Q1 2026 IGM Financial Inc Earnings Call

May 8, 2026

Operator 4: Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Q1 2026 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. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then 0. I would now like to turn the conference over to Kyle Martins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Operator: Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Q1 2026 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 one on your telephone keypad. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I would now like to turn the conference over to Kyle Martins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Speaker #3: After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad.

Speaker #3: You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero.

Speaker #3: I would now like to turn the conference over to Kyle Martens, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Speaker #2: Betsy, good morning, everyone, and thank you for joining us. The call on the call today, we have James OSullivan, President Financial; Damon Murchison, President and CEO of IG Wealth Management; Luke Gould, President and CEO of McKinsey Investments; and Keith Potter, Executive Vice President and CFO of IGM Financial.

Kyle Martins: Betsey. Good morning, everyone, and thank you for joining us. On the call today, we have James O'Sullivan, President and CEO of IGM Financial, Damon Murchison, President and CEO of IG Wealth Management, Luke Gould, President and CEO of Mackenzie 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. Slides 4 and 5 summarize non-IFRS financial measures and other financial measures used in this presentation. On slide 6, we provide a list of documents available on our website related to IGM Financial's 2026 Q1 results. That will take us to slide 9, where I'll turn it over to James.

Kyle Martins: Betsey. Good morning, everyone, and thank you for joining us. On the call today, we have James O'Sullivan, President and CEO of IGM Financial, Damon Murchison, President and CEO of IG Wealth Management, Luke Gould, President and CEO of Mackenzie 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 three of the presentation. Slides four and 5 summarize non-IFRS financial measures and other financial measures used in this presentation. On slide six, we provide a list of documents available on our website related to IGM Financial's 2026 Q1 results. That will take us to slide nine, where I'll turn it over to James.

Speaker #2: Before we get started, I would like to draw your attention to our cautions concerning forward-looking statements on slide three of the presentation. Slides four and five summarize non-IFRS financial measures and other financial measures used in this presentation, and on slide six, we provide a list of documents available on our website, related to IGM Financial's 2026 First Quarter results.

Speaker #2: And that will take us to slide nine, where I'll turn it over to James.

Speaker #3: All right. Good morning, everyone, and thank you for joining us today. The first quarter has set 2026 up to be another strong year for IGM Financial, with well-positioned wealth and asset management businesses, record-high client assets, and an operating environment that, despite periodic market volatility, has continued to be resilient.

James O'Sullivan: All right. Good morning, everyone, and thank you for joining us today. The Q1 has set 2026 up to be another strong year for IGM Financial, with well-positioned Wealth Management and Asset Management businesses, record high client assets, and an operating environment that, despite periodic market volatility, has continued to be resilient. Adjusted EPS of CAD 1.21 is a Q1 record, with strong earnings growth in both our Wealth Management and Asset Management segments, demonstrating IGM's diversified growth. During the quarter, we also returned a record amount of capital to shareholders through our quarterly dividend and a meaningful share buyback program. We also announced in February a well-planned leadership succession with Damon Murchison taking the role of President, CEO of IGM on 1 July.

Speaker #3: Adjusted EPS of $1.21 is a first-quarter record, with strong earnings growth in both our wealth management and asset management segments, demonstrating IGM's diversified growth.

Speaker #3: During the quarter, we also returned a record amount of capital to shareholders through our quarterly dividend and a meaningful share buyback program. We also announced in February a well-planned leadership succession, with Damon Murchison taking the role of President and CEO of IGM on July 1st.

Speaker #3: Most of you already know Damon from his significant contributions as the head of retail sales at McKinsey during the 2010s, and as IG Wealth's CEO since 2020.

James O'Sullivan: Most of you already know Damon from his significant contributions as the head of retail sales at Mackenzie during the 2010s and as IG Wealth's CEO since 2020. He has the confidence of the board, our employees, and our advisors, and is uniquely positioned to build on IGM Financial's strength and momentum. Turning to Slide 10, the operating environment for our wealth and asset management businesses continues to be solid and resilient, despite periodic market volatility tied to geopolitical tensions. IGM's momentum and diversity within our core businesses and our strategic investments positions us very well for continued growth. On Slide 11, IGM's year-over-year earnings growth was 20% in aggregate, with contributions, as you can see, from all segments, and combined with client assets presented on Slide 12, demonstrates the diversified growth across our wealth and asset management businesses.

Speaker #3: He has the confidence of the board, our employees, and our advisors, and is uniquely positioned to build on IGM Financial's strengths and momentum. Turning to slide 10, the operating environment for our wealth and asset management businesses continues to be solid and resilient.

Speaker #3: Despite periodic market volatility tied to geopolitical tensions, IGM's momentum and diversity within our core businesses, along with our strategic investments, position us very well for continued growth.

Speaker #3: On slide 11, IGM's year-over-year earnings growth was 20% in aggregate, with contributions as you can see from all segments. And combined with client assets presented on slide 12, demonstrates the diversified growth across our wealth and asset management businesses.

Speaker #3: Turning to slide 13, I want to help paint a picture of how we're thinking about and approaching artificial intelligence at IGM. First, our core businesses at IG Wealth and McKinsey have advantages that we are leveraging and extending to drive advisor productivity, investment outcomes, and client experiences.

James O'Sullivan: Turning to slide 13, I'm going to help paint a picture of how we're thinking about and approaching artificial intelligence at IGM. First, our core businesses at IG Wealth and Mackenzie have advantages that we are leveraging and extending to drive advisor productivity, investment outcomes, and client experiences. At IG, for instance, one key advantage is our starting point with industry-leading advisor technology with a strong foundation of system integration and proprietary data ownership. At Mackenzie, our investment management teams have been using AI technologies for many years, perhaps most notably in our global quantitative equity boutique. Capabilities have been increasingly attracting the attention of the world's largest and most sophisticated investors. Across IGM, AI will also further elevate our operational effectiveness and efficiency.

Speaker #3: At IG, for instance, one key advantage is our starting point, with industry-leading advisor technology with a strong foundation of system integration and proprietary data ownership.

Speaker #3: At McKinsey, our investment management teams have been using AI technologies for many years. Perhaps most notably, in our global quantitative equity boutique, whose capabilities have been increasingly attracting the attention of the world's largest and most sophisticated investors.

Speaker #3: Across IGM, AI will also further elevate our operational effectiveness and efficiency. Looking forward, responsible AI use and oversight, fintech and global technology partners, horizontal connectivity across IGM's core businesses and strategic investments, combined with the power group ecosystem will all serve as key enablers for IGM Financial in this rapidly evolving age of intelligence.

James O'Sullivan: Looking forward, responsible AI use and oversight, FinTech and global technology partners, horizontal connectivity across IGM's core businesses and strategic investments, combined with the PowerGroup ecosystem, will all serve as key enablers for IGM Financial in this rapidly evolving age of intelligence. With that, I'll turn it over to Damon to discuss IG's Q1 results.

Speaker #3: With that, I'll turn it over to Damon to discuss IG's first-quarter results.

Speaker #4: Good morning, everyone, and thank you, James. We look forward to working with you in your new role. I'm confident, as ever, in the position to strength that you're leaving IGM in.

Damon Murchison: Morning, everyone, thank you, James O'Sullivan. We look forward to working with you in your new role. I'm confident as ever in the position and the strength that you're leaving IGM in. Turn to slide 15. We can demonstrate this strength and continued momentum through Q1 at IG Wealth, Rockefeller, and Wealthsimple. IG Wealth delivered another strong quarter with record quarter ending AUM&A, record Q1 gross inflows and sales, as well as record Q1 net sales into IG product. This solid performance contributed to one of IG Wealth's best Q1 earnings on record, which Keith Potter will speak to a little later. The quarter ended with AUM&A of just shy of CAD 163 billion, up almost 15% versus Q1 of last year, and up 2% quarter over quarter, driven by strong net flows.

Speaker #4: Turning to slide 15, we can demonstrate this strength and continue momentum through the first quarter at IG Wealth, Rockefeller, and Wealthsimple. IG Wealth delivered another strong quarter with record-quarter-ending AM&A record Q1 gross inflows and sales as well as record Q1 net sales into IGM product.

Speaker #4: This solid best first-quarter earnings on record, which Keith will speak to a little later. The quarter ended with AM&A of just shy of $163 billion up almost 15% versus Q1 of last year, and up 2% quarter-over-quarter driven by strong net flows.

Speaker #4: Gross inflows were $8.2 billion and gross sales were $6.2 billion, both first-quarter records. As we spoke to on our Q4 call, I'll remind everyone that these flows included non-fee-bearing assets related to our relationship with Rockefeller, and excluding those flows, gross inflows were $5.2 billion.

Damon Murchison: Gross inflows were CAD 8.2 billion, gross sales were CAD 6.2 billion, both Q1 records. As we spoke to on our Q4 call, I'll remind everyone that these flows included non-fee-bearing assets related to our relationship with Rockefeller. Excluding those flows, gross inflows were CAD 5.2 billion. We also continue to demonstrate that we are a new client acquisition machine. New client growth inflows of CAD 1.4 billion, a Q1 record, with 77% of those flows coming from mass affluent and high net worth clients, exactly the segments that we've been building this business around. The Q1 was our seventh consecutive quarter of positive net flows, we once again ranked number one in earned media share of voice amongst Canadian banks and wealth managers.

Speaker #4: We also continue to demonstrate that we are a new client acquisition machine, with new client gross inflows of $1.4 billion—a first-quarter record—with 77% of those flows coming from mass affluent and high-net-worth clients, exactly the segments that we've been building this business around.

Speaker #4: The first quarter was our seventh consecutive quarter of positive net flows, and we're once again ranked number one in earned media share of voice amongst Canadian banks and wealth managers.

Speaker #4: It's our fifth quarter in a row in the top position. 2026 is a special year for IG. It's our 100th year anniversary, which we officially celebrated last week.

