Q1 2024 IGM Financial Inc Earnings Call

Operator: Thank you for standing by. This is the conference operator. Welcome to the IGM Financial first quarter 2024 analyst call and webcast. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during a conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Kyle Martens, Treasurer and Head of Investor Relations. Please go ahead.

Thank you for standing by this is the conference operator, welcome to the AGM financial first quarter 2024 analyst call and webcast.

As a reminder, all participants are in listen only mode.

And the conference is being recorded.

After the presentation, there will be an opportunity to ask questions who joined the question you May Press Star then one on your telephone keypad.

Need assistance during the conference call you May signal, an operator by pressing Star then zero.

I would now like to turn the conference over to Kyle Martin Treasurer, and head of Investor Relations. Please go ahead Sir.

Kyle Martens: Thank you, Carl. Good morning, everyone, and welcome to IGM Financial's 2024 First Quarter Earnings Call. Joining me on the call today are James O'Sullivan, President and CEO; Damon Murchison, President and CEO, IG Wealth Management; Luke Gould, President and CEO, McKinsey Investments; and Keith Potter, Executive Vice President and CFO, IGM Financial.

Kyle Martens: Thank you Carl and good morning, everyone and welcome to <unk> Financial's 2024 first quarter earnings call.

Kyle Martens: Joining me on the call today, we have James Osullivan, President and CEO, Jim financial Damon.

Kyle Martens: Damon Murchison President and CEO.

Kyle Martens: Management.

Kyle Martens: President and CEO Mackenzie investments.

Keith Potter Executive Vice President and CFO, Jim financial.

Kyle Martens: Before we get started, I would like to draw your attention to the following slides.

Kyle Martens: Before we get started I would like to draw your attention to our cautions concerning forward looking statements on slide three of the presentation.

Kyle Martens: refer to our cautions concerning forward-looking statements on slide 3 of the presentation. Slides 4 and 5 summarize non-IFRS financial measures and other financial measures used in this material.

Kyle Martens: Slides four and five summarized nanhai for us financial measures and other financial measures used in this material.

Kyle Martens: And on slide six, we provide a list of documents that are available on our website related to IGM's first quarter results.

Kyle Martens: Slide six we provide a list.

Kyle Martens: And that's that are available on our website related to <unk> first quarter results.

I'll turn it over to James.

Unknown Executive: All right, good morning, everyone, and thank you, Kyle. Turning to slide eight, we delivered a record high first quarter adjusted EPS of $0.94, up 8% year over year, driven in part by strong asset growth during the past 12 months. AUM&A, including our proportionate share of strategic investments, reached $422 billion at the end of the first quarter, up 21% relative to the same time last year. Both our wealth and asset management segments contributed to asset growth, with each and every company increasing their AUM&A over the past year. I'd remind you that our reported Q1 2024 net outflows of $128 million exclude our strategic investments, each of which experienced positive net flows during the quarter.

James Osullivan: Good morning, everyone and thank you Kyle turning to slide eight.

James Osullivan: We delivered a record high first quarter adjusted EPS of <unk> 94 cents.

James Osullivan: 8% year over year, driven in part by strong asset growth during the past 12 months.

James Osullivan: Oh, M&A, including our proportionate share of strategic investments reached $422 billion at the end of the first quarter.

This is up 21% relative to the same time last year.

James Osullivan: Both our wealth and asset management segments contributed to asset growth with each and every company increasing the rate.

James Osullivan: Over the past year.

James Osullivan: I'd remind you that our reported Q1 2024 net outflows of 128 million exclude our strategic investments each of which experienced positive net flows during the quarter.

Unknown Executive: We spoke to our approach to capital allocation during our Investor Day and on our previous earnings call. Our number one priority continues to be investing to position our core businesses for continued long-term success and growth. Our current strong dividend continues to be very important to us, and, as we know, attractive to our shareholders. And we have addressed our approach to share buybacks, where we will seek to offset dilution where applicable and opportunistically repurchase additional shares in consideration of other capital allocation priorities. During the first quarter, we began acquiring shares under our NCIB at an attractive price. We returned $146 million of capital to shareholders during the quarter, including $12 million through share repurchases.

James Osullivan: We spoke to our approach to capital allocation during our Investor day and on our previous earnings call.

James Osullivan: Our number one priority continues to be investing to position our core businesses for continued long term success and growth.

Our current strong dividend continues to be very important to us and we know attractive to our shareholders.

James Osullivan: And we have addressed our approach to share buybacks, where we will seek to offset dilution where applicable and opportunistically repurchase additional shares in consideration of other capital allocation priorities.

James Osullivan: During the first quarter, we began acquiring shares under our and CIB at an attractive price.

James Osullivan: We returned $146 million of capital to shareholders during the quarter, including $12 million through share repurchases.

Unknown Executive: We continue to be very well positioned financially with reasonable leverage and over $400 million in unallocated capital on the balance sheet as of March 31. We remained in the market, repurchasing shares through the month of April, buying an additional 440,000 IGM shares for $15 million. Finally, IGM continues to be recognized as a top employer. In addition to being recognized as a top 100 employer in Canada by Mediacorp, during the first quarter, we received further recognition as one of Canada's greenest employers, a top diversity employer, and a top employer in the province of Manitoba.

James Osullivan: We continue to be very well positioned financially.

James Osullivan: With reasonable leverage.

James Osullivan: And over $400 million in unallocated capital on the balance sheet as of March 31.

James Osullivan: We remained in the market repurchasing shares through the month of April buying an additional 440000 ATM shares for $15 million.

James Osullivan: Finally, <unk> continues to be recognized as a top employer.

James Osullivan: In addition to being recognized as a top 100 employer in Canada by Media Corp.

James Osullivan: During the first quarter, we received further recognition as one of Canada's greenest employers a top diversity employer and a top employer in the province of Manitoba.

Unknown Executive: Our collective achievements and progress across IGM Financial are fueled by our diverse and highly engaged workforce... We've invested considerable time and effort into shaping a leading and deeply rewarding experience for our employees and are proud to see this continue to be recognized. Moving to the current environment for our businesses, starting with recent financial market conditions on slide 9. Even after factoring in a softer April, we've seen strong growth in equity markets year to date across all major economies around the world, adding to the roughly 10% average return achieved for our clients in 2023. For example, looking at the Canadian fund industry on slide 10. The first quarter's industry net flows were effectively zero, with net flows into income-oriented solutions and alternatives offset by outflows elsewhere.

James Osullivan: Our collective achievements and progress across our GM financial are fueled by our diverse and highly engaged teams.

James Osullivan: We have invested considerable time and effort into shaping a leading and deeply rewarding experience for our employees and are proud to see this continue to be recognized.

James Osullivan: Shifting to the current environment for our businesses, starting with recent financial market conditions on slide nine.

James Osullivan: Even after factoring in a softer April we've seen strong growth in equity markets year to date across all major economies around the world, adding to the roughly 10% average return achieved for our clients in 2023.

Yeah.

James Osullivan: Looking at the Canadian fund industry on Slide 10.

James Osullivan: The first quarter's industry net flows were effectively zero with net flows into income oriented solutions and alternatives offset by outflows elsewhere.

Unknown Executive: While high interest rates and inflation continue to weigh on Canadians... We are seeing strength in a number of areas, including an extended period where being invested in the financial markets has been well rewarded. Reporting Investor Confidence Levels Over the Long Term A demonstrated ability at IG Wealth to attract high net worth and mass affluent client relationships through a wide range of business cycles. At McKenzie, we see strength in distribution relationships with wealth management partners, including PFSL and WealthSimple.

James Osullivan: While high interest rates and inflation continue to weigh on Canadians.

James Osullivan: We are seeing strength in a number of areas including.

James Osullivan: And extended period, where being invested in the financial markets has been well rewarded.

James Osullivan: Supporting investor confidence levels over the long term.

James Osullivan: Demonstrated ability at well to attract high net worth and mass affluent client relationships through a wide range of business cycles.

James Osullivan: At Mackenzie, we see strengthen distribution relationships with wealth management partners, including P. F S L and well simple.

Unknown Executive: And finally, there has been significant growth across our strategic investments that are each positioned to take advantage of attractive secular trends in the wealth and asset management industries. Slide 11 outlines IGM's consolidated average AUM&A and the record high Q1 adjusted EPS. And on slide 12, we show the strong growth in net earnings at our Wealth and Asset Management segment, up 7% and 12%, respectively. Keith will speak to this in more detail later in the call, but I'd like to highlight here that the increase in earnings power has been supported by very strong asset growth over the past year.

James Osullivan: And finally, there has been significant growth across our strategic investments that are each positioned to take advantage of attractive secular trends and the wealth and asset management industries.

James Osullivan: Slide 11 outlines Agm's consolidated average M&A and the record high Q1 adjusted EPS.

