IGM Financial Inc.

IGM reported adjusted EPS of $1.41, up 32% year over year, and reported EPS of $1.12. Revenue at IGM grew 18.6% year over year, and higher assets drove operating leverage across the business. Total AUM&A increased 19% year over year to $622 billion; IG Wealth gross inflows were $4.5 billion, up 26%, and Mackenzie generated $1.9 billion of net sales in Q2. Management also highlighted Wealthsimple fair value rising 15% to $2.6 billion. For capital and balance sheet, IGM returned $345 million to shareholders, ended with $935 million of unallocated capital, and reduced gross debt-to-EBITDA to 1.25x. Looking ahead, management guided to Q3 IG Wealth advisory fee rates down 0.25 to 0.5 basis point, Mackenzie third-party fee rates excluding Canada Life down about 1.5 basis points, overall third-party fee rate down about 0.7 basis points, and expenses coming down seasonally in Q3. Full-year expense growth guidance was maintained at 4%.

Damon Murchison framed the quarter as evidence that IGM’s strategy is working and said he wants to sharpen focus, simplify operations, and redirect capacity toward clients, advisers, and profitable growth. He emphasized IG Wealth and Mackenzie as the core engines, strategic investments as a growth diversifier, and AI as a key enabler of simplification and personalization. His tone was confident and constructive, with repeated references to momentum, room to grow, and disciplined execution.

Keith Potter said the quarter showed strong broad-based performance, with adjusted EPS of $1.41, reported EPS of $1.12, and revenue up 18.6% year over year. He noted $345 million returned to shareholders, including $200 million in repurchases, plus $935 million in unallocated capital and a gross debt-to-EBITDA ratio of 1.25x. He also guided Q3 fee-rate pressure: IG Wealth advisory fees down 0.25 to 0.5 basis point, Mackenzie third-party fee rates down about 1.5 basis points excluding Canada Life and about 0.7 basis points overall, while keeping expense growth guidance at 4%.

Analysts pressed management on the AI strategy, with questions about the practical benefits of the Sagard AI Fund and how IGM can learn from the broader Power ecosystem; Damon said the value is both access to AI leaders and business partnerships that can solve specific operating gaps. Questions also focused on Mackenzie’s institutional awards pipeline, where Luke said the Q2 awards were roughly $5 billion and should fund into Q4 and Q1, with enough pipeline to extend into 2026 and 2027. Other notable questions covered ChinaAMC outflows, where Luke explained the activity was tied to China’s market stabilization program and said the business would have been slightly net positive excluding those government-related flows, as well as capital allocation, leverage, Wealthsimple valuation, and whether IG Wealth’s 1.5% net flow rate is the right long-term level.