Q3 2025 GM Financial Inc Earnings Call
Speaker #4: Thank you for standing by . This is the conference operator . Welcome to the IGN Financial Third Quarter 2025 Analyst Call and Webcast .
Speaker #4: As a reminder , all participants are in a listen only mode and the conference is being recorded . After today's presentation , there will be an opportunity to ask questions .
Speaker #4: To join the question queue , you may press star , then one on your telephone keypad . Should you need assistance during the conference call , you may signal an operator by pressing star .
Speaker #4: Then zero . I would now like to turn the conference over to Kyle Martens Senior Vice President , Corporate Development and Investor Relations .
Speaker #4: Please go ahead .
Speaker #5: You , Betsy . Good morning , everyone , and thank you for joining us on the call today . We have James OSullivan president and CEO Jim Financial , Damon Murchison president and CEO of IG Wealth Management .
Speaker #5: Luke Gould president and CEO of Mackenzie Investments . And Keith Potter Executive Vice President and CFO of Financial . Before we get started , I would like to draw your attention to a cautions concerning forward looking statements on slide three of the presentation .
Speaker #5: Slides four and five summarize non IFRS financial measures and other financial measures used within this presentation . On slide six , we provide a list of documents that are available on our website related to IBM financials .
Speaker #5: Third quarter results will take us to slide nine, where I'll turn it over to James O'Sullivan.
Speaker #6: All right . Good morning everyone . And thank you for joining us today . We're pleased to report another record quarter across many dimensions of our businesses , including an all time high adjusted EPs of $1.27 .
Speaker #6: Most importantly , the outstanding third quarter demonstrates strength and continued momentum in our core businesses . IG Wealth and Mackenzie Investments . Last quarter , we noted an important inflection point in Mackenzie's retail advisor channel .
Speaker #6: That momentum continued in the third quarter alongside continued strength in the institutional and partnership channels , positioning Mackenzie . I think for sustained growth , IG wealth leadership and delivering best in class advice to mass affluent and high net worth clients continues to be a powerful growth engine driving record assets and reinforcing our position as a premier wealth management firm in Canada .
Speaker #6: IG and Mackenzie combined achieved 2.4 billion in net inflows during the quarter and delivered year over year earnings growth of 24% and 15% , respectively , complementing the strong performance in our core businesses , our strategic investments delivered continued growth and demonstrated value for IG shareholders .
Speaker #6: We have spoken in the past about narrowing the gap between trading price and net asset value by highlighting and demonstrating progress in our strategic investments .
Speaker #6: The Rockefeller transaction underscores its strong growth and adds new long term investors , further strengthening the ownership base . Importantly , IBM will remain Rockefeller's second largest shareholder .
Speaker #6: When the deal closes later this year , and the only strategic in the capital stack . After doubling client assets in just over a year , Wealthsimple is financing round marked another key milestone for the firm , as they continue their focus on developing and launching innovative solutions for the benefit of their clients .
Speaker #6: IBM continues to be the largest shareholder of Wealthsimple Pro , the financing round each of these investments remains strategically important to IG . We're naturally very pleased to share these developments that showcase the significant value and strategic optionality embedded within our wealth management segment .
Speaker #6: Looking forward, we are in a very strong position financially and look forward to returning increasing amounts of capital to our shareholders in 2026.
Speaker #6: Now moving to slide ten . In the current operating backdrop , markets have continued to be strong driving IBM client returns of over 6% during the quarter .
Speaker #6: Resilient markets have continued to support investor confidence , helping drive another quarter of positive industry flows . At the same time , we're mindful that markets can correct at any time , and we keep a keen eye on differentials between the financial economy and the real economy .
Speaker #6: Periods of volatility remain probable over the near and medium terms . Slide 11 provides a snapshot of the strong double digit earnings growth across all of our segments , which Keith will address later in the call .
Speaker #6: Finally , on slide 12 , you'll see the double digit asset growth across each of our businesses that contributed to it . Record assets under management and advisement .
Speaker #6: I'll now turn the call over to Damon .
Speaker #7: Thank you , James , and good morning , everyone . Turning to slide 14 . In Wealth Management's third quarter highlights , including IG wealth , Rockefeller and Wealthsimple riding on the momentum , IG has built , the third quarter continued to deliver record results .