James Osullivan: And on Slide 12, we show the strong growth in net earnings at our wealth and asset management segments up 7% and 12% respectively.

James Osullivan: Keith will speak to this in more detail later on the call, but I'd like to highlight here that the increase in earnings power has been supported by very strong asset growth over the past year.

Unknown Executive: Turning to slide 13, where we show double-digit AUM&A growth over the past 12 months at almost all of the businesses, including IG Wealth Management, which Damon will speak to next, along with the wealth management segment as a whole, and so I'll pass it over to Damon.

James Osullivan: Turning to slide 13, where we show double digit au M&A growth over the past 12 months, almost all of the businesses, including wealth management.

James Osullivan: Which Damon will speak to next along with the wealth management segment as a whole and so I'll pass it over to Dana.

Damon Murchison: Thank you, Jaemes, and good morning, everyone. Turn to slide 15 for WealthManager's first quarter highlights, including IG Wealth, Rockefeller, and WealthCenter. I.G. Wealth entered the quarter with AUA of $128 billion, up a solid 10% relative to last year and up 5.6% during the quarter, driven by financial markets. Gross inflows of $3.7 billion represent another strong quarter, the second-best first quarter gross inflows in our history. Net inflows were $223 million during the first quarter.

Dana: Thank you James and good morning, everyone, turning to slide 15, and wealth management's first quarter highlights, including IV, well Rockefeller and well simple.

Dana: <unk> ended the quarter with $128 billion up a solid 10% relative to last year and a 5% five 6% during the quarter driven by financial markets.

Dana: Gross inflows of $3 $7 billion represented another strong quarter and our second best first quarter gross inflows in our history.

Dana: Net inflows were $223 million during the first quarter. This excludes $177 million outflow related to the IGD defined benefit pension plan, which was transferred in January to an estimated count at Mackenzie I.

Damon Murchison: This excludes the $177 million outflow related to the IG-defined benefit pension plan, which was transferred in January to an SMA account at McKinnon. IGS growth outflows as a percentage of average AUA over the last 12 months remained well below the industry and ended the quarter at 11%, while the industry redemption rate was closer to 16%. Both rates remain largely unchanged versus Q4.

Dana: <unk> gross outflows as a percentage of average over the last 12 months remained well below the industry and ended the quarter at 11%, while the industry redemption rate was closer to 16%.

Dana: If rates remain largely unchanged versus Q4.

Damon Murchison: Client acquisition during Q1 was a continuous trend, with new million-dollar growth inflows representing approximately 28% of total new client growth inflows. On a later slide, I'll highlight the growing strength of our insurance business and touch on how we expect to further digitalize this business going forward. I'll also make some comments on our number one share voice ranking in the Canadian wealth marketplace during the call. Lastly, I'll provide an update on Rockefeller and Walt Dimple, both of whom continue to execute well on their respective growth strategies. Turn to slide 16.

Dana: Client acquisition. During Q1 was the continued strength with new million dollar growth.

Dana: Inflows, representing approximately 28% of total new client gross inflows.

Dana: Later slides I'll highlight the growing strength in our insurance business and touch on how we expect to further digitalize this business going forward.

Dana: Also make some comments on our number one share of voice breaking in the Canadian wealth marketplace. During the call Lastly, I'll provide an update on the Rockefeller well simple both of whom continue to execute well on their respective growth strategies.

Dana: Turning to slide 16.

Damon Murchison: CIG's Q1 flow. Our growth inflows continue to remain strong. In the last 10 quarters, we've seen gross inflows in excess of $3 billion, and we remained above the $3 billion mark during the first quarter for each of the last five years. However, outflows continue to be partial in nature as Canadians continue to pay down debt and fund their lifestyles through a difficult economic environment marked by elevated inflation and interest rates. As our advisors work with their clients to navigate the current economic environment, we are confident that our clients will be better positioned to save and build their wealth when rates begin to fall and normalize. Turn to slide 17. I'll make a few points here. To the left, we've excluded the transfer from the IG pension, the Defined Benefit Pension Plan, from the gross outflows during the quarter.

Dana: You can see Q1 flows.

Dana: Gross inflows continued to remain strong.

Dana: Eight of the last 10 quarters, we've seen gross inflows in excess of $3 billion and we remained above the $3 billion Mark during the first quarter for each of the last five years.

Dana: Outflows continue to be partially nature as Canadians continue to pay down debt and fund their lifestyles do a difficult difficult economic environment marked by elevated inflation and interest rates similar to last week. The three quarters. This remains an industry trend.

Dana: Advisory work with their clients to navigate the current economic environment. We are confident that our clients will be better positioned to save and build their well when rates begin to fall and normalize.

Speaker Change: Turning to slide 17, I'll make a few points here.

Speaker Change: You know the top left we've excluded the transfer from the IV pension defined benefit pension plan from the gross outflows during the quarter to the right. The outflows right you can see our ITM solution as a percentage of total <unk> continues to remain strong.

Damon Murchison: To the right, the outflow rate, you can see our IGM solution as a percentage of total AUA continues to remain strong. We continue to see an opportunity with our client cash, GIC, and HIZA, including dollar average costing back into the markets over time. Lastly, our investment performance continues to deliver strong relative performance, with 65% of our assets ranked 4 and 5 stars by Morningstar, up from 59% last quarter, and 93% of our investment solutions ranked 3 stars or higher. Turn to slide 18.

Speaker Change: We continue to see an opportunity with our client cash GIC and high debt, including dollar average costing back into the markets over time.

Speaker Change: Lastly, our investment performance continued to deliver strong relative performance with 65% of our assets ranked four or five stars by Morningstar up from 59% last quarter and now.

Speaker Change: 93% of our investment solutions ranked three stars or higher.

Speaker Change: Turning to slide 18, our.

Damon Murchison: Our value proposition continues to resonate, and we continue to see strong new client acquisition, particularly with massive float and high net worth clients. During the first quarter, we had $445 million in growth inflows from newly acquired Mass Affluent clients between $250,000 and $1 million. Representing 45% of our gross inflows from newly acquired clients. Well, we had $273 million in gross inflows from newly-acquired clients, over a million dollars, representing approximately 28% of our gross inflows from newly-acquired clients during the quarter. This is a significant increase from 15% where we were in Q1 of 2018. The first quarter was our second highest quarter on record in gross inflows from newly acquired clients over a million dollars.

Speaker Change: Our value proposition continues to resonate and we continue to see strong new client acquisition, particularly with mass affluent and high net worth clients.

Speaker Change: During the first quarter, we had $445 million in gross inflows from newly acquired mass affluent clients between $250000 and $1 billion.

Speaker Change: Representing 45% of our gross inflows from newly acquired clients.

Speaker Change: Well, we had $273 million in gross inflows from newly acquired clients over $1 million, representing approximately 28% of our gross inflows from newly acquired clients. During the quarter. This is a significant increase from 15%, where we are where we were in Q1 of 2018. The first quarter was our second highest quarter on record and gross inflows from newly acquired clubs.

Speaker Change: With over a million dollars put.

Damon Murchison: Put together, Mass Affluent and High Net Worth growth inflows from newly acquired clients represented 73% of growth inflows from newly acquired clients in Q1, up from 56% in Q1 of 2018. As we continue to execute our strategy, we fully expect these percentages to increase over time. Turn to slide 19.

Put together mass affluent and high net worth gross inflows when you acquire clients represented 73% of gross inflows for newly acquired clients.

Speaker Change: In Q1 up from 56% Q1 of 2018.

Speaker Change: As we continue to execute our strategy, we fully expect these percentages to increase over time.

Speaker Change: Turning to slide 19. This shows the productivity of our advisors and increasingly important metric we continue to see strong productivity as we execute against our segmented advice model and invest in further digitalization of our business. We expect this to see this continuation trend.

Damon Murchison: This shows the productivity of our advisors, an increasingly important metric. Continuously strong productivity as we execute against our segmented advice model and invest in further digitalization of our business. We expect to see this continuation trend over time. Turn to slide 20.

And over time.

Damon Murchison: I want to take a moment to speak about the progress in our insurance business. The insurance business has been growing steadily, and during the first quarter, it recorded our best Q1 first-year commission since 2017. It was also our highest average case size ever in a quarter as measured by first year. As you know, first-year commissions are a key indicator of the health of an insurance business.

Speaker Change: Turning to slide 20, I wanted to take a moment to speak about the progress in our insurance business.

Speaker Change: The insurance business has been growing steadily and during the first quarter. We recorded our best Q1 first year Commission since 2017.

Speaker Change: Also our highest average case size ever in a quarter as measured by first year commissions.

Speaker Change: As you know first year commissions are a key indicator of the health of an insurance business over.

