Readers are referred to the sections "Non-IFRS Financial Measures and Presentation" and "Forward-Looking Statements" at the end of this release. All figures are expressed in Canadian dollars unless otherwise noted.
Consolidated results for the period ended
HIGHLIGHTS
- Net earnings per share of
$1.09 for the third quarter of 2021, compared with$0.75 in 2020 and adjusted net earnings per share [1] of$1.10 , compared with$0.72 per share in 2020. - Net asset value (NAV) per share [1] increased 2% to
$52.81 atSeptember 30, 2021 , compared with$51.60 atJune 30, 2021 . - Completed the sale of its 37.1% interest in the Sagard Europe 3 Fund (Sagard Europe 3) in a secondary transaction in the third quarter. The Corporation received proceeds of
$334 million (€225 million) and realized a gain of$66 million in net earnings. - The Corporation intends to resume normal course share buybacks under its normal course issuer bid.
Power Financial Corporation (Power Financial)
- Completed an offering of 8,000,000 4.50% Non-Cumulative First Preferred Shares, Series 23 for gross proceeds of
$200 million onOctober 15 , and onOctober 18 announced its intention to redeem all of its outstanding$200 million 6.00% Non-Cumulative First Preferred Shares, Series I.
Great-West Lifeco Inc. (Lifeco)
- Assets under administration were approximately
$2.2 trillion atSeptember 30, 2021 , an increase of 11% fromDecember 31, 2020 . Lifeco and Sagard Holdings Inc. (Sagard ) announced, onOctober 7, 2021 , they had agreed to enter into a long-term strategic relationship, which includes the sale of Lifeco'sUnited States -based subsidiariesEverWest Real Estate Investors, LLC andEverWest Advisors, LLC (EverWest) toSagard , in exchange for a minority shareholding inSagard's subsidiary,Sagard Holdings Management Inc. The strategic relationship withSagard is intended to advance Lifeco's strategy to further broaden its access to alternative investment options.- On
August 16, 2021 , Lifeco issued$1.5 billion aggregate principal amount 3.60% Limited Recourse Capital Notes Series 1 (Subordinated Indebtedness), maturing onDecember 31, 2081 and onOctober 8, 2021 , issued 8,000,000 Series Y, 4.50% Non- Cumulative First Preferred Shares for gross proceeds of$200 million . OnNovember 3, 2021 , Lifeco announced that it intends to redeem all of its outstanding 5.90% Non-Cumulative First Preferred Shares, Series F onDecember 31, 2021 .
IGM Financial Inc. (IGM)
- Record high net earnings of
$270.8 million , or$1.13 per share, up 42% from the third quarter of 2020 and up 14% from the second quarter of 2021. - Record high quarter-end assets under management and advisement of
$265.2 billion , up 1% in the quarter and 35% fromSeptember 30, 2020 (including$30.3 billion in net business acquisitions in 2020).
Groupe Bruxelles Lambert (GBL)
- GBL announced measures to enhance shareholder returns including an additional share buyback of up to €500 million.