Speaker #7: We ended the quarter with record AUM of $156 billion , up 14% versus Q3 of last year , supported by record Q3 gross inflows and sales of 3.8 billion and $3.9 billion , respectively .
Speaker #7: Total net flows for the quarter were $426 million and represented our fifth consecutive quarter of positive net flows . IG wealth continues to be a new client acquisition machine , delivering record Q3 new client gross inflows of $1.2 billion , with 79% of these inflows coming from massive fluid and high net worth clients during the month of October , the momentum continued with our highest gross inflows on record and strong net inflows of 276 million .
Speaker #7: Also during the quarter , the investment Executive 2025 Dealer Report Card was published and once again IG was ranked as an industry leader .
Speaker #7: I'll speak more to this and to the demonstrated strength of both Rockefeller and Wells on upcoming slides . Moving to slide 15 . This shows the continued momentum that this business has built on the left , you can see in all three periods that we are at record levels for gross inflows , which in turn driving our strong net net flows .
Speaker #7: The graph on the right illustrates the ability of our advisors to work with their clients to dollar cost average into long-term IG solutions.
Speaker #7: Turn to slide 16 . You can see our operating results , which continue to provide great insight into the strength of this business .
Speaker #7: I'll note our third party growth is driven by our ability to acquire new clients as we continue to drive new , mass , affluent , high net worth client acquisition .
Speaker #7: We expect to see similar growth in this category . Everything on this slide continues to point in the right direction , illustrating our growth and our ability to work with our clients to dollar average cost .
Speaker #7: And from Gic's high balances and in short term investments over time . Moving to slide 17 . Our gross inflows from newly acquired clients demonstrates the client acquisition machine that IG is today .
Speaker #7: And it's across all segments . Most notably the newly acquired affluent and high net worth clients . Turning to slide 18 . You can see the continued momentum in our mortgage and insurance businesses , both of which has delivered strong year over year growth .
Speaker #7: We continue to see strong growth prospects in our insurance business , while our advisors also see opportunity to engage their clients to win new mortgage business as their clients , as mortgages come up for renewal .
Speaker #7: Now turning to slide 19 . I want to briefly focus on the strategic pillars that we spoke to at our last Investors day , investing in the business , elevating the business , and driving a best in class advice experience .
Speaker #7: The wealth drivers has focused our investment on partnerships to support the advice that our clients demand and our prospects seek . We're enhancing our advisors capabilities through these partnerships , which in turn provides them a better line of sight to the client's full financial picture .
Speaker #7: At the same time , we're elevating our platforms and products by expanding our exposure to private assets , extending our growth in insurance and lending offerings , as well as providing accounts to help our clients and their children save for their first home .
Speaker #7: These initiatives are driving our strategy , resulting in success in both our entrepreneurial and corporate channels . 36% of our new client , new client growth inflows are coming from the high net worth segment .
Speaker #7: While our corporate channel represents 7% of our M&A and 34% of our clients . Further validation of our success of our strategy is seen through the eyes of the industry's advisors .
Speaker #7: This year , IG continued its high ranking in the 2025 Investment executive Dealer Report Card , where we once again ranked first overall amongst our peers our score year over year and placing first in 15 categories .
Speaker #7: Now , turning to slide 20 . I'll update you on Rockefeller's progress . Client assets were up 25% year over year , supported by market , inorganic and organic growth over the last 12 months .
Speaker #7: Organic growth has driven $6.7 billion in client assets , while Rockefeller continued to add to their private advisory network , with 60 new advisors being added over the last 12 months .
Speaker #7: Now moving to slide 21 , this slide illustrates Wealthsimple momentous upward trajectory at our 2023 Investor Day . Well , simple . Set a target of $100 billion in AOA by the end of 2028 .
Speaker #7: During the third quarter , they achieved this , ending the quarter with $100.8 billion , up a remarkable 94% over last year , and setting a new all time record high with $16.3 billion in AUM growth during the third quarter .
Speaker #7: Wealthsimple has increased their client serve by 50% year over year , ending the quarter with over 3 million clients . With that , I'll now turn the call over to Luke Gould .
Speaker #7: Great .
