IGM Financial Aktie

Good morning, everyone. And -- I'm going to say my name is Jeffrey Orr. I'm looking out at faces that I think I know almost everyone here, but there are also folks on the line as well. So everyone, welcome to the Annual Meeting of IGM Financial. And it's my pleasure to be here with you.

[Foreign Language] the Annual Meeting of Shareholders of IGM.

In Winnipeg on the original lands of the [Foreign Language] And our Manitoba office is also located on the National homeland of the Red River Métis and in the heart of Treaty 1 Territory. As a founding signatory of the Winnipeg indigenous accord, we are committed to building relationships with Canada's first peoples guided by the principles of respect, quality and collaboration.

So with that, I'd like to welcome everyone who is joining us here today. And with me on the stage is James O'Sullivan, President and CEO of IGM Financial; and Sonya Reiss, Corporate Secretary of IGM.

So in our remarks today, we may make forward-looking information or non-IFRS financial measures. And there's a long legal cautionary statement that's on the screen that you can also find in the annual report and available on our website.

So the formal part of the meeting consists of tabling the annual financial statements and report, the election of directors, appointment of auditors, an advisory vote on executive compensation. And then James is going to give us the CEO's address. I'll make some brief remarks following that, and then we'll have a Q&A period.

So I'm going to call the meeting to order. I'll preside as Chair and Sonya Reiss will act as Secretary of the meeting. Kyle Gould and Erika Gourlay of Computershare Investor Services will act as scrutineers for the meeting. The notice of meeting was mailed or electronically delivered to shareholders of record as of March 13, 2026. The scrutineer has confirmed that the required quorum of shareholders is represented at the meeting. So I declare the meeting duly constituted for the transaction of the business.

We're first going to deal with the formal part of the business. And as I said, then there will be an opportunity for folks to ask questions. Voting at today's meeting will be conducted by ballot. If you've already voted by proxy, you don't have to complete a ballot. I will direct you to vote on each matter of business at the appropriate time. And to vote by ballot, you simply place an X in the appropriate box and print and sign your name clearly. After the final vote at today's meetings, the results will be tabulated by Computershare and announced before the close of the meeting.

Okay. The first item of business is the presentation of the 2025 annual report, contains the corporation's audited consolidated financial statements and the auditor's report and it was mailed or electronically delivered to shareholders upon request. A copy of the annual report is also available at today's meeting somewhere here, and it's available on the website.

So I'll move to the election of directors. And before we proceed, I'd like to acknowledge 2 of our directors who are not standing for reelection. First is Susan Doniz, who -- she has been a Director of IGM since 1917 (sic) [ 2017 ] a member of the Audit Committee, member of the Related Party and Conduct Review Committee and Risk Committees and has really contributed hugely over the last 9 years. She was here yesterday and last night. We recognized through last year -- last night, unfortunately, Susan is not able to be with us this morning, but I wonder if we could give a round of applause for Susan Doniz.

Also not standing for reelection, see if I can make it through this without welling up is John McCallum, who has been on the IGM Board since 1998, 28 years, back all the way to 1990, though, on the Investors Group Trust Board and the Investor Syndicate Trust Board. As you -- it's funny to introduce him here in Winnipeg after 48 years of teaching finance and capital markets to probably many of you in the room at the University of Manitoba. He's Professor of Emeritus, and -- but more than that is just the absolute spirit of the Board has been an incredible contributor. I think he's not only trained many of the officers of IGM, he's kind of broken in many of the directors of IGM, managed many of the transactions that we had to do. If there was a related issue with -- Great West or Canada Life or anything to do with any other part of the organization on IGM, we would have the related party committee or a special committee if it was a large transaction, huge amount of work. John was exemplary. He was absolute leader on the board. I'm not going to repeat everything I said, John, last night because we'll be here a while. But just in front of all of your fellow directors and in front of many colleagues that you know. Thank you so much for all that you have done for IGM over the years. I wonder if we can give John a round of applause.

So a Board of 16 directors is to be elected at today's meeting. The names and certain information relating to those persons is contained in the management proxy circular. One new candidate is included in the slate of directors nominated for the election. Damon Murchison is being nominated for election. I think most of you know the background to that. But in February, Power Corporation and IGM announced that James O'Sullivan would be moving into the position of President and CEO of Power Corporation, effective July 1. And will move -- and the Board of IGM this morning also approved that effective July 1 would become the Chair of IGM. As part of that, you know that Damon Murchison will be appointed at that time as the President and CEO of IGM, while retaining his role as the CEO of IG Wealth Management. And I will be moving to Vice Chair role of Power Corp. and staying on the Boards of Power and IGM. So with all that by way of background, we'll have some more comments to make about that later in the meeting. Damon is being proposed as an additional director on the Board.