[1] | NAV, NAV per share and adjusted net earnings per share are non-IFRS financial measures. See the Non-IFRS Financial Measures and Presentation section later in this news release. |
Net Asset Value
Net asset value per share represents management's estimate of the fair value of participating shareholders' equity of the Corporation. Net asset value is the fair value of the assets of the combined
The Corporation's net asset value per share was
(in millions of dollars, except per share amounts) | Change (%) | |||
Publicly | Lifeco | 23,904 | 22,838 | 5 |
IGM | 6,694 | 6,474 | 3 | |
GBL | 3,145 | 3,100 | 1 | |
33,743 | 32,412 | 4 | ||
Alternative | 1,407 | 1,790 | (21) | |
Power Sustainable [1] | 1,726 | 1,738 | (1) | |
3,133 | 3,528 | (11) | ||
Other | China AMC [3] | 740 | 705 | 5 |
Standalone businesses [4] | 1,568 | 2,004 | (22) | |
Other assets and investments | 684 | 635 | 8 | |
Cash and cash equivalents | 1,575 | 1,370 | 15 | |
Gross asset value | 41,443 | 40,654 | 2 | |
Liabilities and preferred shares | (5,718) | (5,749) | 1 | |
Net asset value | 35,725 | 34,905 | 2 | |
Shares outstanding (millions) | 676.5 | 676.5 | ||
Net asset value per share | 52.81 | 51.60 | 2 |
[1] | Includes the management companies of the investment funds at their carrying value. |
[2] | During the third quarter, the Corporation completed the sale of its 37.1% interest in Sagard Europe 3. |
[3] | |
[4] | Includes The Lion Electric Co. (Lion), LMPG Inc. (LMPG), |
Share price | |||||
Ownership [1] | Shares held [1] | ||||
Lifeco | 66.7 | 620.3 | |||
IGM | 61.8 | 147.9 | |||
GBL [2] | 14.1 | 22.8 | €95.08 | €94.34 | |
[1] | As at September 30, 2021. |
[2] | Held through |
THIRD QUARTER
Net earnings attributable to participating shareholders were
Adjusted net earnings attributable to participating shareholders [1] were
Contributions to
2021 | 2020 | |||
(in dollars per | Net Earnings | Adjusted | Net Earnings | Adjusted |
Lifeco [2] | 0.86 | 0.86 | 0.82 | 0.67 |
IGM [2] | 0.25 | 0.25 | 0.18 | 0.20 |
GBL [2] | (0.02) | (0.02) | (0.02) | (0.02) |
Effect of consolidation [3] | − | (0.01) | (0.12) | (0.06) |
1.09 | 1.08 | 0.86 | 0.79 | |
Alternative asset investment platforms and Other [4][5] | 0.06 | 0.06 | (0.05) | (0.01) |
China AMC | 0.03 | 0.03 | 0.02 | 0.02 |
Standalone businesses [5] | 0.09 | 0.09 | 0.03 | 0.03 |
1.27 | 1.26 | 0.86 | 0.83 | |
Corporate operations and Other [6] | (0.18) | (0.16) | (0.11) | (0.11) |
1.09 | 1.10 | 0.75 | 0.72 | |
Average shares outstanding (in millions) | 676.7 | 676.3 | ||
Lifeco: contribution to net earnings per share increased by 4.9% and contribution to adjusted net earnings per share increased by 28.4%.
IGM: contribution to net earnings per share increased by 38.9% and contribution to adjusted net earnings per share increased by 25.0%.
GBL: negative contribution to net earnings per share of
Alternative asset investment platforms: net earnings per share includes realized gains of
Standalone businesses: results include a positive impact of
Corporate operations and Other: As part of the reorganization completed in
Adjustments in the third quarter of 2021, excluded from adjusted net earnings, were a negative net impact to earnings of
[1] | Adjusted net earnings and adjusted net earnings per share are non-IFRS financial measures; see Non-IFRS Financial Measures and Presentation later in this news release. In the first quarter of 2021, the charge related to the remeasurement of the put right liability of certain of the non-controlling interests in |
[2] | As reported by Lifeco, IGM and GBL. |
[3] | Effect of consolidation reflects: i) the elimination of intercompany transactions; ii) the application of the Corporation's accounting method for investments under common control to the reported net earnings of the publicly traded operating companies, which includes: a) an adjustment related to Lifeco's investment in the |
[4] | Alternative asset investment platforms includes earnings (losses) from investment platforms including controlled and consolidated subsidiaries and other investments. |
[5] | Presented in Alternative and other investments in the Non-Consolidated Statements of Earnings section of the Corporation's most recent MD&A. |
[6] | Includes operating and other expenses, dividends on non-participating shares of the Corporation and Power Financial's corporate operations; refer to the Earnings Summary below. |
NINE MONTHS
Net earnings attributable to participating shareholders were
Adjusted net earnings attributable to participating shareholders were
Contributions to
2021 | 2020 [1] | |||
(in dollars per | Net Earnings | Adjusted | Net Earnings | Adjusted |