Speaker #5: Thanks , Damon . Good morning everyone . Turn to page 23 . You'll see highlights from Mackenzie . And for asset management for the quarter .
Speaker #5: This was a quarter of very strong momentum across a number of dimensions . It was a good quarter for clients with investment returns of 6% .
Speaker #5: And we ended the quarter with record high assets of just under $240 billion, up 6.6% in the quarter, as a result of both investment returns and net sales of $2 billion in the quarter.
Speaker #5: This net sales result was up meaningfully from last year , with momentum across channels , investment fund net sales . You can see in the top right of 407 million , improved by $700 million from last year , driven largely from improvements in retail , retail net sales of 7 million are up 510 million from last year , with strong momentum in quant and active equity ETFs in particular .
Speaker #5: We're pleased to see a lot of momentum with products launched during the last 36 months . We also onboarded 1.6 billion from three institutional institutional clients .
Speaker #5: As we disclosed last quarter . Two of these clients were large foreign public pensions and wealth funds . And the third was a large Canadian pension .
Speaker #5: We have another $400 million award funding in Q4 , and a very good near pipeline . A few weeks ago , we received the results of the 2025 advisor Perception study for each of mutual funds and ETFs .
Speaker #5: Results were broadly stable on the mutual fund study , and we were we maintain rank of second on sales penetration across channels , brand equity and overall score relative to large peers .
Speaker #5: We experienced noteworthy improvements on the ETF study, with our overall score increasing to 7.9 from 7.1. Our rank is tied for third, compared to our score of 8 last year.
Speaker #5: We're pleased to see momentum on the ETF study. Given our activity in broadening our ETF suite around active and better beta mandates, we continue to be very busy on the product launch side for retail.
Speaker #5: We've launched 11 new products in the third and fourth quarter of this year , and we launched 12 products in the first half of the year across mutual fund , ETF and offering memorandum vehicles .
Speaker #5: These launches include this quarter , our fifth private markets fund , the Mackenzie Northleaf Multi-Asset fund . We've also launched four better beta ETFs in the quarter , as well as expanding our value style offerings and providing our US Elf extension mandate in ETF form .
Speaker #5: And at the bottom , you can see both China MC and Northleaf continue to generate good growth . China MCs investment funds are up 30% from last year and 7% during the quarter , supported by a robust rebound in Chinese markets where equity markets were up 19% in Q3 and Northleaf continues to have strong fundraising of 5.2 billion over last year and 1.5 billion during the quarter .
Speaker #5: Turning to page 24 . You can see the trend and the history of Mackenzie's investment fund net sales . On the left , you can see that this is our best investment fund .
Speaker #5: Net sales across all three periods since 2021 , with meaningful improvements from 2024 . As highlighted earlier , a majority of the momentum in Q3 investment fund net sales was driven by retail , and you can see this improvement on the chart on the right .
Speaker #5: I’d also remind on the left that we don’t publish ETF gross purchase and disposition activity due to data challenges, but we estimate that retail gross purchase activity, including ETFs, was up about 50% year over year.
Speaker #5: On the right . Overall , we're positive and improving our last 12 month trailing basis , and you can see ending the year that retail is trending towards positive territory as well .
Speaker #5: On a last 12 month basis , we've also added a note on the right that we disclosed our October results . Investment fund net sales were 235 million .
Speaker #5: A very good result and a meaningful improvement over 2025 . And this excludes the $950 million net purchase of our passive ETFs by an institutional client who made allocations to Mackenzie within their managed solutions .
Speaker #5: Turning to page 25 at the top right , you can see our net sales segmented between retail and institutional . And by delivery vehicle .
Speaker #5: We've circled the improvement within our retail investment funds with notable increases in both the mutual fund and ETF structure . You can also see the 1.55 billion onboarded of institutional awards during the quarter .
Speaker #5: And at the bottom left you can see our last 12 month trailing net sales rate has been closing relative to mutual fund industry , peer group .
Speaker #5: Turning to page 26 . You can see our performance and net sales for our retail mutual funds and ETFs by Boutique . Across the slides looking near the top of the slide , you can see compelling performance relative to peers across multiple boutiques .
Speaker #5: Towards the middle , you'll see our global quantitative equity boutique has exceptional relative performance across the three time periods where this team managed the money .