Damon Murchison: It's our 5th quarter in a row in the top position. 2026 is a special year for IG. It's our 100th year anniversary, which we officially celebrated last week. Our business has evolved over the years. We're very proud of our past, and we're confident about our future and our ability to continue to gain market share while helping Canadians achieve their financial well-being. Later in my section, I also review the successful quarters for both Rockefeller and Wealthsimple and how they continue their strong execution of their respective growth strategies. As we move to slide 16 and beyond, my comments will focus on flows excluding non-fee-bearing assets.

Damon Murchison: It's our fifth quarter in a row in the top position. 2026 is a special year for IG. It's our 100th year anniversary, which we officially celebrated last week. Our business has evolved over the years. We're very proud of our past, and we're confident about our future and our ability to continue to gain market share while helping Canadians achieve their financial well-being. Later in my section, I also review the successful quarters for both Rockefeller and Wealthsimple and how they continue their strong execution of their respective growth strategies. As we move to slide 16 and beyond, my comments will focus on flows excluding non-fee-bearing assets.

Speaker #4: Our business has evolved over the years. We're very, very proud of our past, and we're confident about our future and our ability to continue to gain market share while helping Canadians achieve their financial well-being.

Speaker #4: Later in my section, I'll also review the successful quarters for both Rockefeller and Wealthsimple, and how they continue their strong execution of their respective growth strategies.

Speaker #4: As we move to slide 16 and beyond, my comments will focus on flows, excluding non-fee-bearing assets. Slide 16 offers a good snapshot of our momentum, momentum that we see continuing, as the business and our advisors continue to execute with focusing solidly on anchored on financial planning and relationships that often span generations.

Damon Murchison: Slide 16 offers a good snapshot of our momentum that we see continuing as this business and our advisors continue to execute with focusing solely on, anchored on financial planning and relationships that often span generations. Q1 delivered our strongest Q1 growth inflows on record, and our clients continue to dollar-cost average into the market through IG product at a record pace. During the month of April, our results were also in line with seasonal trends as our advisors turned their focus to long-term tax planning and our clients paid their annual personal taxes. Turn to slide 17. This gives an overview of our operating results, providing a window into the strength of this business. The top left, you can see strong growth in our gross inflows, which were up over 24% versus last year.

Speaker #4: The first quarter delivered our strongest first-quarter gross inflows on record, and our clients continue to dollar-average costs into the market through IGM product at a record place.

Speaker #4: During the month of April, our results were also in line with seasonal trends, as our advisors turned their focus to long-term tax planning, and our clients paid their annual personal taxes.

Speaker #4: Turning to slide 17, this gives an overview of our operating results, providing a window into the strength of this business. In the top left, you can see strong growth in our gross inflows, which were up over 24% versus last year, while in the top middle, you can see IGM products continue to represent a very strong share, approximately 88% of our total AM&A, supported by strong four- and five-star Morningstar ratings.

Damon Murchison: While in the top middle, you can see IG products continue to represent a very strong share, approximately 88% of our total AUM&A, supported by strong four and five-star Morningstar ratings. On slide 18, you can see our advisors' strong ability to attract new clients to IG Wealth, particularly mass affluent and high net worth, with a record CAD 1.4 billion in gross flows from new acquired clients, 77% of which were mass affluent and high net worth. We'll remind you that during Q1 of last year, we saw a few ultra-high net worth clients representing approximately CAD 160 million onboarded. Q1 of last year was truly an exceptional quarter for us in high net worth, despite this tough comp, our Q1 this year was also very strong.

Speaker #4: On slide 18, you can see our advisors' strong ability to attract new clients to IG Wealth, particularly mass affluent and high net worth, with a record $1.4 billion in gross flows from new acquired clients, 77% of which were mass affluent and high net worth.

Speaker #4: I'll also remind you that during Q1 of last year, we saw a few ultra-high-net-worth clients representing approximately $160 million onboarded. Q1 of last year was truly an exceptional quarter for us in high net worth, and despite this tough comp, our Q1 this year was also very strong.

Speaker #4: In fact, our best Q1 on record via total new client gross inflows. Turning to slide 19, the first quarter also demonstrated the continued strength in our non-AM&A-driven businesses, mortgage banking, and insurance.

Damon Murchison: In fact, our best Q1 on record via total new client gross inflows. Turn to slide 19. The Q1 also demonstrated the continued strength in our non-AUM&A-driven businesses, mortgage banking and insurance. While the mortgage business has operated at a challenging industry backdrop this quarter as compared to the very different environment a year ago, it continued to deliver strong performance with a 2-year cumulative growth of almost 20%. Our insurance business was firing on all cylinders, setting a record Q1 of first year commissions. All told, our new annualized insurance premiums grew by over 41% versus Q1 of last year. On slide 20, you can see the continued strength of Rockefeller, with asset growth over 30% over the past year.

Damon Murchison: In fact, our best Q1 on record via total new client gross inflows. Turn to slide 19. The Q1 also demonstrated the continued strength in our non-AUM&A-driven businesses, mortgage banking and insurance. While the mortgage business has operated at a challenging industry backdrop this quarter as compared to the very different environment a year ago, it continued to deliver strong performance with a two-year cumulative growth of almost 20%. Our insurance business was firing on all cylinders, setting a record Q1 of first year commissions. All told, our new annualized insurance premiums grew by over 41% versus Q1 of last year. On slide 20, you can see the continued strength of Rockefeller, with asset growth over 30% over the past year.

Speaker #4: While the mortgage business was operated in a challenging industry backdrop this quarter, as compared to the very different environment a year ago, it continued to deliver strong performance with a two-year cumulative growth of almost 20%.

Speaker #4: Our insurance business was firing on all cylinders, setting a record first quarter for first-year commissions. All told, our new annualized insurance premiums grew by over 41% versus Q1 of last year.

Speaker #4: On slide 20, you can see the continued strength of Rockefeller, with asset growth over 30% over the past year. Over the last 12 months, Rockefeller has delivered an organic growth rate of over 7%, solidly within their targeted range that we provided in our last year Investor Day.

Damon Murchison: For the last 12 months, Rockefeller has delivered an organic growth rate of over 7%, solidly within the targeted range that we provided on our last Investor Day. On advisor count, during the quarter, Rockefeller also refocused some components of their legacy business to better support their global family office business, driving a slight reduction in their private advisor count. Most importantly, there was no advisors left the firm, and over the last 12 months basis, Rockefeller has added 45 new advisors, representing growth of over 10%. Turn to slide 21, you can see another exceptional strong record quarter for Wealthsimple. Client assets were up 71% versus a year ago, driven by their highest quarterly net flows on record, and client count was up 24% versus Q1 of last year.

Speaker #4: When advisor count during the quarter, Rockefeller also refocused some components of their legacy business to better support their global family office business, driving a slight reduction in their private advisor count.

Speaker #4: Most importantly, there was no advisors left the firm, and over the last 12 months, basis, Rockefeller has added 45 new advisors, representing growth of over 10%.

Speaker #4: Turning to slide 21, you can see another exceptional strong record quarter for Wealthsimple. Client assets were up 71% versus a year ago, driven by their highest quarterly net flows on record, and client count was up 24% versus Q1 of last year.

Speaker #4: Wealthsimple continues to deliver on its growth-oriented strategy, attracting new clients, and gaining higher share of wallet from existing clients, supporting its position as one of Canada's fastest-growing financial services companies.

Damon Murchison: Wealthsimple continued to deliver on its growth-oriented strategy, attracting new clients and gaining higher share of wallet from existing clients, supporting its position as one of Canada's fastest-growing financial services companies. With that, I'll turn it over to Luke.

Speaker #4: With that, I'll turn it over to Luke.

Speaker #3: Great. Thanks, Damon. Good morning, everyone. Turning to page 23, you'll see highlights from McKinsey and the Asset Management segment for the quarter. We are pleased with the continued momentum in the business during the first quarter across a number of dimensions, and this momentum has continued into our second quarter.

Luke Gould: Great. Thanks, Damon. Good morning, everyone. Turning to page 23, you'll see highlights for Mackenzie and the asset management segment for Q1. We are pleased with the continued momentum in the business during Q1 across a number of dimensions. This momentum has continued into our Q2. Our AUM, which you can see at the top left, increased during Q1, driven by strong net sales. By the end of April, our AUM had increased to a record high level of CAD 256 billion. We had net sales of CAD 1.7 billion in Q1, which included CAD 1.2 billion in institutional awards. Also, CAD 729 million in investment fund net sales.

Speaker #3: Our AUM, which you can see at the top left, increased during the quarter, driven by strong net sales, and by the end of April, our AUM had increased to a record high level of $256 billion.

Speaker #3: We had net sales of $1.7 billion in the quarter, which included $1.2 billion in institutional awards and also $729 million in investment fund net sales.

Speaker #3: This was the best first quarter investment fund net sales in four years for us, and up meaningfully from last year, driven by strong momentum in retail.

Operator 3: This was the best Q1 investment fund net sales in 4 years for us and up meaningfully from last year, driven by strong momentum in retail. This retail momentum is continuing to Q2 and as published earlier in the week, we are second-best April investment fund net sales result ever. Actually, I'd also highlight that we had around CAD 2 billion of institutional awards that were awarded to us during Q1 that are gonna fund in Q2. For this CAD 2 billion, the wins were across both Canadian and foreign clients and reflected our global quant equity capabilities as well as Canadian equity mandates managed by our North American equity team. Under other developments, we've highlighted 4 new active ETF launches during the quarter, expanding our value in quant offerings within this delivery vehicle.

Luke Gould: This was the best Q1 investment fund net sales in four years for us and up meaningfully from last year, driven by strong momentum in retail. This retail momentum is continuing to Q2 and as published earlier in the week, we are second-best April investment fund net sales result ever. Actually, I'd also highlight that we had around CAD 2 billion of institutional awards that were awarded to us during Q1 that are gonna fund in Q2. For this CAD 2 billion, the wins were across both Canadian and foreign clients and reflected our global quant equity capabilities as well as Canadian equity mandates managed by our North American equity team. Under other developments, we've highlighted four new active ETF launches during the quarter, expanding our value in quant offerings within this delivery vehicle.

