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, Aug. 6, 2025 /CNW/ - IGM Financial Inc. (IGM or the Company) (TSX: IGM) today announced earnings results for the second quarter of 2025.
IGM HIGHLIGHTS
- Record high second quarter adjusted net earnings1 were $252.7 million compared to $220.4 million in the second quarter of 2024, an increase of 14.7%. Record high second quarter adjusted earnings per share1 were $1.07 compared to $0.93 in the second quarter of 2024.
- Record high second quarter net earnings of $246.7 million increased by 14.1% from $216.2 million in the second quarter of 2024. Record high second quarter earnings per share of $1.04 compared to $0.91 in the second quarter of 2024.
- Record high assets under management and advisement of $283.9 billion, up 12.5% from the second quarter of 2024 and up 3.2% from the prior quarter.
- IGM's assets under management and advisement including strategic investments were an all-time high of $521.1 billion compared with $431.7 billion at June 30, 2024 and $503.6 billion at March 31, 2025.
- Net inflows were $90 million compared to net outflows of $1.1 billion in the second quarter of 2024.
- Increase in the value of IGM's investment in Wealthsimple Financial Corp. by $257 million ($1.08 per IGM share) in the quarter to $1.5 billion.
"Our all-time high second quarter adjusted earnings per share of $1.07 reflects strong results across both our core operating companies, IG Wealth Management and Mackenzie Investments, as well as our strategic investments," said James O'Sullivan, President and Chief Executive Officer of IGM Financial Inc. "As we continue to execute on the Company's strategy with record high asset levels across our subsidiaries and investee companies, IGM Financial is well positioned for growth."
IGM realized value within its fintech ecosystem by selling a portion of Conquest Planning for $24.8 million, while continuing its important partnership to drive the value proposition at IG Wealth Management. "Conquest is a core solutions provider at IG Wealth Management. We remain one of Conquest's largest and most active customers," said Damon Murchison, President & CEO of IG Wealth Management. "We sold 75% of our equity stake, returning all our invested capital and generating a 7 times multiple of invested capital and an IRR of 54%." Conquest Planning Inc. is classified as fair value through other comprehensive income and the change in fair value is not recorded in IGM's earnings.
Three months ended |
Six months ended |
||||||
June 30 |
June 30 |
||||||
2025 |
2024 |
Change |
2025 |
2024 |
Change |
||
IFRS Financial Measures |
|||||||
Net earnings (millions) |
$ 246.7 |
$ 216.2 |
14.1 % |
$ 480.5 |
$ 439.6 |
9.3 % |
|
Earnings per share |
$ 1.04 |
$ 0.91 |
14.3 % |
$ 2.02 |
$ 1.85 |
9.2 % |
|
Non-IFRS Financial Measures |
|||||||
Adjusted net earnings(1) (millions) |
$ 252.7 |
$ 220.4 |
14.7 % |
$ 490.5 |
$ 444.9 |
10.2 % |
|
Adjusted earnings per share(1) |
$ 1.07 |
$ 0.93 |
15.1 % |
$ 2.06 |
$ 1.87 |
10.2 % |
|
Assets under management and |
|||||||
advisement (AUM&A) (billions) |
|||||||
AUM&A |
$ 283.9 |
$ 252.4 |
12.5 % |
$ 283.9 |
$ 252.4 |
12.5 % |
|
AUM&A including |
|||||||
strategic investments |
$ 521.1 |
$ 431.7 |
20.7 % |
$ 521.1 |
$ 431.7 |
20.7 % |
|
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).
Adjusted net earnings available to common shareholders in the second quarter of 2025 were $130.8 million, an increase of 20.3% compared to the second quarter of 2024, and represented 51.8% of IGM's adjusted net earnings available to common shareholders.
Assets under advisement including strategic investments at June 30, 2025 were $216.8 billion, an increase of 4.9% from $206.8 billion at March 31, 2025 and an increase of 19.6% from $181.3 billion at June 30, 2024.
IG Wealth Management
Record high assets under advisement at June 30, 2025 were $146.7 billion, an increase of 3.6% from $141.5 billion at March 31, 2025 and an increase of 13.1% from $129.7 billion at June 30, 2024.
Quarterly net client inflows were $225 million, compared to net client outflows of $173 million in the second quarter of 2024.
Record high gross client inflows were $3.6 billion, an increase of 1.3% from 2024.
Wealthsimple
The fair value of the Company's investment in Wealthsimple was $1.5 billion at June 30, 2025 compared to $1.2 billion at March 31, 2025, due to a fair value increase of 21%. The increase in fair value considers the increase in public market peer valuations, Wealthsimple's business performance and revised revenue expectations, as well as recent third party secondary transactions. Wealthsimple is classified as fair value through other comprehensive income and the change in fair value is not recorded in our earnings.
IGM remains Wealthsimple's largest shareholder and the investment is primarily held through a limited partnership controlled by Power Corporation. Mackenzie Investments currently manages $5.0 billion of assets for Wealthsimple.