Damon Murchison: Over the last five years, we've seen our first-year commissions grow by 36%. The increase in average case size reflects our success in attracting and working with more large and high net worth clients. Our advisors are leveraging the tools, training, and access to insurance experts through our private wealth planning experience to both identify and meet our client's insurance needs, further opportunities for growth in this business. And during last year's Investor Day, I spoke about our investment focus as it relates to insurance and our desire to continue to invest in this part of our business, and that's exactly what we've been doing.

Speaker Change: Over the last five years, we've seen our first year commissions grew by 36%.

Speaker Change: The increase in average case size reflects our success in attracting and working with more mass affluent and high net worth points are.

Our advisors are leveraging the tools training and access to insurance experts through our private wealth planning experience to both identify and meet our clients' insurance needs. We see further opportunities for growth in this business during last year's Investor Day, I spoke about our investment focus as it relates to insurance and our desire to continue to invest in this.

Speaker Change: Part of our business and that's exactly what we've been doing.

Damon Murchison: Two weeks ago, we announced a partnership with Life Design Analysis, a leading-edge FinTech solution provider in the insurance space, so that we can leverage our sales enablement technology to allow us to provide a better advisor and client experience as it relates to insurance. With the strength of this business and the investments in digitalization, we expect to deepen our market penetration and drive further growth. Turn to slide 21.

Speaker Change: Two weeks ago, we announced the partnership with life design analysis, a leading edge fintech solutions provider in the insurance space. So.

Speaker Change: So that we can leverage our sales enablement technology to allow us to provide a better advisor and client experience as it relates to insurance.

Speaker Change: With the strength of its business and the investments in digitalization, we expect that deepen our market penetration and drive further growth.

Damon Murchison: This represents another success factor in our journey—recognition of IG Wealth as the number one wealth brand from an earned media perspective. Along with our brand's 25% share of voice in the Canadian wealth marketplace, the breadth of our spokespeople is also front and center. This is more than an accolade for our people in print, on radio, TV, and in the digital space.

Speaker Change: Turning to slide 21. This represents another success factor in our journey.

Speaker Change: Recognition of I do well as a number one wealth brand from an earned media perspective.

Speaker Change: Along with our brand is 25% share of voice in the Canadian wealth marketplace. The breath of our spokespeople is also front and center.

Speaker Change: This is more than an accolade of our people in print and radio TV and in digital space. It represents our voice and our views being heard not just by our clients, but our future clients.

Damon Murchison: It represents our voice and our views being heard, not just by our clients but by our future. We are in front of the country showcasing our knowledge of financial planning, insurance, tax planning, banking, and investment strategy, providing our thought leadership, and speaking to our advice capability. This will continue to be an important part of executing our strategy and providing us with a platform to reach our key client segments. Now turning to slide 22.

Speaker Change: We are in front of the country showcasing our knowledge on financial planning insurance tax planning banking and investment strategy, providing our thought leadership and speaking to our advice capabilities.

Speaker Change: We'll continue to be an important part of executing our strategy and providing us with a platform to reach our key client segments now.

Speaker Change: Now turning to slide 22.

Damon Murchison: I'll provide some updates on Rockefeller's program. Fine assets were up 27% year over year and were approximately 9% during the quarter, driven by strong markets as well as continued inorganic and organic growth. Over the last 12 months, organic growth has driven $3.3 billion in client assets. Rockefeller also continued its strong acquired production during the quarter. Turn to slide 23.

Speaker Change: I'll provide some updates on rockefeller's program.

Speaker Change: Alright assets were up 27% year over year and were approximately 9% during the quarter driven by strong markets as well as continued inorganic and organic growth.

Speaker Change: Over the last 12 months organic brokers driven $3 3 billion in client assets. Rockefeller also continue to see strong acquired production during the quarter.

Speaker Change: Turning to slide 23.

Damon Murchison: Wealthsimple saw another incredible strong quarter as they continue to reinforce themselves as an important part of the Canadian wealth management ecosystem. WellSimple AUA in Q1 ended at $39 billion, advancing by an incredible 25% or $7.7 billion during the quarter, another record quarter of growth. On a year-over-year basis, AUA was up 82%. The client count also expanded by 12% year-over-year to 2.4 million clients. Wealthsimple has continued to prove its ability to execute and continues to deliver strong results. And with that, I'll turn it over to Luke Gould. Great. Thanks, Damon.

Speaker Change: Well simple so another incredible strong quarter as they continue to reinforce themselves. It is an important part of the Canadian wealth management ecosystem well.

Speaker Change: Well simple way in Q1 ended at $39 billion in bathroom by an incredible 25% or $7.7 billion during the quarter another record quarter of growth.

On a year over year basis.

Speaker Change: 82%.

Speaker Change: Client count also expanded by 12% year over year to 2.4 million clients.

Speaker Change: Well simple is continuing to prove their ability to execute and continues to deliver strong results.

Speaker Change: With that I'll turn it over to Luke Gould.

Luke Gould: Thanks, Dave and good morning, everybody.

Luke Gould: So turn to page 25, for a few comments on the quarter. First, McKinsey's AUM reached $203.7 billion, up 4.1% in the quarter, driven by strong investment returns for clients. Client returns were 5.5% in the quarter and just over 10% in the last year. On point two, investment funds experienced net redemptions of $194 million during the quarter, which continues to be in line with the industry environment. While returns generated for clients have rewarded clients for remaining committed to financial plans through volatile markets, it did remain challenging for industry flows during RSVC's. In Point 3, the share of our assets in 4 and 5-star funds remained unchanged quarter-over-quarter at 51%.

Luke Gould: So <unk> 25, a few comments on the quarter that first Mackenzie say U M reached $203 7 billion up four 1% in the quarter driven by strong investment returns for clients.

Luke Gould: Returns were five 5% in the quarter and or just over 10% in the last year.

Luke Gould: On 0.2 investment funds experienced net redemptions of 194 million during the quarter, which continues to be in line with the industry environment well.

Luke Gould: While returns generally for clients are rewarded clients for remaining committed to our financial plans through volatile markets. It did remain challenging for industry flows during RSV season.

Luke Gould: And 0.3, the share of our assets in four and five star funds remained unchanged quarter over quarter at 51%.

Luke Gould: And on the bottom left, I'd highlight a couple of noteworthy developments of the quarter. First, we launched a number of new funds advised for our Global Quant Equity Boutique in Boston. This includes a World Low Vol ETF, a Global Shrink Compliant Equity Fund, and an Emerging Markets x China Fund that complements our China Fund sub-advised by ChinaMC. As reviewed yesterday, our Global Kwan Equity Boutique has delivered exceptional performance among world leaders for both its institutional and retail strategies since its inception at McKinsey in 2017.

Luke Gould: And in the bottom left I'd highlight a couple of noteworthy developments of the quarter.

Luke Gould: First we have launched a number of new funds advised for global Quant equity boutique in Boston. This includes a world low volt Etfs are global shrank compliant equity fund and in emerging markets ex China fund that complements our China funds sub advised by trying to M C.

Luke Gould: As reviewed Investor day, our global corn equity boutique has delivered exceptional performance among world leaders for both institutional and retail strategies since its inception at Mackenzie in 2017.

Luke Gould: These new strategies we launched for retail supplement three existing retail strategies that have exceptional performance that we're leaning into with this boutique, and we are actively cultivating a following. This includes our global equity, emerging markets, and our PE replication mandate. We're also very proud of being awarded the lead sponsorship for the United Nations PRI in-person event, which is to be hosted in Toronto in October. This is the world's preeminent responsible investing event, and we're very pleased to bring our support through our focus on sustainable investing to make this year's conference a success.

Luke Gould: These two strategies, we watch for retail supplement three existing retail strategies that have exceptional performance that we're leaning into with this boutique and we are actively cultivating a folding. This includes our global equity emerging markets and our P/e replication mandates.

Luke Gould: We're also very proud of being awarded the lead sponsorship for the United Nations peer I in person event, which has to be hosted confronted by October.

Luke Gould: This is the world's preeminent responsible investing event and we're very pleased to bring her support through our focus on sustainable investing to make this year's conference a success.

Luke Gould: In the top right, China MC's growth continues to impress, with investment funds increasing by 14% during the first quarter alone and 26% over the last 12 months. This growth continues to be primarily driven by strong investment fund net flows, with 201 billion won or $35 billion Canadian in net flows during Q1, and Norfleet delivered $0.7 billion in new commitments. Since our initial investment in 2021, Norfleet has averaged about a billion dollars in new commitments every single quarter.

Luke Gould: In the top right trying to seize growth continues to impress with investment funds, increasing by 14% during the first quarter alone and 26% over the last 12 months.

Luke Gould: This growth continues to be primarily driven by strong investment fund net flows with 201 billion won worth 35 billion Canadian and that flows during Q1.

Luke Gould: And normally delivered two 7 billion in new commitments.

Luke Gould: Since our initial investment 2021 north east has averaged about $1 billion of new commitments every single quarter.

