IGM Financial (IGM) Q2 2024 earnings summary

Executive summary

• Adjusted EPS for Q2 2024 was $0.93, up 4.5% year-over-year, with reported EPS at $0.91, up 56.9% year-over-year, supported by record-high AUM&A including strategic investments at $431.7 billion, a 14.8% increase from Q2 2023.

• Strong performance across core businesses and strategic investments, with notable growth in wealth management and asset management segments; Wealthsimple AUA grew 87% year-over-year, and Rockefeller client assets rose 25%.

• Wealth management saw record gross inflows and new client acquisition, especially in mass affluent and high-net-worth segments.

• Mackenzie Investments posted its highest Q2 earnings in 15 years, with AUM up 4.5% and gross sales up 38% year-over-year in July.

• 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; adjusted EPS was $0.93, up from $0.89 in Q2 2023.

• Returned $171 million to shareholders via dividends and repurchased $37 million in shares.

• Wealthsimple’s fair value increased from $722 million to $835 million due to exceptional performance.

• Mackenzie’s earnings rose 11.6% year-over-year to $55.9 million, driven by higher AUM and net asset management fees.

• Dividend per share remained steady at $0.5625.

Outlook and guidance

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

• Industry net redemptions expected to persist into H2 2024, with gradual improvement anticipated into 2025.

• Focus remains on internal growth, with no significant M&A planned for the next 2-3 years.

• Management continues to focus on balanced capital allocation, investing in business growth and returning capital to shareholders.