Winnipeg-based IGM Financial Inc. released second-quarter results on Wednesday that showed assets up year over year amid increased net outflows.
The firm’s net earnings were $216.2 million in the quarter, compared to $138.2 million in the second quarter of 2023, the financial statements said. Earnings per share were $0.91 compared to $0.58 in the second quarter of 2023.
Assets under management and advisement, at $252.4 billion, were up 0.1% from the prior quarter and up 7.6% from the second quarter of 2023.
Net outflows were $1.1 billion compared to net outflows of $767 million in 2023.
For IG Wealth Management, assets under advisement at the end of the quarter were $129.7 billion, an increase of 1.3% from $128.0 billion in the previous quarter and an increase of 11.0% from $116.8 billion year over year.
IG Wealth Management recorded quarterly net client outflows of $173 million, compared to net client outflows of $424 million in the second quarter of 2023.
Mutual fund sales through the advisor network were $4.2 billion in the quarter, an increase of 63.3% from the comparable period in 2023. Mutual fund redemptions totalled $4.8 billion, an increase of 56.2% from 2023. Mutual fund net redemptions for the second quarter were $612 million compared to net redemptions of $509 million the year prior.
IG Wealth Management had a total advisor network of 3,176 at the end of the quarter, down 2% from 3,243 advisors in the same quarter last year.
For Mackenzie Investments, assets under management totalled $202.1 billion, a decrease of 0.8% from $203.7 billion in the previous quarter and an increase of 4.5% from $193.3 billion year over year.
Mackenzie recorded investment fund net redemptions of $745 million, compared to net redemptions of $616 million in 2023’s second quarter. Mutual fund gross sales were $2.1 billion, up 23.0% from the second quarter of 2023.
“In June 2024, IGM Financial experienced heightened investment fund gross sales, redemptions and heightened positive other net flows due to clients strategically triggering capital gains in advance of changes to Canada’s capital gains tax policy that took effect on June 25, 2024,” the management’s discussion and analysis said.