So I'll now entertain nominations for the election of directors.

Chair, I nominate those persons specified in the management proxy circular, namely Marc A. Bibeau, Andra Bolotin, Betsey Chung, Marcel Coutu, André Desmarais, Paul Desmarais, Jr., Gary Doer, Claude Généreux, Sharon Hodgson; Jake Lawrence, Sharon MacLeod, Susan McArthur, Damon Murchison, R. Jeffrey Orr, James O'Sullivan and Beth Wilson to serve as directors of the corporation to hold office until the next Annual Meeting of Shareholders or until their successors are duly elected or appointed in accordance with the articles and bylaws of the corporation.

Thank you, Moya. Are there any questions or comments relating to the election of directors?

As a reminder, if you are a shareholder or a duly appointed proxy holder and you have a question, please raise your hand. I guess I should have said that before. There's no questions.

So we will -- I'll declare the nominations for the election of directors closed. And we will now proceed to vote on the matter. The Board of Directors and management are recommending you vote for the director nominees listed in the proxy circular. So with those who have not already voted by proxy, please take your ballots. I don't know if you've got folks voting in the room by ballot. You can vote for or against each nominee individually by placing an X in the appropriate box.

[Voting]

Okay. I'll move right along.

The next order of business is the appointment of auditors. It's proposed that the current auditor, Deloitte LLP, be reappointed as auditor of IGM. May I have a motion to that effect.

[indiscernible]

Thank you, John. Do I have a seconder?

I second the motion.

Thank you, Ian. Any discussion?

So if not, we'll now vote on the matter and the Board and management are recommending you vote for the reappointment of Deloitte LLP. And now would be the time for registered shareholders to vote if you're voting by proxy, if you haven't already done so, by placing an X in the appropriate box in the section entitled Appointment of Auditor.

[Voting]

I don't see a lot of hands going on. I'm not sure we have anyone voting in the room. Okay.

So then the next order of business is a consideration of a vote on IGM's approach to executive compensation and the text of the proposed resolution was included in the management proxy circular. May I have a motion, please.

I move on an advisory basis and not to diminish the role and responsibilities of the Board, the shareholders accept the approach to executive compensation disclosed in the management proxy circular.

Thank you, [indiscernible] Is there a seconder?

I second the motion.

Thank you, Esther. So thank you.

So one of the Board's primary responsibilities is to ensure that we're able to attract retain and reward qualified and outstanding executives. And the compensation program is designed just to do that, and it's aligned, we believe, with the interest of stakeholders, including the shareholders. And so we are recommending that you vote for the compensation practices of the company. So any questions on this matter before we propose to a vote or a move to a vote?

Okay. Seeing none. The Board of Directors and management are recommending you vote for the approach. Registered shareholders or their proxy holders who haven't done so can vote by placing an X in the appropriate box under the section entitled Advisory Vote on Executive Compensation. You may vote for or against.

[Voting]

So that concludes the voting at today's meeting. And with those of you who have voted, if any, I'm not sure there are, please pass your ballots to the outside aisles where they will be collected and delivered to Computershare for tabulation. We'll announce the votes as I said, prior to the close of meeting.

So that concludes the formal part of the meeting. We're going to have a short video followed by some remarks by James O'Sullivan. So if it all works there's a video that's going to show up on the screen.

[Presentation]

Well, good job, Doug. Well done. Thank you, Jeff, and thanks to all of you for joining us here today in Winnipeg for our annual meeting. [Foreign Language] Winnipeg for our Annual Meeting of Shareholders. This is a special year for the history of our company because we are celebrating the 100th anniversary of IG Wealth Management, which was founded in 1926.

We're marking the 100th anniversary of IG Wealth Management, which was founded in 1926. Few organizations have had the privilege of earning the trust of Canadians for a full century through multiple economic cycles, social changes and global events. We are grateful for that enduring trust today as IGM continues to grow, evolve and adapt to the needs of generations of Canadians.

2026 also brings a change in leadership at IGM that reflects our commitment to strong succession planning. Earlier this year, Power Corporation announced that Jeff Orr will move into the role of Vice Chair in July, and I will take on the role of President and CEO of Power Corporation, IGM's parent company. I'd like to take a moment to recognize Jeff, for the impact he has had on this organization over the past 25 years. First as CEO of IGM in 2001, then as CEO of Power Financial in 2005, Chair of our IGM Board since 2008 and CEO of both Power Financial and Power Corporation since 2020. Under Jeff's leadership at Power, IGM has benefited from a Chair who understands the importance of long-term thinking, disciplined capital allocation, and the strategic evolution of our company to meet the needs of Canadians.