Luke Gould: Turn to page 26, and you can see the trended history of McKinsey Debt Flows. On the right, you can see the last 12-month trending net sales are relatively stable, and the chart on the left shows that net redemptions of $195.4 million were down slightly from slight net inflows last year.

Turning to page 26, you can see the trend has a history of Mackenzie that flows.

Luke Gould: On the right you can see the last 12 months trending that sales are relatively stable and the chart on the left brings out that net redemptions of 195 4 million was down slightly from slight net net inflows last year.

Luke Gould: You can also see in the chart on the left that we had net inflows of ETFs of $332 million that offset mutual fund net outflows of $536 million. On page 27, on the bottom right, you can see that our overall net investment fund sales are in line with industry peers. In the table on the left, you can see that retail mutual funds continue to be impacted by industry dynamics, while we saw positive flows into retail ETFs as well as institutional investment funds.

Luke Gould: You can also see in the chart and left that we had net inflows of Etfs of $332 million that offset mutual fund net outflows of $536 million.

Luke Gould: On page 27 on the bottom right you can see that our overall net investment fund sales is in line with industry peers.

Luke Gould: In the table on the bottom left you can see that retail mutual funds continues to be impacted by industry dynamics. While we saw positive flows in retail etfs as well as institutional investment funds.

Luke Gould: On our retail floor, as I just commented, a few of our larger mandates have had soft or near-term performance that's led to an increased redemption rate. However, long-term performance on these mandates remains excellent, and they remain disciplined as they invest according to their respective approaches, and I'll provide color on the next slide. Institutional investment fund net sale improvements were driven by our partnerships with Pramerica and Wealthsimple. Turn to page 28.

Luke Gould: On a retail store or was it just comment a few of our larger mandates have had softer near term performance has led to an increased redemption rate.

Luke Gould: Long term performance of these mandates remains excellent and they remained disciplined as they invest according to their respective approaches and I'll provide color on the next slide.

Luke Gould: Institutional investment fund net sale improvements were driven by our partnerships with primerica and well simple.

Luke Gould: Turning to page 28, you can see our performance in net sales for our retail mutual funds by boutique.

Luke Gould: Here you can see our performance and net sales for our retail mutual funds by boutique. You'll note at the bottom, this quarter we've added our retail ETF net creations, and this will be a standing disclosure going forward. You can see we have strong long-term performance and evolving performance across a number of boutiques, and we have compelling mandates in a number of categories and demand that we're leaning into. On this slide, as mentioned, I'd highlight that Bluewater and Greenchip have had softer near-term performance within their categories, and this has led to increased redemption rates.

Luke Gould: You'll notice the bottom this quarter, we've added our retail ETF net creations and this will be a standing disclosure going forward.

Luke Gould: You can see what a strong long term performance and a bump in performance across a number of boutiques and we have compelling mandates and number of categories and demand that we're leaning into.

Luke Gould: On this slide as mentioned I'd highlight the blue water and Green chip have had softer near term performance within their categories and this has led to increased redemption rates.

Luke Gould: And I would reiterate that they each have very strong long-term track records, and they continue to be disciplined within their respective approaches and grow sales into these mandates to remain consistent. As mentioned in previous calls, we're on a trailblazing journey bringing both private asset classes and quant investing to retail. In the fifth column to the right, you can see our global quant equity boutique, and they've delivered very strong track records among the top in the world since joining in 2017. And they actually own all these performance numbers with the exception of the 10-year number.

Luke Gould: And I would reinforce the each had very strong long term track records and they continue to be disciplined within the respective approaches and gross sales into these managed to remain consistent.

As mentioned in previous calls, where a trailblazing journey, bringing both private asset classes and want to invest in your retail.

Luke Gould: This is calling for the right you can see our global Quant equity boutiques.

Luke Gould: And they've delivered very strong track records among the top in the world since joining in 2017 and they actually own.

All of these performance numbers with the exception of the 10 year number.

Luke Gould: As mentioned earlier, we've supplemented their existing resale management with three new launches, and we're very pleased with the support we're seeing for this boutique heading into Q2. Other noteworthy areas where we're seeing compelling performance in categories in demand include our global equity and income boutique, our U.S. all-cap growth fund advised by Putnam, which is in the column on the right, and we continue to scale our Northleaf private asset class products, and we are now in excess of $200 million in these products. On page 29.

Luke Gould: As mentioned earlier, we supplemented their existing retail mandates with three new launches and we're very pleased with the support we're seeing for this boutique heading into Q2.

Luke Gould: Other noteworthy areas, where were seeing compelling performance and categories and demand include our global equity and income boutique or U S. All cap growth fund advised by putting them, which is in the call them. The right and we continue to scale, our norfleet private asset class products and we are now in excess of $200 million in these products.

Luke Gould: On page 29.

Luke Gould: I'd highlight that we launched our third annual Sustainable Investment Report in April. This report outlines our continued progress, our approach, and the impact that our efforts have. At Highland Investor Day in December, we're so pleased to be ranked number one among large peers in the quality of ESG offerings by advisors and also to have the largest thematic sustainable fund in Canada. And, as mentioned earlier, in January, we awarded the lead sponsorship for the PRI in-person conference that's being held in Toronto.

Luke Gould: I'd highlight that we launched our third annual sustainable Investor report in April.

Luke Gould: This report outlines our continued progress our approach and the impact that our efforts have.

Luke Gould: As highlighted Investor day in December we're so pleased to be ranked number one among large peers and the quality of the ESG offering by advisors and also to have the largest the medics sustainable fund in Canada.

Luke Gould: And as mentioned earlier in January we were awarded the lead sponsorship for the puree in person conferences being held in Toronto.

Luke Gould: We view this conference a bit like the Olympics; this is the only time in our careers that this could be held in Canada, and we look forward to this event, and we're hoping to see so many of you there.

Luke Gould: We view this conference a bit like the Olympics. This is the only time a career this could be held in Canada, and we look forward to this event and we're hoping to see so many of you there.

Luke Gould: This is the world's preeminent responsible investing conference, and it is a precious moment for us to have it here in Canada. We're doing all we can to make it a success, and we're looking forward to engaging with institutional investors and other key stakeholders and industry peers on these important topics. On page 30, you can see the growth in the Chinese investment fund industry, with industry assets up 6% in the quarter and long-term funds up 2%.

Luke Gould: As the world's preeminent responsible missing conference and it is a precious moments for us to have it here in Canada. We're doing all we can to make it a success and we're looking forward to engaging with institutional investors and other key stakeholders and industry peers on these important topics.

Luke Gould: Three page 30, you can see the growth in the Chinese investment fund industry with industry assets up 6% in the quarter and long term funds up 2%.

Luke Gould: On the left, you can see the significant net inflows of $1.6 trillion, with meaningful money market flows leading to an 11% increase in money market fund assets in the quarter alone. On the right, I really want to highlight the continued strengthening of China's market position. It remains the second largest Chinese asset manager in terms of both long-term funds and overall investment funds. And here you can see that our market position continued to strengthen, increasing a 5.6% share, up from 5.1% in December and 4.6% one year ago.

Luke Gould: In the bottom left you can see the significant net inflows of $1 six trillion won with meaningful money market flows leading to a 11% increase in money market fund assets in the quarter alone.

Luke Gould: On the rate I really want to highlight the continued strength of <unk> market position. It remains the second largest Chinese asset manager and in terms of both long term funds and overall investment funds.

Luke Gould: As you can see that our market position continued to strengthen increasing to five 6% share up from five 1% December and four 6% one year ago.

Luke Gould: Turning to page 31, you can see we've enhanced our disclosures here this period by introducing an investment fund that flows to China, you can see at the bottom. And you can see China's AUM has now crossed $2.1 Trillion or $400 Billion Canadian dollars. Overall assets are up 15% in the quarter and 18% in the year. Long-term funds increased by 11% in the quarter and are up 27% in the year, and substantively, all this increase came from net inflows.

Luke Gould: Turning to page 31.

Luke Gould: You can see we've enhanced our disclosures here this period by introducing investment fund net flows for training to see at the bottom.

Luke Gould: And you can see China six AUM is now cross two trillion won or $400 billion Canadian dollars.

Luke Gould: Overall assets are up 15% in the quarter and 18% in the year.

Long term funds increased by 11% in the quarter and are up 27% in the year and substantially all of this increase came from net inflows.

Luke Gould: During the quarter, total investment fund net flows for TriniumC were $201.1 billion, or $38 billion Canadian dollars. That's an annualized net sale rate of over 40%, and more than half of TriniumC's net inflows were from long-term funds. We remain very optimistic about future growth in this industry as China is committed to building a high-quality retirement market, and we continue to be encouraged and confident in China's feasibility to maintain and grow market share within this high-growth industry.

