


2024 adjusted net earnings excluded:



•

Lifeco other items of ($4.9) million in the third quarter and ($6.9) million in the nine months ended September 30.



•

The Company's proportionate share of Rockefeller's one-time debt refinancing costs of $3.3 million, recorded in the second quarter.


2023 adjusted net earnings excluded:



•

Restructuring and other charges of $76.2 million after-tax ($103.3 million pre-tax) recorded in the second quarter resulting from streamlining and simplifying the business to more effectively align with business priorities.



•

A gain on the sale of a portion of the Company's investment in Lifeco of $168.6 million after-tax ($172.9 million pre-tax) consisting of $174.8 million recorded in the first quarter and a decrease of $6.2 million that was recorded on a prospective basis in the second quarter.



•

Lifeco IFRS 17 adjustment of $15.1 million, recorded in the second quarter, representing a change of estimate which was recorded on a prospective basis.



•

Lifeco other items of ($10.7) million in the third quarter and ($16.4) million in the nine months ended September 30.

(2)

2023 excludes discontinued operations of IPC: Wealth Management AUM of $4.9 billion and AUA of $30.3 billion; AUA elimination entries of ($4.4) billion; and IGM consolidated AUM&A of $25.9 billion. 

(3)

Consolidated results eliminate double counting where business is reflected within multiple segments.

(4)

Includes separately managed accounts. 

(5)

Proportionate share of strategic investments' AUM comprised of 27.8% (2023 - 27.8%) of ChinaAMC's AUM, 56% (2023 - 56%) of Northleaf's AUM, 20.5% (2023 - 20.5%) of Rockefeller's client assets, and 27.3% (2023 - 28.3%) of Wealthsimple's AUA. 

(6)

Asset Management flows activity excludes sub-advisory to Canada Life and the Wealth Management segment. 

SOURCE IGM Financial Inc.