Jeff, I'd like to personally thank you for your steady guidance during my past 6 years as CEO, a very significant transformational period in IGM's history. As I reflect on that period, I am particularly proud of 4 strategic achievements that helped define this chapter of our journey. First, we made it a priority to complete the projects that we started in our multiyear transformation and ensure that those changes translated into real benefits to the organization. Then we diversified the business and rearchitected it for long-term growth, creating two divisions: Wealth Management and Asset Management, anchored by IG Wealth Management and Mackenzie Investments. Strategic investments in high-growth businesses continued to be an important part of our story, driving growth while diversifying our geographic reach, business model and client segments.

Next, we focused on operational excellence. Our leaders did the very hard work of translating strategy into tangible results, delivering innovative products, enhancing client experience, and strengthening shareholder returns. Finally, we focused on clearly communicating our compelling story to the marketplace, and we were rewarded when our share price reached a record high in 2025 and '26. Jeff, the strength and momentum in this organization today reflects the foundation you helped build and reinforce. Thank you on behalf of the IGM Board, our leadership team and our employees and advisers.

Now while this is my last annual meeting as CEO of IGM, I'm proud to leave this business in very capable hands. I'll share more about that shortly following a review of our results and business highlights. Overall, 2025 was a very strong year for IGM, delivering record results across the business. Total shareholder returns reached 41% for the year, bringing our 5-year average to nearly 19% while also returning capital to shareholders. Importantly, our clients also benefited achieving solid returns of 12% despite ongoing global economic and political shifts.

IGM ended 2025 with record assets under management and advisement of $310 billion, an increase of 15%. Our annual adjusted net earnings were a record $1.09 billion or $4.61 per share, up 17%. We were pleased to increase our dividend by 10% to $0.62 per share per quarter, a reflection of the strength of our businesses and solid financial results. This strong performance carried forward into the early part of 2026, with particularly strong results in January and February that were somewhat tempered by market volatility in March. We wrapped up the first quarter of this year with assets under management and advisement of $314 billion, up 14% from December 31, '25. Our first quarter net -- adjusted net earnings were a record high $284 million or $1.21 per share compared to $238 million or $1 per share in 2025.

Throughout 2025, IGM continued to execute against our strategy and make meaningful investments in our core wealth and asset management businesses to enhance the client and adviser experience, drive earnings growth and return capital to our shareholders. Our strategic investments created additional value with both Rockefeller and Wealthsimple, completing very significant transactions that strengthened their businesses and demonstrated increased value of our ownership position. For several years, IGM has invested heavily in technology to deliver more integrated personalized financial planning tools for advisers, enhanced investment management capabilities, improved workflow productivity and efficiency and to provide our clients with a more seamless and consistent experience. Today, we're building on that foundation by implementing AI tools across our business and ensuring every employee has access.

AI is already helping IGM's teams produce real results, generating faster insights, strengthening security and delivering more personalized campaigns. In 2025, we accelerated our smart technology investments, integrating AI tools, such as Microsoft Copilot and ChatGPT into our best-in-class partner platform, including Salesforce and Adobe. We look forward to sharing more with you on AI at IGM in the coming weeks and months.

With that, I'll turn now to the 2025 results of our Wealth and Asset Management divisions. Our Wealth Management segment, anchored by IG Wealth Management and including our strategic investments, Rockefeller and Wealthsimple, had a very strong year. IG President and CEO, Damon Murchison, and his team continued provide top-tier financial planning to achieve long-term success for our clients, advisers and the business. The results were impressive. Clients saw strong investment returns of 12%, reinforcing the value of disciplined professional advice.

Assets under advisement grew 13% to a record $159 billion, while net inflows reached $2 billion, up from $756 million in 2024. IG continued to make strong progress in new client acquisition, particularly in the mass affluent and high net worth segments. These are clients with more complex needs who value comprehensive financial planning. It's an area where IG's advisers continue to compete and win.

Now high net worth client assets under advisement grew 27% to $78 billion and now account for 39% of new client inflows. Together, mass affluent and high net worth households represented more than 85% of IG's assets under advisement. IG also reached a significant milestone in 2025 when it received regulatory approval to merge its mutual fund and investment dealers into a single dual registered dealer, IG Wealth Management, Inc. This move simplifies IG's operating model and strengthens the IG brand while delivering a more seamless experience for clients. At the same time, IG continued to broaden its capabilities to address the full spectrum of clients' financial lives. IG's mortgage business was fully integrated with Nesto, driving 23% year-over-year growth in mortgage funding, while insurance new annualized premiums rose nearly 16%. These are concrete examples of how integrated advice creates real value in client relationships.

