IGM Financial Inc. : Announces December 2020 Record High Net Flows and Assets Under Management & Advisement
January 07, 2021 at 12:29 pm EST
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WINNIPEG, MB, Jan. 7, 2021 /CNW/ - IGM Financial Inc. (IGM) (TSX: IGM) today reported preliminary total consolidated net flows of $803.1 million during December 2020 as shown in Table 1. Total assets under management and advisement were $240.0 billion at December 31, 2020, compared with $205.2 billion at November 30, 2020 and $190.0 billion at December 31, 2019. Assets under management and advisement are shown in Table 2.
DECEMBER HIGHLIGHTS
IGM Financial - record high assets under management & advisement of $240.0 billion, up 2.1% in month and 10.3% in the year (excluding $30.3 billion in net business acquisitions). December net flows of $803.1 million are record high and up from $199.2 million in December 2019. Full year net flows of $7.1 billion are record high and up from net redemptions of $1.7 billion in 2019.
IG Wealth - record high assets under advisement of $103.3 billion, up 1.8% in December and 6.4% in the year. December net flows of $228.5 million is highest December in over 20 years and up from net flows of $48 million in December 2019. Full year net flows of $794 million are second highest in a decade and up from net outflows of $781 million in 2019.
Mackenzie - record high assets under management of $186.8 billion, up 2.1% in the month and 10.3% in the year (excluding $30.3 billion in net business acquisitions of GLC Asset Management Group Ltd. (GLC) and Greenchip Financial Corp. (Greenchip)). December net sales of $533.6 million are a record high and up from $131.0 million in December 2019. Full year net sales of $6.2 billion are record high and up from net sales of $272.7 million in 2019.
Table 1 – Gross and Net Flows
Wealth Management
Asset Management
($ millions) (unaudited)
IG Wealth Management
Investment Planning Counsel
Total
Mackenzie
IGM
Financial
For the month ended December 31, 2020
Net flows
228.5
106.4
335.9
533.6
803.1(3)
Mutual fund net sales
68.2
(36.0)
32.2
471.5
503.7
ETF net creations(1)
-
-
-
143.0
143.0
Investment fund net sales
68.2
(36.0)
32.2
614.5
646.7
Institutional SMA net sales
-
-
-
(80.9)(2)
(80.9)
Managed asset net sales
68.2
(36.0)
32.2
533.6
565.8
Other dealer net flows
160.3
142.4
303.7
-
237.3(3)
Gross flows
Mutual fund gross sales
948.0
79.6
1,027.6
1,341.6
2,369.2
Dealer gross inflows
1,082.2
584.0
1,666.2
-
1,666.2
Table 2 – Assets under Management and Advisement
($ millions) (unaudited)
December 2020
November 2020
December 2019
% Change Last Month
% Change
YOY
Wealth Management
IG Wealth Management
Assets under management
97,713
96,229
93,161
1.5%
4.9%
Other assets under advisement
5,554
5,227
3,939
6.3%
41.0%
Assets under advisement
103,267
101,456
97,100
1.8%
6.4%
IPC
Assets under management
5,320
5,292
5,391
0.5%
(1.3%)
Other assets under advisement
23,998
23,453
22,337
2.3%
7.4%
Assets under advisement
29,318
28,745
27,728
2.0%
5.7%
Total
Assets under management
103,033
101,521
98,552
1.5%
4.5%
Other assets under advisement
29,544
28,672
26,268
3.0%
12.5%
Assets under advisement
132,577
130,193
124,820
1.8%
6.2%
Asset management
Mackenzie
Mutual funds
68,678
66,826
60,839
2.8%
12.9%
Change due to divestiture of Quadrus Group of Funds and Greenchip acquisition (see Table 3)
(13,216)
N/M
N/M
Total Mutual Funds
55,462
66,826
60,839
(17.0%)
(8.8%)
ETFs
3,788
3,619
2,372
4.7%
59.7%
Investment funds
59,250
70,445
63,211
(15.9%)
(6.3%)
Institutional SMA(4)
8,172
8,051
5,046
1.5%
62.0%
Change due to GLC (see Table 3)
43,516
N/M
N/M
Total Institutional SMA
51,688
8,051
5,046
N/M
N/M
Total (ex sub-advisory to Wealth Management)
110,938
78,496
68,257
41.3%
62.5%
Sub-advisory to Wealth Management
75,821
74,788
73,575
1.4%
3.1%
Total
186,759
153,284
141,832
21.8%
31.7%
ETF's distributed to third parties
3,788
3,619
2,372
4.7%
59.7%
ETF's held within IGM investment funds
4,663
4,596
2,376
1.5%
96.3%
Total ETFs
8,451
8,215
4,748
2.9%
78.0%
Consolidated
Assets under management
213,971
180,017
166,809
18.9%
28.3%
Other assets under advisement
25,979
25,226
23,226
3.0%
11.9%
Assets under management and advisement(5)
239,950
205,243
190,035
16.9%
26.3%
Table 3 –Acquisitions of GLC and Greenchip and the divestiture of the Quadrus Group of Funds
($ millions) (unaudited)
Mutual Funds
ETF's
Investment Funds
Institutional SMA
Total
Acquisition of GLC (net) on Dec 31,2020 (a)
-
-
-
33,524
33,524
Disposition of Quadrus Group of Funds (net)
on Dec 31, 2020
Dispositions (net) (b)
(3,407)
-
(3,407)
-
(3,407)
Transfers(c)
(9,992)
-
(9,992)
9,992
-
Total
(13,399)
-
(13,399)
9,992
(3,407)
Acquisition of Greenchip (net) on Dec 22, 2020(d)
183
-
183
-
183
Total
(13,216)
-
(13,216)
43,516
30,300
a
Acquired $37.5 billion in assets, of which $4.0 billion was sub-advisory to Mackenzie
b
Disposed of $7.6 billion in mutual fund contracts, of which on $5.4 billion Mackenzie will remain the sub-advisor. An additional $1.2 billion reflects Canada Life segregated funds transferring out of mutual funds managed by Mackenzie and sub-advised by third parties, and transferring into Canada Life mutual funds sub-advised by third parties
c
Canada Life segregated funds transferred out of mutual funds managed by Mackenzie and into mutual funds managed by Canada Life where Mackenzie is the sub-advisor.
