IGM Financial Reports Record EPS and Strategic Growth

IGM Financial ((TSE:IGM)) has held its Q3 earnings call. Read on for the main highlights of the call.

IGM Financial’s recent earnings call painted a largely positive picture, highlighting substantial achievements such as record adjusted EPS, robust core business performance, and significant growth in strategic investments like Wealthsimple and Rockefeller. Despite some challenges, including a drop in IG Wealth’s advisory fee rate and volatility in the Chinese market, the overall sentiment was optimistic, with positive developments outweighing the negatives.

Record-Breaking Adjusted EPS

IGM Financial announced an all-time high adjusted EPS of $1.27 for the third quarter of 2025, marking a remarkable year-over-year growth of over 23%. This achievement underscores the company’s strong financial health and effective operational strategies.

Strong Performance in Core Businesses

The company’s core businesses, IG Wealth and Mackenzie Investments, reported impressive results with $2.4 billion in net inflows during the quarter. This contributed to year-over-year earnings growth of 24% and 15%, respectively, showcasing the strength and resilience of IGM’s foundational operations.

Wealthsimple Milestone

Wealthsimple reached a significant milestone by ending the quarter with $100.8 billion in assets under administration, representing a 94% increase over the previous year. This growth highlights the platform’s increasing popularity and strategic importance to IGM Financial.

Positive Net Inflows at IG Wealth

IG Wealth recorded its fifth consecutive quarter of positive net flows, achieving a total of $426 million in net inflows. This consistent performance reflects the firm’s ability to attract and retain clients effectively.

Rockefeller and Northleaf Growth

Rockefeller reported a 25% increase in client assets year-over-year, while Northleaf successfully raised $1.5 billion during the quarter, contributing to $5.2 billion over the last 12 months. These figures underscore the growth potential and strategic importance of these investments.

Decreased Advisory Fee Rate at IG Wealth

IG Wealth experienced a 1.4 basis point drop in its advisory fee rate, attributed to clients moving up wealth bands and a decrease in client cash balances. While this presents a challenge, it also indicates a shift towards higher-value client segments.

Challenges in Chinese Market

Despite a 30% year-over-year increase in ChinaAMC’s investment funds, the Chinese market remains volatile. Client asset gains were partially offset by equity fund outflows, highlighting the uncertainties in this region.

Lower Earnings at Northleaf

Northleaf’s earnings were lower than anticipated due to seasonality, accrual true-ups, and onetime items. However, strong fundraising activities indicate potential for future recovery.

Forward-Looking Guidance

Looking ahead, IGM Financial remains optimistic, emphasizing its strong financial position and plans to return increasing capital to shareholders in 2026. The company expects continued growth driven by key segments like IG Wealth and Mackenzie Investments, while acknowledging potential market volatility.

In conclusion, IGM Financial’s earnings call highlighted a period of significant achievement and strategic growth. The company’s record adjusted EPS and strong performance in core businesses set a positive tone, despite some challenges. With a focus on strategic investments and a strong financial outlook, IGM Financial appears well-positioned for future success.