Through targeted investments in platforms like ClearEstate and interVal, IG continued to broaden partnerships that support clients across every part of their financial lives. IG also introduced new savings options for first-time homebuyers, initiatives that help advisers deliver more holistic personalized advice and offerings. Further, our wealth management strategic investments continued to deliver exceptional results.

Wealthsimple achieved remarkable growth with assets under advisement rising to $111 billion, up from $64 billion in '24, 74% -- up 74% year-over-year. Rockefeller also achieved strong results with client assets reaching $271 billion, up 25% from the prior year. IG's ongoing success was evident in Investment Executives 2025 National Dealer Report Card. The firm ranked #1 among full-service dealer firms nationally with an overall score of 8.8, improving once again from the prior year. IG ranked first in the report card across key categories, including financial planning, support and technology, tax and estate support, adviser education, client relationship tools and high net worth client support. And IG's profile in the marketplace continued to expand. IG ranked #1 in earned media share of voice among Canadian banks and independent wealth brands for the third consecutive year and garnered the top position for the most visible industry spokesperson.

So I'd like to turn now to our Asset Management business, which includes Mackenzie Investments as well as strategic investments in Northleaf and China AMC. Under the leadership of Luke Gould and his team, Mackenzie has solidified its position as a leading brand in Canada with international reach. The business has a focus on winning Canadian retail, continuing to build meaningful strategic partnerships and growing our presence in the institutional segment. The business achieved robust results in 2025, including time record high net sales of $6.7 billion and assets under management growing 14% year-over-year to $244 billion, up from $213 billion in '24.

Mackenzie's ongoing focus on product innovation continued to bring proven international investment capabilities to Canadian clients last year. The firm launched 23 new investment funds, expanding its quantitative equity platform and strengthening the fixed income lineup with yield-focused solutions. Mackenzie's global quantitative equity team delivered exceptional results in 2025 and is very well positioned for continued growth and innovation. The team managed $25 billion in assets under management in '25, close to double that of 2024, and retail momentum remained strong. 13 quantitative investment mandates across mutual funds and ETFs generated more than $2.5 billion in net sales in 2025.

It was also a landmark year for Mackenzie's institutional business, which earned $6 billion in new mandates from some of the world's largest institutional investors and Canadian financial services providers. These wins contributed to strong institutional net sales in '25, validating Mackenzie's world-class investment capabilities and representing a significant tipping point for this growing channel. Mackenzie is committed to expanding retail investors access to private assets. With the launch of Mackenzie Northleaf Multi-asset Private Markets Fund in October, the business now offers 5 innovative Northleaf solutions that broaden retail investors access to privates. Together, these funds saw asset growth of 79% in 2025, ending the year with $582 million in assets.

The firm's efforts received recognition in the 2025 Advisor Perception Study, where Mackenzie delivered standout ETF results, rising to #3 in '25 from #8 a year earlier, while our Net Promoter Score increased to #2 in the industry from #3 in '24. These strong rankings demonstrate the high level of confidence our clients place in Mackenzie and are a testament to our drive to create a more invested world together.

Strategic investments in our asset management business continued to drive strong results in 2025. Last year marked the fifth year of our partnership with Northleaf who joined us today, which has delivered consistent growth and expanding capabilities to the business. Northleaf's assets under management grew 9.4% to $35 billion last year, including fundraising of $5.8 billion. China AMC demonstrated resilience in 2025 with investment fund assets rising 28% year-over-year as the business increased its market share of long-term funds and benefited from a rebound in Chinese equity markets.

Now IGM is committed to creating positive change and helping build strong, resilient communities across Canada. Our collective efforts to support our people, strengthen communities across the country, and improve the lives and financial well-being of Canadians brought renewed recognition in 2025. We were named one of Canada's top 100 employers for 2026. We were also recognized as one of Canada's Greenest Employers, one of Canada's Best Diversity Employers and one of Manitoba's Top Employers for 2025 by MediaCorp Canada, reflecting our commitment to fostering an inclusive, engaged and supportive workplace.

During the year, we advanced the long-term goals and targets of our sustainability strategy, Action Today, Better Tomorrow, we call it, which focuses on three key areas: Action on indigenous reconciliation, action on climate and action on economic empowerment. These efforts were recognized by Corporate Knights, which named IGM one of Canada's Best 50 Corporate Citizens and one of the 2026 Global 100 most Sustainable Corporations.

Inclusion also remains a priority for us. In 2025, we achieved the top score of 100 on Disability -- IN's Disability Index as we enhanced accessibility through American Sign language, [indiscernible] and real-time translation services. We also partnered with RRC Polytech to welcome our first cohort of indigenous students for summer work terms through IGM Power's -- IG's Empower your Tomorrow community platform. Mackenzie further advanced inclusion through grants, internships and its employee-led charitable foundation which has donated over $16 million to more than 90 Canadian grassroots charities since 1999. Further, the IGM given campaign achieved record employee and adviser participation last year, raising more than $1.5 million for the United Way and Mackenzie Investment's Charitable Foundation, while the IG Wealth Management Walk for Alzheimer's welcomed 28,000 participants coast to coast and raised a record $7.2 million.

