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
- Fourth quarter net earnings of
$419.6 million or176 cents per share compared to$224.7 million or94 cents per share in 2022. Adjusted net earnings, excluding a gain on the sale of IPC of$220.7 million ,1 were$198.9 million or84 cents per share for the fourth quarter of 2023 compared to$224.7 million or94 cents per share in 2022. - Annual net earnings of
$1,148.9 million or$4.82 per share compared to$867.2 million or$3.63 per share in 2022. Annual adjusted net earnings, excluding other items,1 were$820.7 million or$3.44 per share compared to$867.2 million or$3.63 per share in 2022. - Assets under management and advisement of
$240.2 billion , up 5.6% from the prior quarter and up 7.1% from the fourth quarter of 2022.2 - IGM's assets under management and advisement including strategic investments were
$389.4 billion as atDecember 31, 2023 , compared with$372.9 billion atSeptember 30, 2023 and$288.3 billion atDecember 31, 2022 .2 - Net outflows were
$1.2 billion compared to net outflows of$520 million in 2022.2
"Strong client returns in 2023 and our focus on managing year over year expense growth to less than 2% were key contributors to 2023 earnings," said
Fourth quarter earnings included a negative fair value adjustment of
In the fourth quarter, the Company has realigned its reportable segments to better characterize and simplify the Company's business lines into wealth management and asset management segments. The revised segments reflect a realignment of Rockefeller and Wealthsimple to the wealth management segment and ChinaAMC and Northleaf to the asset management segment.
WEALTH MANAGEMENT
Reflects the activities of its core business and strategic investments that are principally focused on providing financial planning and related services. This segment includes the activities of IG Wealth Management, the Company's investments in
Adjusted net earnings available to common shareholders in the fourth quarter of 2023 were
Assets under advisement including strategic investments at
IG Wealth Management
Assets under advisement at
Quarterly net client outflows were
Quarterly gross client inflows were
Wealthsimple
The fair value of the Company's investment in Wealthsimple was
ASSET MANAGEMENT
Reflects the activities of its core business and strategic investments primarily focused on providing investment management services. This segment includes the operations of
Adjusted net earnings available to common shareholders in the fourth quarter of 2023 were
Assets under management including strategic investments at
Total assets under management were
Investment fund net redemptions were
Mutual fund gross sales were
ETF business – ETF assets under management totalled
ChinaAMC
The Company's proportionate share of ChinaAMC's fourth quarter earnings was
On
CORPORATE AND OTHER
Represents the investments in
Lifeco – The Company's proportionate share of Lifeco's fourth quarter earnings was
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: | |
• | A gain on the sale of IPC 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 | Assets under management and advisement and net flows exclude discontinued operations (IPC). Including discontinued operations: | |
• | IGM assets under management and advisement were | |
• | IGM assets under management and advisement including strategic investments were | |
• | IGM net outflows including discontinued operations were | |
3 | In the fourth quarter of 2023, the Company recorded its proportionate share of fourth quarter Lifeco earnings based on actual earnings. |
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 net earnings available to | Average number of outstanding |
Return (Adjusted return) on equity | Net earnings (Adjusted net earnings) | Average shareholders' equity |
ROE (Adjusted ROE) excluding the | Net earnings (Adjusted net earnings) | Average shareholders' equity |
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's core businesses IG Wealth Management andMackenzie Investments . 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 core businesses. AUM&A excludes IPC's AUM, AUA, sales, redemptions and net flows which have been disclosed as Discontinued operations. - 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 core business.
- Assets Under Management (AUM) are the key driver of the Asset Management segment. AUM are an additional 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.
- 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 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.
FOURTH 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 | Twelve months ended | ||||||
(unaudited) | |||||||
(in thousands of Canadian dollars, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||
Revenues | |||||||
Wealth management | $ 550,020 | $ 530,818 | |||||
Asset management | 234,283 | 233,506 | 949,041 | 967,212 | |||
Dealer compensation expense | (76,710) | (76,857) | (314,107) | (327,521) | |||
Net asset management | 157,573 | 156,649 | 634,934 | 639,691 | |||
Net investment income and other | 10,579 | 14,710 | 37,646 | 22,238 | |||
Gain on sale of Lifeco shares | - | - | 172,977 | - | |||
Proportionate share of associates' earnings | 50,643 | 65,430 | 200,137 | 210,762 | |||
768,815 | 767,607 | 3,245,375 | 3,032,561 | ||||
