Readers are referred to the disclaimer regarding
Forward-Looking Statements,
Non-IFRS Financial Measures and Other Financial Measures at the end
of this Release.
WINNIPEG, MB, May 5, 2022 /CNW/ - IGM Financial Inc. (IGM or
the Company) (TSX: IGM) today announced earnings results for the
first quarter of 2022.
IGM Highlights
- Record high first quarter net earnings of $219.3 million or 91
cents per share – up 8.5% from the first quarter of
2021.
- Record high first quarter assets under management and
advisement of $268.3 billion, up
8.0% from the first quarter of 2021 and down 3.2% from the prior
quarter.
- Record high first quarter net inflows of $2.5 billion, compared to net inflows of
$2.3 billion in the first quarter of
2021.
"Our net earnings and earnings per share were the highest first
quarter result in IGM's history," said James O'Sullivan, President and Chief Executive
Officer of IGM Financial Inc. "These results were driven by record
high net inflows and record high first quarter level of assets
under management and advisement."
Net earnings available to common shareholders for the first
quarter of 2022 were $219.3 million
or 91 cents per share compared to
$202.2 million or 85 cents per share in 2021.
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.
Net earnings in the first quarter of 2022 were
$121.4 million and represented 55.4%
of IGM's net earnings available to common shareholders. This was an
increase of 5.7% compared to the first quarter of 2021.
Assets under advisement at March 31, 2022 were $148.0
billion, an increase of 8.1% from $136.9 billion at March
31, 2021 and a decrease of 3.0% from $152.6 billion at December
31, 2021.
IG Wealth Management
Assets under advisement at March 31, 2022 were $116.3
billion, an increase of 8.7% from $107.0 billion at March
31, 2021 and a decrease of 2.7% from $119.6 billion at December
31, 2021 .
Record high quarterly net client inflows were
$1.5 billion, an increase of
$451 million from net client inflows
of $1.0 billion in 2021.
Record high quarterly gross client inflows were
$4.0 billion, up 10.0% from gross
inflows of $3.6 billion in 2021.
ASSET MANAGEMENT (MACKENZIE
INVESTMENTS)
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 2022 were
$52.1 million and represented 23.8%
of IGM's net earnings available to common shareholders. This was an
increase of 8.5% compared to the first quarter of 2021.
Total assets under management were $205.5 billion, an increase of 7.3% from
$191.6 billion at March 31, 2021 and a decrease of 2.3% from
$210.3 billion at December 31, 2021. Assets under management
excluding sub-advisory to the Wealth Management segment were
$124.7 billion at March 31, 2022, an increase of 8.0% from
March 31, 2021 and a decrease of 3.4%
from December 31, 2021.
Investment fund net sales of $1.3 billion, the second highest first quarter
result in history, were down from $1.9
billion1 in the first quarter of 2021.
Mutual fund gross sales of $2.9
billion were down from $4.0
billion in the first quarter of 2021.
Retail mutual fund gross sales were $2.5 billion, a decrease from $3.4 billion in the first quarter of 2021.
ETF business - ETF assets under management totalled
$12.9 billion at March 31, 2022, up from $9.5 billion at March 31,
2021. Excluding investment in ETFs by IGM mutual funds, ETF
assets under management were $5.8
billion at March 31, 2022,
compared to $4.2 billion at
March 31, 2021.
STRATEGIC INVESTMENTS AND
OTHER
Represents the key strategic investments made by the Company,
including China Asset Management Co., Ltd., Great-West Lifeco Inc.,
Northleaf Capital Group Ltd., Wealthsimple Financial Corporation,
and Portage Ventures LPs, as well as unallocated capital.
Great-West Lifeco Inc. (Lifeco) – The Company's
proportionate share of Lifeco's first quarter earnings was
$30.7 million, an increase of 9.3%
from $28.1 million in the first
quarter of 2021.
China Asset Management Co., Ltd. (ChinaAMC) – The
Company's proportionate share of ChinaAMC's first quarter earnings
was $13.5 million, an increase of
8.0% from $12.5 million in the first
quarter of 2021.