A year ago, we introduced our refreshed set of action-based corporate values that inform our culture and our day-to-day work, be better, be accountable and be a team. Our people feel a strong connection to IGM and to one another as they challenge themselves to deliver their best every single day. These values guide all that we do at IGM and they resonate strongly with me today.

As I mentioned earlier, this is my last annual meeting as CEO of IGM, it has been an honor and a professional highlight to have worked here alongside leaders who have made IGM what it is today, a stronger, more diversified business focused on growth, and grounded in our purpose of bettering the lives of Canadians by better planning and better managing their money. I'd like to thank my exceptional leadership team who are here with us today, who will continue to build on this great foundation while delivering long-term value to our shareholders.

The leadership changes we announced in February were designed to support continuity, strengthen leadership across the businesses and position our company for ongoing growth. Damon Murchison has been appointed President and CEO of IGM effective July 1. He will continue in his role as President and CEO of IG. And I couldn't be happier for him. It's the culmination of an outstanding track record at both Mackenzie and IG over the past 11 years, and a reflection of his strong leadership and ability to work right across this organization. A champion of IGM's culture, Damon leads with a people-first mindset is committed to collaboration and accountability and has a genuine belief in our mission to improve the lives and financial well-being of Canadians. I could not be more confident in his ability to lead this company forward.

Damon will continue to work closely with Luke Gould, who will continue in his role as CEO of Mackenzie Investments. Since stepping into this position in 2022, Luke has brought deep institutional knowledge, strong financial discipline and very clear strategic insight to the organization. His steady leadership has reinforced a long -- sorry, a long-term focus on investment excellence, client outcomes and sustainable value creation. Under their leadership, IGM is well positioned for the future, and I look forward to continuing to work with Damon and Luke and the entire leadership team in my new role and as Chair of IGM. I'd like to thank our incredible employees and advisers for embracing the transformational challenges that we've implemented over the past 6 years and adapting to new technologies like AI and an ever-changing market environment. Together, you delivered a record-breaking year for 2025 for our clients and for our shareholders.

Finally, to our shareholders, thank you for your ongoing support. It has made IGM the company that it is today. The diversification we have built across our Wealth and Asset Management businesses, including our strategic investments in high-growth businesses and our commitment to innovation and excellence positions us well for the opportunities ahead and a strong enduring future. [Foreign Language] '26 and celebrating the 100th anniversary of IG Wealth Management while welcoming new management at IGM with strength and trust.

And a new era of leadership at IGM, we do so from a position of strength and confidence. Thank you.

Thank you, James. I want to say a few words about Damon as well. I'm absolutely delighted -- where is Damon, I'm looking for, I'm going to -- there you are, Damon. Absolutely delighted you're going to be playing an even larger role in the success of IGM as you have in the past. James mentioned it 5 years at Mackenzie, a huge contribution in the last 6 years as Head of IG Wealth. It's absolutely fantastic. You have an industry understanding that's unparalleled. You've got a great knowledge of our company. You've got a leadership style, I think which is tremendous. It's focused and energetic but it's thoughtful and deliberate, all at the same time, it's a really amazing combination. So as I said last night, you've got all the tools to succeed and you got a team at IG Wealth and then you look across Mackenzie and Luke and the strength of that team. And then at the strategic investments, Stuart Waugh is here just present -- where is Stuart, you were somewhere -- CEO and Founder of Northleaf, presented at the IGM Board this morning. I think Mike Katchen at Wealthsimple, you think of Greg Fleming at Rockefeller and the team at China Asset Management. I mean, it's got the team is outstanding. The positions are great, and you're a great leader. So it's going to be fantastic. I wish you all the luck. You'll get all the support from James that you could ever want me to, just in a smaller role.

A word on James. James, you have done an outstanding job at IGM. I'm not surprised, but it's been just a fantastic 6 years. James' leadership skills, his judgment, his intellect, his ethics and his values and his humanity. I mean it all comes together into a leader who is able to develop people, give direction, give them their swim lanes, but not do their job. Not obvious for a lot of leaders who have made it by doing everybody else's job. James has got that combination just right. And he has been an ideal leader for IGM, and he will also be that at Power Corporation. He really gained the confidence not only of the IGM leadership team. He's been on the Board of Great-West Life, of Empower and of Rockefeller, of Wealthsimple, I think of Northleaf as well, if I'm not mistaken. Across the organization, he's gained the confidence of the leadership and as well at Power Corporation. And so James, congratulations to all that you have done over the last 6 years, and you're going to do a great job with Power Corporation as well, and I'm looking forward to helping you in whatever way I can as we move forward. Congratulations.

