Readers are referred to the disclaimer regarding Forward-Looking Statements,
Non-IFRS Financial Measures and Other Financial Measures at the end of this Release.
IGM Highlights
- Net earnings of
$209.8 million or88 cents per share compared to$216.1 million or91 cents per share in 2022. - Assets under management and advisement of
$253.4 billion , down 3.0% from the prior quarter and up 6.4% from the third quarter of 2022. IGM Financial's assets under management and advisement including Strategic Investments were$400.0 billion as atSeptember 30, 2023 , compared with$402.8 billion atJune 30, 2023 and$302.1 billion atSeptember 30, 2022 . This is a new measure introduced in the second quarter and reflects the importance of these high growth investments and their contribution to IGM's value.- Net outflows were
$549 million compared to net outflows of$342 million in 2022.
"Strong earnings contributions from IG Wealth and Mackenzie combined with ongoing discipline in expense management drove this quarter's results," said
Net earnings available to common shareholders for the third quarter of 2023 were
Net earnings available to common shareholders for the nine months ended
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
Net earnings in the third quarter of 2023 were
Assets under advisement at
IG Wealth Management
Assets under advisement at
Quarterly net client outflows were
Quarterly gross client inflows were
ASSET MANAGEMENT
Reflects the activities of operating companies primarily focused on providing investment management services, and represents the operations of
Net earnings in the third quarter of 2023 were
Total assets under management were
Investment fund net redemptions were
Mutual fund gross sales were
ETF business - ETF assets under management totalled
STRATEGIC INVESTMENTS AND OTHER
Represents the key strategic investments made by the Company, including
On
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
1 Other items in 2023 consisted of: | ||
• | Restructuring and other charges of | |
• | A gain on the sale of a portion of the Company's investment in Lifeco of | |
• | Lifeco IFRS 17 adjustment of | |
2 The Company recorded its proportionate share of third quarter Lifeco earnings using consensus analysts' earnings estimates as Lifeco is reporting quarterly earnings after the Company. |
FORWARD-LOOKING STATEMENTS
Certain statements in this Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect
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
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
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
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 atIGM Financial's operating companies. IPC's AUM, AUA, sales, redemptions and net flows have been disclosed as Discontinued operations under AUM&A. - 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. IPC's AUM, sales and redemptions have been disclosed as Discontinued operations under AUM.
- Assets under Management and Advisement including Strategic Investments (AUM&A including SI) represents AUM&A including the Company's proportionate share of the AUM&A of Strategic Investments gross of eliminations based on the Company's direct and indirect ownership of the Strategic Investments. The Strategic Investments included are those whose activities are primarily in asset and wealth management, and include ChinaAMC, Northleaf, Rockefeller and Wealthsimple. Rockefeller client assets include assets under management and advisement as well as assets held for investment purposes and only receiving administrative services.
THIRD QUARTER WEBCAST AND CONFERENCE CALL
The most recent Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) of operating results are available on
ABOUT
Consolidated Statements of Earnings | |||||||
Three months ended | Nine months ended | ||||||
(unaudited) | |||||||
(in thousands of Canadian dollars, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||
Revenues | |||||||
Wealth management | $ 563,068 | $ 532,546 | |||||
Asset management | 239,952 | 235,688 | 714,758 | 733,706 | |||
Dealer compensation expense | (78,648) | (77,460) | (237,397) | (250,664) | |||
Net asset management | 161,304 | 158,228 | 477,361 | 483,042 | |||
Net investment income and other | 8,010 | 10,470 | 27,067 | 7,528 | |||
Gain on sale of Lifeco shares | - | - | 172,977 | - | |||
Proportionate share of associates' earnings | 38,474 | 46,899 | 149,494 | 145,332 | |||
770,856 | 748,143 | 2,476,560 | 2,264,954 | ||||
Expenses | |||||||
Advisory and business development | 253,224 | 235,035 | 752,929 | 723,605 | |||
Operations and support | 196,450 | 190,021 | 696,896 | 586,638 | |||
Sub-advisory | 16,876 | 15,215 | 49,044 | 48,042 | |||
Interest | 32,519 | 28,445 | 90,694 | 84,660 | |||
499,069 | 468,716 | 1,589,563 | 1,442,945 | ||||
Earnings before income taxes | 271,787 | 279,427 | 886,997 | 822,009 | |||
Income taxes | 60,410 | 63,393 | 159,209 | 184,182 | |||