Speaker #3: This retail momentum is continuing into the second quarter, and as published earlier in the week, we have our second-best April investment fund net sales result ever.

Speaker #3: Actually, I'd also highlight that we had around $2 billion of institutional awards that were awarded to us during the first quarter, which are going to fund in the second quarter.

Speaker #3: For this $2 billion, the wins were across both Canadian and foreign clients, and reflected our global quant equity capabilities, as well as Canadian equity mandates managed by our North American equity team.

Speaker #3: Under other developments, we've highlighted four new active ETF launches during the quarter, expanding our value and quant offerings within this delivery vehicle. We've also highlighted that we closed the market on the TSX a few weeks ago to celebrate the 10-year anniversary of our ETF business.

Operator 3: We've also highlighted that we closed the market at the TSX a few weeks ago to celebrate the 10-year anniversary of our ETF business. We're very proud of this capability that we built in-house and which has become a core delivery vehicle for us. We're now approaching CAD 30 billion in ETF AUM with over 60 ETFs covering a range of active, systematic, smart beta, and traditional beta mandates. I'd also remind that with the launch of a number of successful active equity ETFs over the last 2 years, a large part of our retail net sales have been occurring within this vehicle type, and I'd remind that the pricing of these ETFs is full retail margins and aligned with their mutual fund counterparts. At the bottom of the slide, you can also see ChinaAMC and Northleaf continued growth. I'm going to speak to these on the coming slides.

Luke Gould: We've also highlighted that we closed the market at the TSX a few weeks ago to celebrate the 10-year anniversary of our ETF business. We're very proud of this capability that we built in-house and which has become a core delivery vehicle for us. We're now approaching CAD 30 billion in ETF AUM with over 60 ETFs covering a range of active, systematic, smart beta, and traditional beta mandates. I'd also remind that with the launch of a number of successful active equity ETFs over the last two years, a large part of our retail net sales have been occurring within this vehicle type, and I'd remind that the pricing of these ETFs is full retail margins and aligned with their mutual fund counterparts. At the bottom of the slide, you can also see ChinaAMC and Northleaf continued growth. I'm going to speak to these on the coming slides.

Speaker #3: We're very proud of this capability that we built in-house, and which has become a core delivery vehicle for us. We're now approaching $30 billion in ETF AUM with over 60 ETFs covering a range of active systematic smart beta and traditional beta mandates.

Speaker #3: I'd also remind that with the launch of a number of successful active equity ETFs over the last two years, a large part of our retail net sales have been occurring within this vehicle type, and I'd remind that the pricing of these ETFs is full retail margins and aligned with their mutual fund counterparts.

Speaker #3: At the bottom of the slide, you can also see Chinese MC and Northeast continued growth, and I'm going to speak to these on the coming slides.

Speaker #3: Turning to page 24, you can see the trend and history of McKinsey's net sales. On the left, you can see in the top chart that we had a solid investment fund net sales result for the first quarter, with meaningful growth over 2025 and our third-best Q1 ever.

Operator 3: Turning to page 24, you can see the trend in history of Mackenzie's net sales. On the left, you can see in the top chart that we had a solid investment fund net sales result for Q1 with meaningful growth over 2025 and our 3rd-best Q1 ever. In the middle, you can see momentum continued in April with our 2nd-best April ever, and at the bottom is our overall net sales result of CAD 1.7 billion, which as mentioned, included CAD 900 million in institutional SMA net sales. On the right side, with the last 12-month trailing trend, you can see continuing momentum in retail and overall. We're expecting this momentum to continue in the coming quarters, as we believe we have winning conditions in a number of places within our product offerings.

Luke Gould: Turning to page 24, you can see the trend in history of Mackenzie's net sales. On the left, you can see in the top chart that we had a solid investment fund net sales result for Q1 with meaningful growth over 2025 and our 3rd-best Q1 ever. In the middle, you can see momentum continued in April with our 2nd-best April ever, and at the bottom is our overall net sales result of CAD 1.7 billion, which as mentioned, included CAD 900 million in institutional SMA net sales. On the right side, with the last 12-month trailing trend, you can see continuing momentum in retail and overall. We're expecting this momentum to continue in the coming quarters, as we believe we have winning conditions in a number of places within our product offerings.

Speaker #3: In the middle, you can see momentum continued in April with our second-best April ever, and at the bottom, is our overall net sales result of $1.7 billion, which, as mentioned, included $900 million in institutional SMA net sales.

Speaker #3: On the right side, with the last 12 months trailing trend, you can see continuing momentum in retail and overall, and we're expecting this momentum to continue in the coming quarters as we believe we have winning conditions in a number of places within our product offerings.

Speaker #3: On slide 25, I'd highlight first in the bottom left that the industry environment is healthy, and the current mutual fund net sales rate for industry peers is around 2% of assets, which you can see here in the chart.

Operator 3: On slide 25, I'd highlight first in the bottom left that the industry environment is healthy and the current mutual fund net sales rate for industry peers is around 2% of assets, which you can see are in the chart. You can also see that Mackenzie's overall invested fund net sales rate has moved above the industry rate, and we're gaining market share driven by momentum in retail. In the top right, we've highlighted the year-over-year growth in retail, with CAD 700 million in retail improvement contributing to a CAD 814 million overall improvement in net investment fund net sales. Also in the top right, we did have CAD 934 million in institutional SMA net sales in the quarter and as mentioned, CAD 2 billion in additional awards in the quarter funding in Q2.

Luke Gould: On slide 25, I'd highlight first in the bottom left that the industry environment is healthy and the current mutual fund net sales rate for industry peers is around 2% of assets, which you can see are in the chart. You can also see that Mackenzie's overall invested fund net sales rate has moved above the industry rate, and we're gaining market share driven by momentum in retail. In the top right, we've highlighted the year-over-year growth in retail, with CAD 700 million in retail improvement contributing to a CAD 814 million overall improvement in net investment fund net sales. Also in the top right, we did have CAD 934 million in institutional SMA net sales in the quarter and as mentioned, CAD 2 billion in additional awards in the quarter funding in Q2.

Speaker #3: You can also see that McKinsey's overall investment fund net sales rate has moved above the industry rate, and we're gaining market share driven by momentum in retail.

Speaker #3: In the top right, we've highlighted the year-over-year growth in retail, with $700 million in retail improvement contributing to an $814 million overall improvement in investment fund net sales.

Speaker #3: And also, in the top right, we did have $934 million in institutional SMA net sales in the quarter, and, as mentioned, $2 billion in additional awards in the quarter funding in Q2.

Speaker #3: At the bottom right, I'd highlight the improvement in overall Morningstar ratings in the quarter, with 51% of assets residing in four and five-star funds.

Operator 3: At the bottom right, I'd highlight the improvement in overall Morningstar ratings in the quarter, with 51% of assets residing in 4 and 5-star funds. Importantly, our share of assets in 5-star funds is at its highest level in the last 4 years, and we are among the highest in the industry on this measure. Turning to page 26, you can see the performance in net sales for our retail investment fund by boutique. This quarter, we've reoriented the slide to better orient our fundamental equity teams between core and different style and thematic offerings. Across the slide near the top, you can see compelling performance relative to peers across many of our capabilities.

Luke Gould: At the bottom right, I'd highlight the improvement in overall Morningstar ratings in the quarter, with 51% of assets residing in four and five-star funds. Importantly, our share of assets in 5-star funds is at its highest level in the last four years, and we are among the highest in the industry on this measure. Turning to page 26, you can see the performance in net sales for our retail investment fund by boutique. This quarter, we've reoriented the slide to better orient our fundamental equity teams between core and different style and thematic offerings. Across the slide near the top, you can see compelling performance relative to peers across many of our capabilities.

Speaker #3: Importantly, our share of assets in five-star funds is at its highest level in the last four years, and we're among the highest in the industry on this measure.

Speaker #3: Turning to page 26, you can see the performance and net sales for our retail investment funds by boutique. This quarter, we've reoriented the slide to better orient our fundamental equity teams between core and different style and thematic offerings.

Speaker #3: Across the slide near the top, you can see compelling performance relative to peers across many of our capabilities. I'm going to talk about quant, but beyond our global quant equity team, we've seen net sales start to improve in Q1 and into April for a number of our teams with compelling performance, like multi-asset, resources, and greenchip.

Operator 3: I'm gonna talk about quant, but beyond our global quant equity team, we've seen net sales start to improve in Q1 and into April for a number of our teams with compelling performance, like multi-asset, resources, and Greenchip. Towards the left, you can see the strong net sales into our global quant equity capability, where we have retail net sales of CAD 1.9 billion during the quarter. Importantly, as mentioned last quarter, we believe we're just getting started as we trailblaze with quant in retail. We've launched 13 quant mandates in retail across mutual fund and ETF delivery vehicles. These mandates have exceptional performance and cover some very large product categories like global equity and international equity, as well as some interesting liquid alt categories like our US alt extension strategy.

Luke Gould: I'm gonna talk about quant, but beyond our global quant equity team, we've seen net sales start to improve in Q1 and into April for a number of our teams with compelling performance, like multi-asset, resources, and Greenchip. Towards the left, you can see the strong net sales into our global quant equity capability, where we have retail net sales of CAD 1.9 billion during the quarter. Importantly, as mentioned last quarter, we believe we're just getting started as we trailblaze with quant in retail. We've launched 13 quant mandates in retail across mutual fund and ETF delivery vehicles. These mandates have exceptional performance and cover some very large product categories like global equity and international equity, as well as some interesting liquid alt categories like our US alt extension strategy.

Speaker #3: Towards the left, you can see the strong net sales into our global quant equity capability, where we have retail net sales of $1.9 billion during the quarter.

Speaker #3: And importantly, as mentioned last quarter, we believe we're just getting started as we trailblaze with quant in retail. We've launched 13 quant mandates in retail across mutual fund and ETF delivery vehicles.

Speaker #3: These mandates have exceptional performance and cover some very large product categories like global equity and international equity, as well as some interesting liquid alt categories like our U.S. alpha extension strategy.