And then finally, I'm not leaving the Board or I'm not leaving the company, but it is the last chance I'll get to stand in front of you in this podium. So I'll just -- you'll indulge me for a couple of minutes while I say a few remarks. It's been 25 years since I've been with IGM, and I am absolutely humbled, I'm honored. I'm thrilled of the time that I have spent with all of you. I feel fortunate and lucky to have been in this position. I can't believe how far the company has come. Luke, who knows the odd fact here and there reminded me that we acquired Mackenzie April 20, 2001. I just -- I showed up right about a week later, but was involved in that transaction. So it was basically IG and then look at where it is and it's what the team and the management has done has been incredible.

I have -- my association with the group goes back to the early 1980s. Andre knows, in '82, '83, I was a young bag carrier at Nesbitt Thompson investment banker covering Power Corp, our biggest client. And I told the story at the Great-West Life Board meeting yesterday. But in 1984, Power Financial was launched public and we needed a prospectus to describe Investors Group, Great-West Life, and I was sent to Winnipeg to meet Bob Jones at 280 Broadway where the head office was and describe the company. And so it goes back a long way. And I'm not going to go through every detail of it, but it's been -- it's a long, long history. And while I feel close to Power and feel close to -- Great-West, obviously, I got a pretty special spot in my heart for IG because I came out here and spent 4 years as CEO of IG and IGM. I look around the room, many of you here and many who are not here. And so it's very meaningful to me.

I want to say the thing you remember is not all the transactions, it's the team, it's the people, the management, the leaders I've worked with the Board, all the directors here, the previous directors. Andre, yourself and Paul, who, as I said yesterday at the meeting who provide the long-term vision and the commitment to the values and that you cannot understate the importance of that. That underpins and anchors everything that management does and the confidence that management has to take long-term decisions.

And then finally, the financial advisers, like we call them consultants and then advisers. [Foreign Language] Every time you go out and spend time...

Our advisers have such passion. They wear their hearts on their sleeves. They care about their clients. They care about their colleagues, and that invigorates you to come and want to come and do more for them. All of that has been what has made this a fantastic 25 years for me. I'm not going anywhere. I'm staying on the Board, but I want to say thank you. It's been an absolute thrill. Thank you very much.

Now we will have shareholder questions. So I'll open the meeting to questions from shareholders or proxy holders. If you are a shareholder or a duly appointed proxy holder, and you wish to ask a question, please raise your hand and a microphone will be brought to you.

And if you do have a question -- I don't see any questions. I was going to tell you to state your name, but -- no questions? Okay. If there are no questions, we're going to move to the scrutineers.

You're out of order, sir. And could you please...

But I'm going to give you one. No. Well, first of all, I'm a shareholder and a client. So I'm happy to be both. And -- but I would like to say this, Jeff is very humble and he's done a fabulous job for us, and we've been very fortunate to have him as a leader. And -- but we've also been extremely fortunate to have been able to attract extraordinary people. And my brother and I cannot thank you enough for everything that all of you do day after day. And you just continue to deliver. I mean, when you looked at this company, investors and now you add Mackenzie, Rockefeller, Wealthsimple, I mean, Northleaf, it's fantastic what's happened to this place. It really is. And you guys made it happen. And our wonderful advisers who keep this company or the heart of the company who make sure that the culture keeps and stays strong, are really deserving of a lot of that thanks that we would like to convey to each and every one of you. So Jeffrey, thank you to you. James, congratulations to you and Damon for your new challenges.

The previous people have done extraordinarily well. We don't want to put undue pressure on you, but that's my job as to see whether we can get you to outperform this group here. There's a little upstarts. But thank you, and I think all shareholders should rise and thank the advisers and thank the management. And when I mention some names, I don't want to exclude anybody at all. But obviously, Damon and Luke and their teams are deserving a huge amount of credit here, and I'd like to thank them also. So thank you very much.

That was the best comment from the floor we've ever had at these meetings. Never hear -- exactly. It's also the only comment we've ever had, but that's another issue.

Okay. So with that, could I -- I believe the scrutineers have completed their report and their preliminary report, and I wonder if we could get that report. I'm not sure who is -- here we go. Thank you.

Mr. Chair, the voting results are as follows. Each of the 16 nominees for directors of IGM Financial were elected by more than 93% of the votes cast. The resolution to appoint Deloitte LLP as auditor of IGM Financial was passed by more than 98% of the votes cast. The resolution to accept the approach to executive compensation as outlined in IGM Financial's Management Proxy Circular was approved by more than 99% of the votes cast. In accordance with securities law requirements, the final results for IGM Financial will be posted on the SEDAR+ website. In accordance with the Toronto Stock Exchange rules, IGM Financial will also issue a press release announcing the director election results today.

