Q2 2024 IGM Financial Inc Earnings Call

Okay.

Operator: Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Second Quarter 2024 Analyst Call and Webcast.

Operator: Thank you for standing by. This is the conference operator.

Thank you for standing by the conference operator.

Operator: Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Second Quarter 2024 Analyst Call and Webcast. As a reminder, all participants are in a 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 the 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.

Operator: Welcome to the IGM Financial second quarter 2024 analyst call and webcast. As a reminder, all participants are in a listen-only mode, and the conference is being recorded.

Speaker Change: Welcome to the I T M financial second quarter, 2024 analyst call and webcast.

Speaker Change: As a reminder, all participants are in a listen only mode and the conference is being recorded.

Operator: After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star and one on your telephone keypad. Should you need assistance during the conference call? You may signal an operator by pressing star and zero.

Speaker Change: After the presentation, there will be an opportunity to ask questions.

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

Speaker Change: Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

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

Speaker Change: I would now like to turn the conference over to Carl Martin Treasurer, and head of Investor Relations.

Speaker Change: Please go ahead.

Kyle Martens: Thank you, Betsy.

Kyle Martens: Thank you, Betsy. And good morning, everyone.

Carl Martin: Thank you Betsy and good morning, everyone welcome to our second quarter 2024 earnings call. Joining me today on the call. We have James Osullivan, President and CEO of IGN financial David <unk>, President and CEO of <unk> wealth management.

Kyle Martens: And good morning, everyone. Welcome to our second quarter 2024 analyst call.

Kyle Martens: Joining me today on the call, we have James O'Sullivan, President and CEO of IGM Financial, Damon Merckerson, President and CEO of IGWELF Management, Luke Gould, President and CEO of McKenzie Investments, and Keith Potter, Executive Vice President and CEO of IGM Financial.

Speaker Change: Gould, President and CEO of Mackenzie investments and Keith Potter Executive Vice President and CFO budget financial.

Kyle Martens: Before we get started, I would like to draw your attention to our caution concerning for looking statements on slide three of the presentation. Slide four and five summarized non-IFRS financial measures and other financial measures used in the material. And on slide six, we provide a list of documents that are available on our website related to IGM Financial second quarter results.

Kyle Martens: Welcome to our second quarter 2024 earnings call. Joining me today on the call are James O'Sullivan, President and CEO of IGM Financial, Damon Murchison, President and CEO of IG Wealth Management, Luke Gould, President and CEO of McKenzie Investments, and Keith Potter, Executive Vice President and CFO of IGM Financial. Before we get started, I would like to draw your attention to our cautions concerning forward-looking statements on slide 3 of the presentation.

Unknown Executive: Before we get started, I would like to draw your attention to our cautions concerning forward-looking statements on slide 3 of the presentation.

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

Speaker Change: Slides four and five summarize non <unk> financial measures and other financial measures used in the material and.

Kyle Martens: Slides 4 and 5 summarize non-IFRS financial measures and other financial measures used in the material. And on slide 6, we provide a list of documents that are available on our website related to IGM Financial's second quarter results. Now, I'll turn it over to you.

Speaker Change: And on slide six we provide a list of documents that are available on our website related to our GM financial second quarter results.

James O'Sullivan: I'll turn it over to James. Okay, thank you, Kyle. Good morning, everyone.

Speaker Change: I will turn it over to James.

Kyle Martens: Okay, thank you, Kyle, and good morning, everyone. And thank you for joining us today as we discuss IGM Financial's second quarter results, which demonstrate how our businesses are successfully executing against their growth strategy. I'm turning to slide 8.

James: Okay. Thank you.

Morning, everyone.

James O'Sullivan: And thank you for joining us today as we discuss IGM Financial second quarter results, which demonstrate how our businesses are successfully executing against their growth strategies, turning the slide eight. Adjust that EPS was 93 cents during the quarter, up four and a half percent year over year. Our earnings were supported by strong growth in our AUM&A across our core operating companies and strategic investments, up almost 15 percent relative to last year. By GM's Q2 ending AUM&A, which represents our core companies, is also our highest on record. We're seeing positive signs and indicators in each of our businesses.

James: Thank you for joining us today as we discuss <unk>.

James: <unk> financial second quarter results.

James: Which demonstrate how our businesses are successfully executing against their growth strategies.

James: Turning to slide eight.

Damon Murchison: Adjusted EPS was $0.93 during the quarter, up 4.5% year-over-year and up almost 15% relative to last year. The ability to bring relevant investment management solutions to independent financial advisors and wealth management partners such as PFSL. And Northleaf achieved higher fundraising results this quarter than any period we've recorded to date, and an opportunistic share by that. On the right is our second quarter earnings, which I spoke about on a previous slide.

James O'Sullivan: Adjusted EPS was $0.93 during the quarter, up 4.5% year over year. Our earnings were supported by strong growth in our AUM&A across our core operating companies and strategic investments, up almost 15% relative to last year. IGM's Q2 ending AUM&A, which represents our core companies, is also our highest on record. We're seeing positive signs and indicators in each of our businesses. In wealth management, IG Wealth has been very successful in the mass affluent and high net worth segments, and we've seen this success accelerate further in recent months and quarters.

James: Adjusted EPS was <unk> 93 cents during the quarter up four 5% year over year.

James: Our earnings were supported by strong growth in our radio M&A across our core operating companies and strategic investments.

James: Almost 15% relative to last year.

Speaker Change: Hi, Gm's Q2, ending AUM at eight which represents our core companies is also our highest on record.

Speaker Change: We're seeing positive signs and indicators in each of our businesses.

James O'Sullivan: In wealth management, IGM Wealth has been very successful in the mass affluent and high net worth segments. And we've seen this success accelerate further in recent months and quarters. Rockefeller Capital Management's growth in the high net worth and ultra high net worth segment of the US wealth market continues to impress, driven by a combination of strong organic growth from their existing advisors and their ability to attract talked financial advisors to Rockefeller's leading platform. Well, simple proven ability to deliver for Canadians continues to drive impressive new client acquisition and expansion of share of wallet within their existing clientele.

Speaker Change: In wealth management.

Speaker Change: Well it has been very successful in the mass affluent and high net worth segment and we've seen the success accelerate further in recent months and quarters.

James O'Sullivan: Rockefeller Capital Management's growth in the high-net-worth and ultra-high-net-worth segment of the U.S. wealth market continues to impress, driven by a combination of strong organic growth from their existing advisors and their ability to attract top financial advisors to Rockefeller's leading platform. Wealthsimple's proven ability to deliver for Canadians continues to drive impressive new client acquisition and expansion of share of wallet within their existing client

Speaker Change: Rockefeller capital management growth and the <unk>.

Speaker Change: High net worth and ultra high net worth segments of the U S wealth market continues to impress.

Driven by a combination of strong organic growth from their existing advisors and their ability to attract top financial advisors to rockefeller's leading platform.

Speaker Change: Well simple proven ability to deliver for Canadian continues to drive impressive new client acquisition and expansion of share of wallet within their existing clientele.

James O'Sullivan: Within asset management, McKenzie's gross sales have rebounded impressively relative to both 2022 and 2023. The ability to bring relevant investment management solutions to independent financial advisors and wealth management partners such as PFSL and Wealthsimple is driving this growth. China AMC, the second largest asset manager in China, continues to take advantage of their leading competitive positioning to drive AUM growth across product and distribution categories. And Northerly achieved higher fundraising results this quarter than any period we've recorded to date. The team is leveraging their global private market investment solutions across private equity, infrastructure, and private credit to drive continued growth.

James O'Sullivan: Within Asset Management, McKenzie's gross sales have rebounded impressively, relative to both 2022 and 2023. The ability to bring relevant investment management solutions to independent financial advisors and wealth management partners such as PFSL and Wells Simple is driving growth. China AMC, the second largest asset manager in China, continues to take advantage of its leading competitive positioning to drive AUM growth across product and distribution categories. And Northleaf achieved higher fundraising results this quarter than any period we've recorded to date.

Within asset management Mackenzie is gross sales have rebounded impressively.

Speaker Change: Relative to both 2022 and 2023.

Speaker Change: Their ability to bring relevant investment management solutions to independent financial advisors, and wealth management partners, such as PFS cell and while simple is driving this growth.

Speaker Change: China AMC, the second largest asset manager in China.

To take advantage of their leading competitive positioning to drive growth across products and distribution categories.

Speaker Change: And normally achieved higher fundraising results this quarter than any period, we've recorded to date.

James O'Sullivan: The team is leveraging its global private market investment solutions across private equity, infrastructure, and private credit to drive continued growth. In the context of these strong results, we continue to invest to drive growth, while also returning capital to shareholders through our attractive dividend and opportunistic share buyback program, which we maintained through July and into August. We are reiterating our 4% expense growth guidance for full year 2024, which includes just under 3% growth in the first half of the year and slightly higher growth in the second half of the year due to seasonality differences. Turning to the current operating environment for our businesses, starting with recent financial market conditions on slide 9. Equity markets generally continued to rise during the second quarter and into the month of July.

Speaker Change: The team is leveraging their global private market investment solutions across private equity infrastructure and private credit to drive continued growth.

James O'Sullivan: In the context of these strong results, we continue to invest to drive growth while also returning capital to shareholders through our attractive dividend and opportunistic share buybacks, which we maintained through July and into August. We are reiterating our 4% expense growth guidance for full year 2024, which includes just 103% growth in the first half of the year and slightly higher growth in the second half of the year due to seasonality differences.

Speaker Change: In the context of these strong results, we continue to invest to drive growth, while also returning capital to shareholders.

Speaker Change: Through our attractive dividend.

Speaker Change: Opportunistic share buybacks, which we maintained through July and into August.

Speaker Change: We are reiterating our 4% expense growth guidance for full year 2024.

Speaker Change: Which includes just under 3% growth in the first half of the year and slightly higher growth in the second half of the year due to seasonality differences.

James O'Sullivan: Turning to the current operating environment for our businesses, starting with recent financial market conditions on slide nine. Equity markets generally continue to rise during the second quarter and into the month of July. However, recent volatility has partially offset gains from the first seven months of the year.

Speaker Change: Turning to the current operating environment for our businesses, starting with recent financial market conditions on slide nine.

Speaker Change: Equity markets generally continued to rise during the second quarter and into the month of July. However, recent volatility has partially offset gains from the first seven months of the year.

James O'Sullivan: However, recent volatility has partially offset gains from the first seven months of the year. On slide 10, we present the Canadian fund industry. Canadian mutual fund industry remained in net redemptions during Q2, though we are seeing year-over-year improvements in net sales across a number of product categories. This is encouraged.

James O'Sullivan: On slide 10, we present the Canadian fund industry. The Canadian mutual fund industry remained in net redemptions during Q2. Though we are seeing year-over-year improvements in net sales across a number of product categories. This is encouraging. While the Bank of Canada decision in June and July to begin lowering its overnight rate is constructive for medium-term industry flow outlook. The effect of interest rates normalizing will, all else being equal, improve the industry environment over a period of quarters, not months. We anticipate industry net redemptions will continue into the second half of the year, with a gradual improvement as we move forward to 2025.

Speaker Change: On slide 10, we present, the Canadian fund industry.

Speaker Change: The Canadian mutual fund industry remained in net redemptions during Q2.

Speaker Change: So we are seeing year over year improvements in net sales across a number of product categories.

Speaker Change: This is encouraging.

James O'Sullivan: While the Bank of Canada decision in June and July to begin lowering its overnight rate is constructive for medium-term industry flow outlook, the effect of interest rates normalizing will, all else being equal, improve the industry environment over a period of quarters, not months. We anticipate industry net redemptions will continue into the second half of the year with gradual improvement as we move forward to 2025. Slide 11 outlines IGM's consolidated AUM&A, which reached a record high at the end of Q2 and began in July.

Speaker Change: While the bank of Canada decision in June and July to begin lowering its overnight.

Speaker Change: <unk> is constructive for medium term industry flow outlook.

Speaker Change: The effect of interest rates normalizing will all else being equal improve the industry environment over a period of quarters not months.

Speaker Change: We anticipate industry net redemptions will continue into the second half of the year with a gradual improvement as we move forward to 2025.

Speaker Change: Okay.

James O'Sullivan: Slide 11 outlines IGM's consolidated AUMNA, which reached a record high at the end of Q2 and again in July. On the right is our second quarter earnings, which I spoke to on a previous slide. Slide 12 contains our earnings contributions by segment. Keith will speak to this in more detail later in the call.

Speaker Change: Slide 11 outlines gm's consolidated M&A, which reached a record high at the end of Q2 and again in July.

James O'Sullivan: On the right is our second quarter earnings, which I spoke about on a previous slide. Slide 12 contains our earnings contributions by segment. Keith will speak to this in more detail later in the call. On slide 13, we present Ending AUM and Aid by Business. My earlier comments highlighted the key drivers that are contributing to the solid 15% year-over-year growth, including our strategic investment. With that, I will turn the call over to Damon, who will speak to the performance in our Wealth Management segment. Thank you, Jaeme.

Speaker Change: On the right is our second quarter earnings, which I spoke to on a previous slide.

Speaker Change: Slide 12 contains our earnings contributions by segment Keith will speak to this in more detail later in the call.

James O'Sullivan: On slide 13, we present ending AUM and A by business.

Keith Potter: On slide 13, we present ending M&A by business.

James O'Sullivan: My earlier comments highlighted the key drivers that are contributing to the solid, 15% year-over-year growth, including our strategic investments.

Keith Potter: My earlier comments highlighted the key drivers that are contributing to the solid 15% year over year growth, including our strategic investments.

Damon Merckerson: With that, I will turn the call over to Damon, who will speak to the performance in our Wealth Management segment.

Keith Potter: With that I will turn the call over to Damien who will speak to the performance in our wealth management segment.

Damon Murchison: Thank you, James, and good morning, everyone. Turn to slide 15 in the Wealth Management Second Quarter Highlights, including IG Wealth, Rockefeller, and WealthSIM. IG Wealth ended the quarter with AUA of $130 billion, up a solid 11% year-over-year and 1.3% during the second quarter, driven by financial markets. Gross inflows of $3.6 billion represented our best second quarter for gross inflows on record. Net outflows were $173 million during the quarter.

Damon Merckerson: Thank you, James, and good morning, everyone. Turn to slide 15 in the wealth management second-quarter highlights, including IG Wealth, Rockefeller, and Wealthsimple. IG Wealth ended the quarter with AUA of $130 billion, up a solid 11% year-over-year and 1.3% during the second quarter, driven by financial markets. Gross inflows of $3.6 billion represented our best second quarter and gross inflows on record. Net outflows were $173 million during the quarter. As released earlier this week, flows during July were very strong. It was our best July on record for gross inflows, with net sales into IGM product of $271 million.

Damien: Thank you James and good morning, everyone turning to slide 15 in wealth management second quarter highlights, including RG wealth Rockefeller on well simple.

Damien: <unk> ended the quarter with <unk> of $130 billion up a solid 11% year over year and one 3% during the second quarter driven by financial markets.

Damon Murchison: Gross inflows of $3.6 billion represented our best second quarter in gross inflows on record. We believe a contributing factor to our July results was the opportunity presented by the changes to Canada's capital gains rate policy. There's a little bit of noise in RGM product net flows and client cash during June relating to the country's capital gain policy change, which reversed in July, as I just spoke about. Near the top left, you can see the strength of our gross inflows, which were 28% higher than Q2 of last year. Currently applied 18.

Keith Potter: Gross inflows of $3 $6 billion represented our best second quarter in gross inflows on record.

Keith Potter: Outflows were $173 million during the quarter.

Damon Murchison: As released earlier this week, flows during July were very strong. It was our best July on record for gross inflows, with net sales into the IGM product of $271 million and net inflows of $262 million. Total gross inflows from newly acquired clients of $1.2 billion represented the best quarter in our history. As highlighted on this slide, we continue to see an increasing proportion of new client inflows from both the mass affluent and high net worth segments. We are proud of these results, and we are encouraged by the signs of improving sentiment. I'll reinforce what Jaeme just spoke about.

Keith Potter: As it released earlier this week closed during July were very strong. It was our best July on record for gross inflows with net sales into IGN product of $271 million and net inflows of $262 million $262 million.

