IGM Financial (TSE:IGM) reported second-quarter adjusted earnings per share of C$1.41, up 32% from a year earlier, as higher average assets under management and administration, positive net flows and investment returns supported broad-based growth across its wealth and asset-management operations.
Reported earnings per share were C$1.12. Chief Financial Officer Keith Potter said adjusted results excluded items including a previously announced restructuring charge, Great-West Lifeco earnings adjustments, a gain on the partial sale of an investment in an associate, and a mark-to-market impact tied to Rockefeller’s management equity program.
Assets, flows and operating leverage
IGM’s total assets under management and administration rose 19% year-over-year to C$622 billion, with all six of its wealth and asset-management businesses reporting higher assets than a year earlier. Strong markets generated average client returns of about 9% across IG Wealth Management and Mackenzie during the quarter, Murchison said.
The company generated C$2.2 billion in net flows during the quarter. Revenue increased 18.6% from a year earlier, while adjusted EPS increased 31.8%, reflecting operating leverage as assets and revenues grew faster than expenses.
IG Wealth Management posted a record quarter, with earnings of C$174.7 million, up 32.9% year-over-year, on revenue growth of 19%. Gross inflows were C$4.5 billion, rising 26% from the prior-year period, while its trailing 12-month net-flow rate was 1.5%.
Murchison said IG recorded its eighth consecutive quarter of positive net flows and a record second quarter for new-client inflows. The company’s managed solutions represented 88% of assets under advisement, and 97% of those solutions held Morningstar ratings of three stars or higher.
IG also reported growing contributions from mortgages and insurance. New annualized insurance premium reached C$33 million, which Murchison said reflected a greater emphasis on estate-planning insurance policies with higher face values, as well as higher case counts.
Potter said IG’s advisory fee rate declined 0.6 basis points in the quarter, partly because clients moved cash into long-term investment solutions, which carry lower fees than cash spreads. He expects the rate to decline by another quarter to half a basis point in the third quarter, with less pressure anticipated in the fourth quarter.
Mackenzie reports stronger retail and institutional momentum
Mackenzie Investments’ assets under management increased 20% from a year earlier to C$269 billion. The business generated C$1.9 billion of net sales in the second quarter and C$3.6 billion year-to-date, with the quarter representing its strongest second-quarter investment-fund net sales result in five years.
Mackenzie’s asset-management earnings rose 30% year-over-year to C$75.3 million, while revenue increased 14%. Expenses for operations, support and business development rose 3.4%.
President and CEO Luke Gould said retail flows improved meaningfully and the company onboarded C$2 billion of previously announced institutional wins during the quarter. Mackenzie also received approximately C$5 billion in institutional awards in the second quarter, with most of those assets expected to fund in the fourth quarter and first quarter of 2027.
“The pipeline is feeling very good,” Gould said, adding that the company has sufficient institutional activity in its pipeline to support growth into 2026 and 2027.
Mackenzie also reorganized its investment-management structure during the quarter, reducing its number of investment teams to nine from 15 through the rationalization of three boutiques and coordination among related teams. Gould said the changes were intended to strengthen investment capabilities, talent management, commercial relevance and technology enablement.
The firm completed a multiyear middle-office and data-foundation initiative with BNY Mellon in July, which Gould said would provide a foundation for technology and artificial-intelligence capabilities.
AI investment and strategic businesses
Murchison said IGM’s June restructuring actions were designed to simplify operations and create capacity for investments without adding cost and complexity. The company plans to reinvest savings into people, processes and technology supporting enterprise AI capabilities.
At IG, AI is being used to assist advisors with client-meeting preparation, follow-up and documentation. At Mackenzie, the technology is already supporting the investment process by helping teams process complex data, generate ideas, conduct research and provide client service.
IGM also expects to draw on relationships within the Power Corp. ecosystem and its participation in the Sagard AI Fund for market intelligence and potential commercial partnerships with AI-focused companies.
Among IGM’s strategic investments, Wealthsimple’s assets under administration reached C$155.6 billion, up 84% year-over-year and C$30.8 billion during the quarter. Record net flows of approximately C$17 billion were the main contributor. IGM increased the fair value of its 25% interest in Wealthsimple by 15% during the quarter to C$2.6 billion, citing Wealthsimple’s performance, revised revenue expectations, public-peer valuations and prior third-party transactions.
Rockefeller’s client assets rose 31% year-over-year, supported by market returns, organic growth and additions of advisor teams. Murchison said Rockefeller remains focused on expanding its U.S. footprint and serving ultra-high-net-worth clients rather than entering Canada in the near term.
ChinaAMC ended the quarter with total assets under management of CNY2.9 trillion, up 3% sequentially. It recorded CNY145 billion in net outflows, which Gould attributed to industrywide passive ETF outflows involving China’s market-stabilization program. Excluding those government-related outflows, he said ChinaAMC would have recorded slightly positive flows.
Capital returns and Northleaf consolidation
IGM returned a record C$345 million to shareholders in the quarter, including C$200 million in share repurchases and C$145 million in dividends. It ended the period with C$935 million of unallocated capital and a gross debt-to-EBITDA ratio of 1.25 times.
Potter said IGM was not targeting a lower leverage ratio, but that EBITDA growth had reduced leverage and left the company with substantial financial flexibility. He said share repurchases are expected to continue through the second half, which should reduce unallocated capital while retaining flexibility heading into 2027.
Effective July 1, IGM began consolidating Northleaf’s revenues, expenses, assets and liabilities within its asset-management segment. Mackenzie’s economic interest in Northleaf increased to 60.9% from 56%. Potter said the accounting change does not alter the business’s underlying economics or management, and IGM expects to record a non-cash third-quarter gain of C$187 million, or C$149 million after non-controlling interests, from the move to consolidation accounting.
About IGM Financial (TSE:IGM)
Mackenzie Investments (“Mackenzie”) is a Canadian investment management firm with approximately $244 billion (CAD) in assets under management as of December 31, 2025. Mackenzie seeks to create a more invested world by delivering strong investment performance and offering innovative portfolio solutions and related services to more than one million retail and institutional clients through multiple distribution channels. Founded in 1967, it is a global asset manager with offices across Canada as well as in Beijing, Boston, Dublin, Hong Kong and London.
