IGM Financial reports record Q2 earnings

IGM Financial reported record high second quarter earnings and an all-time high for assets under management and advisement.

The mammoth financial services company, based in Winnipeg, counted $252.7 million in adjusted net earnings last quarter. It’s a 14.7 per cent jump when looking at the $220.4 million it drew in 2024’s second quarter.

Meanwhile, IGM’s assets under management and advisement hit a new high of $283.9 billion.

(IGM’s assets under management and advisement, including strategic investments, reached $521.1 billion. The number has ballooned from $431.7 billion counted on June 30, 2024.)

IGM Financial didn’t have a spokesperson available by print deadline. In an earnings report Thursday, president James O’Sullivan pointed to “strong results” across its core operating companies — IG Wealth Management and Mackenzie Investments — as leading to adjusted earnings per share reaching a new second quarter peak.

Adjusted earnings per share were $1.07, up from $0.93 in the second quarter of 2024.

“As we continue to execute on the Company’s strategy with record high asset levels across our subsidiaries and investee companies, IGM Financial is well positioned for growth,” O’Sullivan’s statement reads.

IGM Financial has broadened its offerings over time, aiding in its growth, said David Stangeland, a University of Manitoba finance professor.

The newly announced records show IGM is providing “what people want” in the marketplace, Stangeland continued.

“They must be doing a pretty good job, because otherwise people would be moving their money elsewhere,” he said.

Wealthsimple, an online investment management service IGM has invested in, is likely a driver of growth, said Shiu-Yik Au, a University of Manitoba finance professor.

The value of IGM’s Wealthsimple investment increased by $257 million in the quarter, reaching $1.5 billion.

“The stock market is hot,” Au added. “When the stock market is hot, people put money into mutual funds, into savings, in the stock market.

“When it’s hot, (IGM has) more assets under management, because people are putting more in the stock market.”

IGM Financial sold 75 per cent of its equity stake in software company Conquest Planning for $24.8 million in the second quarter. The transaction returned the company’s invested capital and generated a seven-times multiple of invested capital, and an internal rate of return of 54 per cent, IG Wealth Management’s president said in a statement.

gabrielle.piche@winnipegfreepress.com