Speaker #3: This holistic quant all-weather approach that marries AI and HI has delivered track records that are impressive in terms of both the level of alpha, but also the consistency of alpha across different market environments.

Operator 3: This holistic quant all-weather approach that marries AI and HI has delivered track records that are impressive in terms of both the level of alpha, but also the consistency of alpha across different market environments. Turning to page 27, a few comments on the Chinese investment fund industry. Industry assets of CNY 37 trillion are up 15% over the last year and declined very slightly in the quarter. You can see in the bottom left that there were net redemptions of around CNY 600 billion in long-term funds during Q1. This reflected institutional net redemptions of passive equity ETFs of around CNY 750 billion. This was offset somewhat by active equity fund sales of CNY 200 billion, which was the highest level of active equity net sales in the last four years following robust equity market improvements.

Luke Gould: This holistic quant all-weather approach that marries AI and HI has delivered track records that are impressive in terms of both the level of alpha, but also the consistency of alpha across different market environments. Turning to page 27, a few comments on the Chinese investment fund industry. Industry assets of CNY 37 trillion are up 15% over the last year and declined very slightly in the quarter. You can see in the bottom left that there were net redemptions of around CNY 600 billion in long-term funds during Q1. This reflected institutional net redemptions of passive equity ETFs of around CNY 750 billion. This was offset somewhat by active equity fund sales of CNY 200 billion, which was the highest level of active equity net sales in the last four years following robust equity market improvements.

Speaker #3: Turning to page 27, a few comments on the Chinese investment fund industry. Industry assets of $37 trillion won are up 15% over the last year, and declined very slightly in the quarter.

Speaker #3: You can see in the bottom left that there were net redemptions of around $600 billion won in long-term funds during the first quarter, this reflecting institutional net redemptions of passive equity ETFs of around $750 billion won.

Speaker #3: This was offset somewhat by active equity fund sales of ₩200 billion, which was the highest level of active equity net sales in the last four years, following robust equity market improvements.

Speaker #3: On the right, you'll see Chinese MC lost some market share in the period. Declining to 5.6% from 6.2% and maintaining its number two rank in the industry.

Operator 3: On the right, you'll see China AMC lost market share in the period, declining to 5.6% from 6.2% and maintaining its number 2 rank in the industry. The leading provider of ETFs in the Chinese industry, it experienced just over 200 billion in institutional passive ETF redemptions referenced earlier. Turning to page 28, you can see the growth in ChinaAMC's AUM over time. As indicated on last slide, you can see in the bottom right, net redemptions on passive ETFs of around 200 billion won referenced earlier. I would highlight long-term investment fund assets are up 10% over last year, and Keith will review the solid financial results and financial outlook for the company later on the call.

Luke Gould: On the right, you'll see China AMC lost market share in the period, declining to 5.6% from 6.2% and maintaining its number two rank in the industry. The leading provider of ETFs in the Chinese industry, it experienced just over 200 billion in institutional passive ETF redemptions referenced earlier. Turning to page 28, you can see the growth in ChinaAMC's AUM over time. As indicated on last slide, you can see in the bottom right, net redemptions on passive ETFs of around 200 billion won referenced earlier. I would highlight long-term investment fund assets are up 10% over last year, and Keith will review the solid financial results and financial outlook for the company later on the call.

Speaker #3: As the leading provider of ETFs in the Chinese industry, it experienced just over 200 redemptions referenced earlier. Turning to page 28, you can see the growth in Chinese MC's AUM over time.

Speaker #3: As indicated on the last last slide, you can see in the bottom right net redemptions on passive ETFs of around $200 billion won referenced earlier.

Speaker #3: And I would highlight long-term investment fund assets are up 10% over last year, and Keith will review the solid financial results and financial outlook for the company later on the call.

Speaker #3: Turning to page 29, you can see Northeast's continued growth with a 10% increase in AUM over the last year and almost 20% cumulative annual growth since we made our investment.

Operator 3: Turning to page 29, you can see Northleaf's continued growth with a 10% increase in AUM over last year and almost 20% cumulative annual growth since we made our investment. During the quarter, new commitments to the Northleaf Funds currently in market remained solid despite a challenging macro environment. I'd note that Northleaf's offering is performing very well, and it continues to generate positive net flows and new commitments across its programs. I'll now turn the call over to Keith Potter.

Luke Gould: Turning to page 29, you can see Northleaf's continued growth with a 10% increase in AUM over last year and almost 20% cumulative annual growth since we made our investment. During the quarter, new commitments to the Northleaf Funds currently in market remained solid despite a challenging macro environment. I'd note that Northleaf's offering is performing very well, and it continues to generate positive net flows and new commitments across its programs. I'll now turn the call over to Keith Potter.

Speaker #3: During the quarter, new commitments to the Northeast funds currently in market remain solid, despite a challenging macro environment. I'd note that Northeast's offering is performing very well, and it continues to generate positive net flows and new commitments across its programs.

Speaker #3: I'll now turn the call over to Keith Potter.

Speaker #4: Thank you, Luke, and good morning, everyone. On slide 31, you can see key highlights for Q1. Adjusted EPS is $1.21, up 21% year over year.

Keith Potter: Thank you, Luke, and good morning, everyone. On slide 31, you can see key highlights for Q1. Adjusted EPS is CAD 1.21, up 21% year over year. We returned CAD 330 million to shareholders in the quarter, including CAD 185 million in share repurchases. At the same time, we ended the quarter with unallocated capital of over CAD 1 billion and reduced our gross leverage ratio to 1.32 times. We are maintaining expense growth guidance of 4% for 2026. Finally, I would note that we enhanced our interim MD&A in the quarter to condense and focus on material changes from the annual MD&A. Our objective was to maintain the same level of transparency and move more in line with the industry. Turning to slide 32, you can see our AUM&A and flow trend.

Keith Potter: Thank you, Luke, and good morning, everyone. On slide 31, you can see key highlights for Q1. Adjusted EPS is CAD 1.21, up 21% year over year. We returned CAD 330 million to shareholders in the quarter, including CAD 185 million in share repurchases. At the same time, we ended the quarter with unallocated capital of over CAD 1 billion and reduced our gross leverage ratio to 1.32x. We are maintaining expense growth guidance of 4% for 2026. Finally, I would note that we enhanced our interim MD&A in the quarter to condense and focus on material changes from the annual MD&A. Our objective was to maintain the same level of transparency and move more in line with the industry. Turning to slide 32, you can see our AUM&A and flow trend.

Speaker #4: We returned $330 million to shareholders in the quarter, including $185 million in share repurchases. At the same time, we ended the quarter with unallocated capital of over $1 billion and reduced our gross leverage ratio to 1.32 times.

Speaker #4: We are maintaining expense growth guidance of 4% for 2026. And finally, I would note that we enhanced our interim MD&A in the quarter to condense and focus on material changes from the annual MD&A, and our objective was to maintain the same level of transparency and move more in line with the industry.

Speaker #4: Turning to slide 32, you can see our AUM in A and flow trend. First is Damon noted, we have introduced the concept of non-fee-bearing assets, and we are providing the total AUM for completeness and excluding non-fee-bearing assets to provide transparency and to drivers of revenue and expenses.

Keith Potter: First, as Damon noted, we have introduced the concept of non-fee-bearing assets. We are providing the total AUM for completeness and excluding non-fee-bearing assets to provide transparency into drivers of revenue and expenses. I will reference AUM&A excluding non-fee-bearing assets throughout my remarks. For the quarter, while ending AUM&A was relatively flat, average balances increased 2.4% relative to Q4 and 12.7% on a trailing 12-month basis. On slide 33, you can see how higher assets drove solid revenue growth and a 21% year-over-year increase in Adjusted EPS at the IG level, driven by our core businesses and strategic investments. As I mentioned, we are maintaining expense growth guidance of 4%. I'll speak more to expenses for Mackenzie and IG in a moment. Slide 34 presents key profitability drivers for IG Wealth Management.

Speaker #4: And I will reference AUM in A, excluding non-fee-bearing assets, throughout my remarks. For the quarter, while ending AUM in A was relatively flat, average balances increased 2.4% relative to Q4 and 12.7% on a trailing 12-month basis.

Speaker #4: On slide 33, you can see how higher assets drove solid revenue growth, and a 21% year-over-year increase in adjusted EPS at the IGM level driven by our core businesses and strategic investments.

Speaker #4: As I mentioned, we are maintaining expense growth guidance of 4%, and I'll speak more to expenses for McKinsey and IG in a moment. Slide 34 presents key profitability drivers for IG Wealth Management.

Speaker #4: On the left, you can see average AUM in A was up 2.5% from last quarter, and on the right are advisory fee rate increased 0.3 basis points during the quarter.

Keith Potter: On the left, you can see average AUM&A was up 2.5% from last quarter. On the right, our advisory fee rate increased 0.3 basis points during the quarter, primarily driven by year-end mutual fund distributions paid into client cash positions where spreads are higher than the standard advisory fee rate. As our advisors worked with clients during the quarter, some of this cash has been reinvested into long-term AUM, and we expect advisory fee rates to fall by just over 0.5 basis points in Q2 as cash balances decrease and as mix shifts toward high net worth. The asset-based compensation rate was up slightly in the quarter, and we expect a modest increase in Q2.

Speaker #4: Primarily driven by year-end mutual fund distributions paid and declined cash positions were spreads are higher than the standard advisory fee rate. As our advisors worked with clients during the quarter, some of this cash has been reinvested into long-term AUM, and we expect advisory fee rates to fall by just over 0.5 basis points in Q2.

Speaker #4: Cash balances decreased, and mix shifted toward high net worth. The asset-based compensation rate was up slightly in the quarter, and we expect a modest increase in Q2.

Speaker #4: On slide 35, IG's overall earnings of $158.9 million is a record first quarter and were up 23.8% year over year, on revenue growth of 14.4%, demonstrating strong growth and positive operating leverage in the business for consecutive quarters.