d
Acquired $618 million in assets, of which $435 million was sub-advisory mandates to the Mackenzie Global Environmental Equity fund
Preliminary average assets under management and advisement for the quarter to date are set out in Table 4.
Table 4 - Average Assets under Management and Advisement
($ millions) (unaudited)
Quarter to date 2020
Wealth Management
IG Wealth Management
Assets under management
95,194
Other assets under advisement
5,101
Assets under advisement
100,295
IPC
Assets under management
5,225
Other assets under advisement
22,829
Assets under advisement
28,054
Total
Assets under management
100,419
Other assets under advisement
27,923
Assets under advisement
128,342
Asset management
Mackenzie
Mutual funds
65,804
ETFs
3,539
Investment funds
69,343
Institutional SMA(4)
7,843
Total
77,186
Sub-advisory to Wealth Management
73,682
Total
150,868
ETFs distributed to third parties
3,539
ETFs held within IGM investment funds
4,428
Total ETFs
7,967
Consolidated
Assets under management
177,605
Other assets under advisement
24,587
Assets under management and advisement(6)
202,192
1
ETF net creations excludes $32.3 million in ETF net creations to Mackenzie, IG Wealth Management and Investment Planning Counsel mutual funds.
2
Excludes net flows relating to sub-advisory mandates to the Wealth Management segment.
3
$66.4 million in Mackenzie investment fund net flows through the Wealth Management segment have been eliminated on consolidation.
4
Excludes sub-advisory to Wealth Management segment.
5
Within total assets under management and advisement, $3.6 billion in Mackenzie investment funds distributed through the Wealth Management segment eliminates on consolidation at December 31, 2020. ($3.4 billion at November 30, 2020 and $3.0 billion at December 31, 2019
6
Within average total assets under management and advisement, $3.3 billion in Mackenzie mutual funds distributed through the Wealth Management segment eliminates on consolidation.
Glossary of Terms
Mutual fund gross sales, net sales and assets under management reflect the results of the mutual funds managed by the respective operating companies, and in the case of the Wealth Management segment also include other discretionary portfolio management services provided by the operating companies, including separately managed account programs.
"ETF's" represent exchange traded funds managed by Mackenzie.
Institutional SMA represents investment advisory and sub-advisory mandates to institutional investors through separately managed accounts.
"Other dealer net flows" and "other assets under advisement" represents financial savings products held within client accounts at the Wealth Management operating companies that are not invested in products or programs where these operating companies perform investment management activities. These savings products include investment funds managed by third parties, direct investment in equity and fixed income securities and deposit products.
"Assets under advisement" represents all savings products held within client accounts at the Wealth Management operating companies.
"Net flows" represents the total net contributions, in cash or in kind, to client accounts at the Wealth Management operating companies and the overall net sales to the Asset Management segment.
"Wealth Management" – Reflects the activities of operating companies that are principally focused on providing financial planning and related services to Canadian households. This segment includes the activities of IG Wealth Management and Investment Planning Counsel. These firms are retail distribution organizations who serve Canadian households through their securities dealers, mutual fund dealers and other subsidiaries licensed to distribute financial products and services. The majority of the revenues of this segment are derived from providing financial advice and distributing financial products and services to Canadian households. This segment also includes the investment management activities of these organizations, including mutual fund management and discretionary portfolio management services.
"Asset Management" – Reflects the activities of operating companies primarily focused on providing investment management services, and represents the operations of Mackenzie Investments. Investment management services are provided to a suite of investment funds that are distributed through third party dealers and financial advisors, and also through institutional advisory mandates to pension and other institutional investors.
IGM Financial Inc. is one of Canada's leading diversified wealth and asset management companies with approximately $240 billion in total assets under management and advisement. The company provides a broad range of financial planning and investment management services to help more than two million Canadians meet their financial goals. Its activities are carried out principally through IG Wealth Management, Mackenzie Investments and Investment Planning Counsel. IGM Financial is a member of the Power Corporation group of companies.
IGM Financial Inc. is a Canada-based wealth and asset management company. The Company operates through three segments: Wealth Management, Asset Management and Strategic Investments and Other. The Wealth Management segment includes the activities of operating companies that are principally focused on providing financial planning and related services to Canadian households. The Asset Management segment includes the activities of operating companies primarily focused on providing investment management services and represents the operations of Mackenzie Investments. Investment management services are provided to a suite of investment funds. The Strategic Investments and Other segment primarily represent the key strategic investments made by the Company, including China Asset Management Co., Ltd., Great-West Lifeco Inc., Rockefeller Capital Management, Northleaf Capital Group Ltd., Wealthsimple Financial Corp., and Portage Ventures LPs, as well as Unallocated capital.