IGM Financial Inc. : Announces September 2020 Total Assets Under Management and Advisement and Net Flows
October 07, 2020 at 12:53 am EDT
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WINNIPEG, MB, Oct. 6, 2020 /CNW/ - IGM Financial Inc. (IGM) (TSX: IGM) has realigned our three reportable segments so that financial reporting and related disclosures better characterize our distinct business lines. The changes are intended to improve transparency into key drivers of each business, including Assets under advisement and Assets under management. The new segments as described below reflect the Company's internal financial reporting and performance measurement.
Wealth Management – Reflects the activities of operating companies that are principally focused on providing financial planning and related services to Canadian households. This segment includes the activities of IG Wealth Management and Investment Planning Counsel. These firms are retail distribution organizations who serve Canadian households through their securities dealers, mutual fund dealers and other subsidiaries licensed to distribute financial products and services. The majority of the revenues of this segment are derived from providing financial advice and distributing financial products and services to Canadian households. This segment also includes the investment management activities of these organizations, including mutual fund management and discretionary portfolio management services.
Asset Management – Reflects the activities of operating companies primarily focused on providing investment management services, and represents the operations of Mackenzie Investments. Investment management services are provided to a suite of investment funds that are distributed through third party dealers and financial advisors, and also through institutional advisory mandates to pension and other institutional investors.
IGM Financial today reported preliminary total consolidated net flows of $293.1 million as shown in Table 1. Total assets under management and advisement were $196.4 billion at September 30, 2020, compared with $196.9 billion at August 31, 2020 and $185.1 billion at September 30, 2019. Assets under management and advisement are shown in Table 2.
Wealth Management net client flows were $2.4 million during September 2020 compared to net client flows of ($284.0) million in September 2019. Wealth Management assets under advisement were $125.0 billion at September 30, 2020, compared with $125.7 billion at August 31, 2020 and $121.7 billion at September 30, 2019. IG Wealth Management net client flows are ($0.6) million compared to ($137.9) million in September 2019. IG Wealth Management assets under advisement were $97.5 billion at September 30, 2020, compared with $98.0 billion at August 31, 2020 and $94.5 billion at September 30, 2019. Investment Planning Counsel net client flows are $3.0 million compared to ($147.1) million in September 2019. Investment Planning Counsel net assets under advisement were $27.5 billion at September 30, 2020, compared with $27.6 billion at August 31, 2020 and $27.2 billion at September 30, 2019.
Asset Management reported net flows of $308.1 million in September 2020 compared to net flows of ($44.5) million in September 2019. Within the Asset Management segment, assets under management were $147.3 billion at September 30, 2020, compared with $147.5 billion at August 31, 2020 and $139.0 billion at September 30, 2019.
Table 1 - Gross and Net Flows
Month ended September 30, 2020
Wealth Management
Asset Management
($ millions) (unaudited)
IG Wealth Management
Investment Planning Counsel
Total
Mackenzie
IGM
Financial
Gross flows
Mutual fund gross sales
704.7
36.6
741.3
1,227.7
1,969.0
Dealer gross inflows
817.2
298.0
1,115.2
-
1,115.2
Net flows
Mutual fund net sales
(128.3)
(27.1)
(155.4)
501.4(1)
346.0
ETF net creations(2)
-
-
-
(154.0)(3)
(154.0)
Investment fund net sales
(128.3)
(27.1)
(155.4)
347.4
192.0
Institutional SMA net sales
-
-
-
(39.3)(4)
(39.3)
Managed asset net sales
(128.3)
(27.1)
(155.4)
308.1
152.7
Other dealer net flows
127.7
30.1
157.8
-
140.4(5)
Total net flows
(0.6)
3.0
2.4
308.1
293.1(5)
Table 2 - Assets under Management and Advisement
($ millions) (unaudited)
September 2020
August 2020
September 2019
% Change Last Month
% Change
YOY
Wealth Management
IG Wealth Management
Assets under management
92,874
93,516
90,779
(0.7%)
2.3%
Other Assets under advisement
4,664
4,530
3,750
3.0%
24.4%
Assets under advisement
97,538
98,046
94,529
(0.5%)
3.2%
IPC
Assets under management
5,139
5,166
5,365
(0.5%)
(4.2%)
Other Assets under advisement
22,345
22,453
21,811
(0.5%)
2.4%
Assets under advisement
27,484
27,619
27,176
(0.5%)
1.1%
Total
Assets under management
98,013
98,682
96,144
(0.7%)
1.9%
Other Assets under advisement
27,002
26,976
25,553
0.1%
5.7%
Assets under advisement
125,015
125,658
121,697
(0.5%)
2.7%
Asset management
Mackenzie
Mutual funds
63,599
63,288
59,275
0.5%
7.3%
ETFs
3,330
3,482
2,160
(4.4%)
54.2%
Investment funds
66,929
66,770
61,435
0.2%
8.9%
Institutional SMA(6)
7,671
7,693
4,957
(0.3%)
54.8%
Total (ex sub-advisory to Wealth
Management)
74,600
74,463
66,392
(0.2%)
12.4%
Sub-advisory to Wealth Management
72,660
73,066
72,566
(0.6%)
0.1%
Total
147,260
147,529
138,958
(0.2%)
6.0%
ETF's distributed to third parties
3,330
3,482
2,160
(4.4%)
54.2%
ETF's held within IGM investment funds
4,136
4,028
1,891
2.6%
118.7%
Total ETFs
7,466
7,510
4,051
(0.6%)
84.3%
Consolidated
Assets under management
172,613
173,145
162,536
(0.3%)
6.2%
Other assets under advisement
23,808
23,793
22,613
0.1%
5.3%
Assets under management and
advisement(7)
196,421
196,938
185,149
(0.3%)
6.1%
Preliminary average assets under management and advisement for the quarter to date are set out in Table 3.