Lifeco [2] | 2.32 | 2.40 | 2.02 | 1.91 |
IGM [2] | 0.65 | 0.65 | 0.50 | 0.52 |
GBL [2][3] | 0.09 | 0.09 | 0.10 | 0.11 |
Effect of consolidation [4] | (0.03) | 0.11 | (0.13) | (0.07) |
3.03 | 3.25 | 2.49 | 2.47 | |
Alternative asset investment platforms and Other [5][6] | 0.47 | 0.62 | 0.04 | 0.08 |
China AMC | 0.07 | 0.07 | 0.04 | 0.04 |
Standalone businesses [6] | 0.32 | 0.32 | 0.02 | (0.02) |
3.89 | 4.26 | 2.59 | 2.57 | |
Corporate operations and Other [7] | (0.51) | (0.49) | (0.44) | (0.44) |
3.38 | 3.77 | 2.15 | 2.13 | |
Average shares outstanding (in millions) | 676.9 | 637.7 |
Adjustments to net earnings in the nine-month period were a negative net impact of
[1] | Pursuant to the Reorganization, the Corporation acquired the minority interests of Power Financial and now holds 100% of the common shares of Power Financial. |
[2] | As reported by Lifeco, IGM and GBL. |
[3] | Adjustments in 2020 are as previously reported by |
[4] | Effect of consolidation reflects: i) the elimination of intercompany transactions; ii) the application of the Corporation's accounting method for investments under common control to the reported net earnings of the publicly traded operating companies, which includes: a) an adjustment related to Lifeco's investment in PSEIP; and b) an allocation of the results of the fintech portfolio including Wealthsimple, Koho, Portage I, Portage II and Portage III to the contributions from Lifeco and IGM based on their respective interest; and iii) adjustments in accordance with IAS 39 for IGM and GBL. Refer to the detailed table in the Non-Consolidated Statements of Earnings section of the Corporation's most recent MD&A. |
[5] | Alternative asset investment platforms includes earnings (losses) from investment platforms including controlled and consolidated subsidiaries and other investments. |
[6] | Presented in Alternative and other investments in the Non-Consolidated Statements of Earnings section of the Corporation's most recent MD&A. |
[7] | Includes operating and other expenses, dividends on non-participating shares of the Corporation and its share of Power Financial's corporate operations; refer to the Earnings Summary below. |
Great-West Lifeco, IGM Financial and Groupe Bruxelles Lambert
Results for the quarter ended
The information below is derived from Lifeco and IGM's third quarter MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation, and which are also available either directly from SEDAR (www.sedar.com) or from their websites, www.greatwestlifeco.com and www.igmfinancial.com. The information below related to GBL is derived from publicly disclosed information, as issued by GBL in its third quarter press release at |
GREAT-WEST LIFECO INC.
THIRD QUARTER
Net earnings attributable to common shareholders were
Adjusted net earnings [1] attributable to common shareholders were
Adjustments in the third quarter of 2021, excluded from adjusted net earnings, were a net positive earnings impact of
- Actuarial assumption changes and other management actions of
$69 million ; and - Market-related impact on liabilities of
$47 million .
Partially offset by:
- Transaction costs of
$90 million related to the acquisitions of the full-service retirement business of Prudential Financial, Inc. (Prudential),Personal Capital Corporation (Personal Capital ) and the retirement services business ofMassachusetts Mutual Life Insurance Company (MassMutual), which includes a provision for payments relating to Lifeco's 2003 acquisition ofThe Canada Life Assurance Company of$58 million ; and - Restructuring and integration costs of
$24 million .
[1] | Described by Lifeco as "base earnings". For additional information, please refer to the Non-IFRS Financial Measures and Presentation section later in this news release. |
IGM FINANCIAL INC.
THIRD QUARTER
Net earnings available to common shareholders were
Adjusted net earnings available to common shareholders were
Assets under management and advisement at
GROUPE BRUXELLES LAMBERT
THIRD QUARTER
GBL reported a net loss of €44 million, compared with a net loss of €62 million in 2020.
GBL reported a net asset value at
GBL adopted IFRS 9 in 2018.
Alternative and Other Investments
Results for the quarter ended
Alternative and other investments are comprised of the results of the Corporation's alternative asset investment platforms, |
THIRD QUARTER
Net earnings of alternative and other investments, including standalone businesses, was
Sagard Credit Partners announced onOctober 20, 2021 the launch of a new Senior Loans strategy which will focus on first-lien lending to non sponsor-owned North American companies with$50 million or less in EBITDA.