Thank you very much, Mr. Gould. I declare all motions therefore adopted and passed as presented at this meeting.

So just in closing, I'd like to thank in addition to management and to our advisers and the boards, which we've already spoken to in our employees. I'd like to add my thanks for the support of our clients and our shareholders, thank you for your ongoing support. So that concludes the meeting. [Foreign Language] And there's going to be a light lunch served. I think it's on the second floor, one floor above us here. And thank you for joining us. I declare the meeting concluded. Bye.

Thank you for standing by. This is the conference operator. Welcome to the IGM Financial First Quarter 2026 Analyst Call and Webcast. [Operator Instructions] The conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to Kyle Martens, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you Betsy. Good morning, everyone, and thank you for joining us. On the call today, we have James O'Sullivan, President and CEO of IGM Financial; Damon Murchison, President and CEO of IG Wealth Management; Luke Gould, President and CEO of Mackenzie Investments; and Keith Potter, Executive Vice President and CFO of IGM Financial.

Before we get started, I would like to draw your attention to our cautions concerning forward-looking statements on Slide 3 of the presentation. Slides 4 and 5 summarize non-IFRS financial measures and other financial measures used in this presentation. And on Slide 6, we provide a list of documents available on our website related to IGM Financial's 2026 1st quarter results.

And that will take us to Slide 9, where I'll turn it over to James.

All right. Good morning, everyone, and thank you for joining us today. The first quarter has set 2026 up to be another strong year for IGM Financial, with well positioned Wealth and Asset Management businesses, record high client assets, and an operating environment that despite periodic market volatility has continued to be resilient. Adjusted EPS of $1.21 is a first quarter record with strong earnings growth in both our Wealth Management and Asset Management segments, demonstrating IGM's diversified growth.

During the quarter, we also returned a record amount of capital to shareholders through our quarterly dividend and a meaningful share buyback program. We also announced in February a well-planned leadership succession with Damon Murchison taking the role of President, CEO of IGM on July 1. Most of you already know Damon from his significant contributions as the Head Retail Sales at Mackenzie during the 2010's, and as IG Wealth's CEO since 2020. He has the confidence of the Board, our employees and our advisers, and is uniquely positioned to build on IGM's financial strength and momentum.

Turning to Slide 10. The operating environment for our Wealth and Asset Management businesses continues to be solid and resilient despite periodic market volatility tied to geopolitical tensions. IGM's momentum and diversity within our core businesses and our strategic investments, positions us very well for continued growth.

On Slide 11, IGM's year-over-year earnings growth was 20% in aggregate with contributions, as you can see from all segments. And combined with client assets presented on Slide 12, demonstrates the diversified growth across our Wealth and Asset Management businesses.

Turning to Slide 13. I want to help paint a picture of how we're thinking about and approaching artificial intelligence at IGM. First, our core businesses at IG Wealth and Mackenzie have advantages that we are leveraging and extending to drive adviser productivity, investment outcomes and client experiences. At IG, for instance, one key advantage is our starting point with industry-leading adviser technology with a strong foundation of system integration and proprietary data ownership.

At Mackenzie, our Investment Management teams have been using AI technologies for many years, perhaps most notably in our Global Quantitative Equity boutique. These capabilities have been increasingly attracting the attention of the world's largest and most sophisticated investors. Across IGM AI will also further abate our operational effectiveness and efficiency. Looking forward, responsible AI use and oversight, fintech and global technology partners, horizontal connectivity across IGM's core businesses and strategic investments, combined with the Power Group ecosystem, will all serve as key enablers for IGM Financial in this rapidly evolving age of intelligence.

With that, I'll turn it over to Damon to discuss IG's first quarter results.

Good morning, everyone, and thank you, James. We look forward to working with you in your new role. I'm confident as ever in the position of the strength that you're leaving IGM in.

Turning to Slide 15. We can demonstrate this strength and continued momentum through the first quarter at IG Wealth,Rockefeller and Wealthsimple. IG Wealth provided another strong quarter with record quarter ending AUM&A-- record Q1 gross inflows and sales as well as record Q1 net sales into IGM product. This solid performance contributed one of IG Wealth's best first quarter earnings on record, which Keith will speak to a little later. The quarter ended with AUM&A just shy of $163 billion, up almost 15% versus Q1 of last year, and up 2% quarter-over-quarter, driven by strong net flows. Gross inflows were $8.2 billion and gross sales were $6.2 billion, both first quarter records.