Speaker #5: And you can see the strong and growing net sales for this team . I'd also highlight that we have strong performance and net sales or net sales improvement within a number of other boutiques , including our resources team , our green chip team , global equity and Income , and Multi-Asset strategy team .
Speaker #5: Turn to page 27 . We've added a slide to give an update on our private markets funds for retail investors within our partnership with Northleaf .
Speaker #5: You can see at the top that we are on a mission to bring private asset classes , what we call the missing middle , to Canadian households .
Speaker #5: We've been working hard to remove every impediment to Canadian households having a proper allocation to these asset classes . This has included education and promotion , helping with advisory accreditation , ensuring products are eligible for registered plans , and ensuring that the products are scaled .
Speaker #5: The existing products you can see on the left are achieving scale and have increased sales momentum in October . As mentioned , we introduced the Mackenzie Northleaf multi-asset private Markets Fund .
Speaker #5: This is a single ticket that brings private equity , private credit and infrastructure together and provides a very nice complement to an existing 6040 portfolio .
Speaker #5: The underlying products you can see have delivered excellent track record since launch , and we provide a graphic in the middle of the slides .
Speaker #5: Convey the missing middle concept . We see that our new multi-asset product , with $100 million from our other managed solutions , and we are looking very forward to promoting in the market .
Speaker #5: We've also in the bottom right , highlighted that we held our first private market summit in London , England at the end of May .
Speaker #5: We're very proud of the strength of this event in terms of both the quality of the content and speakers , as well as the engagement with the a lot of the investments that are held in the portfolio and the investee companies .
Speaker #5: Turn to page 28 , a few comments on the Chinese investment fund industry . On the left you can see the industry grew by 6% in the quarter , driven primarily by strong equity markets in the bottom left , you can see the net sales trend and well , overall industry net sales were positive , including money market , long term funds were in slight net outflows with equity funds where clients took some of the gains with the recent upturn to the market on the right , we're pleased with the continued strong performance of China relative to peers and they continue to see market share gains on long term funds , increasing a 6.7% of the industry , up from 6.4% last quarter and 6.3% last year .
Speaker #5: On page 29 , you can see the strong growth in China . AUM , the company is very proud to have reached important milestone of 3 trillion won this quarter .
Speaker #5: So close to following its previous 2 trillion won milestone . Just six quarters ago . You can see the investment fund assets were up 7% in the quarter and 30% over the last year .
Speaker #5: And on page 30 , you can see another very strong quarter of fundraising at Northleaf with 1.5 billion in fundraising in the quarter and 5.2 billion over the last 12 months .
Speaker #5: Fundraising was strong across private equity , private credit and infrastructure and particularly in particular , as they closed one of their one of their products , they had a market .
Speaker #5: And I also want to recognize just a few days ago , we celebrated the five year anniversary of our partnership with Northleaf . I just want to say we're very pleased with the progress .
Speaker #5: We're very proud of this team and we're very excited about the future . I'll now turn the call over to Keith Potter . Thank you , Luke , and good morning , everyone on slide 32 , you can see key highlights for Q3 adjusted EPs , which excludes Lefkos .
Speaker #5: Other items were $1.27, up over 23% year over year, and a record high. The strong results were diversified and driven by our core businesses and contributions from our strategic investments.
Speaker #5: We returned $183 million to shareholders in the quarter , including approximately $51 million in share repurchases . We have repurchased 3.6 million shares to the end of September and will continue to be active , repurchasing shares through the remainder of the year in line with past quarters .
Speaker #5: We are also strengthening our financial profile by steadily lowering leverage and cash dividend payout ratio , while maintaining financial flexibility with unallocated capital , growing to approximately $700 million .
Speaker #5: Finally , as previously announced in October , we have reported a $1.4 billion increase , or approximately $6 per item share in the value of Rockefeller and Wealthsimple combined , and details of the Rockefeller transaction are yet to be finalized , and we will update you on the Q4 call in February .
Speaker #5: Turning to slide 33 , you can see our AUM and flows on a year to year basis . Strong equity markets during the quarter supported ending and average asset growth , with both up approximately 6.5% since Q2 .
Speaker #5: In particular , we saw robust growth in the Chinese equity markets with the CSI 300 , up 19% during the third quarter , which was supportive of China MCs results .