Damon Merckerson: Net inflows of $262 million. Total gross inflows from newly acquired clients of $1.2 billion represented the best quarter in our history. As highlighted on this slide, we continue to see an increasing proportion of new client inflows from both the mass affluent and high net worth segments. We are proud of these results, and we are encouraged by the signs of improving sentiment. Our aim for us with James just spoke to. We view these improvements as continuing to unfold over quarters, not months. As our advisors work with their clients to navigate the shifting environment, we will continue to look for and capitalize on additional positive trends as they emerge.

Keith Potter: Total gross inflows from newly acquired clients of $1 $2 billion represented the best quarter in our history.

Keith Potter: As highlighted on this slide we continue to see an increasing proportion of new client inflows from both the mass affluent and high net worth segments.

Keith Potter: We are proud of these results and we're encouraged by the signs of improving sentiment I'll reinforce with James just spoke to we view. These improvements is continuing to unfold over quarters not months.

Damon Murchison: We view these improvements as continuing to unfold over quarters, not months. As our advisors work with their clients to navigate the shifting environment, we will continue to look for and capitalize on additional positive trends as they emerge. Similar to last quarter, our insurance business continues to deliver strong results, while we saw strong volumes within our mortgage business despite the competitive environment. We look forward to continuing this positive momentum as we develop, leverage, and benefit from the partnerships we have established in both of these businesses. Both Rockefeller and Wilson once again had very strong quarters, which I will speak to on the coming slides. Turn to slide 16, and you can see IG's Q2 flow.

James: Our advisers work with their clients to navigate the shifting environment. We will continue to look for and capitalize on additional positive trends as they emerge.

Damon Merckerson: Similar last quarter, our insurance business continues to deliver strong results, while we sell strong volumes within our mortgage business, despite a competitive environment. We look forward to continuing this positive momentum as we develop leverage and benefit from the partnerships we have established in both of these businesses. Both Rockefeller and Wilson, but once again, had very strong quarters, which I will speak to on the coming slides. During this slide, 16, you can see I'd use Q2 flows. As you can see on the left-hand side, July has traditionally been a relatively strong month for us. This July was no different, and was our best July on record for gross inflows.

James: Similar to last quarter, our insurance business continues to deliver strong results, while we saw strong volumes within our mortgage business. Despite.

James: Competitive environment, we look forward to continuing these positive momentum as we develop leverage and benefit from the partnerships. We've established in both of these businesses.

Speaker Change: Both Rockefeller well simple once again had very strong quarters, which I'll speak to on the coming slides.

James: Turning to slide 16, you can see Q2 flows.

Damon Murchison: As you can see on the left-hand side, July has traditionally been a relatively strong month for us. This July was no different and was our best July on record for gross inflows. We believe a contributing factor to our July results was the opportunity presented by the changes to Canada's capital gains rate policy.

James: As you can see on the left hand side July has traditionally been a relatively strong month for US. This July was no different it was our best July on record for gross inflows.

Damon Merckerson: We believe a contributing factor to our July results was the opportunity presented by the changes to Canada's capital gains rate policy. These changes drove opportunity for additional conversations engaged with our clients and prospects alike, allowing us to both reinforce our financial planning expertise and discuss the benefits presented by our investment shelf. Our gross inflows continue to be very strong, with Q2 representing our best second quarter on record. Our year-date gross inflows are also tracking well. On the right-hand side, you can see a clear positive turn in our total net flows and IGM product net sales.

James: We believe a contributing factor to our July results was the opportunity presented by the changes to Canada's capital gains rate policy. These changes drove opportunity for additional conversations engagement with our clients and prospects alike, allowing us to both reinforce our financial planning expertise and discuss the benefits presented by our investment shelf.

Damon Murchison: These changes drove opportunity for additional conversations and engagement with our clients and prospects alike, allowing us to both reinforce our financial planning expertise and discuss the benefits presented by our investment shell. Our gross inflows continue to be very strong, with Q2 representing our best second quarter on record. Our year-to-date gross inflows are also tracking very well. On the right-hand side, you can see a clear positive turn in our total net flows from IGM products net sales.

Speaker Change: Our gross inflows continue to be very strong with Q2, representing our best second quarter on record our year to date gross inflows are also tracking well.

Speaker Change: On the right hand side, you can see it clearly.

Speaker Change: Clear because the positive turn in our total net flows and IGN product net sales.

Damon Merckerson: There's a little bit of noise in our IGM product net flows and client cash during June relative to the country's capital gain policy change, which reversed in July, as I just spoke to. As we look for positive sentiment to fully return, our advisors continue to work with their clients to save and build wealth. Turn this slide 17. Near the top left, you can see the strength of our gross inflows, which were 28% higher than Q2 of last year. Our gross inflow rate remains elevated versus last year, and redemptions continued predominantly to be partial in nature.

Damon Murchison: There was a little bit of noise in RGM product net flows and client cash during June relating to the country's capital gain policy change, which reversed in July, as I just spoke about. As we look for positive sentiment to fully return, our advice is to continue to work with our clients to save and build wealth. Turn to slide 17.

Speaker Change: Little bit of noise in RPM product net flows and client cash during June relative relating to the country's capital gain policy change, which reversed in July as I just spoke to as.

Speaker Change: As we look for positive sentiment to fully return our advisers continue to work with their clients to save and build wealth.

Speaker Change: Turning to slide 17.

Damon Murchison: Near the top left, you can see the strength of our gross inflows, which were 28% higher than Q2 of last year. Our growth outflow rate remains elevated versus last year, and redemptions continue predominantly to be partial in nature. At the bottom right, you can see our last 12-month trailing net flows rate, which is now showing a clear indication of a bottom and a turn back to positive. Currently applied 18.

Speaker Change: Yeah. The top left you can see the strength of our gross inflows, which were 28% higher than Q2 of last year.

Speaker Change: Our gross outflow rate remained elevated versus last year and redemptions continue to predominantly be parcel in nature.

Damon Merckerson: At the bottom right, you can see our last 12-month thrilling net flows rate, which is now showing a clear indication of a bottom and a turn back to positive. Turn to slide 18. As mentioned, the $1.2 billion of gross inflows from newly acquired clients during the second quarter represented our best quarter on record for new client acquisition. During the second quarter of gross inflows, so massive fluid and high net worth clients represented over 75% of gross flows from newly acquired clients. With million dollar plus clients, accounting for 32%. We have a track record for executing on growth within our target markets, and as we move forward, we fully expect to see further progress as Canadians continue to seek financial planning and bugs.

Speaker Change: But the bottom right you can see our last 12 months really net flows right, which is now showing a clear indication of a bottom and it turned back to positive.

Speaker Change: Turning to slide 18.

Damon Murchison: As mentioned, the $1.2 billion of gross inflows from newly acquired clients during the second quarter represented our best quarter on record for new client acquisition. During the second quarter, gross inflows from massive fluid and high net worth clients represented over 75% of gross flows from newly acquired clients. We have a track record for executing on growth within our target markets, and as we move forward, we fully expect to see further progress as Canadians continue to seek financial planning advice. Turn to slide 19.

Speaker Change: As mentioned the $1 $2 billion of gross inflows from newly acquired clients. During the second quarter represented our best quarter on record for new client acquisition.

Speaker Change: During the second quarter gross inflows for mass affluent high net worth clients represented over 75% of gross flows from newly acquired clients with million dollar plus clients accounting for 32%.

Damon Murchison: We have a track record of executing on growth within our target markets, and as we move forward, we fully expect to see further progress as Canadians continue to seek financial planning advice. As we drive growth in the mass affluent and high-worth segments, the increases in productivity that we continue to show are a testament to where we have invested. We expect to see a continuation of this trend. Our ongoing focus on the industry's wealth drivers will allow us to continue to grow in key client segments and drive increased productivity among our advisors. Now let's turn to slide 21 and talk about Rockefeller's program. Wealthsimple continues to reinforce its position as an important and growing player in the Canadian wealth management ecosystem.

Speaker Change: We have a track record for executing on growth within our target markets and as we move forward, we fully expect to see further progress as Canadians continue to seek financial planning advice.

Damon Merckerson: Turn to slide 19. This shows the productivity of our advisors. As we drive growth in the massive fluid and high worth segments, the increases in productivity that we continue to show are testament to where we have invested. We expect to see a continuation of this trend. Turn to slide 20. An update on our focus of building our business to capitalize on industry well drivers. During the quarter, we entered into a number of partnerships which support our capabilities and will assist us in capitalizing on the industry well drivers. These partnerships include better cropping our advisors with tools needed for tax planning conversations.

Speaker Change: Turning to slide 19.

Damon Murchison: This shows the productivity of our advisors. As we drive growth in the mass affluent and high-worth segments, the increases in productivity that we continue to show are a testament to where we have invested. We expect to see a continuation of this trend. Turn to slide 20.

Speaker Change: This shows the productivity of our advisors as we drive growth in the mass affluent and hydro segments. The increases in productivity that we continue to show our Testament to where we have invested we expect to see a continuation of this trend.

Speaker Change: Turning to slide 20.

Damon Murchison: An update on our focus of building our business to capitalize on industry wealth creation. During the quarter, we entered into a number of partnerships that support our capabilities and will assist us in capitalizing on industry wealth drivers. These partnerships include better equipping our advisors with tools needed for tax planning conversations. This also parallels well with our insurance partnership with Life Design Analysis, which we highlighted last quarter, a partnership with a major health care provider that will allow our high net worth clients to access additional health care assessments and diagnostics at reduced rates, and Enhanced Technology to provide our small and medium-sized business owners with the tools needed to value their companies, a crucial step as they look to either grow or monetize their business.

Speaker Change: An update on our focus of building our business to capitalize on industry well drivers during the quarter, we entered into a number of partnerships, which support our capability and will assist us in capitalizing on the industry well drivers. These partnerships include better equipping our advisers with tools needed for tax planning conversations. This also.

Damon Merckerson: This also parallels well with our insurance partnership with Life Design Analysis, which we highlighted last quarter. A partnership with the major healthcare provider that will allow our high net worth clients to access additional healthcare assessments and diagnostics at reduced rates. And enhance technology to provide our small and medium sized business owners with the tools needed to value their companies, a crucial step as they look to either grow or monetize their business. Our ongoing focus on the industry well drivers will allow us to continue to grow in key client segments and drive increased productivity of our advisors.

Speaker Change: Well with our insurance partnership with life design analysis, which we highlighted last quarter, our partnership with a major healthcare provider that will allow our high net worth clients to access additional healthcare assessments and diagnostics at reduced rates.

Speaker Change: And enhanced technology to provide our small and medium sized business owners with the tools needed to value their companies are crucial step as they look to either grow or monetize their business.

Damon Murchison: Our ongoing focus on the industry's wealth drivers will allow us to continue to grow in key client segments and drive increased productivity among our advisors. Now, let's turn to slide 21 and talk about Rockefeller's program. Over the last 12 months, organic growth has driven $4.9 billion in client assets. Rockefeller continues to add to its private advisory network, having added 57 new advisors over the last 12 months. Now turning to slide 22, let's talk about Wealthsimple.

Speaker Change: Our ongoing focus on the industry wealth drivers will allow us to continue to grow in key client segments and drive increased productivity of our advisors.

Damon Merckerson: Now let's turn to slide 21 and talk about Rockefeller's progress. Over the last couple of months, organic growth has driven $4.9 billion in client assets. Rockefeller continues to add to their private advisory network, having added 57 new advisors over the last 12 months. Now turning slide 22, let's talk about Well Simple. Well, simple continue to reinforce their position as an important growing player in the Canadian wealth management ecosystem. Well simple ended Q2 with over $43 billion in AUA, increasing 13% during the quarter and 87% on a year-over-year basis. Client count also expanded by 15% year-over-year to 2.5 million clients.

Speaker Change: Now, let's turn to slide 21, and talk about Rockefeller less progress.

Speaker Change: Over the last 12 months organic growth was driven has driven $4 9 billion in client assets Rockefeller continues to add to their private advisory network hub.

Speaker Change: Having added 57, new advisors over the last 12 months.

Speaker Change: Now turning to slide 22, let's talk about well simple.

Damon Murchison: Wealthsimple continues to reinforce their position as an important and growing player in the Canadian wealth management ecosystem. Wealth Sample ended Q2 with over $43 billion in AUA, increasing 13% during the quarter and 87% We're on a year-over-year basis. My account also expanded by 15% year-over-year to $2.5 million. With that, I'll turn the call over to Luke Gould.

Speaker Change: Well simple continue to reinforce our position as an important and growing player in the Canadian wealth management ecosystem, well sample ended Q2 with over $43 billion in AOA, increasing 13% during the quarter and 87%.

Speaker Change: Over on a year over year basis.

Speaker Change: <unk> also expanded by 15% year over year to $2 5 million clients.

Luke Gould: With that, I'll turn the call over to Luke. Thanks Damon, good morning everyone. So I'll try to page 24 a few comments on the quarter. Similar to Q1, this can do to be a very good quarter for clients and shareholders. With AUM up 4.5%, an average client account value is up over 10% in the last 12 months. Higher asset levels and operating leverage led to our earnings at McKenzie being up 12% in the quarter and the highest Q2 in 15 years. On point two, investment fund experiences net redemptions of 745 million in the quarter. And this is in the context of continued net redemptions in the industry.

Speaker Change: With that I'll turn the call over to Luke good great. Thanks, Dan and good morning, everyone.

Luke Gould: Great. Thanks, Damon. Good morning, everyone.

Luke Gould: Search for it on page 24, a few comments on the quarter. Similar to Q1, this could continue to be a very good quarter for clients and shareholders, with AUM up 4.5%, and average client account value up over 10% in the last 12 months. Higher asset levels and operating leverage led to our earnings at McKinsey being up 12% in the quarter and the highest Q2 in 15 years. On point two, investment funds experienced net redemptions of $745 million in the quarter, and this is in the context of continued net redemptions in the industry.

Luke: Page 24, a few comments on the quarter.

Luke: Similar to Q1 this continues to be a very good quarter for clients and shareholders with AUM up four 5% and average client account value was up over 10% of last 12 months.

Speaker Change: Higher asset levels, and operating leverage led to earnings that Mackenzie being up 12% in the quarter and the highest Q2 in 15 years on.

Speaker Change: One point to investment funds experienced net redemptions of 745 million during the quarter and this is in the context of continue net redemptions in the industry.

Luke Gould: We saw slight year-over-year improvements for industry long-term fund flows in Q2 as reviewed by James and Damon. And this trend continued in July. And we at McKenzie had gross sales up 38% and notice all net sales improvements. In 0.3, the share of our assets in four and five star funds remained relatively unchanged, quarter of a quarter at 52%, and during the quarter we had a number of product launches. We launched a suite of low-ball ETFs with our global quant equity boutique that brings their impressive track records in the space to retail, as well as an emerging markets ex-China equity fund with this boutique.

Luke Gould: We saw slight year-over-year improvements for industry long-term fund flows in Q2, as reviewed by James and Damon, and this trend has continued into July. And we at McKinsey had gross sales up 38% and noticeable sales improvement. In point three, the share of our assets in four and five star funds remained relatively unchanged for a quarter at 52%.

James Damon: We saw a slight year over year improvements for industry long term funds flows in Q2 as reviewed by James Damon and this trend has continued into July and we at Mackenzie had gross sales up 38% and noticeable net sales improvements.

Speaker Change: And 0.3, the share of our assets in four and five star funds remained relatively unchanged quarter over quarter at 52%.

Luke Gould: And during the quarter, we had a number of product launches. We launched a suite of low-volatility ETFs with our global quant equity boutique that brings their impressive track records in this phase to retail, as well as an emerging markets ex-China equity fund with this boutique. It's early days, but we're seeing very good momentum within retail with this Global Quant Equity team, and we'll be focusing on these newly launched products, as well as the Global Equity, EM, and PE replication offerings managed by this team in the back half of the year.

Speaker Change: And during the quarter, we had a number of product launches.

Speaker Change: We launched a suite of low vol, Etfs with our global Quant equity boutique that brings their impressive track records in this space to retail as well as in emerging markets ex China equity fund with the strategic it.

Luke Gould: It's early days, but we're seeing very good momentum within retail with this global quant equity team, and we'll be focusing on these newly launched products as well as the global equity EM and PE replication offerings matched by this team in the back half of the year. We also launched an ETF version of our flagship global dividend fund, and you can expect us to bring more active equity mandates to ETF structure in the future for those advisors who like the characteristics of ETFs. We also launched a global corporate fixed income fund that filled a gap that we had in itself, relative to some of the important flagships of our competitors in the market.