Keith Potter: On slide 35, IG's overall earnings of CAD 158.9 million is a record Q1, and we're up 23.8% year over year on revenue growth of 14.4%, demonstrating strong growth and positive operating leverage in the business for consecutive quarters. On point 2, other financial planning revenue continues to demonstrate growth year over year, supported by momentum in the mortgage and insurance businesses. On point 3, IG's operations and support and business development expenses were CAD 170.2 million in the quarter, up 5.9% year over year. Expenses would've been up just over 4%, excluding one-time seasonal expense true up for year-end incentive programs that were favorable in 2025 relative to 2026.

Speaker #4: On 0.2, other financial planning revenue continues to demonstrate growth year over year, supported by momentum in the mortgage and insurance businesses. And on 0.3, IG's operations and support business development expenses were $170.2 million in the quarter, up 5.9% year over year.

Speaker #4: Expenses would have been up just over 4%, excluding one-time seasonal expense true up for year-end incentive programs that were favorable in 2025 relative to 2026.

Speaker #4: I would remind that Q2 is a seasonally high expense quarter for IG, with advisor conferences and marketing spend and do expect expenses to be modestly higher in Q2 relative to Q1 2026 and then drop in the second half of the year.

Keith Potter: I would remind that Q2 is a seasonally high expense quarter for IG with advisor conferences and marketing spend and do expect expenses to be modestly higher in Q2 relative to Q1 2026 and then drop in the H2 of the year. Moving to slide 36, we have Mackenzie's AUM by client and product type as well as net revenue rates. On the left, average AUM was up 2.1% versus Q4. On the right, the third-party rate excluding Canada Life decreased 1.1 basis point. This was less than the 2 basis points we guided to last quarter. The reason for this is during Q1, we earned performance fees on institutional assets of CAD 2.8 million that increased the rate by approximately 1 basis point.

Speaker #4: Moving to slide 36, we have McKinsey's AUM by client and product type, as well as net revenue rates. On the left, average AUM was up 2.1% versus Q4, and on the right, the third-party rate excluding Canada Life decreased 1.1 basis points.

Speaker #4: This was less than the two basis points we got it to last quarter, and the reason for this is during Q1, we earned performance fees on institutional assets of $2.8 million that increased the rate by approximately one basis point, and that partially offset the full impact of institutional onboardings and having two less days in Q1.

Keith Potter: That partially offset the full impact of institutional onboarding and having 2 less days in Q1. As we look to the next quarter, we expect the third-party rate excluding Canada Life to decrease approximately 3.5 basis points for 3 main reasons. First, the success of our strategic partners and institutional onboarding in Q1 and expected onboardings in Q2, as Luke referenced. Second, the impact of previously announced fee changes that become effective April first. Third, the non-recurring performance fees earned in Q1 that will not be repeated in Q2. Turning to slide 37, Mackenzie's earnings of CAD 57.4 million are up 9.1% year over year. Operations and support and business development expense growth was up 8.2% relative to last year.

Keith Potter: That partially offset the full impact of institutional onboarding and having two less days in Q1. As we look to the next quarter, we expect the third-party rate excluding Canada Life to decrease approximately 3.5 basis points for three main reasons. First, the success of our strategic partners and institutional onboarding in Q1 and expected onboardings in Q2, as Luke referenced. Second, the impact of previously announced fee changes that become effective April first. Third, the non-recurring performance fees earned in Q1 that will not be repeated in Q2. Turning to slide 37, Mackenzie's earnings of CAD 57.4 million are up 9.1% year over year. Operations and support and business development expense growth was up 8.2% relative to last year.

Speaker #4: As we look to the next quarter, we expect the third-party rate excluding Canada Life to decrease approximately 3.5 basis points for three main reasons.

Speaker #4: First, the success of our strategic partners and institutional onboarding in Q1 and expected onboardings in Q2, as Luke referenced. Second, the impact of previously announced fee changes that become effective April 1st, and third, the non-recurring performance fees earned in Q1 that will not be repeated in Q2.

Speaker #4: Turning to slide 37, McKinsey's earnings of $57.4 million are up 9.1% year over year. Operations and support, and business development expense growth was up 8.2% relative to last year, and similar to IG, one-time seasonal expense true-ups for year-end incentive programs were favorable in 2025 versus 2026.

Keith Potter: Similar to IG, one-time seasonal expense true-ups for year-end incentive program were favorable in 2025 versus 2026. Our expenses are also driven by technology delivery and a couple of timing items. Looking forward, we do expect Mackenzie's expenses to drop in Q2 relative to Q1 2026. I would also remind that we have reclassified certain variable investment management advisory expenses from operations support to sub-advisory. These expenses are also retrospectively restated for 2025 throughout our disclosure documents. Slide 38 has ChinaAMC results. Luke's already commented on AUM. ChinaAMC did deliver strong Q1 earnings of CAD 34.6 million. For the full year 2026, we expect earnings growth in the mid-single-digit range relative to reported 2025 earnings. I would also highlight that we received an annual dividend of CAD 61.5 million in the quarter.

Speaker #4: Our expenses are also driven by technology delivery and a couple of timing items. Looking forward, we do expect McKinsey's expenses to drop in Q2 relative to Q1 2026.

Speaker #4: I would also remind you that we have reclassified certain variable investment management advisory expenses from operations and support to subadvisory. These expenses are also retrospectively restated for 2025 throughout our disclosure documents.

Speaker #4: Slide 38 has ChinMC results. Luke's already commented on AUM. ChinMC did deliver strong Q1 earnings of $34.6 million. For the full year 2026, we expect earnings growth in the mid-single-digit range relative to reported 2025 earnings.

Speaker #4: I would also highlight that we received an annual dividend of $61.5 million in the quarter. Slide 39 has earnings contribution from companies in each segment, and I'll make a couple of comments.

Keith Potter: Slide 39 has earnings contribution from companies in each segment. I'll make a couple of comments. First, Rockefeller earnings of -CAD 1.8 million is in line with guidance from last quarter. As a reminder, Q1 has seasonally higher expenses. As discussed on the last call, we would expect Rockefeller to move into positive earnings in H2 2026. For Northleaf, Q1 earnings of CAD 6 million net of non-controlling interest reflects the positive impact of annual incentive fees, but they were partially offset by negative foreign exchange relative to the US dollar. Looking forward, CAD 4.5 to 5 million net of NCI is a reasonable expectation for average quarterly earnings in 2026, with expected quarterly variability. On slide 40, we continue to make progress against our capital allocation priorities.

Speaker #4: First, Rockefeller earnings of -1.8 million is in line with guidance from last quarter. As a reminder, Q1 has seasonally higher expenses. And as discussed on the last call, we would expect Rockefeller to move into positive earnings in the second half of 2026.

Speaker #4: For Northleaf, Q1 earnings of $6 million in net of non-controlling interest reflect the positive impact of annual incentive fees that they were partially offset by negative foreign exchange relative to the US dollar.

Speaker #4: And looking forward, four and a half to five million net of NCI is a reasonable expectation for average quarterly earnings in 2026, with expected quarterly variability.

Speaker #4: On slide 40, we continue to make progress against our capital allocation priorities. We returned $330 million in capital to shareholders in Q1, which is an all-time high for any quarter.

Keith Potter: We returned CAD 330 million in capital to shareholders in Q1, which is an all-time high for any quarter. At the same time, we've maintained approximately CAD 1 billion in unallocated capital. Our gross leverage ratio also ended the quarter lower at 1.32x. On page 41, as we introduced last quarter, we presented a framework on how management views the buildup of IGM's indicative value now at approximately CAD 85 per share. As a reminder, we derive the indicative value of our core operating companies using average PE multiples from a diversified group of wealth managers for IG and asset managers for Mackenzie as of market close on 30 April. The indicative value of our strategic investments is based on our historical approach to disclosures as listed on the page.

Speaker #4: And at the same time, we've maintained approximately $1 billion in unallocated capital. Our gross leverage ratio also ended the quarter lower at 1.32 times.

Speaker #4: As we on page 41, as we introduce last quarter, we presented a framework on how management views the buildup of IGM's indicative value now at approximately $85 per share.

Speaker #4: As a reminder, we derived the indicative value of our core operating companies using average PE multiples from a diversified group of wealth managers for IG and asset managers for McKinsey as of market close in April 30th.

Speaker #4: The indicative value of our strategic investments is based on our historical approach to disclosures. As listed on the page, and while IGM's share price has strengthened in the quarter, this framework continues to demonstrate embedded value at IGM Financial.

Keith Potter: While IGM share price has strengthened in the quarter, this framework continues to demonstrate embedded value at IGM Financial. That will end our prepared remarks. We'll open up the call for questions.

Speaker #4: That will end our prepared remarks, and we'll open up the call for questions.

Speaker #1: We will now begin the question and answer session. To join the question queue, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request.

Operator 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. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star than Two. We will pause for a moment as callers join the queue. Thank you for your patience. The first question today comes from Scott Fletcher with CIBC. Please go ahead.

Operator: We will now begin the question-and-answer session. To join the question queue, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. Thank you for your patience. The first question today comes from Scott Fletcher with CIBC Capital Markets.. Please go ahead.

Speaker #1: If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. We will pause for a moment as callers join the queue.

Speaker #1: Thank you for your patience. The first question today comes from Scott Fletcher with CIBC. Please go ahead.

Speaker #5: Hi, good morning, everyone. I wanted to ask a question maybe both for both sides of the core business, just on investor behavior and what you're seeing.

Scott Fletcher: Hi. Good morning, everyone. I wanted to ask a question, maybe both for both sides of the core business. Just on investor behavior and what you're seeing. I know you mentioned volatility in the markets impacting how people are dealing with their savings, but just curious how you're seeing that through the first 4 months of the year and whether that's going to impact, any of, you know, the fee rates or any of the way that it hits the bottom line of your business.

Scott Fletcher: Hi. Good morning, everyone. I wanted to ask a question, maybe both for both sides of the core business. Just on investor behavior and what you're seeing. I know you mentioned volatility in the markets impacting how people are dealing with their savings, but just curious how you're seeing that through the first four months of the year and whether that's going to impact, any of, you know, the fee rates or any of the way that it hits the bottom line of your business.