Speaker #5: I'll speak to these in a few moments . On the left hand side , similar to last quarter , it's worth noting that at the end of October , ending AUM is up approximately 5% from the Q3 average , and if markets remain stable , the increase in assets will be a key driver for revenue growth in Q4 .
Speaker #5: Turning to slide 34.1 and 0.2 help to illustrate the diversified drivers of our 23% year over year growth in adjusted EPs on 0.3 on a year to date basis .
Speaker #5: Our combined operations in support of business development expenses are up 4.1% from last year , and we are maintaining guidance of 4% for the full year .
Speaker #5: And we look forward to providing our 2026 expense guidance on the February call . On slide 35 , we present the key profitability drivers for IG Wealth Management .
Speaker #5: I'll highlight a few points . On the left side , you can see that average AUM was up 6.6% . And on the right , as a reminder , the advisory fee rate includes advisory fees charged on AOA as well as interest earned on client cash on deposit .
Speaker #5: During the quarter, our advisory fee rate dropped 1.4 basis points and was primarily driven by clients moving up wealth bands, with average AOA increasing 6.6% in the quarter.
Speaker #5: And secondly , by a decrease in client cash balances as advisor works with their clients to invest in long term solutions . As I mentioned , at the end of October , our AUM and A is up approximately 5% from the Q3 average , and assuming markets hold , we do expect to have an approximate one basis point impact on the advisory fee rate in the fourth quarter .
Speaker #5: As clients move up wealth bands and expect moderately lower cash balances . And for context , similar to last quarter , these types of returns and impact are more aligned with what you'd expect in one year versus one quarter .
Speaker #5: Finally , the asset base compensation rate was flat quarter over quarter . And as we look to the next quarter , we would remind that the rate is typically higher in Q4 due to year end seasonal programs .
Speaker #5: On slide 36 , Ihg's overall earnings of 155.3 million in Q3 are up 23.7% year over year on 0.2 , our financial planning revenue continues to be supported by strong mortgage and insurance performance and on 0.3 ECG operations and support and business development expenses were 164 million , in line with last quarter and up approximately 4.1% year over year .
Speaker #5: Moving to slide 37 , we have McKinsey's AUM by client and product type , as well as . Net revenue rates on the left , you can see average AUM is up almost 6% versus Q2 .
Speaker #5: And on the right , third party rate excluding Canada , life decreased primarily due to onboarding of 1.6 billion in institutional assets . As we guided during the Q2 call , as we look forward to Q4 with the full quarter of the additional institutional assets and additional institutional ETF flows of $950 million during October , we expect to see this rate come down approximately 1.5 basis points in Q4 .
Speaker #5: Turning to slide 38 , McKinsey's earnings were 68.2 million , up 14.8% year over year and 1.2 operations in support and business development expenses were 120 million , up 4.3% year over year and 1.6% sequentially .
Speaker #5: Slide 39 has received results . As I spoke to a few moments ago , the Chinese equity markets performed very well during the quarter with supported investment fund AUM growth .
Speaker #5: And on the right you can see China's strong earnings of 46.1 million . That benefited from seed capital gains , driven by strong equity returns .
Speaker #5: Adjusting for the fair value gains , Q3 results were relatively in line with the last few quarters . And as we look to the next quarter to remind that the fourth quarter is traditionally a seasonally elevated expenses , and we do expect to see earnings contribution from the company somewhere in the range of where we've seen over the past three quarters , excluding the impact of any significant market movements .
Speaker #5: Slide 40 has earnings contribution from companies in each segment . I'll make a couple of comments here . First , Rockefeller earnings turned positive during the quarter in line with our expectations .
Speaker #5: And as we look to the fourth quarter , we would expect continued progress toward improved profitability , excluding any transaction related expenses . With the recent announcement .
Speaker #5: And as I mentioned , we will provide more details on the transaction during our February call for Northleaf . During our Q2 call , we guided to earnings for the next few quarters of approximately $5 million .
Speaker #5: Q3 came in lower due to seasonality of some expenses accrual through UPS and a few one time items . I do expect quarterly earnings over the next few quarters of approximately $5 million .