Table 3 - Average Assets under Management and Advisement
($ millions) (unaudited)
Quarter to date 2020
Wealth Management
IG Wealth Management
Assets under management
92,543
Other assets under advisement
4,502
Assets under advisement
97,045
IPC
Assets under management
5,144
Other assets under advisement
22,144
Assets under advisement
27,288
Total
Assets under management
97,687
Other assets under advisement
26,640
Assets under advisement
124,327
Asset management
Mackenzie
Mutual funds
62,666
ETFs
3,361
Investment funds
66,027
Institutional SMA(6)
7,672
Total
73,699
Sub-advisory to Wealth Management
72,052
Total
145,751
ETFs distributed to third parties
3,361
ETFs held within IGM investment funds
3,864
Total ETFs
7,225
Consolidated
Assets under management
171,386
Other assets under advisement
23,497
Assets under management and advisement(8)
194,883
1 During September 2020, an institutional investor which includes Mackenzie mutual funds in its investment offerings made fund allocation changes which resulted in gross and net mutual fund sales of $289.5 million.
2 ETF net creations excludes $154.5 million in ETF net creations to Mackenzie, IG Wealth Management and Investment Planning Counsel mutual funds.
3 During September 2020, an institutional investor redeemed from Mackenzie ETFs resulting in net redemptions of $324.5 million.
4 Excludes net new money relating to sub-advisory mandates to the Wealth Management segment.
5 $17.4 million in Mackenzie mutual fund net new money through the Wealth Management segment have been eliminated on consolidation.
6 Excludes sub-advisory to Wealth Management segment.
7 Within total assets under management and advisement $3.2 billion in Mackenzie mutual funds distributed through the Wealth Management segment eliminates on consolidation.
8 Within average total assets under management and advisement, $3.1 billion in Mackenzie mutual funds distributed through the Wealth Management segment eliminates on consolidation.
Glossary of Terms
Mutual fund gross sales, net sales and assets under management reflect the results of the mutual funds managed by the respective operating companies, and in the case of the case of the Wealth Management segment also include other discretionary portfolio management services provided by the operating companies, including separately managed account programs.
"ETF's" represent exchange traded funds managed by Mackenzie.
Institutional SMA represents investment advisory and sub-advisory mandates to institutional investors through separately managed accounts.
"Other dealer net flows" and "other assets under advisement" represents financial savings products held within client accounts at the Wealth Management operating companies that are not invested in products or programs where these operating companies perform investment management activities. These savings products include investment funds managed by third parties, direct investment in equity and fixed income securities and deposit products."
"Assets under advisement" represents all savings products held within client accounts at the Wealth Management operating companies.
"Net flows" represents the total net contributions, in cash or in kind, to client accounts at the Wealth Management operating companies and the overall net sales to the Asset Management segment.
IGM Financial Inc. is one of Canada's leading diversified wealth and asset management companies with approximately $196 billion in total assets under management and advisement. The company provides a broad range of financial and investment planning services to help more than two million Canadians meet their financial goals. Its activities are carried out principally through IG Wealth Management, Mackenzie Investments and Investment Planning counsel.
A MEMBER OF THE POWER CORPORATION GROUP OF COMPANIES
IGM Financial Inc. is a Canada-based wealth and asset management company. The Company operates through three segments: Wealth Management, Asset Management and Strategic Investments and Other. The Wealth Management segment includes the activities of operating companies that are principally focused on providing financial planning and related services to Canadian households. The Asset Management segment includes the activities of operating companies primarily focused on providing investment management services and represents the operations of Mackenzie Investments. Investment management services are provided to a suite of investment funds. The Strategic Investments and Other segment primarily represent the key strategic investments made by the Company, including China Asset Management Co., Ltd., Great-West Lifeco Inc., Rockefeller Capital Management, Northleaf Capital Group Ltd., Wealthsimple Financial Corp., and Portage Ventures LPs, as well as Unallocated capital.