Luke Gould: During the quarter total investment fund net flows for <unk> were 201 billion, one or 38 billion Canadian dollars. That's an annualized net sales rate of over 40% and more of that more than half of <unk> net inflows were from long term funds.

Luke Gould: We remain very optimistic for future growth in this industry as Chinese committed to building a high quality retirement market and we continue to be encouraged and confident in <unk> ability to maintain and grow market share within this high growth industry.

Luke Gould: I'll now turn it over to Keith fodder. Thank you Luc and good morning, everyone. On Slide 34, you can see key highlights for Q1 reported and adjusted EPS are both 94 cents.

Luke Gould: Thank you, Luke. And good morning, everyone. On slide 34, you can see key highlights for Q1. Reported and adjusted EPS are both 94 cents. In addition to reporting LifeCo's net earnings in our reported EPS, we are also reporting adjusted earnings reflecting LifeCo's base earnings on a go-forward basis. We've also restated prior quarters adjusted earnings. We are adding this disclosure recognizing the potential meaningful difference between net earnings and base earnings that can occur quarter-by-quarter since the adoption of IRS 17, and that base earnings is a key alternative measure of life post profitability that is followed by the investment community.

Keith: In addition to reporting life caused net earnings and a reported EPS. We are also reporting adjusted earnings reflecting life goes based earnings on a go forward basis.

Keith: We've also restated prior quarters adjusted earnings.

Keith: Adding this disclosure recognizing the potential meaningful difference between net earnings and base earnings that can occur quarter by quarter since the adoption of IRS 17, and that base earnings as a key alternative measure of life post profitability that is followed by the investment community.

Luke Gould: In December 2023, we announced our MCIB program and during the quarter, returned $146 million to shareholders through the quarterly dividend and $12 million in share repurchases. We also bought back $15 million in shares through the month of April. With the continued strength of Wealthsimple's performance, we mark up the fair value of our investment from $607 million to $722 million, which is fair value through other comprehensive income. And finally, we received dividends from both ChineyMC and Northleaf, with ChineyMC's dividend of $72.9 million being the largest dividend received to date.

Keith: In December 2023, we announced our NCI V program and during the quarter returned $146 million to shareholders through.

Keith: The quarterly dividend and $12 million in share repurchases. We also bought back $15 million and shares to the month of April.

Keith: With the continued strength of wealth symbols performance, we marked up the fair value of our investment from $607 million to $722 million, which is fair value through other comprehensive income and finally, we received dividends from both Chinese <unk> and norfleet with Chinese six dividend of $72 9 million being the largest.

Keith: The dividend received to date.

Keith Potter: Turning to slide 35, you can see our AUM&A and flows. As a reminder, we are now presenting all historical flows and AUM data excluding IPC. Coming off a strong Q4, AUM&A was up an additional 5% in Q1, while average assets increased by 5.5%. Turning to slide 36, we have our consolidated earnings at IGM. The strong growth in average AUM&A supported higher revenues in both our wealth and asset management segments. We also had a strong quarter in the mortgage and insurance business driving wealth management. On point to net investment income was higher primarily due to mark to market gains on seed capital.

Keith: Turning to slide 35, you can see our M&A and flows as a reminder, we are now presenting our all historical flows and AUM data excluding IPC.

Keith: Coming off a strong Q4 M&A was up an additional 5% in Q1 will average assets increased by five 5%.

Keith: Turning to slide 36, we have our consolidated earnings at IGN.

Keith: Strong growth in average M&A supported higher revenues in both our wealth and asset management segments.

Keith: And we also had a strong quarter in the mortgage insurance business driving wealth management revenues.

Keith: <unk> to net investment income was higher primarily due to mark to market gains on seed capital and 0.3, our operations and support business development expenses were up slightly on a year over year basis.

Keith Potter: Our operations and support business development expenses were up slightly on a year-over-year basis but down sequentially, and we are maintaining our full year guidance of approximately 4% growth over 2023. On slide 37, we present key profitability drivers for IG Wealth. I'll highlight a few points.

But down sequentially and we are maintaining our full year guidance of approximately 4% growth over 2023.

On slide 37, we present key profitability drivers for <unk>.

Keith: Slight a few points first the advisory fee rate decreased from 100 to one basis points to 103 basis points, which was primarily driven by clients moving up well fast due to strong growth in average age of M&A.

Keith Potter: First, the advisory fee rate decreased from 102.1 basis points to 100.3 basis points, which was primarily driven by clients moving up wealth bands due to strong growth in average AUM&A, which was up 6%. The growth in AUM&A is more typical of annual growth and had the largest impact on the fee rate. We can see that the product and program fee rates were stable in Q1, and finally, the asset-based compensation rate is up in the quarter, driven by the annual reset in advisor qualification tiers and the scaling of the corporate channel, which offsets the downward movement from the program changes I spoke about last quarter.

Which was up 6% growth in.

Keith: M&A is more typical of annual growth and had the largest impact on the fee rate.

Keith: Can see that the product and program fee rates were stable in Q1, and finally, the asset based compensation rate is up in the quarter driven by the annual reset and an advisor qualification tiers and scaling the corporate channel and this offset the downward movement from the <unk>.

Keith: Program changes I spoke to last quarter.

Keith Potter: On slide 38, you can see ITU's overall earnings of $117.2 million, up 12.1% relative to Q1 2023. In point one, I spoke to the key drivers of advisory fee and product fee revenues on the previous slide. Year over year and sequentially, other financial planning revenue was up in both the mortgage and insurance businesses. The mortgage business was driven by a combination of gains on sales, positive fair value adjustments, and positive mortgage warehouse income. As a reminder, fair value adjustments were negative last quarter and a year ago.

Keith: On Slide 38, you can see Ics overall earnings of $117 2 million up 12, 1% relative to Q1 2023.

Keith: One I spoke of the key drivers of advisory fee and product fee revenues on the previous slide.

Keith: Year over year and sequentially other financial planning revenue was up in both the mortgage and insurance businesses. The mortgage business was driven by a combination of gain on sale positive fair value adjustments and positive mortgage warehouse income and as a reminder, fair value adjustments were negative last quarter and a year ago.

Keith Potter: The insurance business also experienced a strong quarter with the highest revenue since 2017, and this is great to see with insurance being a key part of future growth for IT wealth management. Moving to slide 39, you can see McKinnon's AUM by client and product type, as well as net revenue rates. The decrease in the third-party revenue rate X count of life was driven by a few items. First, the rate was down 0.3 basis points due to having one less day in the quarter where we collect revenues for 91 days and pay distributors compensation based on one quarter of the year.

Keith: The insurance business also experienced a strong quarter with the highest revenue since 2017, and this is great to see with insurance being a key part of future growth for <unk> wealth management.

Keith: Moving to slide 39, you can see Mackenzie AUM by client and product type as well as net revenue rates. The decrease in the third party revenue rate ex kind of life was driven by a few items first the rate was down three basis points due to having one less day in the quarter, where we collect revenues for 91 days.

Keith: Distributor compensation based on one quarter of the year. We also continued to see strength in our third party wealth management partnerships with PFS selling while simple, which has both diversified and shifted Mackenzie AUM mix and finally the rate was impacted by the pension mandate reallocated from <unk> mutual funds.

Keith Potter: We also continued to see strength in our third-party wealth management partnerships with PFSL and Wealthsimple, which have both diversified and shifted McKinnon's AUM mix. And finally, the rate was impacted by the pension mandate reallocated from IG Mutual Fund. Turning to slide 40, you can see McKinsey's earnings of $57.3 million, up 18.4% year-over-year and 16% quarter-over-quarter. Better results were driven by higher net management fee revenue, lower operations in support of development spend, as well as higher seed capital mark-to-market returns, so it is well diversified. On point three, operations and support and business development, expenses were down 4.9% on a year-over-year basis and down 2.6% from last quarter.

Keith: Turning to slide 40, you can see Mackenzie has earnings of $57 3 million up 18, 4% year over year, and 16% quarter over quarter better results were driven by higher net management fee revenue lower operations and support this development spend as well as higher seed capital Mark to market returns. So.

Keith: Well diversified on.

Keith: On <unk> three operations to support business development expenses were down four 9% on a year over year basis, and down two 6% from last quarter and just recall that organizational streamlining occurred in Q2 of last year, resulting in a favorable impact for Q1 2024, when compared to Q1 2023.

Keith Potter: And recall that organizational streamlining occurred in Q2 of last year, resulting in a favorable impact for Q1 2024 when compared to Q1 2023. Also, there are some timing items on investments and initiatives such as middle office, product, client, and advisor-facing capabilities that will occur over the balance of the year. Slide 41 has China MC results.

Also there are some timing items on investments in initiatives, such as middle office product and client and advisor facing capabilities that will occur over the balance of the year.