Speaker #5: I know you mentioned volatility in the markets impacting how people are dealing with their savings, but just curious how you're seeing that through the first four months of the year and whether that's going to impact any of the fee rates in any of the way that it hits the bottom line of your business.

Speaker #6: Hey, Scott. It's Damon. I would say what we've seen in the first quarter is that as a lot of our clients have been desensitized to what they're reading and what they're seeing.

Damon Murchison: Hey, Scott, it's Damon. I would say what we've seen in Q1 is that as a lot of our clients have been desensitized to, you know, what they're reading and what they're seeing. We didn't see much change in investor behavior, as a matter of fact. I mean, we're an organization that just continues to talk to our clients about dollar-cost averaging into the markets, and that's exactly what they've been doing. We expect that to continue.

Speaker #6: We didn't see much change in investor behavior. As a matter of fact, I mean, we're an organization that just continually talks to our clients about dollar average costing into the markets.

Speaker #6: And that's exactly what they've been doing. And we expect that to continue.

Speaker #5: Yeah. And as as Luke echoed that, that one slide that actually showed the net sales rate for the industry tracking about 2% of assets.

Luke Gould: Yeah, this is Luke. I'll echo that. That one slide that actually showed the net sales rate for the industry tracking about 2% of assets, we'd characterize that as solid and normal. It's kind of normal conditions when you look at the composition by asset class and just the level of contributions is really normal.

Speaker #5: We'd characterize that as solid and normal. It's kind of normal conditions when you look at the composition by asset class and just the level of contributions is really normal.

Speaker #7: Okay, thanks. That's good to hear. And then maybe one for Damon, just on the wealth and the growth and the clients. It seems like the momentum is still quite strong there.

Scott Fletcher: Okay, thanks. That's good to hear. Maybe one for Damon, just on the wealth and the growth in the clients. It seems like there's the momentum is still quite strong there. Is there anything to call out in terms of what's driving that or if it's more just more execution on the same plan?

Speaker #7: Is there anything to call out in terms of what's driving that or if it's more just more execution on the same plan?

Speaker #6: Well, to be honest, it's an intersection of the value that we're providing to our clients and where there's demand in the marketplace. What we find is more and more Canadians that we're meeting with are looking for advice that extends beyond just investment advice.

Damon Murchison: Well, to be honest, it's an intersection of the value that we're providing to our clients and of the demand in the marketplace. What we find is more and more Canadians that we're meeting with are looking for advice that extends beyond just investment advice. They want to help us navigate their wealth and how they're going to explain their wealth to their kids. They want us to help navigate how am I going to pass on this wealth efficiently, effectively to who I want it to go to. They're, you know, they're talking to us about how they want to leave a legacy. I mean, it's all the things that we've spoke about in the past.

Speaker #6: They want to help us navigate their wealth and how they're going to explain their wealth to their kids. They want us to help navigate how am I going to pass on this wealth efficiently, effectively to who I want it to go to.

Speaker #6: They're talking to us about how they want to leave a legacy. I mean, it's all the things that we've spoken about in the past that's coming to fruition.

Damon Murchison: That's coming to fruition. For us, it's really that intersection of where the traffic is.

Speaker #6: So for us, it's really that intersection of we're the traffickers.

Speaker #7: Okay. Great. Thank you. I'll pass along.

Scott Fletcher: Okay, great. Thank you. I will pass the line.

Speaker #1: The next question comes from Graham Riding with TD Securities. Please go ahead.

Operator 4: The next question comes from Graham Ryding with TD Securities. Please go ahead.

Operator: The next question comes from Graham Ryding with TD Securities. Please go ahead.

Speaker #8: Hi. Good morning. Maybe Luke, I'll start with you. Slide 25, I think, it shows an encouraging trend. Therefore, McKinsey's flows rate I just want to make sure I'm understanding it correctly.

Graham Ryding: Hi, good morning. Maybe Luke, I'll start with you. Slide 25, I think, it shows an encouraging trend there for Mackenzie's flows rate. I just wanna make sure I'm understanding it correctly. The 1.8% for the industry, is that mutual funds only, it's excluding ETFs? Then your flows rate, are you including ETFs in your flows rate?

Speaker #8: The 1.8% for the industry, is that mutual funds only? That's excluding ETFs and then your flows rate? Are you including ETFs in your flows rate?

Speaker #6: Yeah. Good question, Greg. So yeah, ours the industry is mutual funds. Ours includes our ETFs. And of course, our ETFs are it's retail. What I would say is we are working with firms like Investor Economics on getting better industry reporting for ETFs.

Operator 3: Yeah. Good, good question, Graham. Yeah, ours, the industry is mutual funds. Ours includes our ETFs and, of course, our ETFs it's retail. What I would say is we are working with firms like Investor Economics on getting better industry reporting for ETFs. A lot of the data that you see on ETFs includes, I'll call it the inset of mutual funds investing in ETFs. Unpacking the institutional and mutual fund investment from the ETFs is important to get a proper view of ETF net sales. I would say we are working on that view to be able to present what's being purchased in ETFs in retail. Yeah, ours does include our ETF net sales.

Luke Gould: Yeah. Good, good question, Graham. Yeah, ours, the industry is mutual funds. Ours includes our ETFs and, of course, our ETFs it's retail. What I would say is we are working with firms like Investor Economics on getting better industry reporting for ETFs. A lot of the data that you see on ETFs includes, I'll call it the inset of mutual funds investing in ETFs. Unpacking the institutional and mutual fund investment from the ETFs is important to get a proper view of ETF net sales. I would say we are working on that view to be able to present what's being purchased in ETFs in retail. Yeah, ours does include our ETF net sales.

Speaker #6: A lot of the data that you see on ETFs includes I'll call the incest. Mutual funds investing in ETFs and so unpacking the institutional and mutual fund investment from the ETFs is important.

Speaker #6: To To get a proper view of ETF net sales. But I would say we are working on that view to be able to present what's being purchased in ETFs in retail.

Speaker #6: But yeah, ours does include our ETF net sales.

Speaker #8: Okay. Understood. Just want to make sure I'm understanding that chart. But don't get me wrong, it's still positive chart. The outflows that China AMC, it seemed to be outsized relative to the Chinese fund industry.

Graham Ryding: Okay. Understood. Just wanna make sure I'm understanding that chart. Don't get me wrong, it's still a positive chart. The outflows at China AMC, it seemed to be outsized relative to the Chinese fund industry. I didn't quite get all your information there. Can you remind me, or can you explain me on what drove the outsized outflows at China AMC relative to the industry?

Speaker #8: I didn't quite get all your information there. Can you remind me or can you explain what drove the outsized outflows at China AMC relative to the industry?

Speaker #6: Yeah, absolutely. So, for the industry, we had about—so there were $600 billion in net outflows in long-term funds for the industry. And this was a consequence of $750 billion of redemptions from passive ETFs.

Operator 3: Yeah, absolutely. For the industry, we had about CAD 600 billion in net outflows in long-term funds for the industry. And this was a consequence of CAD 750 billion of redemptions from passive ETFs. China AMC is the largest ETF provider in the industry. Of that CAD 750 billion in industry net outflows in passive ETFs, China AMC had just over CAD 200 billion of it. I would also comment, it's been reported, China's national team, as they call it, has been engaged in financial market stabilization for about 2 or 3 years. In the quarter, it's been reported that there was redemptions from that stabilization team as a consequence of robust equity market improvements.

Luke Gould: Yeah, absolutely. For the industry, we had about CAD 600 billion in net outflows in long-term funds for the industry. And this was a consequence of CAD 750 billion of redemptions from passive ETFs. China AMC is the largest ETF provider in the industry. Of that CAD 750 billion in industry net outflows in passive ETFs, China AMC had just over CAD 200 billion of it. I would also comment, it's been reported, China's national team, as they call it, has been engaged in financial market stabilization for about two or three years. In the quarter, it's been reported that there was redemptions from that stabilization team as a consequence of robust equity market improvements.

Speaker #6: China AMC is the largest ETF provider in the industry. And of that 750 billion in industry net outflows in passive ETFs, China AMC had just over 200 billion of it.

Speaker #6: I would also comment it's been reported China's national team as they call it has been engaged in financial market stabilization for about two or three years.

Speaker #6: And in the quarter, it's been reported that there was redemptions from that stabilization team as a consequence of robust equity market improvements. So we view it as a big show of confidence.

Operator 3: We view it as a big show of confidence. Indeed, there were a lot of net sales into active equity funds during the period. That's what you're seeing in the industry there, it was about CAD 750 billion of passive ETFs that were redeemed. China AMC being the largest ETF provider, experienced about CAD 200 billion of that.

Luke Gould: We view it as a big show of confidence. Indeed, there were a lot of net sales into active equity funds during the period. That's what you're seeing in the industry there, it was about CAD 750 billion of passive ETFs that were redeemed. China AMC being the largest ETF provider, experienced about CAD 200 billion of that.

Speaker #6: And indeed, there were a lot of net sales into active equity funds during the period. But what you're seeing in the industry is that there was about $750 billion of passive ETFs that were redeemed.

Speaker #6: And China AMC being the largest ETF provider, experienced about 200 billion of that.

Speaker #1: The next question comes from Ramal Sabat with Jefferies. Please go ahead.

Operator 4: The next question comes from John Aiken with Jefferies. Please go ahead.

Operator: The next question comes from Romel Sabat with Jefferies. Please go ahead.

Speaker #8: Hi. Thank you for taking the questions. So my first question is on the amount of fee-bearing capital. Could you give us some color on who they are, what is the capital invested in, and what's the long-term strategy on the amount of fee-bearing capital?

John Aiken: Hi, thank you for taking the questions. My first question is on the non-fee bearing capital. Could you give us some color on who they are, what is the capital invested in, and what's the long-term strategy on the non-fee bearing capital look? Are they expected to be converted into fee-bearing capital over time?

