Mr. James O'Sullivan reports

IGM FINANCIAL REPORTS FIRST QUARTER EARNINGS

IGM Financial Inc. has released its earnings results for the first quarter of 2023.

IGM Financial highlights:

• Net earnings of $381.3-million or $1.60 per share compared with $219.3-million or 91 cents per share in 2022; adjusted net earnings, excluding other items, were $206.5-million or 87 cents per share for the first quarter of 2023;
• Net earnings for the first quarter of 2023 included a gain on the sale of Great-West Lifeco Inc. shares of $174.8-million, net of tax;
• Assets under management and advisement of $260.4-billion, up 4.4 per cent from the prior quarter and down 2.9 per cent from the first quarter of 2022;
• Net inflows were $990-million compared with net inflows of $2.5-billion in 2022.

"Positive investment returns for our clients and a continued focus on expense management resulted in solid earnings for the quarter," said James O'Sullivan, president and chief executive officer of IGM Financial. "We were pleased to announce the acquisition of a 20.5-per-cent interest in Rockefeller Capital Management and our entry into the U.S. wealth management market."

Net earnings available to common shareholders for the first quarter of 2023 were $381.3-million or $1.60 per share compared with $219.3-million or 91 cents per share in 2022. Adjusted net earnings available to common shareholders, excluding other items, for the first quarter of 2023, were $206.5-million or 87 cents per share compared with $219.3-million or 91 cents per share in 2022.

Wealth management

Wealth management reflects the activities of operating companies that are principally focused on providing financial planning and related services to Canadian households, and includes the activities of IG Wealth Management and Investment Planning Counsel, which have been reclassified as discontinued operations.

Net earnings in the first quarter of 2023 were $107.4-million and represented 52.0 per cent of IGM Financial's adjusted net earnings available to common shareholders. This was a decrease of 11.5 per cent compared with the first quarter of 2022.

Assets under advisement at March 31, 2023, were $146.8-billion, an increase of 4.6 per cent from $140.4-billion at Dec. 31, 2022, and a decrease of 0.8 per cent from $148.0-billion at March 31, 2022.

IG Wealth Management

Assets under advisement at March 31, 2023, were $115.9-billion, an increase of 4.6 per cent from $110.8-billion at Dec. 31, 2022, and a decrease of 0.4 per cent from $116.3-billion at March 31, 2022.

Quarterly net client inflows were $504-million , compared with net client inflows of $1.5-billion in the first quarter of 2022.

Quarterly gross client inflows were $3.7-billion, down 8.4 per cent from gross client inflows of $4.0-billion in 2022, and represented the second-highest quarterly gross client inflows in the history of the company.

Asset management

Asset management reflects the activities of operating companies primarily focused on providing investment management services and represents the operations of Mackenzie Investments.

Net earnings in the first quarter of 2023 were $48.4-million and represented 23.4 per cent of IGM Financial's adjusted net earnings available to common shareholders. This was a decrease of 7.1 per cent compared with the first quarter of 2022.

Total assets under management were $193.8-billion, an increase of 3.8 per cent from $186.6-billion at Dec. 31, 2022, and a decrease of 5.7 per cent from $205.5-billion at March 31, 2022. Third party assets under management were $117.0-billion at March 31, 2023, an increase of 3.4 per cent from Dec. 31, 2022, and a decrease of 6.2 per cent from March 31, 2022.

Investment fund net sales of $72-million were down from net sales of $1.3-billion in the first quarter of 2022.

Mutual fund gross sales of $2.3-billion were down from $2.9-billion in the first quarter of 2022.

Exchange-traded-fund business

ETF assets under management totalled $12.8-billion at March 31, 2023, an increase from $12.4-billion at Dec. 31, 2022, and down slightly from March 31, 2022. Excluding investment in ETFs by IGM Financial's managed products, ETF assets under management were $5.1-billion at March 31, 2023, compared with $5.2-billion at Dec. 31, 2022, and $5.8-billion at March 31, 2022.

Strategic investments and other

Strategic investments and other represent the key strategic investments made by the company, including China Asset Management Co. Ltd. (ChinaAMC), Great-West Lifeco Inc. (Lifeco), Northleaf Capital Group Ltd., Wealthsimple Financial Corp. and Portage Ventures LPs, as well as unallocated capital.

On Jan. 12, 2023, the company closed the previously announced transaction to acquire Power Corp. of Canada's 13.9-per-cent interest in ChinaAMC, increasing the company's overall investment in ChinaAMC to 27.8 per cent, and to sell a portion of the company's investment in Lifeco, reducing it from 4.0 per cent to 2.4 per cent.

Great-West Lifeco

The company's proportionate share of Lifeco's first quarter earnings was $20.6-million compared with $30.7-million in the first quarter of 2022.

China Asset Management

The company's proportionate share of ChinaAMC's first quarter earnings was $28.1-million compared with $13.5-million in the first quarter of 2022.

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 July 31, 2023, to shareholders of record on June 30, 2023.

First quarter webcast and conference call

IGM Financial's first quarter 2023 results conference call and webcast will be held on Thursday, May 4, 2023, at 8 a.m. ET. The webcast and conference call will be available, respectively, through the IGM Financial website or by phone at 1-800-319-4610 or 1-416-915-3239.

The most recent consolidated financial statements and management's discussion and analysis of operating results are available on IGM Financial's website.

About IGM Financial Inc.

IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $263-billion in total assets under management and advisement at April 30, 2023.

The company provides a broad range of financial planning and investment management services to help more than two million Canadians meet their financial goals. Its activities are carried out principally through IG Wealth Management, Mackenzie Investments and Investment Planning Counsel. IGM Financial is a member of the Power Corp. group of companies.

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