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 29,
2022 to shareholders of record on June 30, 2022.
|
___________________________________________________________________________
|
|
1 During
2021, institutional clients, which include Mackenzie mutual funds
within their investment offerings, made fund allocation changes
which resulted in net redemptions of $361 million.
|
FORWARD-LOOKING
STATEMENTS
Certain statements in this Release, other than statements of
historical fact, are forward-looking statements based on certain
assumptions and reflect IGM Financial's current expectations.
Forward-looking statements are provided to assist the reader in
understanding the Company's financial position and results of
operations as at and for the periods ended on certain dates and to
present information about management's current expectations and
plans relating to the future. Readers are cautioned that such
statements may not be appropriate for other purposes. These
statements may include, without limitation, statements regarding
the operations, business, financial condition, expected financial
results, performance, prospects, opportunities, priorities,
targets, goals, ongoing objectives, strategies and outlook of the
Company, as well as the outlook for North American and
international economies, for the current fiscal year and subsequent
periods. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as "expects", "anticipates",
"plans", "believes", "estimates", "seeks", "intends", "targets",
"projects", "forecasts" or negative versions thereof and other
similar expressions, or future or conditional verbs such as "may",
"will", "should", "would" and "could".
This information is based upon certain material factors or
assumptions that were applied in drawing a conclusion or making a
forecast or projection as reflected in the forward-looking
statements, including the perception of historical trends, current
conditions and expected future developments, as well as other
factors that are believed to be appropriate in the circumstances.
While the Company considers these assumptions to be reasonable
based on information currently available to management, they may
prove to be incorrect.
By its nature, this information is subject to inherent risks
and uncertainties that may be general or specific and which give
rise to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved.
A variety of material factors, many of which are beyond the
Company's and its subsidiaries' control, affect the operations,
performance and results of the Company, and its subsidiaries, and
their businesses, and could cause actual results to differ
materially from current expectations of estimated or anticipated
events or results. These factors include, but are not limited to:
the impact or unanticipated impact of general economic, political
and market factors in North
America and internationally, interest and foreign exchange
rates, global equity and capital markets, management of market
liquidity and funding risks, changes in accounting policies and
methods used to report financial condition (including uncertainties
associated with critical accounting assumptions and estimates), the
effect of applying future accounting changes, operational and
reputational risks, business competition, technological change,
changes in government regulations and legislation, changes in tax
laws, unexpected judicial or regulatory proceedings, catastrophic
events, outbreaks of disease or pandemics (such as COVID-19), the
Company's ability to complete strategic transactions, integrate
acquisitions and implement other growth strategies, and the
Company's and its subsidiaries' success in anticipating and
managing the foregoing factors.
The reader is cautioned that the foregoing list is not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. The reader is also cautioned to
consider these and other factors, uncertainties and potential
events carefully and not place undue reliance on forward-looking
statements.
Other than as specifically required by applicable Canadian
law, the Company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date on which such statements are made, or to reflect the
occurrence of unanticipated events, whether as a result of new
information, future events or results, or otherwise.
Additional information about the risks and uncertainties of
the Company's business and material factors or assumptions on which
information contained in forward-looking statements is based is
provided in its disclosure materials filed with the securities
regulatory authorities in Canada,
available at www.sedar.com.
NON-IFRS FINANCIAL MEASURES AND
OTHER FINANCIAL MEASURES
This report contains Non-IFRS financial measures and non-IFRS
ratios that do not have standard meanings prescribed by IFRS and
may not be directly comparable to similar measures used by other
companies. These measures and ratios are used to provide
management, investors and investment analysts with additional
measures to assess earnings performance.
Non-IFRS financial measures include, but are not limited to,
"Adjusted net earnings available to common shareholders", "adjusted
net earnings", "adjusted earnings before income taxes", "adjusted
earnings before interest and taxes" (Adjusted EBIT), "earnings
before interest, taxes, depreciation and amortization before sales
commissions" (EBITDA before sales commissions), and "earnings
before interest, taxes, depreciation and amortization after sales
commissions" (EBITDA after sales commissions).These measures
exclude other items which are items of a non-recurring nature, or
that could make the period-over-period comparison of results from
operations less meaningful. EBITDA before sales commissions
excludes all sales commissions. EBITDA after sales
commissions includes all sales commissions and highlights aggregate
cash flows.