Expenses | |||||||
Advisory and business development | 253,323 | 238,459 | 1,006,252 | 962,064 | |||
Operations and support | 208,808 | 200,005 | 905,704 | 786,643 | |||
Sub-advisory | 16,687 | 15,532 | 65,731 | 63,574 | |||
Interest | 32,537 | 28,514 | 123,231 | 113,174 | |||
511,355 | 482,510 | 2,100,918 | 1,925,455 | ||||
Earnings before income taxes | 257,460 | 285,097 | 1,144,457 | 1,107,106 | |||
Income taxes | 55,868 | 61,766 | 215,077 | 245,948 | |||
Net earnings from continuing operations | 201,592 | 223,331 | 929,380 | 861,158 | |||
Net earnings from discontinued operations | 219,724 | 3,714 | 223,131 | 11,420 | |||
Net earnings | 421,316 | 227,045 | 1,152,511 | 872,578 | |||
Non-controlling interest | (1,719) | (2,340) | (3,619) | (5,334) | |||
Net earnings available to common shareholders | $ 419,597 | $ 224,705 | $ 867,244 | ||||
Earnings per share (in dollars) | |||||||
Net earnings available to common shareholders from continuing operations | |||||||
- Basic | $ 0.84 | $ 0.93 | $ 3.89 | $ 3.59 | |||
- Diluted | $ 0.84 | $ 0.93 | $ 3.88 | $ 3.58 | |||
Net earnings available to common shareholders | |||||||
- Basic | $ 1.76 | $ 0.95 | $ 4.83 | $ 3.64 | |||
- Diluted | $ 1.76 | $ 0.94 | $ 4.82 | $ 3.63 |
Financial Highlights | ||||||||||||||||
For the three months ended | As at and for the twelve months ended | |||||||||||||||
(unaudited) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||
Net earnings available to | ||||||||||||||||
common shareholders ($ millions) | ||||||||||||||||
Net Earnings | $ 419.6 | $ 224.7 | 86.7 | % | $ 1,148.9 | $ 867.2 | 32.5 | % | ||||||||
Adjusted Net Earnings (1) | 198.9 | 224.7 | (11.5) | 820.7 | 867.2 | (5.4) | ||||||||||
Diluted earnings per share | ||||||||||||||||
Net Earnings | 1.76 | 0.94 | 87.2 | 4.82 | 3.63 | 32.8 | ||||||||||
Adjusted Net Earnings (1) | 0.84 | 0.94 | (10.6) | 3.44 | 3.63 | (5.2) | ||||||||||
Return on equity | ||||||||||||||||
Net Earnings | 18.2 % | 14.3 % | ||||||||||||||
Adjusted Net Earnings (1) | 13.0 % | 14.3 % | ||||||||||||||
Dividends per share | 0.5625 | 0.5625 | - | 2.25 | 2.25 | - | ||||||||||
Consolidated assets under management and advisement (AUM&A)(2)(3) ($ millions) | $ 240,170 | $ 224,242 | 7.1 | % | ||||||||||||
Consolidated assets under management(2) | 226,582 | 213,551 | 6.1 | |||||||||||||
Wealth Management (IG Wealth Management) | ||||||||||||||||
Assets under management(4) | 107,635 | 99,275 | ||||||||||||||
Other assets under advisement | 13,588 | 11,541 | ||||||||||||||
Assets under advisement | 121,223 | 110,816 | 9.4 | |||||||||||||
Asset Management ( | ||||||||||||||||
Investment funds | 61,915 | 59,653 | ||||||||||||||
Institutional SMA | 7,367 | 6,422 | ||||||||||||||
Sub-advisory to Canada Life | 49,665 | 47,023 | ||||||||||||||
Total excluding sub-advisory to Wealth Management | 118,947 | 113,098 | ||||||||||||||
Sub-advisory and AUM to Wealth Management | 76,758 | 73,514 | ||||||||||||||
Total assets under management | 195,705 | 186,612 | 4.9 | |||||||||||||
Consolidated AUM&A including strategic investments | 389,425 | 288,267 | 35.1 | |||||||||||||
Consolidated AUM&A | 240,170 | 224,242 | ||||||||||||||
Strategic investments(5) | 149,255 | 64,025 | ||||||||||||||
Net Flows | Asset | Intersegment | ||||||||||||||
($ millions) | Wealth Management(4) | Management(6) | Eliminations | Total (3) | ||||||||||||
For the three months ended | ||||||||||||||||
Investment fund net sales | $ (1,052) | $ (826) | $ - | $ (1,878) | ||||||||||||
Institutional SMA net sales | - | (186) | - | (186) | ||||||||||||
IGM product net sales | (1,052) | (1,012) | - | (2,064) | ||||||||||||
Other dealer net flows | 824 | - | 1 | 825 | ||||||||||||
Total net flows(2) | (228) | (1,012) | 1 | (1,239) | ||||||||||||
Discontinued operations net flows | 387 | - | 17 | 404 | ||||||||||||
Total net flows including discontinued operations(3) | 160 | (1,012) | 17 | (835) | ||||||||||||
For the twelve months ended | ||||||||||||||||
Investment fund net sales | $ (2,254) | $ (2,069) | $ - | $ (4,323) | ||||||||||||
Institutional SMA net sales | - | 192 | - | 192 | ||||||||||||
IGM product net sales | (2,254) | (1,877) | - | (4,131) | ||||||||||||
Other dealer net flows | 2,089 | - | 1 | 2,090 | ||||||||||||
Total net flows(2) | (165) | (1,877) | 1 | (2,041) | ||||||||||||
Discontinued operations net flows | 728 | - | 98 | 826 | ||||||||||||
Total net flows including discontinued operations(3) | 567 | (1,877) | 95 | (1,215) |
(1) | Non-IFRS Financial Measures - 2023 adjusted net earnings excluded: | |||||||||||||||
• | A gain on the sale of IPC 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) | Excludes discontinued operations of IPC. At | |||||||||||||||
(3) | Consolidated results eliminate double counting where business is reflected within multiple segments. | |||||||||||||||
(4) | Includes separately managed accounts. | |||||||||||||||
(5) | Proportionate share of strategic investments AUM comprised of: 27.8% (2022 - 13.9%) of ChinaAMC's AUM; 56% (2022 - 56%) of Northleaf's AUM; 20.5% (2022 - nil) of Rockefeller's client assets; and 24.7% (2022 - 24.3%) of Wealthsimple's AUA. | |||||||||||||||
(6) | Asset Management flows activity excludes sub-advisory to Canada Life and the Wealth Management segment. |
SOURCE
© Canada Newswire, source