Speaker #5: On average , but do remind there is some variation in earnings from quarter to quarter . A few points on slide 41 , we have updated the indicative values for Rockefeller and Wealthsimple .
Speaker #5: The total value of both investments represent approximately $16 per share . It's worth noting that neither contribute meaningfully to IBM earnings , but do contribute significant value on Northleaf .
Speaker #5: We increased the carrying value by $33 million , net of NCI for the Earnout , which reflects continued strong fundraisings . Also worth highlighting .
Speaker #5: We did receive a $7 million dividend from Northleaf this quarter . And finally , at the bottom right of the slide , you can see that strategic investments and allocated capital have an indicative value of $8.3 billion in aggregate , which represents $35 per share value .
Speaker #5: Slide 42 demonstrates continued execution against our capital allocation priorities . We continue to return capital to shareholders and strengthen our financial flexibility . In addition to paying the quarterly dividend and repurchase , repurchasing shares , we continue to have a reduced gross leverage .
Speaker #5: Now , just over 1.4 times . We've also included debt , net of unallocated capital , and you can see both measures present the same directional story .
Speaker #5: Our cash dividend payout ratio is now at 59% and is down from 62% last quarter . And finally , at the end of the quarter , our unallocated capital grew to approximately $700 million .
Speaker #5: That concludes my remarks , and I'll turn it over for questions .
Speaker #4: We will now begin the question and answer session to join the question queue . You may press star , then one on your telephone keypad .
Speaker #4: If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two.
Speaker #4: We will pause for a moment as callers join the queue . Thank you for your patience . The first question today comes from Jamie Gloyn with NBC .
Speaker #4: Please go ahead .
Speaker #8: Yeah , thanks . Good morning . You know , congrats . The the business seems to really be humming on on on all facets .
Speaker #8: And so with that and , you know , obviously some strategic investments doing well core business doing well . We have unallocated capital continuing to rise James .
Speaker #8: Is it is it something you're discussing with the board now where maybe a shift in in mindset around M&A . You know , over the last couple of years , focus has been on organic growth .
Speaker #8: But is is that something that's entering discussions now and then ? If not , should we maybe expect to see maybe a more accelerated buyback than than just sort of like the 2% of shares we've seen over the last little bit here ?
Speaker #6: Sure . Well good morning and thanks for the thanks for the question . I don't expect any meaningful change in our posture towards M&A .
Speaker #6: We have the businesses that we want . We're proud of the construction of this of this business . Now two divisions , you know , six businesses , three in each .
Speaker #6: We believe , James , that we're built for growth , built for diversification . And I and I think we're starting to show that .
Speaker #6: So as I look forward to 2026 , I think thematically 2026 is going to be about returning capital to shareholders . If there was a single theme to to kind of think about as we head into the year , that's what I'm thinking about .
Speaker #6: How do we return capital to shareholders ? And of course , we've got , as you point out , high levels of unallocated capital .
Speaker #6: We've got , you know , we've had strong growth in client assets , strong growth in earnings . So I think we're in a position to , you know , to to look very fully at that question .
Speaker #6: Both kind of buyback . Do you know how big a buyback do we do . What do we do with the dividend . Everything's on the table and we will be taking a capital plan to our board in February .
Speaker #8: Okay . Great . And then , you know , as I think about , you know , the strategic investments and and what you could do there , you know , a little bit more of an investment in , in Wealthsimple , but is there what's the discussion with the parent around .
Speaker #8: Maybe where . Well , simple fits best . Is there anything you can share from your discussions on that ?
Speaker #5: Yeah .
Speaker #6: You know , it's a question that's out there and it is something that Jeff and I discussed from time to time . But you know , I , I would not be anticipating any change , certainly in the foreseeable future as to where kind of wealthsimple resides .
Speaker #6: It resides that power . It resides within IBM . I think each of us are proud of our position and very happy with our position .
Speaker #6: And so I'm not contemplating any any change in the locale , if you will , of of Wealthsimple . It's a great business and collectively we control it and are very proud of their progress .
Speaker #8: Okay , great . And then last one , maybe for Damon , you know , nice , nice tick up in the Net promoter score .
Speaker #8: It's always good to see that . Can you maybe sort of detail or describe what's what's driving that . What what have you seen in shifts in and you know , what do you what do you expect to to see flow through from that nice jump ?