Keith Potter: On the left, ending AUM of RMB 2.1 trillion is up 15% quarter over quarter, with average AUM increasing 7%. With respect to earnings, on the right, the quarter over quarter earnings increased with average assets. On a year-over-year basis, earnings were down, primarily due to the regulatory mutual fund fee rate reforms that we spoke about during our Q2 2023 call, the strengthening of the Canadian dollar, and fair value gains last year versus this year, and these items were partially offset by a 9% increase in average AUM over the same time period.

Keith: Slide 41 is China and see results on the left ending <unk> of RMB. Two one trillion is up 15% quarter over quarter with average AUM increased 7% with respect to earnings on the right quarter over quarter earnings increased with average assets.

Keith: On a year over year basis earnings were down primarily due to the regulatory mutual fund fee rate reforms that we spoke to during our Q2 2023 call the strengthening of the Canadian dollar and fair value gains last year versus this year and these items were partially offset by 9% increase in average AUM over the same time peer.

Keith: <unk>.

Keith Potter: As mentioned, our portion of the Chinese dividend was the highest dollar value we have received, which is a testament to both the strength of the business and the confidence of management. On slide 42, you can see our earnings contribution from companies in each segment. I have two comments.

Keith: As mentioned our portion of Chinese dividend was the highest dollar value. We have received which is a testament to both the strength of the business and the confidence of management.

On Slide 42, you can see our earnings contribution from companies in each segment at.

Keith Potter: First on Rockefeller. The loss of $4.4 million was driven by lower revenue in their M&A strategic advisory business, which has evolved quarter to quarter, and the full implementation of a new equity compensation program I mentioned a few quarters ago. As Damon spoke about earlier, the core private wealth business is performing very well. We do expect a similar result in Q2 and improvement in the second half of the year. Second, on Northleaf, earnings of $5.7 million after non-controlling interest are up over last year, and this was driven by higher net incentive fees which are earned in Q1 of each year, and excluding incentive fees, earnings would have been between $3 and $3.5 million. Slide 43 provides a summarized view of ownership and our value of strategic investments by segment. A couple of points.

Keith: I have two comments first on Rockefeller Center.

Keith: The loss of $4 4 million was driven by lower revenue and their M&A.

Keith: Strategic advisory business.

Keith: It is a volatile quarter to quarter and the full implementation of our new equity compensation program.

Keith: A few quarters ago as David spoke to earlier the core private wealth business is performing very well, we do expect a similar result in Q2, an improvement in the second half of the year.

Keith: Second on normally earnings of $5 7 million after non controlling interest are up over last year and this was driven by higher net incentive fees, which are occurring in Q1 of each year and excluding incentive fees earnings would have been between three and three and a half million dollars.

Keith: Slide 43 provides a summarized view of ownership and our value of strategic investments by segment. A couple of points first we increased the fair value of all simple for $722 million, which reflects the outstanding performance in Q1 that <unk> touched on.

Keith Potter: First, we increased the fair value of Wealthsimple to $722 million, which reflects the outstanding performance in Q1 that Damon touched on, a revised revenue forecast for the company, and an increase in peer multiples. As mentioned last quarter, to give consideration to IGM's value through some of the parts, at the bottom right, you can see the value of our strategic investments across the segments is over $5 billion. Slide 44 highlights execution against our capital allocation priorities.

Keith: Our revised revenue forecast for the company and an increase in peer multiples as.

As mentioned last quarter to give consideration to ibm's value through some of the parts at the bottom right you can see the value of our strategic investments across the segments is over $5 billion.

Keith: Slide 44 highlights execution against our capital allocation priorities at Investor Day, and last quarter, we discussed priorities to invest in our business.

Keith Potter: At Investor Day and last quarter, we discussed priorities to invest in our business. [inaudible] At the same time, we have done what we said we would do at the announcement of the Rockefeller transaction and brought our leverage down below two times post-transaction close. Our unallocated capital has also increased from $282 million last quarter to $402 million at the end of Q1 2024, primarily from cash earnings net of the IGM dividend, including the $72.9 million dividend we received from China EMC. As we move forward, we'll continue to execute on our priorities, including building our businesses and executing on our NCIB. That concludes my remarks, and I'll open it up for questions.

Keith: Staying strong dividend, while balancing the opportunity to repurchase shares and invested companies we already own in Q1. In addition to paying the quarterly dividend. We started executing on share repurchases, taking an opportunistic price at the lower share price at.

Keith: At the same time, we have done what we said we would do at the announcement of Rockefeller transaction and brought our leverage down below two times post transaction close.

Keith: Located capital has also increased from $282 million last quarter to $402 million at the end of Q1 2024, primarily from cash earnings net of IGF dividend, including a $72 $9 million dividend, we received from Chinese <unk> as.

Keith: Has it been before will continue to execute on our priorities, including building our businesses and executing on our CIB that concludes my remarks, and I'll open it up for questions.

Operator: Thank you. We will now begin the question and answer session. During the question queue, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing any key. To withdraw your question, please press star then 2. We'll pause for a moment as callers join the queue. The first question comes from Geoffrey Kwan of RBC Capital Markets. Please go ahead.

Speaker Change: Thank you.

Speaker Change: We will now begin the question and answer session.

Speaker Change: You made the question queue you May Press Star then one on your telephone keypad.

Speaker Change: If youre using a speakerphone please pick up your handset before pressing any.

Speaker Change: So we are drawing a question. Please press star then two.

Speaker Change: Fostering moment as colleague Chuck Thank you.

Speaker Change: The first question comes from Geoffrey Kwan.

Geoffrey Kwan: <unk> capital markets. Please go ahead.

Geoffrey Kwan: Hi, good morning. My first question is for James or Keith.

Geoffrey Kwan: Hi, good morning.

Geoffrey Kwan: My first question's for teams are key.

Geoffrey Kwan: You've talked before about maybe taking a bit of a pause in terms of acquisition activity, but the unallocated capital has increased your balance sheets pretty healthy and then you do generate some good cash flow just wondering how you're thinking about capital.

Geoffrey Kwan: Capital allocation and in particular, just appetite on being more active on share buybacks or even potentially.

Consideration for a substantial issuer bid.

Unknown Executive: You've talked before about maybe taking a bit of a pause in terms of acquisition activity, but the unallocated capital has increased. Your balance sheet's pretty healthy, and then you do generate some good cash flow. Capital allocation here, in particular, just appetite for being more active on shared buybacks or even potentially consideration for a substantial issuer bid.

Speaker Change: Yeah. Good morning, Jeff Thanks for the question.

Speaker Change: And yeah our.

Unknown Executive: Yeah, good morning, Jeff. Thanks for the question. And yeah, our We meant what we said at Investor Day, we expect 2024 and 2025 to be two years where we will be focused not so much on M&A but on investing. In our core businesses, IG, Wealth, and McKenzie, so that has not changed. And you're right, of course, to observe the significant increase in unallocated capital, up to $402 million this quarter.

Speaker Change: We met what we said at Investor Day, We expect 2024 and 2025 to be.

Speaker Change: Two years, where where we will be focused not so much on M&A, but on investing.

Speaker Change: In our core businesses.

Speaker Change: <unk> wealth and Mackenzie, so that that has not changed and you're right of course to observe.

Speaker Change: The significant increase in unallocated capital up at 402 million this quarter.

Unknown Executive: And so I think we will continue to invest in the core businesses, but there's clearly an opportunity for us to potentially increase the pace at which we're repurchasing shares, and that's something that we will be giving active consideration to.

So I think we will continue to invest in the core businesses, but theres clearly an opportunity.

Speaker Change: For us to potentially increase the pace at which we're repurchasing shares and Thats something that we will be giving active consideration to.

Geoffrey Kwan: Okay. My second question was for Damon. I know it's hard to generalize, but are you seeing any differences in behavior in terms of stuff like risk aversion between the kind of mass affluent versus high net worth versus ultra high net worth segments of your business?

Speaker Change: Okay.

My second question was for Damien.

Damien: I know, it's hard to generalize, but are you seeing any differences in behavior in terms of stuff like risk aversion between kind of the math.

Damien: Absolutely and for those high net worth versus ultra high net worth segments.

Damien: That's new business.

Damon Murchison: Morning, Geoff. So, yeah, are we seeing any difference in terms of risk appetite? I would say as you move more towards high net worth and ultra high net worth, you generally get investors that understand risk and return. And you get those that understand the, you know, the purpose of leverage and how to make money. So yes, there is more of a risk appetite as you move up, but it's obviously client by client by client, right? So, but generally speaking, I think you'd be accurate if you went with that.

Damien: Good morning, Jeff.

Damien: So yes are we seeing any difference in terms of risk appetite.

Jeff: Say as you move more towards high net worth and ultra high net worth you generally get.

Jeff: Investors that understand risk and return and.

Jeff: And you get you get those that understand the you know the purpose of leverage and how to make money.

