IGM Financial (IGM) 2025 Scotiabank Financials Summit summary

Business performance and growth outlook

• Achieved a record quarter with 15% year-over-year earnings growth and strong momentum in earnings, exceeding the 9% growth target set at the last Investor Day.

• Growth has been achieved without earnings contributions from high-growth investments in Wealthsimple and Rockefeller, which are expected to contribute soon.

• The business is well-architected with diversified divisions and strong execution, particularly in IG Wealth, which has been rebuilt for growth.

• Operating leverage is expected to be a tailwind over the next three years, with revenue growth outpacing expenses.

• Cautious near-term outlook on markets and net flows due to macroeconomic factors, but confidence in long-term earnings growth remains high.

Industry trends and strategic positioning

• Major industry trends include the rise of alternatives in asset management and increased personalization enabled by technology and AI.

• AI is transforming quant strategies, making them more robust and contributing to sales growth in investment boutiques.

• Demographic shifts, such as advisor retirements and intergenerational wealth transfer, are reshaping the wealth management landscape.

• IG Wealth is positioned to benefit from a younger advisor base, national reach, and a segmented, tech-enabled approach to advice.

• Focus on holistic financial planning, including tax optimization, estate planning, and business monetization, differentiates the offering.

Competitive differentiation and growth opportunities

• Gaining share in the high-net-worth segment, with high-net-worth clients now representing 46% of AUM/AUA, up from 36% less than two years ago.

• Targeted growth in six client segments, including business owners, professionals, executives, retirees, farmers, and newcomers.

• Expansion into under-penetrated areas such as estate planning (via ClearEstate partnership), insurance, and mortgage/banking services.

• Plans to develop private banking and commercial banking offerings to better serve affluent clients.

• Segmented model and corporate channel free up advisors to deepen client relationships and drive new client acquisition.