Romel Sabat: Hi, thank you for taking the questions. My first question is on the non-fee bearing capital. Could you give us some color on who they are, what is the capital invested in, and what's the long-term strategy on the non-fee bearing capital look? Are they expected to be converted into fee-bearing capital over time?

Speaker #8: Are they expected to be converted into fee-bearing capital over time?

Speaker #6: Yeah, so it's Damon here. So, that is what I would call a special circumstance where we're working with Rockefeller. They've got a number of ultra-high-net-worth families.

Damon Murchison: It's Damon here. That is what I would call a special circumstance where we're working with Rockefeller. They've got a number of ultra high net worth families that have Canadian assets and they're in individual securities. We're working with Rockefeller to make sure that we do what's right by those clients here. Over time, I think there is maybe an opportunity to diversify into some fee-bearing assets, but I wouldn't focus primarily on that, quite frankly.

Speaker #6: That have Canadian assets. And they're in individual securities. And we're working with Rockefeller to make sure that we do what's right by those clients here.

Speaker #6: So over time, I think there is maybe an opportunity to diversify into some fee-bearing assets. But I wouldn't focus primarily on that, quite frankly.

Speaker #6: If I step back, what the real opportunity is with Rockefeller and we always talk about horizontal connectivity is really a cross-border advisory services program or service that we do in conjunction with Rockefeller by which we refer to them clients our clients that are working in the US, that have assets in the US, that are high net worth, and opportunistically high net worth.

Damon Murchison: You know, if I step back, what the real opportunity is with Rockefeller, and we always talk about horizontal connectivity, is really a cross-border advisory services program or service that we do in conjunction with Rockefeller, by which we refer them clients. You know, our clients that are working in the US, that have assets in the US, that are high net worth and opportunistically high net worth, and they work with them, and they do the same thing with IG Wealth. This would drive our fee-bearing business, our traditional business. That's what we're focused on, and there's a real opportunity there long term.

Speaker #6: And they work with them. And they do the same thing with IG Wealth. This would drive our fee-bearing business, our traditional business. And so that's what we're focused on.

Speaker #6: And there's a real opportunity there long-term.

Speaker #8: Okay. Yeah. It makes sense. And then my next question is a two-part question on Wealthsimple. Could you give us a rough timeline as to when we should expect earnings contribution from Wealthsimple?

John Aiken: Okay. Yeah, it makes sense. My next question is a two-part question on Wealthsimple. Could you give us a rough timeline as to when we should expect earnings contribution from Wealthsimple? The second part is maybe you could explain how the synergies from Wealthsimple with the core business will be realized. Like, how would Wealthsimple help boost revenues for the wealth management and asset management businesses?

Romel Sabat: Okay. Yeah, it makes sense. My next question is a two-part question on Wealthsimple. Could you give us a rough timeline as to when we should expect earnings contribution from Wealthsimple? The second part is maybe you could explain how the synergies from Wealthsimple with the core business will be realized. Like, how would Wealthsimple help boost revenues for the wealth management and asset management businesses?

Speaker #8: And the second part is maybe you could explain how the synergies from Wealthsimple with the core business will be realized. How would Wealthsimple help boost revenues for the wealth management and asset management businesses?

Speaker #6: Sure. It's James OSullivan on that. So I think the first thing to point out is that the momentum is absolutely continuous. Indeed, it feels like the momentum at Wealthsimple has accelerated.

James O'Sullivan: Sure. It's James. I'll start on that. I, I think the first thing to point out is that the momentum, you know, it absolutely continues. Indeed, it feels like the momentum at Wealthsimple is accelerating. March was their best month ever for flows. Q1 was their best quarter ever for flows. The business is very, very strong. In terms of profitability, you know, that's I think Wealthsimple needs to take advantage of this momentum. I think they need to continue to build share. They've got a great engine now for acquiring clients. They've got a great revenue model. For so long as they can attract clients at the pace at which they're attracting clients, I'm not focused on profitability.

Speaker #6: March was their best month ever for flows. And Q1 was their best quarter ever for flows. So the business is very, very strong. In terms of profitability, that's I think Wealthsimple needs to take advantage of this momentum.

Speaker #6: I think they need to continue to build share they've got a great engine now for acquiring clients. They've got a great revenue model. But for so long as they can attract clients, at the pace at which they're attracting clients, I'm not focused on profitability.

Speaker #6: The profitability will come. But I think they've got a window here to achieve a very meaningful position alongside the Canadian banks, alongside all of the major Canadian financial institutions.

James O'Sullivan: The profitability will come, but I think they've got a window here to achieve a very meaningful position, you know, alongside the Canadian banks, alongside all of the major Canadian financial institutions. I am wholeheartedly encouraging them to focus on acquiring share, continue to develop their offering, and, you know, continuing to develop their revenue model. Profitability will follow in due course.

Speaker #6: And I am wholeheartedly encouraging them to focus on acquiring share continue to develop their offering. And continue to develop their revenue model. Profitability will follow in due course.

John Aiken: Okay.

Romel Sabat: Okay.

Speaker #6: I mean, actually, I think I'll follow up with that. Part of that question was just the synergy with the other businesses. And I reminded that McKinsey obviously helps fuel the product offering at Wealthsimple.

Luke Gould: Actually, I'll follow up with that. Part of that question was just the synergy with the other businesses. I remind that Mackenzie obviously helps fuel the product offering at Wealthsimple. We're a proud supplier of ETFs to Wealthsimple's investment platform.

Speaker #6: So we're a proud supplier of ETFs to Wealthsimple's investment platform.

Speaker #8: Okay. Okay. Makes sense. Thank you so much.

John Aiken: Okay. Okay. Makes sense. Thank you so much.

Romel Sabat: Okay. Okay. Makes sense. Thank you so much.

Speaker #1: The next question comes from Bart Zaski with RVC Capital Markets. Please go ahead.

Operator 4: The next question comes from Bart Dziarski with RBC Capital Markets. Please go ahead.

Operator: The next question comes from Bart Dziarski with RBC Capital Markets. Please go ahead.

Speaker #9: Great. Thanks. And good morning, everyone. I guess just sticking with Wealthsimple. So a couple of weeks back, Robinhood had announced that they're planning on launching a crypto offering in Canada later this year.

Bart Dziarski: Great. Thanks. Good morning, everyone. I guess just sticking with Wealthsimple. A couple of weeks back, Robinhood had announced that they're planning on launching a crypto offering in Canada later this year. Could you maybe just speak to, one, what is the crypto exposure for Wealthsimple from a business mix perspective and just kind of how you think about the competitive environment with a new entrant coming in? Thanks.

Speaker #9: So could you maybe just speak to, one, what is the crypto exposure for Wealthsimple from a business mix perspective and just kind of the how you think about the competitive environment with a new entrant coming in?

Speaker #9: Thanks.

Speaker #6: Yeah. It's Keith here. That's the first question, crypto exposure. You can see the AUM is about 125 billion dollars crypto would be called less than 2% of total AUM.

Keith Potter: It's Keith here. To answer the first question, crypto exposure, you can see the AUM is about CAD 125 billion. Crypto would be, you know, call it less than 2% of total AUM. I commented that on the last call. When you look at what differentiates Wealthsimple, they have a very, very diversified business, a diversified revenue stream and are not as reliant on crypto. You probably noticed, you know, peer multiples in the FinTech sector under a lot of pressure in Q1. A lot of that was due to exposure to crypto and general trading activity. You know, Wealthsimple is structured quite differently, and it's quite a different business with diversified revenue.

Speaker #6: I commented on the last call. We look at what differentiates Wealthsimple. They have a very, very diversified business that diversified revenue stream and are not as reliant on crypto.

Speaker #6: And you probably noticed peer multiples in the fintech sector under a lot of pressure in Q1. A lot of that was due to exposure to crypto and general trading activity.

Speaker #6: And so Wealthsimple is structured quite differently. And it's quite a different business with diversified revenue. And it is one of the core reasons that we've maintained the fair value at 2.3 billion in the quarter.

Keith Potter: This is one of the core reasons that we've maintained the fair value of CAD 2.3 billion in the quarter.

Speaker #10: Yeah, and I'd just add, Bart, I don't think anyone in the Canadian market innovates as quickly as Wealthsimple, and I don't expect that to change.

James O'Sullivan: I'd just add, Bart, I, you know, I don't think anyone in the Canadian market innovates as quickly as Wealthsimple, and I don't expect that to change. There will be competition to be sure, there will be new entrants to be sure, but I can't think of a business that's better positioned to face the marketplace and deliver for clients than Wealthsimple.

Speaker #10: There will be competition to be sure. There will be new entrants to be sure. But I can't think of a business that's better positioned to face the marketplace and deliver for clients than Wealthsimple.

Speaker #9: Okay, great. Thanks for that. And then I had a question on Northleaf. Maybe it's a bit of a mechanical one. But when I look at the Northleaf AUM bridge, there's fundraising, return of capital, and FX.

Bart Dziarski: Okay, great. Thanks for that. I had a question on Northleaf. Maybe it's a bit of a mechanical one, when I look at the Northleaf AUM bridge, there's fundraising, return of capital, and FX. Normally for an alt manager in an AUM bridge, you see fair value gains. Am I missing something in that bridge? Should that be included? If not, like, what's been the historical MOIC, if you will, for Northleaf's portfolio?

Speaker #9: And normally for an alt manager in an AUM bridge, you see fair value gains. So am I missing something in that bridge? Should that be included?

Speaker #9: And if not, what's been the historical MOIC, if you will, for Northleaf's portfolio?

Speaker #6: A great question. I'll take that. I guess Keith could. It's Luke. On that bridge, the way we presented AUM, and it's a choice, we used the measure of AUM that reflects the base upon which they earn revenue.

Keith Potter: Great, great question. I'll take that. I guess Keith Potter could as Luke Gould. Yeah, on that bridge, the way we present an AUM, and it's a choice, we use the measure of AUM that reflects the base upon which they earn revenue. For most of the Northleaf mandates, they don't earn revenue as a % of fair value. They earn it based upon what's funded. That's why you don't see the any market returns as part of that bridge.