Speaker Change: It's early days, but we're seeing very good momentum within a retail with this global Quant equity team and we will be focusing on these newly launched products as well as the global equity E M and P. Replication offered offerings managed by this team in the back half of the year.

Luke Gould: We also launched an ETF version of our flagship Global Dividend Fund, and you can expect us to bring more active equity mandates to the ETF structure in the future for those advisors who like the characteristics of ETFs.

Speaker Change: We also launched an ETF version of our flagship global dividend Fund and you can expect us to bring more active equity mandates to ETF structure in the future for those advisors, who like the characteristics of Etfs.

Luke Gould: We have also launched a global corporate fixed income fund that fills a gap that we have on our shelf relative to some of the important flagships of our competitors in the market. Both ChinaMC on the right and Northleaf delivered strong results, as reviewed by James. ChinaMC... had another strong quarter of net flows with 41 billion won or 8 billion Canadian dollars in long-term fund net sales in the quarter, and their AUM grew by 25% during the last year as a result of these strong net sales, and Norfleet delivered $120 billion in new commitments during the quarter, which was our highest quarter for new commitments since we made our investment and was spread across private equity, private credit, and infrastructure. Turn to page 25, and you can see the trended history of McKinnon's Net Flows.

Speaker Change: We also launched a global corporate fixed income fund.

Speaker Change: That fills a gap that we had in herself relative to some of the important flagships of our competitors in the market.

Luke Gould: So, China MC on the right and Northleaf delivered strong results as we read by James. China MC had another strong quarter net flows with $41 billion, or $8 billion Canadian dollars, in long-term fund net sales in the quarter, and their AUM grew by 25% during the last year as a result of these strong net sales. Northleaf delivered $120 billion in new commitments during the quarter, which was our highest quarter for new commitments since we made our investment and was spread across private equity, private credit, and infrastructure. In terms of page 25, you can see the trend of history of a kind of net flows.

Speaker Change: Both China and see on the right at North leads delivered strong results as reviewed by James China AMC.

Speaker Change: We had another strong quarter net flows with 41 billion, one or 8 billion Canadian dollars in long term fund net sales in the quarter and AUM grew by 25% during the last year as a result of the strong net sales and.

Speaker Change: In northeast delivered $1 8 billion of new commitments during the quarter.

Speaker Change: Which which which was our highest quarter for new commitments since we made our investment and was spread across private equity private credit and infrastructure.

Damon Murchison: Turn to page 25, and you can see the trended history of McKinnon's Net Flows. On the right, you can see that the last 12-month trailing net flows were relatively stable in the quarter. We had some net sales softness in some of our larger flagship mandates who have weaker short-term performance but have adhered to their discipline. This is being offset by improvements elsewhere that I'll review in the following slides.

Speaker Change: Turning to page 25, you can see the trend of history of Mckinsey that flows.

Keith Potter: On the right, you can see that last full month trail and net flows were relatively stable in the quarter. We had some net sales softness in some of our larger flagship mandates, who have weaker short-term performance, but have adhered to their discipline. This is being offset by improvements elsewhere, though review and coming slides. I'd also highlighted the top left, the improvement in growth in that sales in July, with growth sales up 30% and net redemptions improved to 73 million from 224 million in the prior year. We're encouraged by these signs of improvement in the industry, and as we move through the back half of 224, we feel we're well-positioned, with compelling performance across multiple relevant mandates.

Luke Gould: On the right, you can see that last 12-month trailing net flows were relatively stable in the quarter. We had some net sales softness in some of our larger flagship mandates who have weaker short-term performance but have adhered to their discipline. This is being offset by improvements elsewhere that I'll review in the following slides.

Speaker Change: On the right you can see that last 12 month trailing net flows were relatively stable in the quarter we.

Speaker Change: We had some debt sales softness in some of our larger flagship mandates who have weaker short term performance, but have adhere to their discipline. This is being offset by improvements elsewhere they'll review on coming slides.

Luke Gould: I'd also highlight on the left the improvement in gross and net sales in July, with gross sales up 38% and net redemptions improved to $73 million from $224 million the prior year. We're encouraged by these signs of improvement in the industry, and as we move through the back half of 2024, we feel we're well-positioned with compelling performance across multiple relevant mandates. Turn to page 26.

Speaker Change: I'd also highlight on the top left the improvement in gross to net sales in July with gross sales up 30% in net redemptions improved to $73 million from 224 million in the prior year.

Damon Murchison: We're encouraged by these signs of improvement in the industry, and as we move through the back half of 2024, we feel we're well-positioned with compelling performance across multiple relevant mandates. Turn to page 27, and you can see our performance and net sales for our retail mutual funds and ETFs by boutique. Long-term fund net sales. Northleaf has consistently put on about a billion new commitments each quarter since we formed our partnership with them in 2000, and this $1.8 billion was the strongest quarter yet. The fundraising during the quarter was well-diversified across Canadian and international clients and, as mentioned, was a good mix of private equity, private credit, and infrastructure mandates.

Speaker Change: We're encouraged by these signs of improvement in the industry and as we move through the back half of 'twenty 'twenty four we feel we're well positioned with compelling performance across multiple relevant mandates.

Speaker Change: Turning to page 26.

Keith Potter: Tritipage 26, the only remark in what it makes to the top right, you can see our Morningstar rankings remain relatively in line with last quarter and the industry. On performance, I'd highlight that the broadening of market movements in July and August has been very favorable to many of our boutiques, and we're expecting higher Morningstar in percentile rankings as we continue into Q3. Tritipage 27, you can see our performance in net sales for our retail mutual funds and ETS by boutiques. In the middle, I'd highlight that our growth, blue water, and green chip boutiques have remained true to their respective disciplines, but this has kept them out of some of the narrow places that have performed well recently.

Luke Gould: The only remark I'm going to make is on the top right; you can see our Morningstar rankings remain relatively in line with last quarter and the industry. On performance, I'd highlight that the broadening of market movements in July and August has been very favorable to many of our boutiques, and we're expecting higher Morningstar percentile rankings as we continue into Q3. Turn to page 27, and you can see our performance and net sales for our retail mutual funds and ETFs by boutique.

Speaker Change: The only market when it makes to the top right you can see our Morningstar rankings remained relatively in line with last quarter and the industry.

Speaker Change: On performance I'd highlight that the broadening of market movements in July and August has been very favorable to many of our boutiques and we're expecting a higher Morningstar percentile rankings as we continue into Q3.

Speaker Change: Turning to page 27, you can see our performance in net sales for our retail mutual funds and Etfs by boutique.

Luke Gould: In the middle, I highlight that our growth, blue water, and green ship boutiques have remained true to their respective disciplines, but this has kept them out of some of the narrow places that have performed well recently. You can see the year-over-year net sales declines here.

Speaker Change: In the middle I would highlight that our growth blue water and green shoot boutiques have remained true to their respective disciplines, but this has kept them out of some of the nearer places that have performed well recently.

Keith Potter: You can see the year-over-year net sales declines here, and I'd also comment that growth sales have remained very resilient with these boutiques. I'd also highlight the performance strength and the emerging sales momentum in some very large categories with our global equity team, our global equity team, our global equity and income team, as well as put them advised US all-cap growth mandate, which is located in the right column. Also, as mentioned earlier, it's remarkable how interesting how much things can change in five weeks, and we've seen meaningful performance improvements in several boutiques, for example, in Ivy.

Speaker Change: You can see the year over year net sales declines here and I'd also comment that gross sales have remained very resilient with these that these boutiques.

Luke Gould: And I'd also comment that gross sales have remained very resilient with these boutiques. I'd also highlight the performance, strength, and the emerging sales momentum in some very large categories with our global equity team, sorry, our global quant equity team, our global equity and income team, as well as the Putnam Advised U.S. All Cap Growth Mandate, which is located in the right column. Also, as mentioned earlier, it's remarkable how interesting and how much things can change in five weeks, and we've seen meaningful performance improvements in some of our batiks. For example, in Ivey, most mandates now sit in the top quartile across time horizons as we've moved through July and August.

Speaker Change: I'd also highlight the performance strength and the emerging sales momentum in some very large categories with our global equity team. That's correct global Quant equity team, our global equity and income team as well as to put them advised all U S. All cap growth mandate, which is located in the right column.

Speaker Change: Also as mentioned earlier, it's remarkable how with interesting.

Speaker Change: How much things can change in five weeks and we see meaningful performance improvements in some of our boutiques. For example, an IV most mandates now top quartile across time horizons as we've moved through July and August.

Keith Potter: Most mandates now sit top quartile across time horizons as we move just through July and August. Turning to page 28, you can see the continuous strength of both AUM growth and net flows in the Chinese investment fund industry. On the left hand side, the second quarter once again had very strong flows, with Q2 net sales of $1.8 trillion or approximately $340 billion Canadian dollars. Long-term fund net sales may have the majority; sorry, long-term fund net sales with the majority of Q2 sales are supposed to money market fund. And this is driven by significant sales into fixed income funds.

Luke Gould: Turn to page 28, and you can see the continuous strength of both AUM growth and net flows in the Chinese investment fund industry. On the left-hand side, the second quarter once again had very strong flows, with Q2 net sales of 1.8 trillion won or approximately 340 billion Canadian dollars. Long-term funds that sales may have been made. The majority of...

Speaker Change: Turning to page 28, you can see the continued strength of both AUM growth in net flows in the Chinese investment fund industry.

Speaker Change: On the left hand side, the second quarter once again had very strong flows.

Speaker Change: With Q2 net sales of $1 eight trillion won or approximately 340 billion Canadian dollars.

Speaker Change: Long term fund net sales made up the.

Georgia: Georgia, sorry, yes.

Luke Gould: Long-term fund net sales were the majority of Q2 sales as opposed to money market fund sales, and this was driven by significant sales into fixed income funds. Industry long-term fund AUM grew by 7% in the quarter and is up 10% year-over-year. And importantly, on the right, you can see China MC's continued strong market position, ranking number two in both long-term funds and overall, with a meaningful increase in market share from 4.8% to 5.4% as their assets grew by 24% in the last 12 months versus the industry growth of 10%.

Speaker Change: Long term fund net sales was.

Speaker Change: Was the majority of Q2 sales as opposed to money market funds and this was driven by significant sales into fixed income funds.

Keith Potter: Industry long-term fund AUM grew by 7% the quarter and is up 10% year by year. And importantly, on the right, you can see China MCs continue strong market position, ranking number two in both long-term funds and overall, with a meaningful increase in market share from 4.8% to 5.4% as their assets grew by 24% in the last 12 months versus the industry growth of 10%. I should also highlight that China MC was the net sales leader over the last 12 months, with $282 billion, or $50 billion over the period. On page 29, you can see the continued growth in China MCs AUM, with investment fund AUM up 3% during the quarter and 25% over the year.

Speaker Change: Industry long term fund AUM grew by 7% in the quarter and is up 10% year over year and importantly on the right you can see China Mc's continued strong market position ranking number two in both long term funds and overall with a meaningful increase in market share from four 8% to five 4% as their assets grew by 24% in the last 12 months versus.

Operator: Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Second Quarter 2024 Analyst Call and Webcast. As a reminder, all participants are in a 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 and one on your telephone keypad. Should you need assistance during the conference call? You may signal an operator by pressing star and zero.

Speaker Change: The industry growth of 10% I should also highlight the Chinese see what the net sales leader over the last 12 months with 282 billion won or $50 billion over the period.

Luke Gould: I should also highlight that China MC was the net sales leader over the last 12 months with $282.1 billion or $50 billion over the period. On page 29, you can see the continued growth in China's seized AUM, with investment fund AUM up 3% during the quarter and 25% over the year, driven by growth in both long-term and money market funds. And, as mentioned, these increases were driven substantially by net sales, which you can see in the chart at the bottom.

Speaker Change: On page 29, you can see the continued growth in China, AUM with investment fund AUM up 3% during the quarter and 25% over the year driven by growth in both long term and money market funds and as mentioned these increases were driven substantially by net sales, which you can see in the chart at the bottom.

Keith Potter: You're driven by growth in both long-term and money market funds. And, as mentioned, these increases were driven substats by net sales, which you can see in the chart at the bottom. On page 30, you can see another quarter of continued strong growth at Northleaf, with $1.8 billion in new commitments and $4.6 billion over the last 12 months. Northleaf has consistently put on about a billion new commitments each quarter since we formed a partnership with them in 2000. And this $1.8 billion was the strongest quarter yet. The fund raised near the quarter was well diversified across Canadian and international clients, and, as mentioned, was a good mix of private equity, private credit, and infrastructure mandates.

Kyle Martin: I would now like to turn the conference over to Kyle Martin, Treasurer and Head of Investor Relations. Please go ahead. Thank you, Betsy. And good morning, everyone. Welcome to our second quarter 2024 Analyst Call.

Luke Gould: And last, on page 30, you can see another quarter of continued strong growth at Northleaf with $1.8 billion in new commitments and $4.6 billion over the last 12 months. Northleaf has consistently put on about a billion new commitments each quarter since we formed our partnership with them in 2000, and this $1.8 billion was the strongest quarter yet. The fundraising during the quarter was well diversified across Canadian and international clients and, as mentioned, was a good mix of private equity, private credit, and infrastructure mandates.

Speaker Change: And lastly on page 30, you can see another quarter of continued strong growth at norfleet with $1 8 billion of new commitments and $4 6 billion over the last 12 months.

Speaker Change: North leaf has consistently put on about 1 billion new commitments each quarter since we formed a partnership with them in 2000 and this one 8 billion was the strongest quarter yet.

Kyle Martin: Joining me today on the call, we have James OSullivan President and CEO of IGM Financial, Damon Merckerson, President and CEO of IGWELF Management, Luke Gould, President and CEO of McKenzie Investments and Keith Potter, Executive Vice President and CEO of IGM Financial. Before we get started, I would like to draw your attention to our caution concerning for looking statements on slide three of the presentation. Slide four and five summarized non-IFRS financial measures and other financial measures used in the material. And on slide six, we provide a list of documents that are available on our website related to IGM Financial Second Quarter Results.

Keith Potter: The fundraising during the quarter was well diversified across Canadian and international clients and as mentioned was a good mix of private equity private credit and infrastructure mandates and I'll turn the call over to Keith Potter. Thank you Luc and good morning, everyone. On Slide 32, you can see key highlights for Q2.

Luke Gould: And I'll turn the call over to Keith Potter.

Unknown Executive: And I'll turn the call over to Keith Potter.

Keith Potter: And I'll turn the call over to Keith Potter. Thank you, Luke, and good morning, everyone. On slide 32, you can see key highlights for Q2. Adjust the EPS with 93 cents, excluding other items that life go. And one time that refinancing charges at Rockefeller. Adjust the earnings were 4.5% year over year. Our second highest Q2 on record. We returned $171 million to shareholders in the quarter to a quarterly dividend and continued to be active in our NCID program, repurchasing $37 million in shares. As Damon spoke to already, we'll simply continue to execute on its strategy, and driven by continued exceptional performance, we have once again marked up the fair value of our investment from $722 million to $835 million, which is fair value for other comprehensive income.

Keith Potter: Thank you, Luke, and good morning everyone. On slide 32, you can see key highlights for Q2. Adjusted EPS of $0.93 excluding other items at Lifeco and one-time debt refinancing charges at Rockefeller. Adjusted earnings were 4.5% year-over-year, our second highest Q2 on record. We returned $171 million to shareholders in the quarter through a quarterly dividend and continue to be active in our NCIB program, repurchasing $37 million in shares.

Keith Potter: Adjusted EPS of <unk> 93 cents, excluding other items that lifestyle and onetime debt refi refinancing charges at Rockefeller.

Speaker Change: Adjusted earnings were $4 five.

Speaker Change: <unk> year over year.

Speaker Change: Our second highest Q2 on record.

Speaker Change: We returned $171 million to shareholders in the quarter through our quarterly dividend and continued to be active in our <unk> program repurchasing $37 million in shares.

James Osullivan: I'll turn it over to James. Okay, thank you, Kyle.

