IGM Financial TSE: IGM reported a 19% increase in adjusted earnings per share for the third quarter of 2026, as growth in client assets and inflows at its wealth and asset management businesses supported results.
Adjusted earnings per share rose to CAD 1.51, while adjusted net earnings available to common shareholders increased 17% to CAD 351 million. Reported earnings per share were CAD 2.10, including the effect of a CAD 144 million non-cash gain related to IGM’s move to consolidate Northleaf’s financial results.
President and CEO Damon Murchison said assets under management and advisement increased 15% from a year earlier. IG Wealth Management and Mackenzie Investments generated a combined CAD 2.7 billion in net flows during the quarter.
IG Wealth attracts affluent clients
IG Wealth ended September with record quarter-end client assets of CAD 178 billion, up 14% year over year, and recorded CAD 666 million in net flows. Gross inflows rose approximately 18% to CAD 4.5 billion.
New client gross inflows reached a third-quarter record of CAD 1.4 billion, with 80% coming from mass affluent and high-net-worth Canadians, Murchison said. Gross inflows per advisor practice increased 23% from a year earlier.
IG’s earnings rose 27.4% to CAD 197.9 million as revenue increased 15%, according to Chief Financial Officer Keith Potter. He said expenses declined year over year, primarily because of simplification savings and the timing of expenses.
Asked whether a greater share of high-net-worth clients could support margins, Potter said those clients typically pay a lower advisory fee rate. He expects the rate to continue declining as IG adds such clients, although at a slower pace than in the past.
Murchison said IG’s comprehensive planning services, including tax, estate and business succession advice, have helped attract wealthier households. During market volatility, he said, advisors have traditionally encouraged clients to invest gradually rather than commit their money all at once.
Mackenzie sees retail and institutional momentum
Mackenzie’s assets under management rose 12.5% from a year earlier to a record CAD 269.5 billion. The business reported CAD 2 billion in net sales for the quarter and CAD 5.6 billion for the first nine months of the year.
President and CEO Luke Gould said year-to-date retail mutual fund gross sales increased 58%, while retail net sales improved by approximately CAD 1.35 billion. Sales from new advisor relationships rose 129%, excluding ETF purchases.
Gould said Mackenzie had about CAD 5 billion in awarded institutional mandates that had not yet funded and expected those assets to come in over the following months. He also cited a strong pipeline of prospective business entering 2027.
Mackenzie’s quarterly earnings rose 8.4% to CAD 73.9 million. Potter said expenses increased in part because stronger retail flows led to higher variable wholesaler compensation, which is expensed as paid while related revenue is earned over time.
Strategic investments and capital returns
Wealthsimple’s assets under administration reached CAD 169.2 billion, up 68% year over year, with approximately CAD 11 billion in quarterly net flows. IGM invested an additional CAD 96 million in Wealthsimple’s recent financing, bringing the pro forma value of its investment to approximately CAD 3 billion. Murchison said IGM remains Wealthsimple’s largest single shareholder and wants to retain that position.
Northleaf raised approximately CAD 800 million during the quarter, primarily across private equity and private credit. IGM began consolidating Northleaf’s results on July 1; Northleaf contributed CAD 4.9 million to adjusted earnings, net of non-controlling interests.
Rockefeller’s client assets rose 27% year over year to approximately $237 billion. Potter said transaction-related revenue from its alternatives platform contributed approximately CAD 6.5 million to earnings, while cautioning that the timing and magnitude of such revenue can vary between quarters.
IGM returned CAD 343 million to shareholders during the quarter, comprising CAD 199 million in share repurchases and CAD 144 million in dividends. It ended September with CAD 830 million in unallocated capital and a gross debt-to-EBITDA ratio of 1.22 times.
Potter said October buybacks were on pace with the third quarter. Management plans to review its capital plan with the board, weighing further repurchases against investment and other capital allocation opportunities.
AI investment and expense outlook
IGM expects approximately CAD 15 million in 2026 savings from simplification initiatives announced in June and plans to reinvest that amount in capabilities including artificial intelligence. Murchison said the company is building common data and AI infrastructure to support broader deployment in 2027.
The company maintained its full-year guidance for 4% growth in operations, support and business development expenses, excluding Northleaf. Potter said IGM would provide 2027 expense guidance on its February call and cautioned that the AI reinvestment would not necessarily drive margin expansion on its own.
About IGM Financial (TSE:IGM)
Mackenzie Investments ("Mackenzie") is a Canadian investment management firm with approximately $244 billion (CAD) in assets under management as of December 31, 2025. Mackenzie seeks to create a more invested world by delivering strong investment performance and offering innovative portfolio solutions and related services to more than one million retail and institutional clients through multiple distribution channels. Founded in 1967, it is a global asset manager with offices across Canada as well as in Beijing, Boston, Dublin, Hong Kong and London.
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