IGM Financial (IGM) investor relations material

Executive summary

• Achieved record adjusted EPS of CAD 1.41 (up 31.8% year-over-year) and reported EPS of CAD 1.12, with leadership transition to Damon Murchison as CEO and a strategic focus on core asset and wealth management businesses.

• Consolidated AUM&A including strategic investments reached CAD 622.1 billion, up 19.4% year-over-year, with all six wealth and asset management businesses growing.

• Returned CAD 345 million to shareholders in Q2, including CAD 200 million in share repurchases, maintaining unallocated capital of CAD 935 million.

• Launched a multi-year initiative to simplify the organization and accelerate AI investment, targeting CAD 70 million in annualized savings by 2028.

• AI investment is a key priority to enhance client experience, advisor productivity, and operational efficiency.

Financial highlights

• Adjusted net earnings available to common shareholders rose 31% year-over-year to CAD 330 million; adjusted EPS for Q2 was CAD 1.41, up 32% year-over-year.

• Net flows at IG Wealth and Mackenzie totaled CAD 2.2 billion for the quarter, with Wealthsimple AUA reaching CAD 155.6 billion, up 84% year-over-year.

• Dividends paid were CAD 144.7 million, with a 53% LTM adjusted cash earnings payout ratio.

• Shares repurchased totaled CAD 200.4 million in Q2.

• Wealthsimple fair value increased by 15% to CAD 2.6 billion.

Outlook and guidance

• Maintaining full-year 2026 operations & support and business development expense growth guidance of 4%, with Q3 expected to see seasonal expense decline.

• Continued investment in AI and technology, with structural savings reinvested to build enterprise AI capabilities.

• IG Wealth net flows rate expected to remain strong, with potential to increase as market cycles normalize.

• Advisory fee rates at IG Wealth and Mackenzie expected to see modest declines due to client mix and institutional onboarding.

• Management highlights diversified growth across wealth and asset management, supported by strong net inflows and record AUM&A.