James Osullivan: Good morning, everyone. And thank you for joining us today as we discuss IGM Financial Second Quarter Results, which demonstrate how our businesses are successfully executing against their growth strategies, turning the slide eight. Adjust that EPS was 93 cents during the quarter, up four and a half percent year over year. Our earnings were supported by strong growth in our AUM&A across our core operating companies and strategic investments, up almost 15 percent relative to last year.

Keith Potter: As Damon spoke about already, WealthSim will continue to execute on its strategy, and driven by continued exceptional performance, we have once again marked up the fair value of our investment from $722 million to $835 million, which is fair value with our other comprehensive income. And finally, on China MC, we had another strong quarter with earnings surpassing levels that were last experienced prior to a few reductions announced in July of 2023. Turning to slide 33, you can see our AUM&A and flows, and coming off a strong Q1, ending AUM&A was relatively unchanged, up 0.1%, while average assets increased 2.4%. Turning to slide 34, we have our consolidated earnings at IGM.

Speaker Change: As David spoke to already well simply continuing to execute on its strategy and driven by continued exceptional performance. We have once again marked up the fair value of our investment from $722 million to $835 million, which is fair value through other comprehensive income.

Keith Potter: And finally, on Chinese MC, we had another strong quarter with earnings or passing levels that were last experienced prior to few reductions announced in July of 2023.

Speaker Change: And finally on China FC we had another strong quarter with earnings surpassing level that were last experience prior to fee reductions announced in July of 2023.

Keith Potter: During the slide 33, you can see our AUMNA and flows, and coming off a strong Q1, ending AUMNA was relatively unchanged, up 0.1%, while average assets increased 2.4%. Starting the slide 34, we have our consolidated earnings at IGM. Growth and average AUMNA supported higher revenues in both our Wealth and Asset Management segments. And on 0.2, as James highlighted earlier in the call, our operations will support if this development expenses were up 4.9% on our year-over-year basis, and 2.7% year-to-date. And on a failure basis, we are maintaining our guidance of 4% growth over 2023.

Speaker Change: Turning to slide 33, you can see our M&A and flows and coming off a strong Q1, ending AUM and <unk> was relatively unchanged up 1%, while average assets increased two 4%.

James Osullivan: By GM's Q2 ending AUM&A, which represents our core companies is also our highest on record. We're seeing positive signs and indicators in each of our businesses. In wealth management, IGM wealth has been very successful in the mass affluent and high net worth segments. And we've seen this success accelerate further in recent months and quarters. Rockefeller capital management's growth in the high net worth and ultra high net worth segment of the US wealth market continues to impress driven by a combination of strong organic growth from their existing advisors and their ability to attract talked financial advisors to Rockefeller's leading platform.

Speaker Change: Turning to slide 34, we have our consolidated earnings at IGN wrote an average M&A supported higher revenues in both our wealth and asset management segments.

Keith Potter: Growth in average AUM&A supported higher revenues in both our wealth and asset management segments. And on point two, as James highlighted earlier in the call, our operations and support and business development expenses were up 4.9% on a year-over-year basis and 2.7% year-to-date. And on a full-year basis, we are maintaining our guidance of 4% growth over 2023.

Speaker Change: 0.2 is James highlighted earlier in the call our operations and support and business development expenses were up four 9% on a year over year basis, and two 7% year to date and on a full year basis, we are maintaining our guidance of 4% growth over 2023.

Keith Potter: On flight 35, we present the key profitability drivers for IG-Wealth, and I'll highlight a few points here. First, on the far left, you can see average assets were up 3.4% in the quarter, and on the right, our advisory fee rate reflects the strong quarterly increase in AOA, and clients moving up wealth bans, including our continued success with the acquisition of mass affluent and high-net-worth clients. The rate is also impacted by a rotation of client cash balances and other solutions, including increases in other cash-like products such as GICs and Heases. The stable product mix and continued success in the mass affluent and high-not worth segment, we'd expect a decrease of culture to 0.5 basis points per quarter in this rate.

Keith Potter: On slide 35, we present the key profitability drivers for IG Wealth, and I'll highlight a few points here. First, on the far left, you can see average assets were up 3.4% in the quarter, and on the right, our advisory fee rate reflects the strong quarterly increase in AOA and clients moving up wealth bands, including our continued success with the acquisition of mass affluent and high net worth clients. The rate is also impacted by a rotation of client cash balances into other solutions, including increases in other cash-like products, such as GICs and HESAs.

Speaker Change: On slide 35, we present, the key profitability drivers for IGT well.

Speaker Change: A highlight a few points here first on the far left you can see average assets were up three 4% in the quarter and on the right. Our advisory fee rate reflects the strong quarterly increase in AOA in clients moving up wealth bands, including our continued success with the acquisition of mass affluent and high net worth clients the.

James Osullivan: Well, simple proven ability to deliver for Canadians continues to drive impressive new client acquisition and expansion of share of wallet within their existing clientele. Within asset management, McKenzie's gross sales have rebounded impressively, relative to both 2022 and 2023. The ability to bring relevant investment management solutions to independent financial advisors and wealth management partners such as PFSL and wealth simple is driving this growth. China AMC, the second largest asset manager in China, continues to take advantage of their leading competitive positioning to drive AUM growth across product and distribution categories.

Speaker Change: The rate is also impacted by a rotation of client cash balances into other solutions, including increases in other casualty products such as GI season. He says with stable product mix and continued success in the mass affluent high net worth segment, we expect a decrease of closer to five basis points per quarter and this rate and finally, if you can also see product fees and <unk>.

Keith Potter: With stable product mix and continued success in the mass affluent high net worth segment, we'd expect a decrease of closer to 0.5 basis points per quarter in this rate. And finally, you can also see product fees and asset-based compensation rates were stable for the quarter. On slide 36, IG's overall earnings were $111.7 million in Q2.

Keith Potter: And finally, you can also see product fees and asset-based compensation rates were stable for the quarter.

Speaker Change: Asset based compensation rates were stable for the quarter.

Keith Potter: On flight 36, IG's overall earnings were 111.7 million in Q2. On point 1, advisory and product and program fees are up year over year. And relative to the last quarter. And on point 2, year-over-year financial planning revenues are in line with 2023. Another strong quarter for insurance results were offset by lower mortgage income. As Damon commented, we saw strong mortgage volumes within a competitive environment, which is great. However, lower mortgage income was driven by negative fair value adjustments, which are primarily accounting-related volatility versus economic and nature. The insurance business had another very strong quarter relative to a year ago and post similar results as the first quarter.

Keith Potter: On slide 36, IG's overall earnings were $111.7 million in Q2. On point one, advisory and product, and program fees are up year-over-year and relative to the last quarter. And on point two, year-over-year financial planning revenues are in line with 2023, and another strong quarter for insurance results was offset by lower mortgage income. However, as Damon commented, we saw strong mortgage volumes within a competitive environment, which is great. Our lower mortgage income was driven by negative fair value adjustments, which are primarily accounting-related volatility versus economic in nature.

Speaker Change: On slide 36 hygiene overall earnings were $111 7 million in Q2 on.

Keith Potter: On point 1, advisory and product, and program fees are up year-over-year and relative to last quarter. And on point 2, year-over-year financial planning revenues are in line with 2023, and another strong quarter for insurance results were offset by lower mortgage income. As Damon commented, we saw strong mortgage volumes within a competitive environment, which is great. Our lower mortgage income was driven by negative fair value adjustments, which are primarily accounting-related volatility versus economic in nature.

Speaker Change: On 0.1 advisory and product and program fees are up year over year and relative to last quarter and I'll point to year over year financial planning revenues are in line with 2023 and another strong quarter for insurance results were offset by lower mortgage income.

Speaker Change: As David commented, we saw strong mortgage volumes within a competitive environment, which is great.

James Osullivan: And northerly achieved higher fundraising results this quarter than any period we've recorded to date. The team is leveraging their global private market investment solutions across private equity, infrastructure and private credit to drive continued growth. In the context of these strong results we continue to invest to drive growth while also returning capital to shareholders through our attractive dividend and opportunistic share buybacks which we maintained through July and into August. We are reiterating our 4% expense growth guidance for full year 2024 which includes just 103% growth in the first half of the year and slightly higher growth in the second half of the year due to seasonality differences.

David: Lower mortgage income was driven by negative fair value adjustments, which are primarily accounting related volatility versus economic in nature.

Keith Potter: The insurance business had another very strong quarter, relatively to a year ago, and posted similar results as the first quarter. Looking forward, we expect to continue to see year-over-year growth in the business. And as a reminder, other product commissions will move in a similar direction as revenue, which you can see in the table, including point two, which has been at 63% of revenue for the last two quarters. Moving to slide 37, we have McKinsey's AUM by client and product type, as well as net revenue rates.

David: The insurance business had another very strong quarter.

Speaker Change: Relatively to a year ago and posts similar results of the first quarter looking forward, we expect to continue to see year over year growth in the business and as a reminder, other product commissions will move in a similar direction as revenue.

Keith Potter: Looking forward, we expect to continue to see year-over-year growth in the business. And as a reminder, other product commissions will move in a similar direction as revenue, which you can see in the table, including a point 2, and has been at 63% of revenue for the last two quarters.

Speaker Change: You can see in the table included in our <unk> and has been at 63% of revenue for the last two quarters.

Keith Potter: Moving to slide 37, we have McKenzie's AUM by client and product type, as well as net revenue rates. On the left, you can see average AUM is up 1.4%. And on the right, the overall third-party rate was unchanged in the quarter at 53 basis points. And the top line where it represents a smaller AUM base, excluding Canada Light, is driven by continued strength; their PFSL and wealth sample wealth management partnerships.

Speaker Change: Moving to slide 37, we have mckinsey AUM by client and product type as well as net revenue rates on the left you can see average AUM is up one 4% and on the right. The overall third party rate was unchanged in the quarter at 53 basis points.

Keith Potter: On the left, you can see average AUM is up 1.4%, and on the right, the overall third-party rate was unchanged in the quarter at 53 basis points. And the top line, which represents a smaller AUM base excluding Canada Life, is driven by continued strength with our PFSL and Wealthsimple Wealth Management Partnership. Turning to slide 38, you can see McKenzie's earnings of $55.9 million are up 11.6% year-over-year. With higher AUM, net asset management fees are up year-over-year and sequentially, and net investment income is reflective of positive market growth in the quarter. Slide 39 has the China MC results. Two quick points.

David: Topline, where it represents a smaller AUM base, excluding Canada life is driven by continued strength there <unk> a whole wealth management partnerships.

James Osullivan: Turning to the current operating environment for our businesses starting with recent financial market conditions on slide nine. Equity markets generally continue to rise during the second quarter and into the month of July. However recent volatility has partially offset gains from the first seven months of the year.

Keith Potter: During the slide 38, you can see McKenzie's earnings of 55.9 million is up 11.6% year over year, with higher AUM. Net asset management fees are up, year over year, and sequentially, and net investment income is reflective of positive market growth in the quarter.

Keith Potter: Turning to slide 38, you can see McKenzie's earnings of $55.9 million are up 11.6% year-over-year. With higher AUM, net asset management fees are up year over year and sequentially, and net investment income is reflective of positive market growth in the quarter. Slide 39 has China NC results. Two quick points.

Speaker Change: Turning to slide 38, you can see Mackenzie has earnings of $55 9 million is up 11, 6% year over year.

David: With higher AUM net asset management fees are up year over year and sequentially and net investment income is reflective of positive market growth in the quarter.

Keith Potter: Slide 39 has China and sea results. Two quick points first on the last AUM continues to increase with ending AUM of RMB 2.2 trillion, up 20% year over year, including RMB 65 billion and Q2 total net flows. And on the right hand side, we have quarterly earnings and Q2 now exceeding earnings prior to the fee rate reductions from Q3 of 2023.

Keith Potter: First, on the left, AUM continues to increase with ending AUM of RMB 2.2 trillion, 20% year over year, including RMB 65 billion in Q2 total net flows. And on the right hand side, we have quarterly earnings in Q2 now exceeding earnings prior to the fee rate reductions from Q3 of 2023. Life 40 has earnings contributions from companies in each segment. I have a couple of comments on Rockefeller. Adjusted earnings improved in Q1, driven by revenue growth as they build out their global family office business. And, as mentioned, Rockefeller has refinanced debt this quarter on more favorable terms, which is reflective of the progress being made, and the $3.3 million adjustment to earnings is reflective of a one-time prepayment and refinancing.

Keith Potter: First, on the left, AUM continues to increase with ending AUM of RMB 2.2 trillion, 20% year over year, including RMB 65 billion in Q2 total net flows. And on the right hand side, we have quarterly earnings in Q2 now exceeding earnings prior to the fee rate reductions from Q3 of 2023. Slide 41 provides a summary view of earnings and ownership and the value of our strategic investments by segment. The main comment is on Wealthsimple, and once again, we have increased the fair value to $835 million. It's reflective of their exceptional performance during Q2. And from IGM's valuation perspective, our strategic investments now represent $5.3 billion in value.

Speaker Change: Slide 39 is China and see results two quick points first of all on the left AUM continues to increase with ending AUM of RMB, two two trillion up 20% year over year, including RMB 65 billion in Q.

James Osullivan: On slide 10 we present the Canadian fund industry. The Canadian mutual fund industry remained in net redemptions during Q2. Though we are seeing year over year improvements in net sales across a number of product categories. This is encouraging. While the Bank of Canada decision in June and July to begin lowering its overnight rate is constructive for medium term industry flow outlook. The effect of interest rates normalizing will all else being equal improve the industry environment over a period of quarters, not months.

Speaker Change: Q2, total net flows and on the right hand side, we have quarterly earnings in Q2 now exceeding earnings prior to the fee rate reductions from Q3 of 2023.

Keith Potter: Slide 40 has earnings contributions from companies in each segment. I have a couple of comments on Rockefeller, adjusted earnings improving Q1, driven by revenue growth as they build out their global family office business. And as mentioned, Rockefeller has refined at depth this quarter on more favorable terms, which is reflective of the progress being made, and the 3.3 million adjustment to earnings is reflective of a one-time prepayment and refinance.

Speaker Change: Slide 40 has earnings contributions from companies in each segment a couple of comments on Rockefeller adjusted earnings improved in Q1, driven by revenue growth as they build out their global family office business and as mentioned Rockefeller has refinanced debt this quarter on a more favorable terms, which is reflective of the progress being made and the three.

James Osullivan: We anticipate industry net redemptions will continue into the second half of the year with a gradual improvement as we move forward to 2025. Slide 11 outlines IGM's Consolidated AUMNA which reached a record high at the end of Q2 and again in July. On the right is our second quarter earnings which I spoke to on a previous slide. Slide 12 contains our earnings contributions by segment.

Speaker Change: $3 million adjustment to earnings is reflective of a one time prepayment and refinancing fees.

Keith Potter: Facing Feast. Flight 41 provides a summary view of earnings and ownership, and the value of our strategic investments by segment. Main comment is on Wealthsimple. And once again, we have increased the fair value to $835 million. It's reflective of their exceptional performance during Q2. Public peer evaluations and also revised revenue expectations for the company. And from IGM's valuation perspective, our strategic investments now represent $5.3 billion in value. And as a reminder, Wealthsimple is fair value for OCI. Rockefeller currently does not contribute in a meaningful way to earnings, but both have significant value.

Keith Potter: Slide 41 provides a summary view of earnings and ownership and the value of our strategic investments by segment. The main comment is on Wealthsimple, and once again we have increased the fair value to $835 million. It's reflective of their exceptional performance during Q2.

Speaker Change: Slide 41 provides a summary view of earnings and ownership and the value of our strategic investments by segment main commented on well simple and once again, we have increased the fair value of $835 million, it's reflective of their exceptional performance during Q2.

Keith Potter: Public Peer Evaluations and also revised revenue expectations for the company. And from IGM's valuation perspective, our strategic investments now represent $5.3 billion in value. And as a reminder, wealth simple is fair value for OCI. Rockefeller currently does not contribute in a meaningful way to earnings, but both have significant value.

Speaker Change: Public peer valuations and also revised revenue expectations for the company.

Speaker Change: And from IGN valuation perspective, our strategic investments now represent 3.5.

Keith Potter: Keith will speak to this in more detail later in the call.

Speaker Change: <unk> five 3 billion in value.

Speaker Change: As a reminder, wealth simple as fair value through OCI Rockefeller currently does not contribute in a meaningful way to earnings but both have significant value.