Net earnings in the third quarter include a net contribution of
Summary of assets under management (including unfunded commitments):
(in billions of dollars) | ||
Sagard [1][2] | 9.5 | 5.6 |
Power Sustainable [2] | 3.0 | 1.7 |
Total | 12.5 | 7.3 |
Percentage of third-party and associates | 71% | 54% |
[1] | Includes ownership in Wealthsimple valued at |
[2] | Excludes the fair value of interests held in standalone businesses. |
STANDALONE BUSINESSES
- On
October 15, 2021 , GP Strategies completed its previously announced transaction and was acquired by Learning Technologies Group (AIM: LTG.L).Sagard disposed of its 21.0% equity interest and received proceeds ofUS$76 million .
Net earnings of the standalone businesses in the third quarter of 2021 was
At
Dividend on Power Corporation Participating Shares
The Board of Directors declared a quarterly dividend of 44.75 cents per share on the Corporation's Participating Preferred Shares and the Subordinate Voting Shares, payable
Dividends on Power Corporation Non-Participating Preferred Shares
The Board of Directors also declared quarterly dividends on the Corporation's preferred shares, payable
Series | Stock Symbol | Amount | Series | Stock Symbol | Amount |
1986 Series | POW.PR.F | Floating rate[1] | Series C | POW.PR.C | 36.25¢ |
Series A | POW.PR.A | 35¢ | Series D | POW.PR.D | 31.25¢ |
Series B | POW.PR.B | 33.4375¢ | Series G | POW.PR.G | 35¢ |
[1] | Equal to one quarter of 70% of the average prime rate of two major Canadian chartered banks for the period |
Investor Information
Access to Quarterly | Quarterly Earnings Conference Call: | |
The third quarter earnings news release and shareholder report are available on the Power Corporation website at www.powercorporation.com/en/ |
The live audio webcast and presentation materials will be available at: www.powercorporation.com/en/investors/events-presentations To listen via telephone, please dial 1-833-979-2697 toll-free in
A replay of the conference call will be available from | |
Investor Relations Contact: | ||
investor.relations@powercorp.com |
About
At
100% – Power Financial | www.powerfinancial.com | |
66.7% | Great-West Lifeco (TSX: GWO) | www.greatwestlifeco.com |
61.8% | IGM Financial (TSX: IGM) | www.igmfinancial.com |
14.1% | GBL [1] (Euronext: GBLB) | www.gbl.be |
55.0% | Wealthsimple [2] | www.wealthsimple.com |
Investment Platforms | ||
100% | www.sagard.com | |
100% | Power Sustainable | www.powersustainable.com |
Power Pacific | www.powerpacificim.com | |
Power | www.powersustainable.com | |
13.9% | China AMC [3] | www.chinaamc.com |
[1] | Held through |
[2] | Undiluted equity interest held by Portage I, Power Financial and IGM, representing a fully diluted equity interest of 42.6%. |
[3] | IGM also holds a 13.9% interest in |
Earnings Summary
Contribution to Adjusted and Net Earnings | ||||
(unaudited) | Three months ended | Nine months ended | ||
2021 | 2020 | 2021 | 2020 | |
Adjusted net earnings [1] | ||||
Lifeco [2] | 580 | 454 | 1,625 | 1,289 |
IGM [2] | 167 | 133 | 440 | 347 |
GBL [2] | (11) | (15) | 63 | 73 |
Effect of consolidation [3] | (4) | (31) | 74 | (10) |
732 | 541 | 2,202 | 1,699 | |
Alternative asset investment platforms and Other [4][5] | 45 | (15) | 421 | 50 |
China AMC | 17 | 11 | 45 | 30 |
Standalone businesses [4][6] | 58 | 23 | 213 | (16) |
Corporate operating and other expenses | (57) | (30) | (186) | (144) |
Dividends on non-participating and perpetual preferred shares | (47) | (47) | (141) | (142) |
Non-controlling interests of Power Financial | − | − | − | (116) |
Adjusted net earnings [7] | 748 | 483 | 2,554 | 1,361 |
Adjustments – see below | (7) | 22 | (263) | 10 |
Net earnings [7] | 741 | 505 | 2,291 | 1,371 |
Contribution to Adjusted and Net Earnings per Share | ||||
(unaudited) | Three months ended | Nine months ended | ||
2021 | 2020 | 2021 | 2020 | |
Adjusted net earnings per share – basic [1] | ||||
Lifeco [2] | 0.86 | 0.67 | 2.40 | 1.91 |
IGM [2] | 0.25 | 0.20 | 0.65 | 0.52 |
GBL [2] | (0.02) | (0.02) | 0.09 | 0.11 |
Effect of consolidation [3] | (0.01) | (0.06) | 0.11 | (0.07) |
1.08 | 0.79 | 3.25 | 2.47 | |
Alternative asset investment platforms and Other [4][5] | 0.06 | (0.01) | 0.62 | 0.08 |
China AMC | 0.03 | 0.02 | 0.07 | 0.04 |
Standalone businesses [4][6] | 0.09 | 0.03 | 0.32 | (0.02) |
Corporate operating and other expenses and dividends on non–participating and perpetual preferred shares | (0.16) | (0.11) | (0.49) | (0.44) |