Jeff: So yes, there is a there is a more of a risk appetite as you move up but it's obviously client by client right. So.

But generally speaking I think you'd be accurate. If you if you went with that assumption.

Geoffrey Kwan: And if I could just sneak in one last question for Luke. I don't know if it's a too detailed question to ask, but on the slide where you have China AMC and the market share versus peers, I couldn't help but notice that China AMC and E-Fund had pretty strong AEM growth in Q1, but a lot of the other players were kind of flat to marginally up. Just wondering if there's anything that you can share in terms of explanation why that dynamic may have played out in Q1. Yeah, one key thing, Ed.

Speaker Change: Okay, and if I could just sneak in one last question for me.

Speaker Change: I don't know I don't know if it's too detailed question to ask but.

Speaker Change: On the slide we have China Im seeing in the.

Speaker Change: Market share versus peers, I couldn't help but notice that China <unk> had.

Speaker Change: Pretty strong AGM growth in Q1, but a lot of the other players were kind of flat to marginally up just wondering if there's anything that you can share in terms of explanation why that.

Speaker Change: Dynamic may have played out in Q1.

Luke Gould: One key thing, Geoff, when you look at the industry flows, the story in both the last quarter and this quarter was really around ETFs and around fixed income. And so that's where there's strength, and both eFund and China EMC experienced really good growth in their ETF businesses. But that was the common thing that bonded them together.

Speaker Change: One key thing that Jeff when you look at the industry flows.

Jeff: The story in both the last quarter and this quarter was really around Etfs and around fixed income and so that's where there is strength in both <unk> and China <unk> experienced really good growth and into their ETF businesses.

Jeff: But that was that that was the common thing that blend them together.

Okay. Thank you.

Nikolaus Priebe: The next question comes from Nik Priebe of CIBC Capital Markets. Please go ahead.

Jeff: The next question comes from Nick <unk> of CIBC capital markets. Please go ahead.

Nikolaus Priebe: Okay, thanks. I also wanted to ask a few questions about China AMC.

Nick: Okay. Thanks, I also wanted to ask a few questions on China M C.

Nick: First is just a point of clarification.

Nick: The long term investment fund net sales of 113 billion on page 31, that's a Q1 number only correct that's on an LTM number.

Nick: Yeah, that's correct Nick.

Luke Gould: The first is just a point of clarification. The long-term investment fund net sales of $113 billion on page 31, that's a Q1 number only, correct? That's not an LTM number?

Nick: Yeah, and it was 201 billion total funds and 113 for long term.

Luke Gould: Yeah, and it was 201 billion for the total funds and 113 billion for the long term.

Nick: Right and so if I take that long term number and I just annualize it.

Nick: Nearly 50% of AUM, so like what's really driving the momentum in and specifically the market share gains there like is it a distribution related is it driven by.

Luke Gould: Right. And so if I take that long-term number and I just annualize it, it implies nearly 50% of AUM. So, like, what's really driving the momentum and specifically the market share gains there? Like, is it distribution related? Is it driven by, you know, specific asset classes that China MC is targeting? Is there anything you kind of point to there?

Nick: Specific asset classes that China M. C is it is it bad towards or is there anything you can point to there.

Luke Gould: And I guess I'll point at that slide. So you can see the trend. So for the last four quarters, they've been around $50 billion in long-term fund net flows, and this one was about about a hundred. Through the last year, obviously, equity markets in China have been challenging. This year we saw some slight improvements in equity markets, and the story in terms of net flows was really twofold. One was fixed income funds capturing a lot of ground, and some good movement into ETFs.

Nick: And it goes to a point on that slide. So you look at the trend so last four quarters.

Nick: They've been around 50 billion in long term fund net flows and this one was about 100 through the lost your obviously your equity markets in China have been challenging this year, we saw some slight improvements in equity markets and the story in terms of net flows was a it was really twofold, one was fixed income funds.

Nick: <unk> a lot of ground and some good moving into Etfs and <unk>.

Luke Gould: And for China MC, we're very fortunate to have an industry that's very small in relation to the markets that it's in, and so industry net flows have been trending at double-digit rates. And China MC, until this quarter, was trending at about 20 to 25 percent net sales rate annual, and this quarter is about 40 percent. So there's really good growth there, and it is driven by ETFs as well as fixed income funds and Nick.

Nick: We're trying to M C.

Nick: We're very fortunate where we've got an industry, that's very small in relation to market citizen and so industry net flows have been trending at double digit rates and try to see until this quarter was trending at about 20% to 25% net sales rate of annual and this quarter was about 40%. So really good growth during the just driven by Etfs as well as.

Nick: As well as fixed income funds.

Unknown Executive: And Nick, it's James speaking. I would just add China. I was there in March to attend a China AMC board meeting. And, you know, I've long viewed China AMC as a very special property. It has, it starts with very strong ownership, its controlling shareholders, civic security, who are a very, very strong dealer in the region and beyond. And I think on top of that, as you saw at Investor Day, you've got a very determined and innovative management team led by Yimei Li.

Nick: And Nick It's James speaking I would just add on China I was there in March to attend a China AMC Board meeting.

Nick: And I've long view, China AMC is a very special property. It has it starts with very strong ownership, it's controlling shareholders Citic securities.

Nick: <unk> are a very very strong a.

Nick: Dealer in the region and beyond.

Nick: And I think on top of that as you saw at Investor Day, you've got a you've got a very determined and and innovative management team led by led by email elite.

Unknown Executive: And then, you know, the final observation I'd make is that when we saw the fee reforms come in last year, we certainly saw the potential for some consolidation within this industry, and we expected, frankly, that the larger players would have an opportunity to take more share, and we're certainly seeing that. And so, as we sit here today, China AMC is a very strong number two, and personally, I believe, on their way to number one.

And then the final observation I'd make is that when we saw the Phi reforms come into last year, we certainly saw the potential for some consolidation within this industry and we expect that frankly that the larger players would would have an opportunity to take more share and we're certainly seeing that and so as we sit here today, China AMC is.

A very strong number too.

Nick: And personally I believe on their way to number one.

Nikolaus Priebe: Okay, that's great, Keller. And just turning quickly to Wealthsimple, the AUA growth, again, was very strong, up, yeah, I think something like 25% sequentially, clearly outpacing any realistic assumptions around market-related growth. So I know there's only so much you can say about that investment, but can you give us a little bit of sense in terms of what's driving the client flow at Wealthsimple?

Speaker Change: Okay, that's great color.

Speaker Change: And just turning quickly to wealth simple.

Speaker Change: E way growth again was very strong up yep, I think something like 25% sequentially clearly outpacing.

Speaker Change: Any realistic assumptions around market related growth. So I know, there's only so much you can say about that investment, but can you give us a little bit of sense in terms of what's driving the client flows it looks simple.

Unknown Executive: Yeah, it was, Nick, it was a remarkable quarter. You know, as I said to our board yesterday, I struggled to find the right word to describe it. The word I landed on was holistic.

Speaker Change: Yes, it was.

Speaker Change: It was a remarkable quarter.

Speaker Change: You know what I as I said to our board yesterday I struggled to find the right word to describe it the word I landed on was ballistic.

Unknown Executive: It was a ballistic quarter for Wealthsimple, and there was, you know, I think we should recognize there was a surge in activity, particularly trading activity. And that was right across the field. It was crypto, it was equities, and it was options. It was well balanced overall. And so, as we sit here today and we look at the Canadian landscape broadly, I can tell you that on the self-directed investing side, for instance, there's no one in this country that's growing faster than Wealthsimple. No one

Speaker Change: It was a ballistic quarter for well simple and there was you know I think we recognize there was a there was a surge in activity, particularly trading activity.

Speaker Change: And that was that was right across the field. It was crypto. It was equities. It was options. It was it was well balanced overall and so as we sit here today and we look at the Canadian landscape broadly.

Speaker Change: I can tell you that on the self directed investing side for instance, there's no one in this country that is growing faster than wealth simple no one so.

Unknown Executive: So, an extremely impressive performance, very strong leadership, and I think real momentum that they will carry into the balance of this year.

Speaker Change: Extremely impressive performance very strong leadership.

Speaker Change: And I think our I think real momentum that they will carry into the balance of this year.

Speaker Change: Okay.

Nikolaus Priebe: Okay, that's great. That's it for me. Thank you.

Speaker Change: Okay. That's great. That's it for me thank you.

Rasib Ali Bhanji: The next question comes from Raseeb Nanji of TB Cohen. Please go ahead.

Speaker Change: Our next question comes from receipt Benji of TV Cowen. Please go ahead.

Rasib Ali Bhanji: Good morning. I guess my first question is for Damon, specifically on cash and cash-like flows at IG Wealth. So, we've been hearing some commentary around flows into high-interest savings across the overall industry turning flat or actually flowing out and going into fixed income funds ahead of potential Bank of Canada rate cuts. I'm wondering if you're seeing any similar dynamics at IG Wealth or if you're seeing anything different over there?

