IGM Financial assets, wealth management revenues fell in Q1

IGM Financial Inc. saw its adjusted net earnings fall year over year in the first quarter, with net flows and assets under management and advisement also dropping.

The Winnipeg-based company reported its Q1 2023 results on Wednesday.

Net earnings were $381.3 million, up 74% from $219.3 million in Q1 2022. However, this increase was due entirely to a gain on the sale of Great-West Lifeco Inc. shares. Without that gain, Q1 2023 net earnings were $206.5 million, down by 6% year over year.

Nonetheless, the firm was upbeat. “Positive investment returns for our clients and a continued focus on expense management resulted in solid earnings for the quarter,” said James O’Sullivan, president and CEO of IGM Financial, in a release. “We were pleased to announce the acquisition of a 20.5% interest in Rockefeller Capital Management and our entry into the U.S. wealth management market.”

Assets under management and advisement also fell in Q1, dropping 2.9% year over year to $260.4 billion. Net flows decreased 60% to $990 million from $2.5 billion over the same period, with IG Wealth Management experiencing $273 million in mutual fund net redemptions alone.

IGM’s wealth management activities brought in $534.1 million in revenue in Q1, down 5% from $561.2 million a year earlier. Asset management, meanwhile, brought in $236.1 million, down by 8% from $256.1 million in Q1 2022. In February, IG Wealth Management announced it would wind up its corporate-class structure.

IGM reported that IG Wealth Management had 3,234 advisors in Q1, down slightly from 3,288 a year earlier.

In April, IGM announced it was selling subsidiary Investment Planning Counsel to Canada Life for $575 million. IPC had $4.8 billion in assets under management in Q1, down from $5.2 billion a year earlier, and 662 advisors.

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