Kyle Martins: Great, great question. I'll take that. I guess Keith Potter could as Luke Gould. Yeah, on that bridge, the way we present an AUM, and it's a choice, we use the measure of AUM that reflects the base upon which they earn revenue. For most of the Northleaf mandates, they don't earn revenue as a % of fair value. They earn it based upon what's funded. That's why you don't see the any market returns as part of that bridge.

Speaker #6: And for most of the Northleaf mandates, they don't earn revenue as a percent of the fair value. They earn it based upon what's funded.

Speaker #6: So that's why you don't see the any market returns as part of that bridge.

Speaker #9: Oh. So it's fee-paying AUM?

Bart Dziarski: Oh, it's fee-paying AUM?

Speaker #6: Yes.

Keith Potter: Yes.

Kyle Martins: Yes.

Speaker #9: Okay. Got it. Okay. Okay. Thanks for taking my questions. And James, congrats on your tenure with IGM.

Bart Dziarski: Okay. Got it. Okay. Okay, thanks for taking my questions. James, congrats on your tenure with IGM.

Speaker #6: Thank you.

James O'Sullivan: Thank you.

Speaker #1: The next question comes from Jamie Goin with National Bank Financial. Please go ahead.

Operator 4: The next question comes from Jaeme Gloyn with National Bank Financial. Please go ahead.

Operator: The next question comes from Jaeme Gloyn with National Bank Financial. Please go ahead.

Speaker #11: Yeah. Thanks, I just wanted to clarify or just dig in into the expense guidance. Pretty large growth rate in Q1. And then it requires a pretty decent step down in upcoming quarters.

Jaeme Gloyn: Yeah, thanks. I just wanted to, you know, clarify or just dig in into the expense guidance. You know, pretty large gross rate in Q1, it requires a pretty decent step down in upcoming quarters. Just wanted to get your rationale for the confidence in that step down and the trajectory, I suppose, of how you expect that to flow as a more back half weighted. Thank you.

Speaker #11: So just wanted to get your rationale for the confidence in that step down. And the trajectory, I suppose, of how you expect that to flow.

Speaker #11: Is it more back half weighted? Thank you.

Speaker #6: Yeah. Thanks, James. It's Keith here. Yeah. As I mentioned, part of the higher expense in Q1 was seasonal related to the incentive true up.

Keith Potter: Thanks, Jamie. It's Keith here. You know, as I mentioned, you know, part of the higher expense in Q1 was seasonal, related to the incentive true up, a little bit higher tech spend. If you look back to Q1 of 2025, we didn't have as high a tech delivery. What I would say is you can expect Mackenzie expenses to drop in the next quarter, throughout the year. You know, similar to what I said at IG, where it's seasonally high next quarter, but you can expect to drop in the H2 of the year.

Keith Potter: Thanks, Jaeme. It's Keith here. You know, as I mentioned, you know, part of the higher expense in Q1 was seasonal, related to the incentive true up, a little bit higher tech spend. If you look back to Q1 of 2025, we didn't have as high a tech delivery. What I would say is you can expect Mackenzie expenses to drop in the next quarter, throughout the year. You know, similar to what I said at IG, where it's seasonally high next quarter, but you can expect to drop in the H2 of the year.

Speaker #6: A little bit higher tech spend if you look back to Q1 of 2025. We didn't have as high a tech delivery what I would say is you can expect McKinsey expenses to drop in the next quarter.

Speaker #6: Throughout the year. And then similar to what I said at IG where it's seasonally high next quarter. But you can expect to drop in the second half of the year.

Speaker #6: But I would say that this was in line with what we expected for Q1. And are sticking with the 4% guidance on our confidence in 4% for the rest of the year.

Keith Potter: I would say that, you know, this was in line with what we expected for Q1 and are sticking with 4% guidance on our confidence in 4% for the rest of the year.

Speaker #1: As a reminder, if you would like to ask a question, please press star, then 1 to join the question queue. The next question comes from Tom McKinnon with BMO.

Operator 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 Tom MacKinnon with BMO. Please go ahead.

Operator: 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 Tom MacKinnon with BMO Capital Markets. Please go ahead.

Speaker #1: Please go ahead.

Speaker #11: Yeah. Thanks. Good morning. Just a question on some of the marks you put on China AMC. It's based on kind of the run rate of the earnings you suggest you're carrying it at 17 times earnings.

Tom MacKinnon: Yeah, thanks. Good morning. Just a question on some of the marks you put on China AMC. You know, it's based on the kind of the run rate of the earnings you suggest, you're carrying it at 17 times earnings. Like, these are like BlackRock type valuations here. There is, has been some pressure perhaps in terms of an outlook for the name. How should we be? Can you remind us how those, how this 2.1 billion carrying value is developed? If any, do you look at peers? What goes on in that? Thanks.

Speaker #11: These are like BlackRock-type valuations here. There is has been some pressure, perhaps, in terms of an outlook for the name. How should we be can you remind us how those 2.1 billion carrying value is developed?

Speaker #11: And if any, do you look at peers? What goes on in that? Thanks.

Speaker #6: Yeah, it's Keith here. I'll take that. So for China AMC, it's really—the carrying value is based on the equity method of accounting. And so that is the carrying value at the $2.1 billion.

Keith Potter: It's Keith here, I'll take that. For ChinaAMC, it's really the carrying value is based on equity method of accounting. That is the carrying value at the CAD 2.1 billion. We would increase it by earnings reported and decrease it by the dividends paid. That's the actual carrying value, which is based on the equity accounting. When you think about ChinaAMC and their future potential and potential growth as the second-largest player in the mutual fund industry and have a diversified business as it relates to institutional. They have a very strong position within the China asset management industry, and we're confident about future growth with the company.

Speaker #6: So we would increase it by earnings reported and decrease it by the dividends paid. So that's the actual carrying value, which is based on the equity accounting.

Speaker #6: When we think about China AMC, and their future potential and potential growth in the second largest player, in the mutual fund industry, and have a diversified business as it relates to institutional.

Speaker #6: So they have a very, very strong position within the China asset management industry. And we're confident about future growth with the company.

Speaker #9: Okay, so thanks for clarifying that. And then just following up on the Wealthsimple, the mark you have there is associated with that round that was done in October.

Tom MacKinnon: That, thanks for clarifying that. Just following up on the Wealthsimple. This, the mark you have there is associated with that round that was done in October. You know, we even Take your point on Robinhood. You know, you know Robinhood, and that's down quite a bit. Even a company like Schwab which is reporting very strong March, is down like, you know, 15% or so. It may be you can Can you describe your process in assessing this fair value mark each quarter on Wealthsimple?

Speaker #9: Even take your point on Robinhood. You know Robinhood. And that's down quite a bit. But even a company like Schwab, which is reporting very strong March is down like 15% or so.

Speaker #9: It may be you can can you describe your process in assessing this fair value mark each quarter on Wealthsimple?

Speaker #6: Yeah. No. Sure. It's Keith here again. So as you mentioned, we certainly have two relevant transactions for the fourth quarter that we look to.

Keith Potter: Yeah, no, sure. It's Keith here again. As you mentioned, we certainly have two relevant transactions for Q4 that we look to that really demonstrated value at that time. When you look at Wealthsimple performance this period, it was exceptional. You know, James mentioned they had a record March for net flows. They had a record Q1 for net flows. You can see the substantial growth in AUM, and that also translates into revenue. Despite the fact we have seen FinTech multiples come down in the quarter, and it wasn't just Schwab, it was others, Wealthsimple just has outgrown any downward pressure that we've seen in market multiples in the quarter.

Speaker #6: That really demonstrated value at that time. When you look at Wealthsimple performance this period, it was exceptional. James mentioned they had a record March for net flows.

Speaker #6: They had a record Q1 for net flows. And you can see the substantial growth in AM. And that also translates into revenue. So despite the fact we have seen fintech multiples come down in the quarter.

Speaker #6: And it wasn't just Schwab. It was others. Wealthsimple just has outgrown any downward pressure that we've seen in market multiples in the quarter. And Tom, I mean, value in private companies within public companies is an interesting kind of topic.

James O'Sullivan: You know, Tom, it's I mean, valuing private companies within public companies is an interesting kind of topic. Kind of the recency of real transactions is very relevant to ourselves, and to, you know, those that review our work, including Deloitte. The other thing we pay a great deal attention to is Wealthsimple's financial plans and how they're doing relative to plan and what the fair value of the company is, as, you know, as we see DCF those cash flows. They continue to surprise, to the upside.

Speaker #6: And so kind of the recency of real transactions is very relevant to ourselves. And to those that review our work, including Deloitte. But the other thing we pay a great deal of attention to is Wealthsimple's financial plans and how they're doing relative to plan and what the fair value of the company is as you DCF those cash flows.

Speaker #6: And they continue to surprise to the upside. And those are and so while the publicly traded comps are very visible, what's not as visible is their aggressive plans and how well they're doing at beating their aggressive plans.

James O'Sullivan: You know, while the, you know, the publicly traded comps are very visible, what's not as visible is their aggressive plans and how well they're doing at beating their aggressive plans, and that has value implications as well.

Speaker #6: And that has value implications as well.

Speaker #9: Okay. Thanks. And James, congrats on good tenure at IGM and best of luck as you move on to power. Thanks.

Tom MacKinnon: Okay, thanks. James O'Sullivan, congrats on good tenure at IGM, and best of luck as you move on to Power. Thanks.

Speaker #6: Thank you, Tom.

James O'Sullivan: Thank you, Tom.

Speaker #1: This concludes the question and answer session. I would like to turn the conference back over to Kyle Martens for any closing remarks.

Operator 4: This concludes the question and answer session. I would like to turn the conference back over to Kyle Martins for any closing remarks.

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

Speaker #6: Yeah. Thank you, Betsy. And we'd once again just like to thank everyone for joining us this morning on the call. And Betsy, with that, we can end the conference call.

Kyle Martins: Yeah. Thank you, Betsey. We'd once again just like to thank everyone for joining us this morning on the call. Betsey, with that, we can end the conference call.

Operator 4: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

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