Adjusted net earnings per share [7] | 1.10 | 0.72 | 3.77 | 2.13 |
Adjustments – see below | (0.01) | 0.03 | (0.39) | 0.02 |
Net earnings per share [7] | 1.09 | 0.75 | 3.38 | 2.15 |
[1] | For a reconciliation of Lifeco, IGM, GBL, and Alternative and other investments' non-IFRS adjusted net earnings to their net earnings, refer to the section "Contribution to net earnings and adjusted net earnings" of the Corporation's most recent MD&A. |
[2] | As reported by Lifeco, IGM and GBL. |
[3] | Effect of consolidation reflects: i) the elimination of intercompany transactions; ii) the application of the Corporation's accounting method for investments under common control to the reported net earnings of the publicly traded operating companies, which includes: a) an adjustment related to Lifeco's investment in the PSEIP; and b) an allocation of the results of the fintech portfolio including Wealthsimple, Koho, Portage I, Portage II and Portage III to the contributions from Lifeco and IGM based on their respective interest; and iii) adjustments in accordance with IAS 39 for IGM and GBL. Refer to the detailed table in the Non-Consolidated Statements of Earnings section of the Corporation's most recent MD&A. |
[4] | Presented in Alternative and other investments in the Non-Consolidated Statements of Earnings section of the Corporation's most recent MD&A. |
[5] | Includes earnings of the Corporation's alternative asset investment platforms, including investments held through Power Financial. |
[6] | Includes the results of Lion, LMGP, Peak, GP Strategies and |
[7] | Attributable to participating shareholders. |
Alternative and Other Investments – Adjusted Net Earnings | ||||
(unaudited) | Three months ended | Nine months ended | ||
2021 | 2020 | 2021 | 2020 | |
Asset management activities [1] | (18) | 4 | 44 | − |
Investing activities (proprietary capital) [2][3] | 55 | (15) | 90 | 10 |
Power Sustainable | ||||
Asset management activities [1] | (7) | (6) | (19) | (14) |
Investing activities (proprietary capital) [4] | 13 | 1 | 279 | 52 |
Standalone businesses [5] | 58 | 23 | 213 | (16) |
Investment and hedge funds and Other [6] | 2 | 1 | 27 | 2 |
103 | 8 | 634 | 34 |
[1] | Includes management fees charged by the investment platform on proprietary capital. Management fees paid by the Corporation are deducted from income from investing activities. |
[2] | Includes a realized gain of |
[3] | Includes the Corporation's share of earnings (losses) of Wealthsimple and Koho (up to the date of deconsolidation on |
[4] | Mainly comprised of gains (losses) realized on the disposal of investments and dividends received. In 2021, the Corporation recognized realized gains on the disposal of investments in Power Pacific of |
[5] | The third quarter of 2021, includes a net contribution of |
[6] | Other consists mainly of foreign exchange gains or losses and interest on cash and cash equivalents. |
Adjustments (excluded from Adjusted Net Earnings)
(unaudited) | Three months ended | Nine months ended | ||
2021 | 2020 | 2021 | 2020 | |
Share of Lifeco's adjustments [1] | ||||
Actuarial assumption changes and other management actions | 45 | 44 | 74 | 91 |
Market-related impacts on liabilities | 32 | 13 | 3 | (64) |
Transaction costs related to acquisitions | (60) | (21) | (77) | (21) |
Tax legislative changes impact on liabilities | − | − | (14) | − |
Net gain on business dispositions | − | 63 | − | 63 |
Restructuring and integration charges | (16) | − | (34) | − |
1 | 99 | (48) | 69 | |
Effect of consolidation [2] | 5 | (2) | (3) | (2) |
6 | 97 | (51) | 67 | |
Share of IGM's adjustments [1] | ||||
Gain on the sale of | − | 19 | − | 19 |
Restructuring and other charges | − | (34) | − | (34) |
− | (15) | − | (15) | |
Effect of consolidation [2] | − | (36) | (99) | (37) |
− | (51) | (99) | (52) | |
Share of GBL's adjustments [3] | ||||
Other charges | − | (2) | − | (6) |
Alternative and other investments | ||||
Remeasurements of Wealthsimple's put right liability | − | (22) | (100) | (22) |
Recovery on deconsolidation of | − | − | − | 27 |
− | (22) | (100) | 5 | |
Corporate operations | ||||
Reorganization charges | (13) | − | (13) | − |
Non-controlling interest of Power Financial | − | − | − | (4) |
(7) | 22 | (263) | 10 |
[1] | As reported by Lifeco and IGM. |
