IGM Financial (TSE:IGM) executives highlighted record earnings, rising client assets, and increased capital returns as they reviewed fourth-quarter and full-year 2025 results, while also fielding analyst questions on artificial intelligence, strategic investments, and capital allocation.
Record adjusted EPS and a constructive backdrop entering 2026
President and CEO James O’Sullivan said 2025 was “clearly a strong year” for the company, driven by growth in client assets across its wealth and asset management businesses. IGM reported adjusted earnings per share of CAD 4.61 for 2025, up 17% year-over-year and a record high. Fourth-quarter adjusted EPS was CAD 1.27, also described as a record.
Keith Potter, executive vice president and CFO, said adjusted EPS of CAD 1.27 in Q4 was up 21% year-over-year. He also noted 2025 expense growth of 4.2% was in line with guidance, and the company expects expense growth of 4% in 2026.
Capital return rises: NCIB activity and a higher dividend
Management emphasized capital return plans for 2026, citing both financial strength and proceeds tied to the Rockefeller transaction. O’Sullivan said IGM launched a normal course issuer bid (NCIB) in December for up to 5% of shares outstanding and has been “quite active,” with the intention to repurchase the full 5% over the remainder of the year.
Potter said the company returned CAD 263 million to shareholders in Q4, including CAD 130 million in share repurchases. He added the NCIB filed in December covers 11.8 million shares, or 5% of shares outstanding, and management intends to repurchase the maximum permitted under the bid.
IGM also increased its quarterly common dividend by 10% to CAD 0.62 per share. Potter said that prior to the increase, the last-twelve-month trailing cash dividend payout rate was 57% and 50% on a run-rate basis. Going forward, he said IGM will review the dividend if the payout is below 60%, while considering overall capital priorities and the market environment; in response to an analyst question, he indicated investors should expect “more of an annual view” on dividend reviews.
Wealth Management: IG Wealth momentum, plus Rockefeller and Wealthsimple growth
Damon Murchison, president and CEO of IG Wealth Management, said momentum at IG Wealth “accelerated” in Q4. Quarter-end assets under management and advisement (AUMA) reached a record CAD 159 billion, up 13% from a year earlier.
He cited multiple Q4 records, including:
- Gross flows of CAD 4.8 billion and sales of CAD 4.5 billion
- New client growth inflows of CAD 1.6 billion, up nearly 19% versus Q4 2024, with 81% from mass affluent and high net worth clients
- Total net inflows of CAD 694 million
- Net sales into IGM product of CAD 347 million, representing six consecutive quarters of positive net flows and sales
Murchison said momentum continued in January with adjusted net inflows of CAD 102 million and net sales into IGM product of CAD 704 million. He also noted total net inflows in January of CAD 3.4 billion included CAD 3.3 billion tied to institutional flows related to IGM’s Rockefeller investment, which he described as an example of cross-business collaboration.
Outside traditional investment flows, IG Wealth reported growth in adjacent businesses: mortgage funding increased 23% year-over-year, and new annualized insurance premiums rose 16% compared with 2024, according to Murchison.
On Rockefeller, client assets rose 31% year-over-year, driven by organic and inorganic growth and markets. Murchison said organic growth added $10.2 billion in client assets over the last 12 months, while the addition of 76 advisors during 2025 supported $15 billion in client assets over the same period.
On Wealthsimple, Murchison said AUA grew 74% over the last year, with sequential growth of 10% in Q4. Wealthsimple ended 2025 with 3.2 million clients, up 24% year-over-year.
Mackenzie: record assets, strong sales, and product launches
Luke Gould, president and CEO of Mackenzie Investments, said the firm ended Q4 with record-high assets of CAD 244 billion, up 2% in the quarter. He attributed the increase to investment returns and net sales of CAD 1.5 billion, adding that retail showed “continued momentum” with positive flows and meaningful year-over-year improvement.
Gould also highlighted CAD 2 billion of institutional awards in Q4 expected to fund in early 2026. He said Mackenzie’s January 2026 results marked its second-best January investment fund net sales in 25 years, with gross purchases up close to 100% in retail and net sales of CAD 134 million.
Mackenzie launched 23 new products in 2025, and Gould said sales momentum has been supported by products launched in the last 36 months. He also noted ongoing growth at affiliates:
- China AMC investment funds up 28% from last year
- Northleaf fundraising of CAD 5.8 billion in 2025, including CAD 1.5 billion in Q4
From a financial perspective, Potter said Mackenzie’s Q4 earnings of CAD 60.4 million were down slightly year-over-year, primarily due to lower net investment income and other items (CAD 2 million this quarter versus CAD 8.5 million last year, driven mainly by seed capital gains in the prior year). Excluding that item, he said earnings would have been up 6%.
Potter also flagged an expense reporting change: beginning in Q1 2026, certain investment management advisory expenses at Mackenzie (CAD 7 million in 2025) will be reclassified from operations and support to sub-advisory expenses, with retrospective reclassification.
Strategic investments and AI: Rockefeller monetization, Wealthsimple mix, and technology focus
Management discussed two strategic investment-related transactions announced during 2025: Rockefeller and Wealthsimple. O’Sullivan said IGM’s equity interest in Rockefeller “nearly doubl[ed] in two and a half years,” which he said validated the 2023 investment decision.
Potter provided details, stating IGM received pre-tax proceeds of $394 million from selling a small portion of its Rockefeller stake and receiving a distribution. Following the transaction and the impact of a long-term equity incentive program, IGM holds a 17.2% interest in Rockefeller valued at CAD 1.16 billion. Potter said the Rockefeller transaction contributed to unallocated capital of approximately CAD 1 billion.
Looking to 2026, Potter said proceeds used for share repurchases would represent a notional annualized earnings contribution of about CAD 27 million, or CAD 0.12 per share. He said Rockefeller’s contribution to IGM’s reported 2026 earnings is expected to be approximately break even, and excluding potential impacts from certain equity incentive programs, would be positive and in line with 2025. In Q&A, he said approximately $10 million is a reasonable number to use for 2026 Rockefeller earnings excluding incentive-program variability, while noting the variability could pull the reported contribution closer to breakeven.
Analysts also asked about the implications of market volatility for Wealthsimple valuations and crypto exposure. O’Sullivan and Potter emphasized that Wealthsimple is a “diversified platform” spanning trade, investing, banking, and savings, and Potter said crypto is a “very small component” of Wealthsimple’s AUA, while declining to provide more detail because it is a private company.
On AI, O’Sullivan said IGM is integrating AI tools to improve the advisor and client experience and has “a substantial project underway,” with plans to share more in the first half of the year. Murchison said IG Wealth views AI as an opportunity enabled by clean data and an integrated tech stack, with use cases including improving client meetings before, during, and after interactions. Gould said asset management clients “pay us for intellect, for process, and for investment edge,” and described AI and related tools as a natural evolution being integrated across investment processes, including within Mackenzie’s quant and multi-asset capabilities.
About IGM Financial (TSE:IGM)
IGM Financial is the largest non-bank-affiliated asset manager in Canada. The firm is part of the Power Financial group of companies, which includes Great-West Life, London Life, Canada Life, and Putnam Investments. IGM has two main operating divisionsasset management (operated through Mackenzie Investments) and wealth management (via its Investors Group Wealth Management and Investment Planning Counsel subsidiaries)that provide investment management products and services. IGM Financial had CAD 225.6 billion in assets under management, or AUM, and CAD 30.1 billion in assets under advisement at the end of May 2022.