Non-IFRS ratios include the following:
Ratio
|
Numerator
|
Denominator
|
Adjusted earnings
per share (Adjusted EPS)
|
Adjusted net
earnings available to common shareholders
|
Average number of
outstanding common shares on a diluted basis
|
Return (Adjusted
return) on equity (ROE, Adjusted ROE)
|
Net earnings
(Adjusted net earnings) available to common
shareholders
|
Average
shareholders' equity excluding non-controlling
interest
|
ROE (Adjusted ROE)
excluding the impact of fair value through other comprehensive
income investments
|
Net earnings
(Adjusted net earnings) available to common
shareholders
|
Average
shareholders' equity excluding non-controlling interest and the
impact of fair value through other comprehensive income investments
net of tax
|
Refer to the appropriate reconciliations of non-IFRS
financial measures, including as components of non-IFRS ratios, to
reported results in accordance with IFRS included in IGM Financial
Inc.'s most recent Management, Discussion and Analysis.
This report also contains other financial measures which
include:
- Assets under Management and Advisement
(AUM&A) represents the consolidated AUM and AUA of
IGM Financial. In the Wealth Management segment, AUM is a component
part of AUA. All instances where the asset management segment is
providing investment management services or distributing its
products through the Wealth Management segment are eliminated in
our reporting such that there is no double-counting of the same
client savings held at IGM Financial's operating companies.
- Assets under Advisement (AUA) are the key
driver of the Wealth Management segment. AUA are savings and
investment products held within client accounts of our Wealth
Management segment operating companies.
- Assets under Management (AUM) are the key
driver of the Asset Management segment. AUM are a secondary driver
of revenues and expenses within the Wealth Management segment in
relation to its investment management activities. AUM are client
assets where we provide investment management services, and include
investment funds where we are the fund manager, investment advisory
mandates to institutions, and other client accounts where we have
discretionary portfolio management responsibilities.
FIRST QUARTER WEBCAST AND
CONFERENCE CALL
IGM Financial Inc.'s First Quarter 2022 results conference call
and webcast will be held on Friday, May 6,
2022 at 2:30 p.m. ET. The
webcast and conference call can be accessed respectively through
igmfinancial.com/en 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 (MD&A) of operating
results are available on IGM Financial Inc.'s website at
igmfinancial.com/en.
ABOUT IGM FINANCIAL INC.
IGM Financial Inc. is one of Canada's leading diversified wealth and asset
management companies with approximately $257
billion in total assets under management and advisement at
April 30, 2022. 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
Corporation group of companies.
IGM FINANCIAL
INC.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Earnings
|
|
|
|
|
|
|
|
(unaudited)
|
Three months ended
March 31
|
(in thousands of
Canadian dollars, except per share amounts)
|
2022
|
|
2021
|
|
|
|
|
Revenues
|
|
|
|
Wealth
management
|
$
641,205
|
|
$ 603,451
|
Asset
management
|
255,830
|
|
232,990
|
Dealer compensation
expense
|
(86,191)
|
|
(80,709)
|
Net asset
management
|
169,639
|
|
152,281
|
Net investment income
and other
|
(2,018)
|
|
3,134
|
Proportionate share of
associates' earnings
|
48,400
|
|
41,589
|
|
857,226
|
|
800,455
|
|
|
|
|
Expenses