[2] | The Effect of consolidation reflects i) the elimination of intercompany transactions, ii) the application of the Corporation's accounting method for investments under common control to the Adjustments reported by Lifeco and IGM, which includes an allocation of the Adjustments related to the fintech portfolio based on their respective interest, iii) IGM's share of Lifeco's Adjustments for the impact of actuarial assumption changes and management actions and market impact on insurance contract liabilities, in accordance with the Corporation's definition of Adjusted net earnings. As well, the three- and nine-month periods ended |
[3] | As previously reported by Pargesa; GBL does not identify Adjustments. |
Net Asset Value
Net asset value represents management's estimate of the fair value of the participating shareholders' equity of the Corporation. Net asset value is the fair value of the assets of the combined |
The Corporation's net asset value per share was
September 30, 2021 (in millions of dollars, except per share amounts) | Combined | Fair value | Net asset value |
Assets | |||
Investments | |||
Power Financial | |||
Lifeco | 15,295 | 8,609 | 23,904 |
IGM | 3,315 | 3,379 | 6,694 |
GBL | 4,278 | (1,133) | 3,145 |
Alternative and other investments | |||
714 | 693 | 1,407 | |
Power Sustainable [1] | 1,380 | 346 | 1,726 |
Other | |||
Standalone businesses [3] | 820 | 748 | 1,568 |
Other | 280 | 38 | 318 |
China AMC [4] | 740 | − | 740 |
Cash and cash equivalents | 1,575 | − | 1,575 |
Other assets | 366 | − | 366 |
Total assets | 28,763 | 12,680 | 41,443 |
Liabilities and non-participating shares | |||
Debentures and other debt instruments | 897 | − | 897 |
Other liabilities [5] | 1,037 | − | 1,037 |
Non-participating shares and perpetual preferred shares | 3,784 | − | 3,784 |
Total liabilities and non-participating shares | 5,718 | − | 5,718 |
Net value | |||
Participating shareholders' equity / Net asset value | 23,045 | 12,680 | 35,725 |
Per share | 34.07 | 52.81 | |
[1] | Includes the management companies of the investment funds, which are presented at their carrying value in accordance with IFRS and are primarily composed of cash and net carried interest receivable. |
[2] | Includes the Corporation's investments in Portage I, Portage II and Wealthsimple, held by Power Financial. |
[3] | An additional deferred tax liability of |
[4] | Valued at carrying value in accordance with IFRS. |
[5] | In accordance with IAS 12, Income Taxes, no deferred tax liability is recognized with respect to temporary differences associated with investments in subsidiaries and jointly controlled corporations as the Corporation is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. If the Corporation were to dispose of an investment in a subsidiary or a jointly controlled corporation, income taxes payable on such disposition would be minimized through careful and prudent tax planning and structuring, as well as with the use of available tax attributes not otherwise recognized on the balance sheet, including tax losses, tax basis, safe income and foreign tax surplus associated with the subsidiary or jointly controlled corporation. |
NON-IFRS FINANCIAL MEASURES AND PRESENTATION
The Corporation completed the Reorganization and announced a change in its strategy in early 2020. Subsequent to the Reorganization, the corporate operations of both the Corporation and Power Financial are being managed together and have been presented on a combined basis throughout the "Results of the Corporation" section of the MD&A. The investment activities of Power Financial, other than those held in publicly traded operating companies, are primarily interests held in fintech investments, all of which are managed by
Net earnings attributable to participating shareholders are comprised of:
- Adjusted net earnings attributable to participating shareholders; and
- Adjustments, which include the after-tax impact of any item that in management's judgment, including those identified by management of its publicly traded operating companies, would make the period-over-period comparison of results from operations less meaningful. Adjustments includes the Corporation's share of Lifeco's impact of actuarial assumption changes and management actions, direct equity and interest rate market impacts on insurance contract liabilities net of hedging, as well as items that management believes are not indicative of the underlying business results which include those identified by a subsidiary or a jointly controlled corporation.
