IGM Financial Inc.

IGM reported adjusted EPS of $1.41, up 32% year over year, and reported EPS of $1.12. Revenue at IGM increased 18.6% year over year, and adjusted earnings rose across all three segments, with Wealth Management and Asset Management each up more than 30%. Total AUM&A was $622 billion, up 19% year over year; Mackenzie AUM was $269 billion, up 20%, and Wealthsimple AUA reached $155.6 billion, up 84% year over year. On the capital side, IGM returned $345 million to shareholders in the quarter, including $200 million in share repurchases, ended with $935 million of unallocated capital, and reduced gross debt-to-EBITDA to 1.25x. Looking ahead, management maintained expense growth guidance of 4%; for Q3, IG Wealth advisory fee rates are expected to fall by 0.25 to 0.5 basis point, Mackenzie’s third-party fee rate excluding Canada Life is expected to decline by approximately 1.5 basis points, and the overall third-party rate is expected to decline by about 0.7 basis points. Management also said it expects insurance growth to continue in Q3 versus last year, though not at the same pace as Q2, and that unallocated capital should come down in Q3 and Q4 as buybacks continue.

Damon Murchison framed the quarter as proof that IGM’s existing strategy is working and said his goal is to sharpen focus, simplify how the company operates, and invest with discipline. He emphasized IG Wealth and Mackenzie as the core earnings engines, highlighted strategic investments like Wealthsimple, Rockefeller and Northleaf, and said AI will be used to improve client experience, adviser productivity and operating efficiency. His tone was confident and forward-looking, with repeated references to momentum, strength and room to grow.

Keith Potter highlighted broad-based financial strength: adjusted EPS of $1.41, reported EPS of $1.12, revenue up 18.6%, and adjusted EPS up 31.8% on higher assets. He walked through the main adjustments, including the restructuring charge and the Rockefeller management equity program, and said that program will be excluded from adjusted results because future expense is likely to be volatile; the impact this quarter was $900,000. On capital allocation, he said IGM returned $345 million to shareholders, ended with $935 million of unallocated capital, and lowered gross leverage to 1.25x, while noting the company remains comfortable with debt-to-EBITDA below 2x over the long term. He also said the company issued $400 million in debentures in June and expects to record a noncash gain of $187 million, or $149 million after noncontrolling interest, in Q3 from Northleaf consolidation accounting.

Analysts focused on AI strategy, institutional flows, fee-rate pressure, leverage, Rockefeller growth, ChinaAMC outflows, Wealthsimple valuation and the use of excess capital. Management said the Sagard AI Fund and broader Power ecosystem are meant to provide thought leadership, access to AI companies and practical solutions that can help both IG and Mackenzie solve business problems. On Mackenzie, Luke Gould said the institutional awards pipeline is still building, that roughly $5 billion of Q2 awards will mostly fund in Q4 and Q1, and that the pipeline looks strong into 2026 and 2027. Keith Potter said fee-rate pressure at IG Wealth is mostly driven by clients moving cash into long-term solutions, while Mackenzie’s rate pressure is largely tied to institutional onboarding, and he said unallocated capital should decline as share repurchases continue.