Benji: Good morning.

Benji: I guess my first question.

Benji: Demons, specifically on the cash and cash type pools at Luke.

Benji: Been hearing some commentary around flows into high end Cos savings and of course, the oil industry trending flat or actually flowing out and going into fixed income funds ahead of potential bank of Canada rate cuts.

Damon Murchison: Yeah, no, at IG, we're not necessarily seeing a shift from short-term to fixed income. Our advisors are financial planners, and what they tend to do, and what we tend to do, is to dollar average cost into the market over time into a long-term portfolio that meets the client needs. So it will be less of a trade going into fixed income and then going into the long-term. We just DA into the market over time.

Benji: Wondering if you're seeing any similar dynamics over at IAG will go or if youre seeing anything different over there.

Speaker Change: Yeah, no what AIG, where we're not necessarily seeing a.

Speaker Change: <unk> from from short term into into fixed income our advisers, our financial planners and what they tend to do and what we tend to do is to dollar average cost into the market over time into the long term portfolio that meets the client need so it will be less of a trade going into fixed income and then going into a long term. We just we just.

Speaker Change: And to the market over time.

Rasib Ali Bhanji: Okay, understood. And then a couple of questions on Rockefeller. Given the strong AUMA growth recently, I'm wondering, could you give more color on how Rockefeller protects itself against potential advisor departures? How do they make sure that the AUMA stays with them if there is an advisor departure?

Okay understood and then.

Speaker Change: Couple of questions on Rockefeller.

Speaker Change: Given the strong.

Speaker Change: EMEA growth recently.

Speaker Change: I'm wondering could you give more color on how Rockefeller.

Speaker Change: <unk> itself against potential advisor departures.

How have you been made sure that the states.

Speaker Change: Stays with them if there is ways of departure.

Unknown Executive: Yeah, I'll start on that. You know, Greg Fleming, the CEO, has spoken about this publicly. First of all, they're very fussy about who they hire. They're extremely fussy about who gets to carry that Rockefeller card.

Speaker Change: Yeah I'll start on that they they you know Greg Fleming the CEO has spoken about this publicly.

Speaker Change: When they first of all Theyre very fussy about who they hire they're extremely fussy about who gets to carry that Rockefeller card.

Unknown Executive: And so, you know, they go into new relationships with their eyes wide open, understanding the advisor and her or his propensities very, very well. But obviously, underpinning that due diligence and those kinds of relationships, if you will, there's a contract. And those contracts are long-term in nature. In fact, I think Rockefeller distinguishes itself by the duration of the contract that is associated with the onboarding of a new advisor. So I view there being at least two layers of protection. One is the quality of due diligence and the scrutiny associated with onboarding new teams. And secondly, they're very well protected through a long-term contract that's associated with the payment made to the advisor when they join.

Speaker Change: And so you know they they go into new relationships with with their eyes wide open and understanding the adviser and her or his propensities very very well.

Speaker Change: But obviously underpinning kind of that due diligence and those kind of relationships. If you will there's a contract.

Speaker Change: And those contracts are long term in nature in fact, I think Rockefeller distinguishes themselves by the duration of the contract that is associated with the onboarding of a new advisor so.

Speaker Change: View, there being at least at least two layers of protection on is the quality of due diligence and the scrutiny associated with Onboarding new teams and secondly, they are very well protected through a long term contract that's associated with the payment made to the advisor when they joined.

Rasib Ali Bhanji: I appreciate it. That's helpful. Thank you. And if I could just sneak in one last question, Keith, I think this might be for you.

Speaker Change: Okay I appreciate it that's helpful. Thank you.

If I could just sneak in one last question Keith I think this might be for you.

Keith Potter: Are there financial planning revenues at IGU? I appreciate the breakdown here between mortgage and insurance business. Just wondering, on a normalized basis, if you strip out fair value gains and any other hedging gains, what would be the normalized level of revenue coming from this line?

Speaker Change: Other financial planning revenues at <unk>.

Speaker Change: I appreciate the breakdown here between mortgage and.

Keith: The insurance business I'm, just wondering on a normalized basis, if you strip out fair value gains and any other hedging gains.

Keith: It would be the normalized level of revenue coming from this line item.

Keith Potter: Yeah, that would have been about, you know, call it $2 million if you stripped out the fair value. You can think about a run rate of in and around $7 million would be a reasonable expectation. It is a volatile business, and you've seen that quarter to quarter, but you strip out the volatility, and that's what you should be doing. Okay, understood.

Keith: Yes that would have been about a call.

Keith: Call it $2 million, if you strip out the.

Keith: This fair value.

Keith: You can think about a run rate in and around $7 million.

Keith: It would be a reasonable expectation.

Keith: Yes.

Keith: Okay.

Keith: This is a volatile business and it has as you have seen that quarter to quarter, but you strip out the volatility and that's what you should be looking at.

Rasib Ali Bhanji: understood. Thank you.

Speaker Change: Okay understood. Thank you.

Speaker Change: Yeah.

Operator: Once again, if you have a question, please press star, then 1. Please press star, then 1. That's just on the mortgage income component.

Speaker Change: Once again, if you have a question. Please press Star then one please press Star then one now Keith.

Keith Potter: Keith, that was just on the mortgage income component.

Speaker Change: Keith just on the margin kind of component.

Speaker Change: Okay.

Speaker Change: Okay.

Jack Cohen: The next question comes from Jack Cohen of National Bank Financial. Please go ahead.

Speaker Change: The next question comes from Jack Cohen National Bank Financial Please go ahead.

Jack Cohen: Hi, good morning. I just had a question on the net sales at McKinsey. So, you disclosed that the net sales on an LTM basis moved to 3.8, and I noticed that that's a bit lower than the industry peer average of 3.4. So, I just wanted to know what was it.

Jack Cohen: Hi, good morning.

I just had a question on the on the net sales at Mackenzie. So you disclosed that the net sales on an LTM basis.

Jack Cohen: We have two 3.8.

Jack Cohen: And I noticed that that's.

Jack Cohen: That's a bit lower than the industry peer average, which was $3 four.

Jack Cohen: I just wanted to know what was driving that underperformance recently and.

And how you see that trending going forward.

Luke Gould: Yeah, great question. So back on page 28, you can see the net sales and the performance by boutique. So, as mentioned, Blue Water and Green Chip, and you can also see the Growth Boutique on that page. Those are three boutiques that have had weaker near-term performance, but as mentioned, they remain very disciplined. According to their own respective approaches, they continue to have very strong long-term performance, but that's where the decline in net flows occurred.

Speaker Change: Yeah, Great Great question Tobacco page 28, you can see that the net sales in the performance by boutique.

Speaker Change: So.

Speaker Change: As mentioned Blue water and Green Chip and you can also see the growth boutique on that page.

Speaker Change: Those are three boutiques that had it.

Speaker Change: Weaker near term performance, but as mentioned they remain pretty disciplined according to their own respective approaches. They continue to have a very very strong long term performance, but that's what the decline net flows occurred.

Luke Gould: We often say we have a boutique approach, and what that means is we're portfolio managers. We believe in diversification, and at moments like these, we seek to have things that are compelling and relevant to pivot into, and we do have a number of those offerings that are actually very compelling and relevant to the current environment that we are leading in. That includes quant, global equity income, some of our fixed income mandates, and some of our growth mandates, which you can see in the right column on page 28.

Speaker Change: We often say we are a boutique approach.

Speaker Change: And what that means is we're portfolio managers, we believe in diversification.

Jack Cohen: Thank you.

Speaker Change: And at moments like these we seek to things that are compelling and relevant to pivot into and we do have a number of those those offerings that are actually very compelling and relevant to the current environment that we are leaving you know that it's quite quite global equity income some of our fixed income mandates and it's a merck growth man.

Speaker Change: So that you can see the right.

Great color on that on page 28, but the softness in near term performance in the Blue water Marine Chip explained the slight decline in net flows that we experienced relative to the industry this quarter.

Speaker Change: Okay. Thank you that's it for me.

Operator: This concludes the question and answer session. I would like to turn the conference back over to Kyle Martens for any closing remarks.

Speaker Change: This concludes the question and answer session I would like to turn the conference back over to Craig Martin for any closing remarks.

Kyle Martens: Thank you, Carl. Once again, we'd like to thank everyone for following the IGM Financial story and for joining us on the call this morning.

Craig Martin: Thank you Carl I won't once again, we'd like to thank everyone for following the AGM financial story and for joining us on the call. This morning, and Karla with that we can close out today's conference call.

Kyle Martens: And Carl, with that, we can close out today's conference call. Thank you.

Karla: Thank you.

Operator: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

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Speaker Change: This brings to an end today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change: [music].