Readers are referred to the disclaimer regarding Forward-Looking Statements,
Non-IFRS Financial Measures and Additional IFRS Measures at the end of this Release.
WINNIPEG, MB , Oct. 7, 2020 /CNW/ - Effective Q3 2020, IGM Financial Inc. (IGM or the Company) (TSX: IGM) has realigned its reportable segments and made disclosure enhancements to its Statements of Earnings to better characterize the Company's business lines and improve transparency into the key drivers of the business. Prior period comparative information has been restated to reflect these changes. These changes have no impact on the reported earnings of the Company.
Key Highlights:
- The Company now has three reportable segments: Wealth Management, Asset Management and Strategic Investments and Other.
- The Wealth Management segment includes IG Wealth Management ("IG") and Investment Planning Counsel ("IPC"). These firms provide comprehensive financial planning to Canadian households, and the new disclosures reflect the evolution of these businesses where financial advisory fees earned on Assets Under Advisement ("AUA") are now reflected as the key component of revenues.
- The Asset Management segment includes Mackenzie Investments, and its results will now include the $70 billion sub-advisory relationship that it enjoys with IG and IPC. Pro forma for these changes and the previously announced acquisition of GLC Asset Management, Mackenzie's assets under management are approximately $180 billion , ranking it among Canada's largest asset managers.
- The Strategic Investments and Other segment includes investments in Great-West Lifeco, China Asset Management, Wealthsimple and Portage3 Ventures. These companies enjoy strong positioning within their respective markets and most have very strong growth profiles within fast-growing market segments that warrant separate consideration. This segment had a fair value of approximately $2.5 billion at June 30, 2020 .
- These disclosure enhancements will help stakeholders understand and assess the components of IGM's value by clearly differentiating the characteristics of the Wealth Management and Asset Management segments, while also providing greater disclosure around IGM's strategic investments.
- Revenue and expense lines have been re-defined to provide greater alignment with the key drivers of business activity and to reflect our emphasis on business growth and operational efficiency.
"We believe that the disclosure enhancements that we have made will enable users to more clearly understand the Company's business lines and the key drivers of those business lines," said James O'Sullivan , President and Chief Executive Officer of IGM Financial Inc. "As we continue on our transformation journey and continue to grow our business, we feel these changes will clearly highlight the value that we are creating for our stakeholders."
Revised and retroactively restated IGM supplemental information and a presentation outlining the nature of the disclosure changes have been published on the Company's website at www.igmfinancial.com
LIVE WEBCAST AND CONFERENCE CALL
Luke Gould , Executive Vice-President and Chief Financial Officer, IGM Financial Inc. will hold a live conference call and webcast on Thursday, October 8, 2020 at 9a.m. CT / 10 a.m. ET to review changes to its reporting segments and operating metrics, and can be accessed respectively through www.igmfinancial.com or by phone at 1-800-319-4610 or 416-915-3239.
FORWARD-LOOKING STATEMENTS
Certain statements in this Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial's current expectations. Forward-looking statements are provided to assist the reader in understanding the Company's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.
A variety of material factors, many of which are beyond the Company's and its subsidiaries' control, affect the operations, performance and results of the Company, and its subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, outbreaks of disease or pandemics (such as COVID-19), the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company's and its subsidiaries' success in anticipating and managing the foregoing factors.
The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements.
Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials filed with the securities regulatory authorities in Canada , available at www.sedar.com .
NON-IFRS FINANCIAL MEASURES AND ADDITIONAL IFRS MEASURES
This release contains non-IFRS financial measures and additional IFRS measures. Net earnings available to common shareholders, which is an additional measure in accordance with International Financial Reporting Standards (IFRS), may be subdivided into two components consisting of:
- Adjusted net earnings available to common shareholders; and
- Other items, which include the after-tax impact of any item that management considers to be of a non-recurring nature or that could make the period-over-period comparison of results from operations less meaningful.
Terms by which non-IFRS financial measures are identified include but are not limited to "adjusted net earnings available to common shareholders", "adjusted earnings per share", "adjusted return on average common equity" and other similar expressions used to provide management and investors with additional measures to assess earnings performance. However, non-IFRS financial measures do not have standard meanings prescribed by IFRS and are not directly comparable to similar measures used by other companies. Please refer to the attached Financial Highlights for the appropriate reconciliations of these non-IFRS financial measures to measures prescribed by IFRS.
Terms by which additional IFRS measures are identified include "earnings before income taxes" and "net earnings available to common shareholders". Additional IFRS measures are used to provide management and investors with additional measures to assess earnings performance. These measures are considered additional IFRS measures as they are in addition to the minimum line items required by IFRS and are relevant to an understanding of the entity's financial performance.
ABOUT IGM FINANCIAL INC.
IGM Financial Inc. is one of Canada's leading diversified wealth and asset management companies with approximately $196 billion in total assets under management and advisement at September 30, 2020 . The company provides a broad range of financial and investment planning services to help more than two million Canadians meet their financial goals. Its activities are carried out principally through IG Wealth Management, Mackenzie Investments and Investment Planning Counsel.
A MEMBER OF THE POWER CORPORATION GROUP OF COMPANIES.
SOURCE IGM Financial Inc.