James Osullivan: On slide 13, we present Ending AUM and A by Business. My earlier comments highlighted the key drivers that are contributing to the solid, 15% year-over-year growth, including our strategic investments.

Keith Potter: Flight 42 highlights execution against our capital allocation priorities. As James said at the beginning of the call, we are investing to drive growth while also returning capital to shareholders. And we continue to execute on share repurchases while maintaining financial flexibility with growth and debt to EBIT ratio of 1.6 times an unallocated capital of $379 million. As we move into the back half of the year, we will continue to execute on our NCIB while focusing on a growth-oriented business priorities.

Keith Potter: Slide 42 highlights execution against our capital allocation priorities. As Jaeme said at the beginning of the call, we are investing to drive growth while also returning capital to shareholders, and we continue to execute on share repurchases while maintaining financial flexibility with a gross and debt-to-eBIT ratio of 1.6 times an unallocated capital of $379 million. As we move into the second half of the year, we will continue to execute on our NCIB while focusing on our growth-oriented business priorities.

Speaker Change: Slide 42 highlights execution against our capital allocation priorities as James said it being in the call. We are investing to drive growth. While also returning capital to shareholders and we continue to execute on share repurchases, while maintaining financial flexibility with gross debt to EBITDA ratio of one six times in unallocated capital of 370.

Damon Merckerson: With that, I will turn the call over to Damon, who will speak to the performance in our wealth management segment.

Damon Merckerson: Thank you, James, and good morning, everyone. Turn to slide 15 in the wealth management second-quarter highlights, including IG wealth, Rockefeller, and Wall Simple. IG wealth ended the quarter with AUA of $130 billion, up a solid 11% year-over-year, and 1.3% during the second quarter, driven by financial markets. Gross inflows of $3.6 billion represented our best second quarter and gross inflows on record. Net outflows were $173 million during the quarter. As released earlier this week, flows during July were very strong.

Speaker Change: $9 million as we move into the back half of the year, we will continue to execute on our <unk>, while focusing on our growth oriented business priorities.

Keith Potter: Before I turn over the call to the operator, on behalf of IGM, we would like to acknowledge that this will be just one last call covering IGM. We would like to thank him for his 17 years of coverage and the professionalism that he's brought to the business a day in and day out, and we wish him all the best in his future endeavors.

Keith Potter: Before I turn over the call to the operator, on behalf of IGM, we would like to acknowledge that this will be Geoff Kwan's last call covering IGM. I'd like to thank him for his 17 years of coverage and the professionalism that he's brought to the business day in, day out, and we wish him all the best in his future endeavors. And that concludes my remarks, and I'll turn it over to the call for questions.

Speaker Change: Before I turn over the call to the operator.

Speaker Change: <unk> by GM, we would like to acknowledge that this will be Jeff one last call covering IGN.

Speaker Change: To thank him for his 17 years of coverage and the professionalism that he's brought to the business day in day out and we wish him all the best in future endeavors.

Damon Merckerson: It was our best July on record for gross inflows, with net sales into IGM product of $271 million. Net inflows of $262 million. Total gross inflows from newly acquired clients of $1.2 billion represented the best quarter in our history. As highlighted on this slide, we continue to see an increasing proportion of new client inflows from both the mass affluent and high net worth segments. We are proud of these results, and we are encouraged by the signs of improving sentiment.

Keith Potter: And that concludes my remarks, and I'll turn over the call for questions.

Jeff: That concludes my remarks, and ill turn over the call for questions.

Operator: We will now begin the question and answer session. To join the question queue, you may press star and once on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing any key.

Operator: We will now begin the question and answer session. To join the question queue, you may press star and 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. We will pause for a moment as more callers join the queue. Thank you for your patience. The first question today comes from Geoffrey Kwan with RBCCN. Please go ahead.

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

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

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

Operator: To withdraw your question, please press star and two. We will pause for a moment as colors join the queue. Thank you for your patience.

Speaker Change: To withdraw your question. Please press Star then two.

Operator: We will pause for a moment as more callers join the queue. Thank you for your patience.

Speaker Change: We will pause for a moment as callers join the queue. Thank you for your patience.

Damon Merckerson: Our aim for us with James just spoke to. We view these improvements as continuing to unfold over quarters, not months. As our advisors work with their clients to navigate the shifting environment, we will continue to look for and capitalize on additional positive trends as they emerge. Similar last quarter, our insurance business continues to deliver strong results, while we sell strong volumes within our mortgage business, despite competitive environment. We look forward to continuing these positive momentum as we develop leverage and benefit from the partnerships we have established in both of these businesses.

Geoffrey Kwan: The first question today comes from Jeffrey Kwan with RBCCM. Please go ahead.

Speaker Change: The first question today comes from Geoffrey Kwan with RBC.

Speaker Change: Please go ahead.

Speaker Change: Great.

Geoffrey Kwan: Great.

James O'Sullivan: Thanks, and in key thanks for the kind words. I don't know if I deserve it, but thank you very much for it. My first question for you was just, you know, how you're thinking about capital allocation given, I guess, the pause on M&A, the free cash regeneration of the business. And how you think about buybacks, who's obviously been doing some shared buybacks lately, the de-leveraging as well as the organic growth initiatives that you've got in place.

Unknown Executive: Thanks. And Keith, thanks for the kind words. I don't know if I deserve them, but thank you very much for them.

Geoffrey Kwan: Thanks. And Keith, thanks for the kind words. I don't know if I deserve them, but thank you very much for them.

Speaker Change: Thanks.

Speaker Change: Thanks for the kind words, I don't know if I deserve it but thank you very much for it.

Geoffrey Kwan: My first question for you is just, you know, how you're thinking about capital allocation, given, I guess, the pause on M&A, the free cash regeneration of the business, and how you think about buybacks, because obviously, you've been doing some share buybacks lately, the deleveraging, as well as the organic growth initiatives that you've got.

Geoffrey Kwan: My first question for you is just, you know, how you're thinking about capital allocation, given, I guess, the pause on M&A, the free cash regeneration of the business, and how you think about buybacks, because obviously, you've been doing some share buybacks lately, the deleveraging, as well as the...

Speaker Change: My first question for you is just.

Speaker Change: How youre thinking about capital allocation, given I guess the pause on M&A on the free cash generation of the business.

Damon Merckerson: Both Rockefeller and Wilson, but once again, had very strong quarters, which I will speak to, on the coming slides. During this slide, 16, you can see I'd use Q2 flows. As you can see on the left hand side, July has traditionally been a relatively strong month for us. This July was no different, and was our best July on record for gross inflows. We believe a contributing factor to our July results was the opportunity presented by the changes to Canada's capital gains rate policy.

Speaker Change: And how you think about buybacks, because obviously you've been doing some share buybacks lately.

Speaker Change: The deleveraging as well as the organic growth initiatives that you've got in place.

James O'Sullivan: Yeah, thanks, Jeff.

James O'Sullivan: Yeah, thanks, Geoff. And again, congratulations to you. You know, we stated at Investor Day that we felt we were and are done with M&A, at least for a period of time. And by that, I mean kind of chunky M&A, M&A of any kind, moderate to large size. There's always very small stuff to be done.

Speaker Change: Yeah, Thanks, Jeff and again congratulations to you.

James O'Sullivan: And again, congratulations to you. You know, we stated that investor day that we feel we were and are done with M&A, at least for a period of time. And by that I mean kind of chunky M&A, M&A of any kind of moderate to large size. There's always very small stuff to be done. And I think we're in that period now. I mean, as I said at Investor Day, it might be a two or three year period where you should expect us to be focused internally. You should expect us to be focused on our core businesses and on strengthening those businesses.

Speaker Change: Okay.

Speaker Change: We stated at Investor day that we.

Speaker Change: We feel we were and are done with M&A.

Damon Merckerson: These changes drove opportunity for additional conversations engaged with our clients and prospects alike, allowing us to both reinforce our financial planning expertise and discuss the benefits presented by our investment shelf. Our gross inflows continue to be very strong, with Q2 representing our best second quarter on record. Our year-date gross inflows are also tracking well. On the right hand side, you can see a clear positive turn in our total net flows and IGM product net sales.

Speaker Change: <unk> for a period of time and by that I mean kind of chunky M&A M&A of any kind of.

Speaker Change: Moderate to large size, there's there's always very small stuff to be done.

Speaker Change:

James O'Sullivan: And I think we're in that period now. I mean, as I said on investor day, it might be a two or three year period where you should expect us to be focused internally. You should expect us to be focused on our core businesses and on strengthening those businesses, and that's very much what we're doing. So the first use of free cash flow is, very clearly, the dividend.

Speaker Change: And I think we're in that period now.

Speaker Change: As I said at Investor day, it might be a two or three year period, where you should expect us to be focused internally.

Speaker Change: You should expect us to be focused on our core businesses and on strengthening those businesses and that's very much what we're doing.

Damon Merckerson: There's a little bit of noise in our IGM product net flows and client cash during June relative relating to the country's capital gain policy change, which reversed in July, as I just spoke to. As we look for positive sentiment to fully return, our advisors continue to work with their clients to save and build wealth. Turn this slide 17. Near the top left, you can see the strength of our gross inflows, which were 28% higher than Q2 of last year.

James O'Sullivan: And, you know, that's very much what we're doing. So, you know, the first use of free cash flow very clearly is the dividend. We remain as committed as ever to that. We have started a buyback, and I believe this quarter we repurchased about $37 million worth of shares. I think that's a reasonable run rate. I think you should expect that to continue. I mean, we would buy more at lower levels and less at higher levels. But, you know, it's not a bad estimate, I would say. And so, you know, with the free cash flow that we have, what doesn't go to the dividend, what doesn't go to the buyback, we continue to invest in projects across IGM, IGM, and McKenzie.

Speaker Change: So you know the first use of free cash flow very clearly is the dividend we remain as committed as ever to that we have.

James O'Sullivan: We remain as committed as ever to that. We have started a buyback program, and I believe this quarter we repurchased about $37 million worth of shares. I think that's a reasonable run rate, and I think you should expect that to continue. We would buy more at lower levels and less at higher levels. You know, it's not a bad estimate, I would say. And so, you know, with the free cash flow that we have, what doesn't go to the dividend, what doesn't go to the buyback, we continue to invest in projects across IGM, IG, and McKenzie.

Speaker Change: Started a buyback and I believe this quarter, we repurchased about $37 million worth of shares.

Speaker Change: That's a reasonable run rate I think you should expect that to continue I mean, we would buy more at lower levels and less at higher levels, but you know.

Damon Merckerson: Our gross inflow rate remains elevated versus last year, and redemptions continued predominantly to be partial in nature. At the bottom right, you can see our last 12-month thrilling net flows rate, which is now showing a clear indication of a bottom and a turn back to positive. Turn to slide 18. As mentioned, the $1.2 billion of gross inflows from newly acquired clients during the second quarter represented our best quarter on record for new client acquisition.

Speaker Change: It's not a bad.

Speaker Change: Estimate I would say.

Speaker Change: And so with the free cash flow.

Speaker Change: We have what doesn't go to the dividend what doesn't go to the buyback and we continue to invest in projects across AGM.

Damon Merckerson: During the second quarter of gross inflows, so massive fluid and high net worth clients represented over 75% of gross flows from newly acquired clients. With million dollar plus clients, accounting for 32%. We have a track record for executing on growth within our target markets, and as we move forward, we fully expect to see further progress as Canadians continue to seek financial planning and bugs. Turn to slide 19. This shows the productivity of our advisors.

Speaker Change: And and Mackenzie So that's how we're seeing it.

James O'Sullivan: So that's how we're seeing it. I would not expect any chunky M&A here, although, as I've said, just to cover myself, if the phone rings, we'll answer it, but we're really happy with the architecture that we have, with two divisions, three wealth management companies, and three asset management companies. We think it's a great lineup; we're investing in it, and we believe it'll generate higher growth and ultimately higher dividends over time.

James O'Sullivan: So that's how we're seeing it. I would not expect any chunky M&A here, although, as I've said, just to cover myself, if the phone rings, we'll answer it. But we're really happy with the architecture that we have with two divisions, three wealth management companies, and three asset management companies. We think it's a great lineup, we're investing in it, and we believe it will generate higher growth and, ultimately, higher dividends over time.

Speaker Change: Would not expect any chunky Emma.

Speaker Change: M&A here, although as I've as I've said just to to.

Speaker Change: To cover myself, if the phone rings will answer it but we're really happy with.

Speaker Change: The architecture that we have with two divisions three wealth management companies three asset management companies. We think it's a great lineup, we're investing in it and we believe it will generate higher growth and ultimately higher dividends over time.

Damon Merckerson: As we drive growth in the massive fluid and high worth segments, the increases in productivity that we continue to show our testament to where we have invested. We expect to see a continuation of this trend. Turn to slide 20. An update on our focus of building our business to capitalize on industry well drivers. During the quarter, we entered into a number of partnerships which support our capabilities and will assist us in capitalizing on the industry well drivers.

James O'Sullivan: Thanks for that, James. I guess maybe there was a little bit of my follow-on question, is this kind of the two to three years that you talked about at investor day. Is that guided to a certain extent on word leverages, and you want to get to a certain level before you consider it? Is it driven by, you know, the activity that you've done in the past, well, and just want to kind of focus and execute on those. And similarly, when you do get to that time, you're perhaps ready to do a transaction if it's available.

James O'Sullivan: Thanks for that, James. I guess maybe that was a little bit of my follow-on question, kind of the two to three years that you talked about at Investor Day. Is that guided to a certain extent by where leverage is, and you want to get to a certain level before you consider it? Is it driven by, you know, the activity that you've done in the past while and just want to kind of focus on and execute on those?

Speaker Change: Thanks for that James I guess, maybe.

James Damon: That was a little bit of my follow on question.

Speaker Change: The two years three years would you talked about at Investor day is that guidance.

unknown: to a certain extent on where leverage is, and you want to get to a certain level before you consider it. Is it driven by, you know, the activity that you've done in the past while and just want to kind of focus and execute on those? And similarly, when you do get to that time, you're perhaps ready to do a transaction if it's available. If there...

Speaker Change: To a certain extent on.

Speaker Change: Where leverage is and you want to get to a certain level before you consider is it driven by.

Damon Merckerson: These partnerships include better cropping our advisors with tools needed for tax planning conversations. This also parallels well with our insurance partnership with Life Design Analysis, which we highlighted last quarter. A partnership with the major healthcare provider that will allow our high net worth clients to access additional healthcare assessments and diagnostics at reduced rates. And enhance technology to provide our small and medium sized business owners with the tools needed to value their companies, a crucial step as they look to either grow or monetize their business. Our ongoing focus on the industry well drivers will allow us to continue to grow in key client segments and drive increased productivity of our advisors.

Speaker Change: You know the activity.

Speaker Change: Done.

Speaker Change: The past and just wanted to kind of focus and execute on those and when you do get to that 10 year, perhaps ready to do a transaction if it's available.

James O'Sullivan: And similarly, when you do get to that time, you're perhaps ready to do a transaction if it's available. Is there, you know, LL SQL, something that interests you the most, like, is it? Taking a bigger stake in Rockefeller? Is it acquiring asset management as a capability on the shelf or something else?

James O'Sullivan: Is there, you know, all else equal, something that interests you the most, like is it making a bigger stick in Rockefeller, is it acquiring an asset manager as a capability to the shelf or something else? Sure.

Speaker Change: Is there.

Speaker Change: All else equal something that interests you the most like is it.

Speaker Change: Taking a bigger stake in Rockefeller and said you know acquiring an asset manager.

Speaker Change: The ability to the to the shelf or something else.

James O'Sullivan: Well, it's not driven by leverage. Our leverage ratio, as we disclosed this quarter, is about 1.6 times. So we continue to have a very high level of leverage. A conservative leverage profile or debt-to-EBITDA profile, so leverage isn't it at all. I'd say it's driven by two things.

Speaker Change: Sure.

James O'Sullivan: Well, it's not driven by leverage. Our leverage ratio, as we disclose this quarter, is about 1.6 times, so we continue to have a very conservative leverage profile or debt to EBITDA profile.

Speaker Change: Look it's not driven by leverage our leverage ratio as we disclosed this quarter is about one six times. So we continue to have a theory.

Speaker Change: Service of.

Damon Merckerson: Now let's turn to slide 21 and talk about Rockefeller's progress. Over the last couple of months, organic growth has driven $4.9 billion in client assets.

