IGM Financial (IGM) Q2 2024 earnings summary

Executive summary

• Adjusted EPS for Q2 was $0.93, up 4.5% year-over-year, supported by record-high AUM&A including strategic investments, which reached $431.7 billion, a 14.8% increase from Q2 2023.

• Net earnings rose to $216.2 million, up 56.4% year-over-year; reported EPS was $0.91, up from $0.58.

• Wealthsimple AUA grew 87% year-over-year to $43.6 billion, and Rockefeller client assets increased 25% year-over-year to US$140 billion.

• $171 million returned to shareholders in Q2 2024 through dividends and share repurchases.

• Net flows for IG Wealth and Mackenzie were negative $1.1 billion, reflecting industry-wide redemption trends.

Financial highlights

• Adjusted net earnings available to common shareholders rose 4% to $220.4 million in Q2 2024 from $211.4 million in Q2 2023.

• Mackenzie AUM ended at $202.1 billion, up 4.5% year-over-year; ChinaAMC AUM up 25% year-over-year.

• Wealth management revenue was $590.0 million, up from $552.5 million year-over-year.

• Asset management revenue was $245.8 million, up from $238.7 million year-over-year.

• Wealthsimple's fair value increased to $835 million due to exceptional performance.

Outlook and guidance

• 2024 expense growth guidance reiterated at 4%, with slightly higher growth expected in the second half due to seasonality.

• Management remains focused on internal growth and leveraging strategic investments, with no major M&A expected for 2-3 years.

• Anticipates industry net redemptions to persist into H2 2024, with gradual improvement into 2025.