Net earnings from continuing operations | 211,377 | 216,034 | 727,788 | 637,827 | |||
Net earnings from discontinued operations | (1,511) | 1,003 | 3,407 | 7,706 | |||
Net earnings | 209,866 | 217,037 | 731,195 | 645,533 | |||
Non-controlling interest | (110) | (915) | (1,900) | (2,994) | |||
Net earnings available to common shareholders | $ 209,756 | $ 216,122 | $ 729,295 | $ 642,539 | |||
Earnings per share (in dollars) | |||||||
Net earnings available to common shareholders from continuing operations | |||||||
- Basic | $ 0.89 | $ 0.91 | $ 3.05 | $ 2.66 | |||
- Diluted | $ 0.89 | $ 0.90 | $ 3.04 | $ 2.65 | |||
Net earnings available to common shareholders | |||||||
- Basic | $ 0.88 | $ 0.91 | $ 3.06 | $ 2.69 | |||
- Diluted | $ 0.88 | $ 0.91 | $ 3.06 | $ 2.68 |
Financial Highlights | |||||||||||||||
For the three months ended | As at and for the nine months ended | ||||||||||||||
(unaudited) | 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||
Net earnings available to | |||||||||||||||
common shareholders ($ millions) | |||||||||||||||
Net Earnings | $ 209.8 | $ 216.1 | (2.9) | % | $ 729.3 | $ 642.5 | 13.5 % | ||||||||
Adjusted Net Earnings (1) | 209.8 | 216.1 | (2.9) | 621.8 | 642.5 | (3.2) | |||||||||
Diluted earnings per share | |||||||||||||||
Net Earnings | 0.88 | 0.91 | (3.3) | 3.06 | 2.68 | 14.2 | |||||||||
Adjusted Net Earnings (1) | 0.88 | 0.91 | (3.3) | 2.61 | 2.68 | (2.6) | |||||||||
Return on equity | |||||||||||||||
Net Earnings | 15.6 % | 14.1 % | |||||||||||||
Adjusted Net Earnings (1) | 13.3 % | 14.1 % | |||||||||||||
Dividends per share | 0.5625 | 0.5625 | - | 1.6875 | 1.6875 | - | |||||||||
Consolidated assets under management and advisement (AUM&A)(2) ($ millions) | $ 253,355 | $ 238,105 | 6.4 % | ||||||||||||
Consolidated assets under management(2) | 213,953 | 204,132 | 4.8 | ||||||||||||
Wealth Management(2) | |||||||||||||||
Assets under advisement | 144,494 | 133,309 | 8.4 | ||||||||||||
IG Wealth Management | |||||||||||||||
Assets under management(3) | 101,945 | 95,460 | |||||||||||||
Other assets under advisement | 12,259 | 9,569 | |||||||||||||
Assets under advisement | 114,204 | 105,029 | 8.7 | ||||||||||||
Discontinued operations | 30,297 | 28,286 | 7.1 | ||||||||||||
Asset Management ( | |||||||||||||||
Investment funds | 59,000 | 57,551 | |||||||||||||
Institutional SMA | 7,102 | 6,106 | |||||||||||||
Sub-advisory to Canada Life | 45,906 | 45,015 | |||||||||||||
Total excluding sub-advisory to Wealth Management | 112,008 | 108,672 | |||||||||||||
Sub-advisory and AUM to Wealth Management | 74,325 | 71,834 | |||||||||||||
Total assets under management | 186,333 | 180,506 | 3.2 | ||||||||||||
Consolidated AUM&A including strategic investments | 399,959 | 302,129 | 32.4 | ||||||||||||
Consolidated AUM&A | 253,355 | 238,105 | |||||||||||||
Strategic investments(4) | 146,604 | 64,024 | |||||||||||||
Consolidated AUM&A including strategic investments and excluding discontinued operations | 372,812 | 276,911 | 34.6 | ||||||||||||
Net Flows | Asset | Intersegment | |||||||||||||
($ millions) | Wealth Management(3) | Management(5) | Eliminations | Total (2) | |||||||||||
For the three months ended | |||||||||||||||
Investment fund net sales | $ (420) | $ (699) | $ - | $ (1,119) | |||||||||||
Institutional SMA net sales | - | 7 | - | 7 | |||||||||||
IGM product net sales | (420) | (692) | - | (1,112) | |||||||||||
Other dealer net flows | 403 | - | - | 403 | |||||||||||
Discontinued operations net flows | 116 | - | 44 | 160 | |||||||||||
Total net flows(2) | 100 | (692) | 43 | (549) | |||||||||||
For the nine months ended | |||||||||||||||
Investment fund net sales | $ (1,202) | $ (1,243) | $ - | $ (2,445) | |||||||||||
Institutional SMA net sales | - | 378 | - | 378 | |||||||||||
IGM product net sales | (1,202) | (865) | - | (2,067) | |||||||||||
Other dealer net flows | 1,265 | - | - | 1,265 | |||||||||||
Discontinued operations net flows | 341 | - | 81 | 422 | |||||||||||
Total net flows(2) | 407 | (865) | 78 | (380) |
(1) | Non-IFRS Financial Measures - 2023 adjusted net earnings excluded: | |||||||||||||||
• | Restructuring and other charges of | |||||||||||||||
• | A gain on the sale of a portion of the Company's investment in Lifeco of | |||||||||||||||
• | Lifeco IFRS 17 adjustment of | |||||||||||||||
(2) | Consolidated results eliminate double counting where business is reflected within multiple segments. | |||||||||||||||
(3) | Includes separately managed accounts. | |||||||||||||||
(4) | Proportionate share of Strategic Investment AUM comprised of: 27.8% (2022 - 13.9%) of ChinaAMC AUM; 56% (2022 - 56%) of Northleaf's AUM; 20.5% (2022 - nil) of Rockefeller's client assets; and 24.3% (2022 - 24.4%) of Wealthsimple's AUA. | |||||||||||||||
(5) | Asset Management flows activity excludes sub-advisory to Canada Life and the Wealth Management segment. |
SOURCE
© Canada Newswire, source