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 second quarter of 2025 were $91.7 million, an increase of 8.1% compared to the second quarter of 2024, and represented 36.3% of IGM's adjusted net earnings available to common shareholders.
Assets under management including strategic investments at June 30, 2025 were $393.4 billion, an increase of 2.5% from $383.7 billion at March 31, 2025 and an increase of 18.8% from $331.1 billion at June 30, 2024.
Mackenzie Investments
Record high total assets under management were $224.6 billion, an increase of 2.7% from $218.6 billion at March 31, 2025 and an increase of 11.1% from $202.1 billion at June 30, 2024. Third party assets under management were $137.2 billion at June 30, 2025, an increase of 2.8% from March 31, 2025 and an increase of 11.8% from June 30, 2024.
Investment fund net sales were $187 million compared to net redemptions of $745 million in the second quarter of 2024.
Mutual fund gross sales were $2.1 billion, down 1.8% from the second quarter of 2024.
ETF business – ETF assets under management totalled $18.7 billion at June 30, 2025, up from $17.0 billion at March 31, 2025 and $14.4 billion at June 30, 2024. Excluding investment in ETFs by IGM's managed products, ETF assets under management were $8.7 billion at June 30, 2025, compared to $7.9 billion at March 31, 2025 and $6.3 billion at June 30, 2024.
ChinaAMC
The Company's proportionate share of ChinaAMC's second quarter earnings was $29.7 million compared to $28.3 million in the second quarter of 2024.
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 second quarter earnings was $21.5 million2 compared to $23.6 million in the second quarter of 2024. The Company's proportionate share of Lifeco's base earnings was $27.5 million compared to $24.5 million in the second quarter of 2024.
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 October 31, 2025 to shareholders of record on September 26, 2025.
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 2025, Other items consisted of:
|
|
In 2024, Other items consisted of:
|
|
2 |
The Company records 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, including environmental and social, 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, environmental and social risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, the impact of trade relations, 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 International Financial Reporting Standards (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 net earnings available to |
Average number of outstanding |
Return (Adjusted return) on equity |
Net earnings (Adjusted net earnings) |
Average shareholders' equity |
ROE (Adjusted ROE) excluding the |
Net earnings (Adjusted net earnings) |
Average shareholders' equity |
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 IGM Financial's reporting such that there is no double-counting of the same client savings held at IGM Financial's core businesses.
- 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 interest in 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.
SECOND QUARTER WEBCAST AND CONFERENCE CALL
IGM Financial Inc.'s Second Quarter 2025 results conference call and webcast will be held on Thursday, August 7, 2025 at 9:00 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 1-833-752-3519.
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 $288 billion in total assets under management and advisement as of July 31, 2025. 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 June 30 |
Six months ended June 30 |
||||||||||||
(in thousands of Canadian dollars, except per share amounts) |
2025 |
2024 |
2025 |
2024 |
||||||||||
Revenues |
||||||||||||||
Wealth management |
$ 649,456 |
$ 590,046 |
$ 1,288,940 |
$ 1,172,611 |
||||||||||
Asset management |
253,816 |
245,846 |
511,748 |
487,712 |
||||||||||
Dealer compensation expense |
(82,309) |
(81,072) |
(167,401) |
(161,164) |
||||||||||
Net asset management |
171,507 |
164,774 |
344,347 |
326,548 |
||||||||||
Net investment income and other |
11,665 |
9,970 |
19,397 |
25,597 |
||||||||||
Proportionate share of associates' earnings |
60,092 |
51,515 |
115,835 |
103,215 |
||||||||||
892,720 |
816,305 |
1,768,519 |
1,627,971 |
|||||||||||
Expenses |
||||||||||||||
Advisory and business development |
304,796 |
278,527 |
606,051 |
544,154 |
||||||||||
Operations and support |
213,822 |
205,963 |
429,627 |
409,791 |
||||||||||
Sub-advisory |
21,684 |
19,069 |
43,408 |
36,904 |
||||||||||
