IGM Financial hits asset highs in Q4

Earnings per share were $1.07 compared to $1.76 in the fourth quarter of 2023.

Quarter-end assets under management and advisement hit a record high at $270.4 billion, up 2.1% from the previous quarter and up 12.6% from the fourth quarter of 2023.

Net inflows were $244 million in the quarter compared to net outflows of $1.24 billion in the same quarter of 2023.

Sales momentum in wealth, asset management

IG Wealth Management, a subsidiary of IGM Financial, reported record-high quarter-end assets under advisement of $140.4 billion, an increase of 2.9% from $136.4 billion in the previous quarter and an increase of 15.8% from $121.2 billion year over year.

Wealth management recorded quarterly net client inflows of $553 million, compared to net client outflows of $228 million in the fourth quarter of 2023.

Sales of IG Wealth Management mutual funds through the advisor network were $3.8 billion in the quarter, an increase of 45.1% from the comparable period in 2023, the management’s discussion and analysis said. Mutual fund redemptions totalled $3.4 billion, a decrease of 6.8% from 2023. Mutual fund net sales for the fourth quarter were $384 million, compared to net redemptions of $1.1 billion in the fourth quarter of 2023.

In 2024, sales of IG Wealth Management mutual funds through the advisor network were $15.1 billion, an increase of 38.6% from 2023. Mutual fund redemptions totalled $15.4 billion, an increase of 16.6% from 2023. Mutual fund net redemptions were $230 million, compared to net redemptions of $2.3 billion in 2023.

“In June 2024, IG Wealth Management experienced heightened investment fund gross sales, redemptions and heightened positive other net flows due to clients strategically triggering capital gains” in advance of the proposed increase to the capital gains inclusion rate (CGIR), the management’s discussion and analysis said. The Department of Finance recently deferred the proposed increase to the CGIR to 2026.

IG Wealth Management had a total advisor network of 3,136 advisors at the end of the quarter, which was flat from 3,139 advisors one year ago.

Advisor productivity, measured based on gross inflows per advisor, was $0.7 million per advisor for recruits (less than four years of experience), unchanged from the comparative period of 2023, the management’s discussion and analysis said. Advisor practice (more than four years of experience) gross inflows were $2.2 million per practice, compared to $1.6 million in the comparative period in 2023.

Mackenzie Investments, another subsidiary of IGM Financial, reported record-high assets under management totalling $213.3 billion, an increase of 0.6% from $212.1 billion in the previous quarter and an increase of 9.0% from $195.7 billion year over year.

Mackenzie recorded investment fund net redemptions of $377 million, compared to net redemptions of $826 million in 2023’s fourth quarter. Mutual fund gross sales were $2.2 billion, up 26.0% from the fourth quarter of 2023.