Speaker Change: Leverage profile or our debt to EBITDA profile. So.

James O'Sullivan: So leverage is not at all. I'd say it's driven by two things. One is following a period where we did a fair bit of M&A. Obviously, China AMC and Rockefeller and ITC, and there were others too. There is a bit of a desire to just kind of hunker down and focus on our great core businesses being IG and McKenzie and use our capital and not just our capital, our human resource talent, our time and attention to make those businesses as strong as they can possibly be. And what we know are very competitive and fast moving markets.

Speaker Change: Leverage is not it at all I would say, it's driven by two things one is following up.

Keith Potter: Conservative leverage profile or debt-to-EBITDA profile, so leverage is not it at all. I'd say it's driven by two things. One is following a period where we did a fair bit of M&A, obviously China AMC and Rockefeller and IPC, and there were others too, there is a bit of a desire to just kind of hunker down and focus on our great core businesses, being IG and McKenzie, and use our capital, and not just our capital, our human resource talent, our time and attention to make those businesses as strong as they can possibly be in what we know are very competitive and fast-moving markets.

James O'Sullivan: One is, following a period where we did a fair bit of M&A, obviously, China AMC and Rockefeller and ITC, and there were others too, there is a bit of a desire to just kind of hunker down and focus on our great core businesses being IG and McKenzie and use our capital and not just our capital, our human resource talent, our time, and attention to make those businesses as strong as they can So one was really kind of a desire to put our heads down and focus on our core businesses for a period.

Speaker Change: Period, where we did a fair bit of M&A, obviously, China AMC in Rockefeller and ITC and there were others too there is a bit of a desire to just kind of hunker down and focus on our great core businesses being IGN Mckenzie and use our capital and not just our capital our human resource talent, our time and attention.

Damon Merckerson: Rockefeller continues to add to their private advisory network having added 57 new advisors over the last 12 months.

Damon Merckerson: Now turning slide 22, let's talk about well simple. Well simple continue to reinforce their position as an important growing player in the Canadian wealth management ecosystem. Well simple ended Q2 with over $43 billion in AUA increasing 13% during the quarter and 87% over a year-over-year basis. Client count also expanded by 15% year-over-year to 2.5 million clients.

Speaker Change: Make those businesses are strong as they can possibly be and what we know are very competitive and fast moving market. So one was really really kind of a desire to put our head down and focus on our core businesses for a period of <unk>.

James O'Sullivan: So one was really a desire to put our head down and focus on our core businesses for a period. The second thing I would say, Jeff, is that we're also kind of looking out and we're saying, you know, when might, like I said, we love the architecture to divisions, three businesses in each division. When might opportunity next present itself in respect of things we currently own some up? And all of that kind of aligns with the two or three-year window that I talked about. So there will be an opportunity to do more at Northleaf. There will, I expect, in the fullness of time, be an opportunity to do more with Rockefeller.

Keith Potter: One was really kind of a desire to put our heads down and focus on our core businesses for a period. The second thing I would say, Geoff, is that we're also kind of looking out, and we say, when might, like I said, we love the architecture, two divisions, three businesses in each division, when might opportunity next present itself in respect of things we currently own some of? And all of that kind of aligns with the two- or three-year window that I talked about, and so there will be an opportunity to do more at Norfleet.

James O'Sullivan: The second thing I would say, Geoff, is we're also kind of looking out, and we're saying when might the opportunity next present itself in respect of things we currently own some of, and all of that kind of aligns with the two or three year window that I talked about, and so there will be an opportunity to do more at Norfleet. There will, I expect, in the fullness of time, be an opportunity to do more with Rockefeller, and we'll see how the others, you know; we'll see what happens to others, including, for example, Wells Simple.

Speaker Change: Second thing I would say Jeff is that it would also kind of looking out and we're saying when might like as I said, we loved the architecture two divisions three businesses in each division when might opportunity next presents itself in respect of things. We currently owned some up and all of that kind of aligns with the.

Luke Gould: With that, I'll turn the call over to Luke. Thanks Damon, good morning everyone. So I'll try to page 24 a few comments on the quarter. Similar to Q1, this can do to be a very good quarter for clients and shareholders. With AUM up 4.5%, an average client account value is up over 10% in the last 12 months. Higher asset levels and operating leverage led to our earnings at McKenzie being up 12% in the quarter and the highest Q2 in 15 years.

Speaker Change: The two or three year window that I talked about and so there will be an opportunity to do more of it.

Norfleet: At Norfleet.

Speaker Change: There will I expect in the fullness of time be an opportunity to do more with with Rockefeller and we'll see how the others.

Luke Gould: On point two, investment fund experiences net redemptions of 745 million in the quarter. And this is in the context of continued net redemptions in the industry. We saw slight year-over-year improvements for industry long term fund flows in Q2 as reviewed by James and Damon. And this trends continued in July. And we at McKenzie had gross sales up 38% and notice all net sales improvements. In 0.3, the share of our assets in four and five star funds remained relatively unchanged, quarter of a quarter at 52%, and during the quarter we had a number of product launches.

James O'Sullivan: And we'll see how the others, you know, see. We'll see what happens to others, including, for example, well, simple. So I would; it was not leverage. It was a desire, really, to focus on, spend a period of time focused on our two big core businesses. And then we looked out over the horizon and we said, you know, the next batch of opportunities in terms of what we currently own is likely to be a couple or a few years out. And so that's really all it is.

Speaker Change: We'll see what happens to others, including for example, well simple so.

James O'Sullivan: So I would say, it was not leverage, it was a desire, really, to focus on, spend a period of time focused on our two big core businesses, and then we looked out over the horizon, and we said, you know, the next batch of opportunities, in terms of what we currently own, is likely to be a couple or a few years out, and so that's really all it is.

Speaker Change: It was not leverage it was a desire really to focus on and spend a period of time focused on our two big core businesses and then we looked out over the horizon and we said you know the next batch of opportunities in terms of what we currently own is likely to be a couple or a few years and so that's that.

James O'Sullivan: Okay, that's helpful. And if I can maybe sneak in one last question for Luke and Damon,

Speaker Change: That's really all it is.

Geoffrey Kwan: Okay, that's helpful.

Luke Gould: We launched a suite of low-ball ETFs with our global quant equity boutique that brings their impressive track records in the space to retail, as well as an emerging markets ex-China equity fund with this boutique. It's early days, but we're seeing very good momentum within retail with this global quant equity team, and we'll be focusing on these newly launched products as well as the global equity EM and PE replication offerings matched by this team in the back half of the year.

Speaker Change: Okay. That's helpful and if I can maybe sneak in one last question for the containment. It sounds like the message was July the stronger net sales performance, maybe been a bit seasonality a bit driven by the catlin had gains tax change capital gains tax changes.

Damon Merckerson: And if I can maybe sneak in one last question for Luke and Damon.

Geoffrey Kwan: It sounds like the message was July, the stronger net sales performance may have been a bit seasonal, a bit driven by the capital gains tax changes, but bigger picture, the industry's net redemptions are hopefully going to improve as we exit 2024, albeit maybe gradually. Is that correct? And also, the other part of my question is, on the growth sales that did come in for July or even June, are you seeing any changes in the types of funds clients are putting money into versus what you might have seen over the past one to two years?

Damon Merckerson: It sounds like the message was July; the stronger net sales performance may have been a bit of seasonality, a bit driven by the capital gains tag changes, capital gains tag changes. But bigger picture, the industry net redemptions are hopefully going to prove as we exit 2024, albeit maybe gradually. Is that correct?

Speaker Change: But bigger picture the industry net redemptions are hopefully going to prove it.

Speaker Change: As we exit 2024, albeit maybe gradually is that correct and then also the other part of my question is on the cross sells that did come in for July or even June like are you seeing any changes in the types of funds clients are putting money into versus what you might have seen over the past one to two years.

Damon Merckerson: And then also the other part of my question is on the growth sales that did come in for July or even June: are you seeing any changes in the types of funds clients are putting money into versus what you might have seen over the past one to two years?

Luke Gould: We also launched an ETF version of our flagship global dividend fund, and you can expect us to bring more active equity mandates to ETF structure in the future for those advisors who like the characteristics of ETFs. We also launched a global corporate fixed income fund that filled a gap that we had in itself, relative to some of the important flagships of our competitors in the market. So, China MC on the right and Northleaf delivered strong results as we read by James, China MC had another strong quarter net flows with $41 billion or $8 billion Canadian dollars in long-term fund net sales in the quarter, and their AUM grew by 25% during the last year as a result of these strong net sales, and Northleaf delivered $120 billion in new commitments during the quarter, which was our highest quarter for new commitments since we made our investment and was spread across private equity, private credit, and infrastructure.

Damon Murchison: Thanks, Geoff, and congratulations again. In terms of the first part of your question, I would characterize July and the flows in July. There are three primary drivers there. One would be, as you mentioned, capital gains and working with our clients and allowing them to crystallize some gains and take advantage of the lower inclusion rate. That drove the money into cash. A lot of it was invested in June, but some of it remained in July.

Damon Merckerson: Okay, thanks, Geoff. And congratulations again. In terms of the first part of your question, I would characterize July and the flows in July; there are three primary drivers. One would be, as you mentioned, the capital gains and working with our clients and allowing them to crystallize some gains and take advantage of the lower inclusion rate; that drove money into Katch. A lot of it was invested in June, but some of it remained in July. We were able to reinvest in July. But the good thing about that as well is that we were able to work with our clients and with prospects, the work clients yet to do the same thing for the money they had at other dealers and crystallize some gains.

Speaker Change: Okay. Thanks, Jeff and congratulations again in terms of the first part of your question I would characterize July and the flows in July there are three primary drivers there one would be as you mentioned the capital capital gains and working with with our clients and allowing them to crystallize.

Speaker Change: Some some gains and take advantage of the lower inclusion rate.

Speaker Change: That drove money into into cash a lot of it was invested in June but some of it remained in July we were able to reinvest in in July but the good thing about that as well.

Damon Murchison: We were able to reinvest in July. The good thing about that, as well, is that we were able to work with our clients and with prospects who weren't clients yet to do the same thing for the money they had at other dealers and crystallize some gains. We were able to bring that money over to IG in July. That's the first thing.

Speaker Change: Is that we were able to work with our clients and with prospects who were clients yet to do the same thing for the money. They had at other dealers and crystallize crystallize some gains and we were able to bring that money over to <unk> in July that's the first thing the second.

Luke Gould: In terms of page 25, you can see the trend of history of a kind of net flows. On the right, you can see that last full month trail and net flows were relatively stable in the quarter. We had some net sales softness in some of our larger flagship mandates who have weaker short-term performance, but have adhered to their discipline. This is being offset by improvements elsewhere, though review and coming slides. I'd also highlighted the top left, the improvement in growth in that sales in July, with growth sales up 30% and net redemptions improved to 73 million from 224 million in the prior year.

Damon Merckerson: And we were able to bring that money over to IG in July.

Damon Merckerson: That's the first thing. The second, I would say that the sentiment, it's slowly, but it is changing in this country. So there's a lot of money sitting in Katch in this country, short-term investments, and at this firm, and we're starting to see some money be invested, which is great to see. And the third, which is the largest driver, is that we've just done a fantastic job on new client acquisition. What you see right now is a firm where our advisors are not just enabled, but they're motivated and squarely focused on working with Canadians that have financial challenges and need serious people to answer the questions that they have.

Damon Murchison: I would say that sentiment is slowly, but it is changing in this country. So there's a lot of money sitting in cash in this country, in short-term investments, and at this firm, and we're starting to see some money be invested, which is great to see. And the third, which is the largest driver, is that we've just done a fantastic job of new client acquisition. What you see right now is a firm where our advisors are not just enabled, but they're motivated and squarely focused on working with Canadians that have financial challenges and need serious people to answer the questions that they have.

Speaker Change: I would say that the sentiment.

Keith Potter: It's slowly, but it is changing in this country, so there's a lot of money sitting in cash in this country, in short-term investments, and at this firm, and we're starting to see some money be invested, which is great to see. And the third driver is that we've just done a fantastic job on new client acquisition. What you see right now is a firm where our advisors are not just enabled, but they're motivated and squarely focused on working with Canadians that have financial challenges and need serious people to answer the questions that they have.

Speaker Change: It's slowly but it is changing in this country. So there's a lot of money sitting in cash in this country short term investments and at this firm and we're starting to see some some money being invested.

Speaker Change: Which is great to see and the third which is the largest driver is that we've just done a fantastic job on new client acquisition.

Luke Gould: We're encouraged by these signs of improvement in the industry, and as we move through the back half of 224, we feel we're well-positioned, with compelling performance across multiple relevant mandates. Tritipage 26, the only remark in what it makes to the top right, you can see our Morningstar rankings remain relatively in line with last quarter and the industry. On performance, I'd highlight that the broadening of market movements in July and August has been very favorable to many of our boutiques, and we're expecting higher Morningstar in percentile rankings as we continue into Q3.

Keith Potter: What you see right now as a firm where our advisers are not just enabled but they're motivated and squarely focused on working with Canadians that debt that have financial challenges and need serious people to answer the questions that they have and we've done that you could see the buildup and we'll see.

Damon Merckerson: And you can see the build-up, and we've steadily been improving here, and I fully expect that to continue over time. In terms of the growth sales and what we see, we're a managed solution shop, so there hasn't been much change there in terms of what people are invested in. You see the performance of our shelf, and it's been very, very strong. So our advisors are committed to making sure that our clients invested in the future as per their financial plan. So we haven't seen much change as it relates to growth sales.

Keith Potter: And you can see the build-up, and we've steadily been improving here, and I fully expect that to continue over time. In terms of growth sales and what we see, we're a managed solution shop, so there hasn't been much change there in terms of what people are invested in. I mean, you see the performance of our shelf, and it's been very, very strong. So our advisors are committed to making sure that our clients are invested in the future as per their financial plan. So we haven't seen much change as it relates to growth in sales.

Damon Murchison: You can see the build-up, and we've steadily been improving here, and I fully expect that to continue over time. In terms of growth sales and what we see, we're a managed solution shop, so there hasn't been much change there in terms of what people are invested in. You see, the performance of our shelves, and it's been very, very strong. Our advisors are committed to making sure that our clients are invested in the future as per their financial plan, so we haven't seen much change as it relates to growth sales.

Speaker Change: Steadily been improving here and I fully expect that to continue over time in terms of the gross sales and what we see where a managed solution shop. So there hasn't been much change there in terms of what people are invested in.

Luke Gould: Tritipage 27, you can see our performance in net sales for our retail mutual funds and ETS by boutiques. In the middle, I'd highlight that our growth, blue water and green chip boutiques have remained true to their respective disciplines, but this has kept them out of some of the narrow places that have performed well recently. You can see the year-over-year net sales declines here, and I'd also comment that growth sales have remained very resilient with these boutiques.

Speaker Change: You see the performance of our shelf and it's been very very strong. So our advisers are committed to making sure that our clients invested invested in the future as per their financial plans. So we haven't seen much.

Luc: <unk> change as it relates to to grow sales yeah, Jeff its luc.

Luke Gould: Geoff, it's Luke. I guess two things. One, thanks again for your coverage. It's been great for a very, very long time, as Keith said, and I echo his sentiments. On page 10, you got to walk up for your run.

Luke Gould: And Jeff, it's Luke. I think it's two things.

Keith Potter: I guess two things one thanks again for your coverage as it has been great over a very very long time, as Keith said I Echo his sentiment.

Luke Gould: One, thanks again for your coverage. It's been great over a very, very long time, as Keith said. I echo his sentiment.

Luke Gould: I'd also highlight the performance strength and the emerging sales momentum in some very large categories with our global equity team, our global equity team, our global equity and income team, as well as put them advised US all-cap growth mandate, which is located in the right column. Also, as mentioned earlier, it's remarkable how interesting how much things can change in five weeks, and we've seen meaningful performance improvements in several boutiques, for example, in Ivy.

Luke Gould: On page 10, you've got to walk up for your run. It was encouraging to see your improvement in Q2. And as you know, that's something we haven't seen for a while, and I think page 10 lays out what we saw on Q2 by product category. And what was noteworthy is the improvement that came in the foreign equity. So those global equity and U.S. Equity, we did see some noteworthy improvement in Q2. And then, as mentioned, we got IFX preliminary numbers for July yesterday. And it did show a meaningful year of re-improvement. It was positive overall.