Management uses these financial measures in its presentation and analysis of the financial performance of
Adjusted net earnings attributable to participating shareholders and adjusted net earnings per share are non-IFRS financial measures that do not have a standard meaning and may not be comparable to similar measures used by other entities.
The Corporation also uses a non-consolidated basis of presentation to present and analyze its results whereby the Corporation's controlling interests held through Power Financial in Lifeco, IGM, Portage I, Portage II, Portage III and Wealthsimple, as well as other subsidiaries and investment funds consolidated by
Net asset value is commonly used by holding companies to assess their value. Net asset value is the fair value of
This news release may also contain other non-IFRS financial measures which are publicly disclosed by the Corporation's subsidiaries such as sales, assets under management and assets under administration. Refer to the "Non-IFRS Financial Measures and Presentation" section of the Corporation's most recent Management's Discussion and Analysis for the definition of non-IFRS financial measures and their reconciliation with IFRS financial measures.
Comparative Figures
In the first quarter of 2021, the charge related to the remeasurement of the put right liability of certain of the non-controlling interests in Wealthsimple to fair value was presented as an Adjustment as these rights were extinguished at the close of the transaction and thereafter will not have future fair value changes. The fair value changes in the put right obligations were not previously presented as an Adjustment as they were expected to be recurring. The related amounts in the comparative periods have been reclassified as an Adjustment to reflect this presentation. Adjusted net earnings in the third quarter of 2020 has been restated to reflect this change.
The Corporation's share of the charge on the remeasurement of the put right liability was
ELIGIBLE DIVIDENDS
For purposes of the Income Tax Act (
FORWARD-LOOKING STATEMENTS
Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's current expectations, or with respect to disclosure regarding the Corporation's public subsidiaries, reflect such subsidiaries' current expectations as disclosed in their respective MD&A. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial performance, financial position and cash flows 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 and the reader is 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 Corporation and its subsidiaries including the fintech strategy, the expected impact of the COVID-19 pandemic on the Corporation and its subsidiaries' operations, results and dividends, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, the intended effects of the Reorganization, the Corporation's normal course issuer bid, redemption by Power Financial of its Series I First Preferred Shares, fundraising activities by investment platforms, and the Corporation's subsidiaries' disclosed expectations, including the acquisition of the Prudential full-service retirement business (as defined herein), impacts, and timing thereof as well as a result of the acquisition of the retirement services business of MassMutual,
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 factors, many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the Corporation 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 to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the availability of cash to complete purchases under the normal course issuer bid, that the list of factors in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and its subsidiaries and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, the risks identified by such subsidiaries in their respective MD&A and Annual Information Form most recently filed with the securities regulatory authorities in
Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is 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 Corporation's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including its most recent annual, and subsequently filed interim, MD&A and Annual Information Form, filed with the securities regulatory authorities in
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