Speaker #7: Yeah . Thanks , James . I think that's that's an indication of , you know , how we are planning for our clients and the areas that we are really focusing on with , with , with , with them .
Speaker #7: And it goes back to the wealth drivers that we've talked about . You know , we obviously do a great job investing their money .
Speaker #7: And we make the money build their wealth . But it's about retirement planning . It's about estate planning . Intergenerational wealth transfer . It's about those that have small businesses , whether they need financing or they're ready for a succession plan .
Speaker #7: We help them . There . We connect families together so that high net worth families can talk about their wealth openly and honestly .
Speaker #7: And we call that high net worth financial literacy . And then we we're helping our clients create that . Want to give back and leave the world a better place .
Speaker #7: We help them create legacy plans while they're living . So all of that , combined with our ability to to manage money and make the money , it leads to higher net promoter scores and it leads to obviously getting greater share of wallet .
Speaker #7: And it leads to new client acquisition .
Speaker #8: Very good . Thank you .
Speaker #4: As a reminder , if you would like to ask a question , please press star then one to join the question queue the next question comes from Graham riding with TD securities .
Speaker #4: Please go ahead .
Speaker #9: Hi . Good morning . Maybe I could just start with Luke starting to see some pretty solid institutional flows at Mackenzie . An improvement in your retail flows .
Speaker #9: But still lagging . What we're seeing at IG wealth in terms of , you know , flow rates and momentum . What are the sort of the products or maybe the the strategic pieces needed to to get Mackenzie flows sort of up to the next level on the retail side ?
Speaker #5: Yeah . Thanks . Graham . Good question . Going back to page 24 , we're feeling we got all the ingredients and heading into 2026 we've got this momentum .
Speaker #5: You can see the trend if you extrapolate it . We're we're pleased with the success we're bringing on . And when you look at the suite we've got in retail to promote right now , we're kind of just getting started just with quant and active ETFs as a theme .
Speaker #5: We we're pleased with what we've brought in 2025 , but it's the tip of the iceberg . When you look at the broad categories that these products play in .
Speaker #5: And just how compelling not only the investment process is , but the demonstrated track record . So , so as we're sitting here looking at our retail suite and and the outlook for 2026 , we're feeling very , very good .
Speaker #9: And then if I could just jump to while I think you said there , you know , there's now $100 billion of assets at Wealthsimple , can you give us a feel for how that mix looks across the different categories ?
Speaker #9: And distribution channels ?
Speaker #6: Yeah . You know , look , it's a fair question as the company goes from strength to strength and gets larger and larger .
Speaker #6: You know , it remains a private company . And so at least at this point , we're not going to be adding to current disclosures .
Speaker #6: What I've said in the past , I'll say again , and it continues to be true . If you had a look at the composition of their assets or the composition of their flows , I think you'd be deeply impressed with the diversification across all of their businesses , including trading , invest , save , work , crypto .
Speaker #6: It remains it remains a very well diversified platform overall .
Speaker #9: And the the the large ETF institutional flow that we saw in October is that Wealthsimple related . Can you speak to that at all ?
Speaker #9: And then just broadly , how much AUM is Mackenzie managing on behalf of Wealthsimple currently ?
Speaker #5: Yeah . Good question James . So we generally don't disclose that clients when it comes to institutional inflows . We do manage about $7 billion for Wealthsimple in our in our passive ETFs .
Speaker #5: So we are part of the the fueling of their product offering . And we do have a private label suite that we we manage for them .
Speaker #5: They are labeled Wealthsimple TFS . And Mackenzie has them under management . And we are we are very very pleased obviously for the partnership we have with them .
Speaker #9: And any private assets with North Leith in that , in that channel .
Speaker #5: We don't currently , but I know there's good discussions going on between northleaf and wealthsimple and Northleaf would love to be on that platform .
Speaker #9: Okay , that's it for me . Thank you .
Speaker #4: This concludes our question and answer session . I would like to turn the conference back over to Kyle Martens for any closing remarks .
Speaker #5: Okay . Thank you . Betsy . We'd once again like to thank everyone for joining us on the call this morning . And thank .
Speaker #10: You with that , today's conference call .