|
|
|
|
Advisory and business
development
|
309,108
|
|
284,026
|
Operations and
support
|
215,428
|
|
206,539
|
Sub-advisory
|
20,638
|
|
19,729
|
Interest
|
28,133
|
|
28,120
|
|
573,307
|
|
538,414
|
Earnings before income
taxes
|
283,919
|
|
262,041
|
Income taxes
|
63,754
|
|
59,671
|
Net
earnings
|
220,165
|
|
202,370
|
Non-controlling
interest
|
(849)
|
|
(190)
|
Net earnings
available to common shareholders
|
$
219,316
|
|
$ 202,180
|
|
|
|
|
Earnings per share (in
dollars)
|
|
|
|
- Basic
|
$
0.91
|
|
$
0.85
|
- Diluted
|
$
0.91
|
|
$
0.85
|
IGM FINANCIAL
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at and for the three
months ended March 31
|
|
|
|
|
|
(unaudited)
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
available to common shareholders ($
millions)
|
|
$
219.3
|
|
$ 202.2
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.91
|
|
0.85
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
13.7%
|
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
|
0.5625
|
|
0.5625
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets under
management and advisement (1) ($
millions)
|
|
$
268,328
|
|
$ 248,474
|
|
8.0
|
%
|
Total assets under
management (1)
|
|
237,119
|
|
221,577
|
|
7.0
|
|
Wealth
Management
|
|
|
|
|
|
|
|
Assets under advisement
(1)
|
|
148,005
|
|
136,876
|
|
8.1
|
|
IG Wealth Management
|
|
|
|
|
|
|
|
Assets under management
(2)
|
|
107,187
|
|
100,745
|
|
|
|
Other assets under
advisement
|
|
9,094
|
|
6,250
|
|
|
|
Assets under
advisement
|
|
116,281
|
|
106,995
|
|
8.7
|
|
Investment Planning Counsel
|
|
|
|
|
|
|
|
Assets under management
(2)
|
|
5,201
|
|
5,308
|
|
|
|
Other assets under
advisement
|
|
26,533
|
|
24,583
|
|
|
|
Assets under
advisement
|
|
31,734
|
|
29,891
|
|
6.2
|
|
Asset
Management (Mackenzie Investments)
|
|
|
|
|
|
|
|
Mutual funds
|
|
60,291
|
|
55,310
|
|
|
|
ETFs
(3)
|
|
5,848
|
|
4,174
|
|
|
|
Investment
funds
|
|
66,139
|
|
59,484
|
|
|
|
Institutional
SMA
|
|
7,090
|
|
7,272
|
|
|
|
Sub-advisory to Canada
Life
|
|
51,502
|
|
48,768
|
|
|
|
Total excluding
subadvisory to Wealth Management
|
|
124,731
|
|
115,524
|
|
|
|
Sub-advisory to Wealth
Management
|
|
80,814
|
|
76,041
|
|
|
|
Total assets under
management
|
|
205,545
|
|
191,565
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Flows
|
|
|
|
|
|
Asset
|
|
|
|
|
|
($
millions)
|
|
|
|
Wealth
Management
|
|
Management
(4)
|
|
|
|
|
|
|
|
IG Wealth
Management
|
Investment Planning
Counsel
|
|
Mackenzie
Investments
|
|
Intersegment
Eliminations
|
|
Total
(1)
|
|
For
the three months ended March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
Mutual fund net sales
(2)
|
|
$ 1,264
|
|
$ (62)
|
|
$
582
|
|
$
-
|
|
$
1,784
|
|
ETF net creations
|
|
-
|
|
-
|
|
718
|
|
-
|
|
718
|
|
Investment fund net
sales
|
|
1,264
|
|
(62)
|
|
1,300
|
|
-
|
|
2,502
|
|
Institutional SMA net sales
|
|
-
|
|
-
|
|
(427)
|
|
-
|
|
(427)
|
|
Managed asset net sales
|
|
1,264
|
|
(62)
|
|
873
|
|
-
|
|
2,075
|
|
Other dealer net flows
|
|
202
|
|
222
|
|
-
|
|
(33)
|
|
391
|
|
Total net flows
|
|
1,466
|
|
160
|
|
873
|
|
(33)
|
|
2,466
|
|
|
|
(1)
|
Consolidated results
eliminate double counting where business is reflected within
multiple segments.
|
(2)
|
Includes separately
managed accounts.
|
(3)
|
Total ETFs in the Asset
Management section including ETFs held within IGM investment funds
were $12.9 billion at March 31, 2022 compared to $9.5 billion at
March 31, 2021.
|
(4)
|
Asset Management flows
activity excludes sub-advisory to Wealth Management.
|
SOURCE IGM Financial Inc.