Speaker Change: On page 10, you got to you got to walk before you run it was encouraging to see year over year improvement in Q2, and as you know that's something we haven't seen for a while and I think page 10 lays out what we saw in Q2 by product category and what was noteworthy is the improvement that came in the foreign equity. So it does global equity and U S equity.

Luke Gould: It was encouraging to see year-over-year improvement in Q2, and as you know, that's something we haven't seen for a while, and I think page 10 lays out what we saw in Q2 by product category, and what was noteworthy was the improvement that came in foreign equity, so that was global equity and U.S. equity. We did see some noteworthy improvement in Q2, and then, as mentioned, we got IFIX preliminary numbers for July yesterday, and they did show a meaningful year-over-year improvement. It was positive overall, and from the vantage point that we have, it was in those same product categories, with good flows into income, as well as good flows into global and U.S. equity.

Speaker Change: We did see some noteworthy improvement in Q2, and then as mentioned we got the epics preliminary numbers for July yesterday.

Luke Gould: Most mandates now sit top quartile across time horizons as we move just through July and August. Turning to page 28, you can see the continuous strength of both AUM growth and net flows in the Chinese investment fund industry. On the left hand side, the second quarter once again had very strong flows, with Q2 net sales of $1.8 trillion or approximately $340 billion Canadian dollars. Long-term fund net sales may have the majority, sorry, long-term fund net sales with the majority of Q2 sales are supposed to money market fund.

Speaker Change: It did show a meaningful year over year improvement was positive overall and from the vantage point that we have it wasn't those same product categories with good flows into income as well as good flows into our global and U S equity.

Luke Gould: And from the vantage point that we have, it wasn't those same product categories with good flows into income, as well as good flows into global U.S. equity. Okay, perfect.

Luke Gould: Okay, perfect. Thanks, everyone.

Speaker Change: Okay perfect. Thanks, everyone.

Operator: Thanks everyone. As a reminder, if you would like to ask a question, please press cards and want to join the question queue.

Operator: As a reminder, if you would like to ask a question, please press star then 1 to join the question queue. Darth and One. The next question comes from Jaeme Gloyn with NBS. Please go ahead.

Speaker Change: As a reminder, if you would like to ask a question. Please press Star then one to join the question queue.

Luke Gould: And this is driven by significant sales into fixed income funds. Industry long-term fund AUM grew by 7% the quarter and is up 10% year by year. And importantly on the right, you can see China MCs continue strong market position, ranking number two in both long-term funds and overall, with a meaningful increase in market share from 4.8% to 5.4% as their assets grew by 24% in the last 12 months versus the industry growth of 10%.

Jaemei Goulding: The next question comes from Jaemei Goulding with MBS. Please go ahead.

Speaker Change: Star then one.

Keith Potter: The next question comes from Jamie going with <unk>. Please.

Speaker Change: Please go ahead.

Jaemei Goulding: Yes, thanks. I actually just wanted to kind of follow on that last question, just looking at McKenzie's results and the net flows rate at McKenzie. You know, the industry had a little bit of a pickup here in the last few months, but it looks like McKenzie's still somewhat stabilized at a slightly lower trend.

Jaeme Gloyn: Yeah, thanks. Actually, I just wanted to kind of follow on that last question. Just looking at McKenzie's results and the net flows rate. McKenzie, you know, the industry had a little bit of a pickup here in the last few months, but it looks like McKenzie is still somewhat somewhat stabilized at a slightly lower trend. So maybe you could talk through some of the potential drivers of that performance, you know, given some of the positive remarks you made about the underlying fund performance and success of the rating. Yeah, you got it.

Speaker Change: Yes, Thanks actually just wanted to kind of follow on that last question just looking at Mackenzie results.

Keith Potter: And then that flows right at Mackenzie.

Keith Potter: The industry had a little bit of a pickup here in the last few months, but it looks like Mckenzie is still somewhat.

Luke Gould: I should also highlight that China MC was the net sales leader over the last 12 months, with $282 billion or $50 billion over the period. On page 29, you can see the continued growth in China MCs AUM, with investment fund AUM up 3% during the quarter and 25% over the year. You're driven by growth in both long-term and money market funds. And as mentioned, these increases were driven substats by net sales, which you can see in the chart at the bottom.

Speaker Change: Somewhat stabilized.

Speaker Change: A slightly lower trends, so maybe maybe talk through some of the potential at <unk>.

Luke Gould: So maybe talked through some of the potential drivers of bad performance, given that some of the positive remarks you made about the underlying fund performance and success of the ratings. Yeah, you've got, Jim. Good question.

Keith Potter: Drivers of that performance.

Speaker Change: Given that some of the positive remarks, you made about the underlying fund performance.

Keith Potter: And success of the.

Keith Potter: Yeah.

Speaker Change: Of the of the ratings.

unknown: Yeah, you got it, Jaeme, good question, and back on page 27, I'm going to refer to some of my remarks there. We've got a few things going on, one is mentioned in some of our flagships; we have had, you know, high conviction, high discipline boutiques like Blue Water and Greenship, which focus on obviously thematic investing to combat climate change. What we've seen there is weaker short-term performance as these boutiques have stuck to their discipline, and you can see on this slide the year-over-year net sales decline, and that's been a feature of our overall net sales.

Luke Gould: Yeah, you got it, Jaeme, good question, and back on page 27, I'm going to refer to some of my remarks there. We've got a few things going on, one is mentioned in some of our flagships; we have had, you know, high conviction, high discipline boutiques like Blue Water and Greenship, which focus on obviously thematic investing to combat climate change. What we've seen there is weaker short-term performance, as these boutiques have stuck to their discipline, and you can see on this slide the year-over-year net sales decline, and that's been a feature of our overall net sales.

unknown: Yeah, you got it.

Keith Potter: Got you got you and Chris Good question and that's on page 27, I am going to refer somewhere in my remarks. There. We've got we've got a few things going on one is mentioned in some of our flagships.

Luke Gould: And back on page 27, I'm going to refer to some of my remarks there. We've got a few things going on. One has mentioned in several of flagships. We've had, you know, high-conviction, high-discipline boutiques like Blue Water and Greenship, which focuses on, obviously, somatic investing to combat climate change. What we've seen there is weaker short-term performance as these boutiques have stuck to their discipline, and you can see on the slide the European net sale declines. And that's been a feature of our overall net sales. At the same time, with our boutique approach, we obviously try to make sure that we can be a provider of choice and have something relevant and compelling in all environments for all client needs.

Luke Gould: On page 30, you can see another quarter of continued strong growth at Northleaf, with $1.8 billion in new commitments, and $4.6 billion over the last 12 months. Northleaf has consistently put on about a billion new commitments each quarter, since we formed a partnership with them in 2000. And this $1.8 billion was the strongest quarter yet.

unknown: Had that high conviction high discipline that boutiques like blue water and Green chip, which focuses on obviously sematic investing to combat climate change.

Luke Gould: The fund raised near the quarter was well diversified across Canadian and international clients, and as mentioned was a good mix of private equity, private credit, and infrastructure mandates.

unknown: What we've seen there is weaker short term performance.

unknown: As these boutiques have stuck to the discipline and you can see on this slide the year over year net sales declines and that's been a feature of our overall net sales at the same time with a boutique approach, we obviously try and make sure that we can be a provider of choice and have something relevant and compelling in all environments for all client needs and you can see that the <unk>.

Luke Gould: And I'll turn the call over to Keith Potter. Thank you, Luke, and good morning, everyone. On slide 32, you can see key highlights for Q2. Adjust the EPS with 93 cents, excluding other items that life go. And one time that refinancing charges at Rockefeller. Adjust the earnings were 4.5% year over year. Our second highest Q2 on record. We returned $171 million to shareholders in the quarter to a quarterly dividend and continued to be active in our NCID program, repurchasing $37 million in shares.

unknown: At the same time with our boutique approach, we obviously try and make sure that we can be a provider of choice and have something relevant and compelling in all environments for all client needs, and you can see that the declines in those boutiques is being offset by a sales momentum in the Global Quant Equity Boutique, the Global Equity and Income Boutique, and again, I mentioned our U.S. all-cap growth mandate advised by Putnam, as well as some improvement in fixed income, and so I characterize that we're going really strong, where we have such compelling performance in large categories like Global Equity, and we're going to keep on leaning in there during the back half of the year, but that's what you see is some sales declines in some of our flagships that are being offset by momentum elsewhere.

Luke Gould: At the same time with our boutique approach, we obviously try and make sure that we can be a provider of choice and have something relevant and compelling in all environments for all client needs, and you can see that the declines in those boutiques is being offset by a sales momentum in the global quant equity boutique, the global equity and income boutique, and again I mentioned our U.S. all-cap growth mandate advised by Putnam, as well as some improvement in fixed income, and so I characterize that we're going really strong, where we have such compelling performance in large categories like global equity, and we're going to keep on leaning in there during the back half of the year, but that's what you see is some sales declines in some of our flagships that are being offset by momentum elsewhere.

Luke Gould: And you can see that the declines in those boutiques is being offset by a sales momentum in the global quantity boutique, the global equity and income boutique. And again, I mentioned our U.S. All-Captain Growth Mandate, advised by Patnum, as well as some improvement in fixed income. And so I characterize that we're going really strong, where we have such compelling performance in large categories like global equity. And we're going to keep on leading in there during the back half of the year. But that's what you see: some sales declines in some of our flagships. They're being offset by a momentum elsewhere.

unknown: Climbed in those boutiques is being offset by our sales momentum in the global Quant equity boutique the global equity and income boutique and and again I mentioned, our U S. Small cap growth mandate advised by like Putnam as well as some improvement in fixed income and so I'd characterize that we are going really strong where we have such compelling performance in large categories like global equity.

Luke Gould: As Damon spoke to already, we'll simply continue to execute on its strategy, and driven by continued exceptional performance, we have once again marked up the fair value of our investment from $722 million to $835 million, which is fair value for other comprehensive income. And finally, on Chinese MC, we had another strong quarter with earnings or passing levels that were last experienced prior to few reductions announced in July of 2023.

unknown: And we're going to keep on leading in there during the back half of the year, but that's what you see as some sales declines in some of our flagships that are being offset by by momentum elsewhere.

Damon Merckerson: Okay, understood. Over to the IGWALT management business, you highlighted the decline in advisor fee rates. I appreciate that color.

Jaeme Gloyn: Okay, understood. Now, over to the IG Wealth Management Business. You highlighted the decline in advisor fee rates. I appreciate that color, and just as we kind of look out over the next few years, I believe the commentary previously was that we would see about maybe like 50 basis points of decline on a quarterly basis. Remind me what that sort of run rate would be. Can you just refresh that outlook and how you're seeing the shifting mix to high net worth clients and maybe some product mix and how that's going to play out over the next few quarters? Yeah, sure. It's Keith here. Thanks, Jaeme.

Jaeme Gloyn: Okay, understood. Now, over to the IG Wealth Management Business. You highlighted the decline in advisor fee rates. I appreciate that color, and just as we kind of look out over the next few years, I believe the commentary previously was that we would see about maybe like 50 basis points of decline on a quarterly basis. Remind me what that sort of run rate would be. Can you just refresh that outlook and how you're seeing the shifting mix to high net worth clients and maybe some product mix and how that's going to play out over the next few quarters?

Speaker Change: Okay understood.

unknown: Over to the wealth management business.

Speaker Change: You highlighted the.

Speaker Change: The decline in advisory fee rates.

Speaker Change: Appreciate that color and just just says when you kind of look out over the next few years I believe the commentary previously was that we would see about maybe like a 50 basis point so.

Keith Potter: During the slide 33, you can see our AUMNA and flows and coming off a strong Q1 ending AUMNA was relatively unchanged, up 0.1%, while average assets increased 2.4%. Starting the slide 34, we have our consolidated earnings at IGM. Growth and average AUMNA supported higher revenues in both our wealth and asset management segments. And on 0.2 as James highlighted earlier in the call, our operations will support if this development expenses were up 4.9% on our year-over-year basis, and 2.7% year-to-date. And on a failure basis, we are maintaining our guidance of 4% growth over 2023.

Damon Merckerson: And just as we look out over the next few years, I believe the commentary previously was that we would see about maybe like 50 basis points of decline on a quarterly basis until, and remind me what that sort of run rate would be. Can you just refresh that outlook and how you're seeing the shifting mix behind that worth clients, and maybe some product mix, and how that's going to play out over the next few quarters?

Speaker Change: The client on a quarterly.

Speaker Change: Quarterly basis.

Jaeme Gloyn: Until then remind me what's that sort of run rate would be can you just refresh that.

Speaker Change: That outlook and how youre seeing the shifting mix to high net worth clients and maybe some product mix and how that's going to play out over the next few quarters.

Keith Potter: Yeah, sure, it's Keith here. Thanks, Jaeme.

Keith Potter: Yeah, so I did comment that, you know, if you just keep the product mix fairly stable as we move toward positive net flows, and you just have the mix shift toward the mass affluent high net worth, about 0.5 basis points per quarter would be pretty reasonable, and we would have been in that territory a little bit higher than that this quarter, but there were strong market returns. The other influencing factor would be that we have internal cash where we are in a spread, and then we don't charge advisory fees to speak of when we're into other short-term cash like GICs or HESA, and that's what you saw this quarter. We wouldn't expect that, you know, to continue.

Damon Merckerson: Yes, sir, it's Peter. Thanks, James. Yes, so I did comment that if you just have product mix fairly stable as we move towards positive net flows, and you just have the mix shift toward the mass affluent high net worth, you know, about 0.5 basis points per quarter would be pretty reasonable. And we would have been in that territory a little bit higher than that this quarter, but there were strong market returns. The other influencing factor would be we have internal cash, where we are in a spread, and then we don't charge advisory fees to speak of when we're into other short-term and cash like GICs or HESA.

Keith Potter: Yeah, sure, it's Keith here. Thanks, Jaeme.

Jaeme Gloyn: Yeah sure it's Keith here, Thanks, Jamie Yeah.

Speaker Change: I did comment that if you just had product mix fairly stable as we move toward.

Keith Potter: On flight 35, we present the key profitability drivers for IG-wealth, and I'll highlight a few points here. First, on the far left, you can see average assets were up 3.4% in the quarter, and on the right, our advisory fee rate reflects the strong, quarterly increase in AOA, and clients moving up wealth bans, including our continued success with the acquisition of mass affluent and high-not worth clients. The rate is also impacted by a rotation of client cash balances and other solutions, including increases in other cash-like products such as GICs and Heases.

Speaker Change: Positive net flows and you just have the mix shift.

Keith Potter: Toward the mass affluent high net worth.

Keith Potter: The stable product mix and continued success in the mass affluent and high-not worth segment, we'd expect a decrease of culture to 0.5 basis points per quarter in this rate. And finally, you can also see product fees and asset-based compensation rates were stable for the quarter.

Speaker Change: Five basis points per quarter.

Keith Potter: Would be pretty reasonable and we would've been in that territory, a little bit higher than that this quarter.

Speaker Change: But there was strong market returns.

Keith Potter: Yeah, so I did comment that, you know, if you just keep the product mix fairly stable as we move toward positive net flows, and you just have the mix shift toward the mass affluent high net worth, about 0.5 basis points per quarter would be pretty reasonable, and we would have been in that territory a little bit higher than that this quarter, but there were strong market returns. The other influencing factor would be that we have internal cash where we are in a spread, and then we don't charge advisory fees to speak of when we're into other short-term cash like GICs or HESA, and that's what you saw this quarter. We wouldn't expect that, you know, to continue. There will be volatility up into that last quarter as well, and prior quarters, it's fairly stable, but I would, you know, I would guide to, you know, 0.5 basis points, subject to mix and product mix.

Speaker Change: Other influencing factor would be we have internal cash or where our spread and then we don't charge advisory fees to speak of one way or into other short term cash like gic's or heats up and that's what you saw this quarter that we wouldn't expect that to continue there will be volatility we suffered at that last quarter as well and in Pryor.

Damon Merckerson: And that's what you saw this quarter that we wouldn't expect that, you know, to continue. There will be volatility with something that lasts quarter as well, and prior quarters is fairly stable. But I would, you know, I would guide to, you know, 0.5 basis points, subject to mix in product.