Interest |
32,260 |
32,228 |
64,234 |
64,478 |
||||||||||
572,562 |
535,787 |
1,143,320 |
1,055,327 |
|||||||||||
Earnings before income taxes |
320,158 |
280,518 |
625,199 |
572,644 |
||||||||||
Income taxes |
71,578 |
63,269 |
141,178 |
130,587 |
||||||||||
Net earnings |
248,580 |
217,249 |
484,021 |
442,057 |
||||||||||
Non-controlling interest |
(1,871) |
(1,062) |
(3,535) |
(2,485) |
||||||||||
Net earnings available to common shareholders |
$ 246,709 |
$ 216,187 |
$ 480,486 |
$ 439,572 |
||||||||||
Earnings per share (in dollars) |
||||||||||||||
Net earnings available to common shareholders |
||||||||||||||
- Basic |
$ 1.04 |
$ 0.91 |
$ 2.03 |
$ 1.85 |
||||||||||
- Diluted |
$ 1.04 |
$ 0.91 |
$ 2.02 |
$ 1.85 |
||||||||||
IGM FINANCIAL INC. |
||||||||||||||
Financial Highlights |
||||||||||||||
For the three months ended June 30 |
As at and for the six months ended June 30 |
|||||||||||||
(unaudited) |
2025 |
2024 |
Change |
2025 |
2024 |
Change |
||||||||
Net earnings available to |
||||||||||||||
common shareholders ($ millions) |
||||||||||||||
Net Earnings |
$ 246.7 |
$ 216.2 |
14.1 |
% |
$ 480.5 |
$ 439.6 |
9.3 |
% |
||||||
Adjusted Net Earnings(1) |
252.7 |
220.4 |
14.7 |
490.5 |
444.9 |
10.2 |
||||||||
Diluted earnings per share |
||||||||||||||
Net Earnings |
1.04 |
0.91 |
14.3 |
2.02 |
1.85 |
9.2 |
||||||||
Adjusted Net Earnings(1) |
1.07 |
0.93 |
15.1 |
2.06 |
1.87 |
10.2 |
||||||||
Return on equity |
||||||||||||||
Net Earnings |
12.1 % |
12.8 % |
||||||||||||
Adjusted Net Earnings(1) |
12.4 % |
12.9 % |
||||||||||||
Dividends per share |
0.5625 |
0.5625 |
- |
1.125 |
1.125 |
- |
||||||||
Consolidated assets under management and advisement (AUM&A)(2) ($ millions) |
$ 283,889 |
$ 252,442 |
12.5 |
% |
||||||||||
Consolidated assets under management(2) |
266,751 |
237,381 |
12.4 |
|||||||||||
Wealth Management (IG Wealth Management) |
||||||||||||||
Assets under management(3) |
129,526 |
114,655 |
||||||||||||
Other assets under advisement |
17,138 |
15,061 |
||||||||||||
Assets under advisement |
146,664 |
129,716 |
13.1 |
|||||||||||
Asset Management (Mackenzie Investments) |
||||||||||||||
Investment funds |
71,171 |
64,755 |
||||||||||||
Institutional SMA |
12,023 |
8,011 |
||||||||||||
Sub-advisory to Canada Life |
54,031 |
49,960 |
||||||||||||
Total excluding sub-advisory to Wealth Management |
137,225 |
122,726 |
||||||||||||
Sub-advisory and AUM to Wealth Management |
87,352 |
79,393 |
||||||||||||
Total assets under management |
224,577 |
202,119 |
11.1 |
|||||||||||
Consolidated AUM&A including strategic investments |
521,081 |
431,686 |
20.7 |
|||||||||||
Consolidated AUM&A |
283,889 |
252,442 |
||||||||||||
Strategic investments(4) |
237,192 |
179,244 |
||||||||||||
Net Flows |
||||||||||||||
($ millions) |
Wealth Management(3) |
Asset |
Total (2) |
|||||||||||
For the three months ended June 30, 2025 |
||||||||||||||
Investment fund net sales |
$ 489 |
$ 187 |
$ 676 |
|||||||||||
Institutional SMA net sales |
- |
(322) |
(322) |
|||||||||||
IGM product net sales |
489 |
(135) |
354 |
|||||||||||
Other dealer net flows |
(264) |
- |
(264) |
|||||||||||
Total net flows |
225 |
(135) |
90 |
|||||||||||
For the six months ended June 30, 2025 |
||||||||||||||
Investment fund net sales |
$ 1,433 |
$ 102 |
$ 1,535 |
|||||||||||
Institutional SMA net sales |
- |
3,204 |
3,204 |
|||||||||||
IGM product net sales |
1,433 |
3,306 |
4,739 |
|||||||||||
Other dealer net flows |
(490) |
- |
(490) |
|||||||||||
Total net flows |
943 |
3,306 |
4,249 |
|||||||||||
(1) |
Non-IFRS Financial Measures |
2025 adjusted net earnings excluded Lifeco other items of ($6.0) million recorded in the second quarter and ($10.0) million for the six months ended June 30. |
|
2024 adjusted net earnings excluded:
|
|
(2) |
Consolidated results eliminate double counting where business is reflected within multiple segments. |
(3) |
Includes separately managed accounts. |
(4) |
Proportionate share of strategic investments' AUM comprised of: 27.8% (2024 - 27.8%) of ChinaAMC's AUM; 56% (2024 - 56%) of Northleaf's AUM; 20.5% (2024 - 20.5%) of Rockefeller's client assets; and 26.7% (2024 - 28.3%) of Wealthsimple's AUA. |
(5) |
Asset Management flows activity excludes sub-advisory to Canada Life and the Wealth Management segment. |
SOURCE IGM Financial Inc.
FOR MORE INFORMATION CONTACT: Media Relations: Nini Krishnappa, 647-828-2553, [email protected]; Investor Relations: Kyle Martens, 204-777-4888, [email protected]
Share this article