JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Introduction & Market Context
IGM Financial Inc . (TSX:IGM) presented its second quarter 2025 results on August 7, 2025, showing strong performance across its wealth and asset management segments amid favorable market conditions. The company reported significant growth in assets under management and advisement (AUM&A) and improved earnings per share, rebounding from its Q1 2025 results which had missed analyst expectations.
The presentation highlighted how IGM benefited from positive market conditions during the quarter, with client investment returns of 3.6% in Q2 2025. This performance occurred against a backdrop of strong equity markets, with Canadian markets up 8.5%, U.S. markets up 10.9%, and Asian markets up 12.4% during the quarter.
Executive Summary
IGM Financial (OTC:IGIFF) reported adjusted earnings per share of $1.07 for Q2 2025, representing a 15.1% increase compared to Q2 2024. The company’s consolidated AUM&A, including strategic investments, reached a record $521.1 billion, up 20.7% year-over-year and 3.5% quarter-over-quarter. Net flows across IG Wealth Management and Mackenzie Investments totaled $90 million, while the company returned $168 million to shareholders through dividends and share repurchases.
As shown in the following comprehensive overview of IGM’s Q2 2025 performance:
The company’s strategic investments delivered particularly strong growth, with Wealthsimple assets up 94% year-over-year, ChinaAMC up 33%, Rockefeller up 21%, and Northleaf up 13%. IGM also increased the fair value of its ownership position in Wealthsimple by 21% to $1.48 billion and realized approximately $25 million in pre-tax proceeds from Conquest’s secondary offering.
Quarterly Performance Highlights
IGM Financial’s adjusted net earnings available to common shareholders reached $252.7 million in Q2 2025, a 15% increase from $220.4 million in Q2 2024. This growth was driven by strong performance across all segments, with Wealth Management earnings up 20%, Asset Management earnings up 8%, and Corporate & Other earnings up 12%.
The following chart illustrates the adjusted net earnings by segment:
Assets under management and advisement grew significantly across all business segments. IG Wealth Management’s AUM&A increased by 13% year-over-year to $146.7 billion, while Mackenzie Investments’ AUM grew by 12% to $137.2 billion. Strategic investments also showed impressive growth, with Wealthsimple’s AUM&A increasing by 83% to $22.6 billion and ChinaAMC’s AUM growing by 33% to $150.7 billion.
The following chart details the ending AUM&A across all segments:
Detailed Financial Analysis
IG Wealth Management reported strong operating results in Q2 2025, with gross inflows of $3.6 billion, up 1.3% year-over-year. The segment achieved total net inflows of $249 million, compared to net outflows of $173 million in Q2 2024. IGM Product net sales were $513 million, a significant improvement from net redemptions of $612 million in the prior year period.
The following chart provides a detailed breakdown of IG Wealth Management’s operating results:
Mackenzie Investments showed significant improvement in investment fund net sales, which reached $187 million in Q2 2025 compared to net redemptions of $745 million in Q2 2024. This represents an improvement of $932 million year-over-year. Retail mutual fund net redemptions improved by $347 million, while retail ETF net sales improved by $277 million compared to the prior year period.
The following chart details Mackenzie Investments’ operating results:
IGM Financial’s consolidated profitability benefited from a 9.1% year-over-year increase in average AUM&A, which supported growth in wealth and asset management revenue. The company’s expenses were well-managed, with operations and support and business development expenses increasing by just 2.2% year-over-year.
The following chart provides a comprehensive view of IGM Financial’s consolidated profitability:
Strategic Initiatives
IGM Financial highlighted several strategic initiatives during the presentation. On July 1, 2025, IG Wealth Management merged its former mutual fund and investment dealer into a single, dual-registered dealer. This move simplifies the company’s structure, supports future growth, furthers its commitment to advisors and platform, and streamlines processes.
The company also continued its product innovation, focusing on areas of emerging growth and shelf completion. Nine investment funds were launched during the quarter, enhancing the company’s product offerings.
IG Wealth Management’s corporate channel is enabling entrepreneurial advisors and driving productivity. The channel has seen significant growth in mortgage funding (up 27%) and insurance premiums (up 18%), with a focus on new client acquisition, particularly in the mass affluent and high-net-worth segments.
Forward-Looking Statements
IGM Financial’s Q2 2025 financial highlights show a company with strong momentum and a solid financial position. The company reduced its leverage to 1.49x, decreased its dividend payout to 62% of LTM adjusted cash earnings, and maintained significant unallocated capital of over $600 million, providing flexibility for future investments and capital returns.
As shown in the following financial highlights:
Looking ahead, IGM Financial is well-positioned to continue its growth trajectory, supported by strong market conditions, improved net flows, and strategic investments in high-growth areas. The company’s focus on high-net-worth and mass affluent clients, product innovation, and operational efficiency should continue to drive results in the coming quarters.
The company’s rebound from its Q1 2025 results, which had missed analyst expectations with an adjusted EPS of $1.00 versus a forecast of $1.05, demonstrates its ability to adapt to changing market conditions and maintain its growth momentum. With record high second quarter and last twelve months adjusted EPS, IGM Financial has shown resilience and the ability to execute on its strategic priorities.
Full presentation:
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