Keith Potter: There will be volatility. We saw that in the last quarter as well, and prior quarters, it was fairly stable. But I would, you know, I would guide to, you know, 0.5 basis points, subject to, you know, the market.

Keith Potter: <unk> is fairly stable, but I would.

Speaker Change: Guide too far.

Keith Potter: Five basis points subject to.

Keith Potter: Mixed in.

Keith Potter: On flight 36, IG's overall earnings were 111.7 million in Q2. On point 1, advisory and product and program fees are up year over year. And relative to the last quarter. And on point 2, year over year financial planning revenues are in line with 2023. Another strong quarter for insurance results were offset by lower mortgage income. As Damon commented, we saw strong mortgage volumes within a competitive environment, which is great. However, lower mortgage income was driven by negative fair value adjustments, which are primarily accounting related volatility versus economic and nature.

Keith Potter: And product mix.

Jaeme Gloyn: And just following on that, do you have a view as to the length of time that should persist? Like, or is it just you have visibility over the next, say, you know, four to six quarters, but beyond that, it's, it's more challenging. What are some thoughts on that?

Keith Potter: And just following on that do you have a view as to the.

Damon Merckerson: And just following on that, you have a view as to the length of time that should persist. You have visibility over the next stage, four to six quarters, but beyond that, it's more challenging with some thoughts on that. Yeah, I would say visibility over the next few quarters, James, and as we move longer term, we'll get... we can provide more visibility at that point, but I'd keep it to, you know, the next couple of quarters, the few quarters. Yeah, okay, understood. Thanks very much.

Keith Potter: The length of time that should persist or is it just.

Speaker Change: Do you have visibility over the next day.

Keith Potter: Four to six quarters, but beyond that.

Keith Potter: It's more challenging.

Keith Potter: What are some thoughts on that.

Keith Potter: Yeah, I would say visibility over the next few quarters, Jaeme, and as we move, you know, longer term, we'll get, you know, we can provide more visibility at that point, but I'd keep it to the next couple of quarters, a few quarters. Yeah, okay.

Keith Potter: Yes, I would say visibility over the next.

Keith Potter: Few quarters, Jim and as we move longer term.

Keith Potter: We'll get.

Keith Potter: We can provide more visibility at that point, but I would keep it to the next couple of quarters a few quarters.

Keith Potter: The insurance business had another very strong quarter relative to a year ago and post similar results as the first quarter. Looking forward, we expect to continue to see year over year growth in the business. And as a reminder, other product commissions will move in a similar direction as revenue, which you can see in the table, including a point 2, and has been at 63% of revenue for the last two quarters.

Jaeme Gloyn: Yeah. Okay. Understood. Thanks very much.

unknown: Yeah, okay.

Keith Potter: Yeah, Okay understood. Thanks very much.

Operator: This concludes the question and answer session.

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

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

Kyle Martens: I would like to turn the conference back over to Kyle Martens for any closing remarks. Okay, thanks Betsy, and once again, we'd like to thank everyone for joining us to call this morning. And Betsy, without, we can, we can introduce conference call.

Kyle Martens: Okay, thanks, Betsy. And once again, we'd like to thank everyone for joining us.

Operator: Okay, thanks, Betsy. And once again, we'd like to thank everyone for joining the call this morning. And Betsy, with that, we can end today's conference call. This brings an end to today's conference call. You may now disconnect your lines.

Speaker Change: Great. Thanks, Betsy and once again, we'd like to thank everyone for joining the call. This morning, and Betsy with that we can we can end today's conference call.

Keith Potter: Moving to slide 37, we have McKenzie's AUM by client and product type, as well as net revenue rates. On the left, you can see average AUM is up 1.4%. And on the right, the overall third-party rate was unchanged in the quarter at 53 basis points. And the top line where it represents a smaller AUM base, excluding Canada Light, is driven by continued strength, their PFSL and wealth sample wealth management partnerships.

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

Speaker Change: This brings an end to today's conference call you may now disconnect your lines. Thank.

Speaker Change: Thank you for participating and have a pleasant day.

Operator: Yeah.

Operator: Okay.

Operator: [music].

Keith Potter: During the slide 38, you can see McKenzie's earnings of 55.9 million is up 11.6% year over year, with higher AUM, net asset management fees are up, year over year, and sequentially, and net investment income is reflective of positive market growth in the quarter.

Keith Potter: Slide 39 has China and Sea results. Two quick points first on the last AUM continues to increase with ending AUM of RMB 2.2 trillion up 20% year over year, including RMB 65 billion and Q2 total net flows. And on the right hand side, we have quarterly earnings and Q2 now exceeding earnings prior to the fee rate reductions from Q3 of 2023.

Keith Potter: Slide 40 has earnings contributions from companies in each segment. I have a couple of comments on Rockefeller, adjusted earnings improving Q1, driven by revenue growth as they build out their global family office business. And as mentioned, Rockefeller has refined at depth this quarter on a more favorable terms which is reflective of the progress being made, and the 3.3 million adjustment to earnings is reflective of a one-time prepayment and refinance. Facing Feast.

Keith Potter: Flight 41 provides a summary view of earnings and ownership, and the value of our strategic investments by segment. Main comment is on wealth simple. And once again, we have increased the fair value to $835 million. It's reflective of their exceptional performance during Q2. Public peer evaluations and also revised revenue expectations for the company. And from IGM's valuation perspective, our strategic investments now represent $5.3 billion in value. And as a reminder, wealth simple is fair value for OCI. Rockefeller currently does not contribute in a meaningful way to earnings, but both have significant value.

Keith Potter: Flight 42 highlights execution against our capital allocation priorities. As James said at the beginning of the call, we are investing to drive growth while also returning capital shareholders. And we continue to execute on share repurchases while maintaining financial flexibility with growth and debt to EBIT ratio of 1.6 times an unallocated capital of $379 million. As we move into the back half of the year, we will continue to execute on our NCIB while focusing on a growth oriented business priorities.

Keith Potter: Before I turn over the call to the operator, on behalf of IGM, we would like to acknowledge that this will be just one last call covering IGM. We would like to thank him for his 17 years of coverage and the professionalism that he's brought to the business a day in and day out, and we wish him all the best in the future endeavors. And that concludes my remarks, and I'll turn over the call for questions.

Operator: We will now begin the question and answer session. To join the question queue, you may press star and once on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing any key. To withdraw your question, please press star and two. We will pause for a moment as colors join the queue. Thank you for your patience.

Jeffrey Kwan: The first question today comes from Jeffrey Kwan with RBCCM. Please go ahead. Great.

James Osullivan: Thanks and in key thanks for the kind words I don't know if I deserve it, but thank you very much for it. My first question for you was just, you know, how you're thinking about capital allocation given, I guess, the pause on M&A, the free cash regeneration of the business. And how you think about buybacks, who's obviously been doing some shared buybacks lately, the de-leveraging as well as the organic growth initiatives that you've got in place.

James Osullivan: Yeah, thanks, Jeff. And again, congratulations to you. You know, we stated that investor day that we feel we were and are done with M&A, at least for a period of time. And by that I mean kind of chunky M&A, M&A of any kind of moderate to large size. There's always very small stuff to be done. And I think we're in that period now. I mean, as I said at investor day, it might be a two or three year period where you should expect us to be focused internally.

James Osullivan: You should expect us to be focused on our core businesses and on strengthening those businesses. And, you know, that's very much what we're doing. So, you know, the first use of free cash flow very clearly is the dividend we remain as committed as ever to that. We have started a buyback, and I believe this quarter we repurchased about $37 million worth of shares. I think that's a reasonable run rate. I think you should expect that to continue.

James Osullivan: I mean, we would buy more at lower levels and less at higher levels. But, you know, it's not a bad estimate I would say. And so, you know, with the free cash flow that we have, what doesn't go to the dividend, what doesn't go to the buyback, we continue to invest in projects across IGM, IGM, and McKenzie. So that's how we're seeing it. I would not expect any chunky M&A here, although as I've said, just to cover myself, if the phone rings we'll answer it, but we're really happy with with the architecture that we have, with two divisions, three wealth management companies, three asset management companies. We think it's a great lineup, we're investing in it, and we believe it'll generate higher growth and ultimately higher dividends over time. Thanks for that, James.

James Osullivan: I guess maybe there was a little bit of my follow on question, is this kind of the two to three years that you talked about that investor day. Is that guided to a certain extent on word leverages, and you want to get to a certain level before you consider it? Is it driven by, you know, the activity that you've done in the past, well, and just want to kind of focus and execute on those.

James Osullivan: And similarly, when you do get to that time, you're perhaps ready to do a transaction if it's available. Is there, you know, all else equal, something that interests you the most, like is it making a bigger stick in Rockefeller, is it acquiring an asset manager as a capability to the shelf or something else? Sure. Well, it's not driven by leverage. Our leverage ratio as we disclose this quarter is about 1.6 times, so we continue to have a very conservative leverage profile or debt to EBITDA profile.

James Osullivan: So leverage is not at all. I'd say it's driven by two things. One is following a period where we did a fair bit of M&A. Obviously, China AMC and Rockefeller and ITC, and there were others too. There is a bit of a desire to just kind of hunker down and focus on our great core businesses being IG and McKenzie and use our capital and not just our capital, our human resource talent, our time and attention to make those businesses as strong as they can possibly be.

James Osullivan: And what we know are very competitive and fast moving markets. So one was really a desire to put our head down and focus on our core businesses for a period. The second thing I would say, Jeff, is that we're also kind of looking out and we're saying, you know, when might, like I said, we love the architecture to divisions, three businesses in each division. When might opportunity next present itself in respect of things we currently own some up?

James Osullivan: And all of that kind of aligns with the two or three year window that I talked about. So there will be an opportunity to do more at Northleaf. There will, I expect in the fullness of time be an opportunity to do more with Rockefeller. And we'll see how the others, you know, see, we'll see what happens to others, including, for example, well, simple. So I would, it was not leverage. It was a desire really to focus on, spend a period of time focused on our two big core businesses.

James Osullivan: And then we looked out over the horizon and we said, you know, the next batch of opportunities in terms of what we currently own is likely to be a couple or a few years out. And so that's really all it is.

James Osullivan: Okay, that's helpful.

Damon Merckerson: And if I can maybe sneak in one last question for Luke and Damon. It sounds like the message was July, the stronger net sales performance may have been a bit of seasonality, a bit driven by the capital gains tag changes, capital gains tag changes, but bigger picture, the industry net redemptions are hopefully going to prove as we exit 2024, albeit maybe gradually. Is that correct? And then also the other part of my question is on the growth sales that did come in for July or even June, like are you seeing any changes in the types of funds clients are putting money into versus what you might have seen over the past one to two years?

Damon Merckerson: Okay, thanks, Geoff. And congratulations again. In terms of the first part of your question, I would characterize July and the flows in July, there are three primary drivers. One would be, as you mentioned, the capital gains and working with our clients and allowing them to crystallize some gains and take advantage of the lower inclusion rate, that drove money into Katch. A lot of it was invested in June, but some of it remained in July.

Damon Merckerson: We were able to reinvest in July. But the good thing about that as well is that we were able to work with our clients and with prospects, the work clients yet to do the same thing for the money they had at other dealers and crystallize some gains. And we were able to bring that money over to IG in July. That's the first thing. The second, I would say that the sentiment, it's slowly, but it is changing in this country.

Damon Merckerson: So there's a lot of money sitting in Katch in this country, short-term investments, and at this firm, and we're starting to see some money be invested, which is great to see. And the third, which is the largest driver, is that we've just done a fantastic job on new client acquisition. What you see right now is a firm where our advisors are not just enabled, but they're motivated and squarely focused on working with Canadians that have financial challenges and need serious people to answer the questions that they have.

Damon Merckerson: And you can see the build-up, and we've steadily been improving here, and I fully expect that to continue over time. In terms of the growth sales and what we see, we're a managed solution shop, so there hasn't been much change there in terms of what people are invested in. You see the performance of our shelf, and it's been very, very strong. So our advisors are committed to making sure that our clients invested in the future as per their financial plan. So we haven't seen much change as it relates to growth sales.

Damon Merckerson: And Jeff, it's Luke, I think it's two things. One, thanks again for your coverage. It's been great over a very, very long time as Keith said. I echo his sentiment. On page 10, you've got to walk up for your run. It was encouraging to see your improvement in Q2. And as you know, that's something we haven't seen for a while, and I think page 10 lays out what we saw on Q2 by product category.

Damon Merckerson: And what was noteworthy is the improvement that came in the foreign equity. So those global equity and U.S, equity, we did see some noteworthy improvement in Q2. And then as mentioned, we got IFX preliminary numbers for July yesterday. And it did show a meaningful year of re-improvement. It was positive overall. And from the vantage point that we have, it wasn't those same product categories with good flows into income, as well as good flows into global U.S, equity.

Luke Gould: Okay, perfect. Thanks everyone.

Operator: As a reminder, if you would like to ask a question, please press cards and want to join the question queue.

Jaemei Goulding: The next question comes from Jaemei Goulding with MBS. Please go ahead. Yes, thanks. I actually just wanted to kind of follow on that last question, just looking at McKenzie's results and the net flows rate at McKenzie. You know, the industry had a little bit of a pickup here in the last few months, but looks like McKenzie's still somewhat stabilized at a slightly lower trend. So maybe talked through some of the potential drivers of bad performance, given that some of the positive remarks you made about the underlying fund performance and success of the ratings. Yeah, you've got, Jim. Good question.

Luke Gould: And back on page 27, I'm going to refer some of my remarks there. We've got a few things going on. One has mentioned in several of flagships. We've had, you know, high-conviction, high-discipline boutiques like Blue Water and Greenship, which focuses on, obviously, somatic investing to combat climate change. What we've seen there is weaker short-term performance as these boutiques have stuck to their discipline, and you can see on the slide the European net sale declines.

Luke Gould: And that's been a feature of our overall net sales. At the same time with our boutique approach, we obviously try to make sure that we can be a provider of choice and have something relevant and compelling in all environments for all client needs. And you can see that the declines in those boutiques is being offset by a sales momentum in the global quantity boutique, the global equity and income boutique. And again, I mentioned our U.S. All-Captain Growth Mandate, advised by Patnum, as well as some improvement in fixed income.

Luke Gould: And so I characterize that we're going really strong where we have such compelling performance in large categories like global equity. And we're going to keep on leading in there during the back half of the year. But that's what you see is some sales declines in some of our flagships. They're being offset by a momentum elsewhere.

Keith Potter: Okay, understood. Over to the IGWALT management business, you highlighted the decline in advisor fee rates. I appreciate that color. And just as we look out over the next few years, I believe the commentary previously was that we would see about maybe like 50 basis points of decline on a quarterly basis until, and remind me what that sort of run rate would be. Can you just refresh that outlook and how you're seeing the shifting mix behind that worth clients, and maybe some product mix, and how that's going to play out over the next few quarters?

Keith Potter: Yes, sir, it's Peter. Thanks, James. Yes, so I did comment that if you just have product mix fairly stable as we move towards positive net flows, and you just have the mix shift toward the mass affluent high net worth, you know, about 0.5 basis points per quarter would be pretty reasonable. And we would have been in that territory a little bit higher than that this quarter, but there was strong market returns.

Keith Potter: The other influencing factor would be we have internal cash, where we are in a spread, and then we don't charge advisory fees to speak of when we're into other short-term and cash like GICs or HESA. And that's what you saw this quarter that we wouldn't expect that, you know, to continue, there will be volatility with something that lasts quarter as well, and prior quarters is fairly stable. But I would, you know, I would guide to, you know, 0.5 basis points subject to mix in product.

Keith Potter: And just following on that, you have a view as to the length of time that should persist. You have visibility over the next stage, four to six quarters, but beyond that, it's more challenging with some thoughts on that. Yeah, I would say visibility over the next few quarters, James, and as we move longer term, we'll get.., we can provide more visibility at that point, but I'd keep it to, you know, the next couple of quarters, the few quarters.

Keith Potter: Yeah, okay, understood.

Keith Potter: Thanks very much.

Kyle Martin: This concludes the question and answer session. I would like to turn the conference back over to Kyle Martens for any closing remarks. Okay, thanks Betsy, and once again, we'd like to thank everyone for joining us to call this morning. And Betsy, without we can, we can introduce conference call.

Operator: This brings an end to today's conference call. You may now disconnect your lines.

Operator: Thank you for participating and have a present day.