As we spoke to on our Q4 call, I'll remind everyone that these flows included non-fee-bearing assets related to our relationship with Rockefeller, and excluding those flows, gross inflows were $5.2 billion. We also continue to demonstrate that we are a new client acquisition machine, and new client growth inflows of $1.4 million, a first quarter record, with 77% of those flows coming from mass-affluent and high net worth clients, exactly the segments that we've been building this business around.

The first quarter was our seventh consecutive quarter of positive net flows and we were once again ranked #1 in earned media share of voice amongst Canadian banks and wealth managers in our fifth quarter in a row in the top position. 2026 is a special year for IG. It's our 100th year anniversary, which we officially celebrated last week. Our business has evolved over the years. We're very, very proud of our past, and we're confident about our future. And our ability to continue to gain market share while helping Canadians achieve their financial well-being.

Later in my section I also review successful quarters for both Rockefeller and Wealthsimple, and how they continue their strong execution of their respective growth strategies. As we move to Slide 16 and beyond, my comments will focus on flows, including non-fee-bearing assets.

Slide 16 offers a good snapshot for our momentum, one that we see continuing as this business and our advisers continue to execute with focusing solidly anchored on financial planning and relationships that often span generations. The first quarter delivered our strongest first quarter growth inflows on record, and our clients continue to dollar average cost into the market through IGM product at a record place. During the month of April, our results were also in line with seasonal trends as our advisers turn their focus to long-term tax planning and our clients pay their annual personal taxes.

Turning to Slide 17. Here is an overview of our operating results, providing a window and the strength of this business. The top left, you can see strong growth in our gross inflows, which were up over 24% versus last year. While in the top middle, you can see IGM products continue to represent a very strong share of approximately 88% of our total M&A supported by strong 4- and 5-star Morningstar ratings.

On Slide 18, you can see our advisers strongly to attract new clients to IG Wealth, particularly mass affluent and high net worth with a record $1.4 billion in growth flows from new acquired clients, 77% of which were mass affluent and high net worth. Also remind you that during Q1 of last year, we saw a few ultra-high net worth clients representing approximately $160 million onboarded. Q1 of last year was truly an exceptional quarter for us in high net worth. And despite this tough comp, our Q1 this year was also very strong. In fact, our best Q1 on record via total new client gross inflows.

Turning to Slide 19. The first quarter also demonstrated the continued strength in our non-AUM&A-driven businesses, mortgage banking and insurance. While the mortgage business was operating in a challenging industry backdrop this quarter as compared to the very different environment a year ago, to continue to deliver strong performance with a 2-year cumulative growth of almost 20%. Our insurance business was firing in all cylinders, setting a record first quarter of first year commissions. All told, our new annualized insurance premiums grew by over 41% versus Q1 of last year.

On Slide 20, you can see the continued strength of Rockefeller with asset growth over 30% over the past year. Last 12 months, Rockefeller has delivered an organic growth rate of over 7% solidly within the targeted range that we provided at our last Investor Day. On adviser count, during the quarter, Rockefeller also refocused some components of their legacy business to better support their global family office business, driving a slight reduction in their private adviser count. Most importantly, there were no advisers left the firm. And over the last 12 months basis, Rockefeller has added 45 new advisers, representing growth of over 10%.

Turning to Slide 21. You can see another exceptional strong record quarter for Wealthsimple. Client assets were up 71% versus a year ago, driven by their highest quarterly net flows on record, and client count was up 24% versus Q1 of last year. Wealthsimple continues to deliver on its growth-oriented strategy, attracting new clients and gaining higher share of wallet from existing clients, supporting its position as one of Canada's fastest-growing financial services companies.

With that, I'll turn it over to Luke.

Great. Thanks, Damon. Good morning, everyone. Turning to Page 23, you'll see highlights from Mackenzie and the Asset Management segment for the quarter.

We are pelased with the continued momentum in the business during the first quarter across a number of dimensions. And this momentum has continued into our second quarter. Our AUM, which you can see at the top left, increased during the quarter driven by strong net sales. And by the end of April, our AUM had increased to a record high level of $256 billion. We had net sales of $1.7 billion in the quarter, which included $1.2 billion in institutional awards and, also $729 million in investment fund net sales. This was the best first quarter investment fund net sales in 4 years for us and up meaningfully from last year, driven by strong momentum in retail. This retail momentum is continuing into the second quarter and is published earlier in the week, we are second best April investment fund net sales result ever.

Under-- actually, I'd also highlight that we had around $2 billion of institutional awards that were awarded to us during the first quarter that are going to fund in the second quarter. For this $2 billion, the wins were across both Canadian and foreign clients and reflected our Global Quant equity capabilities as well as Canadian equity mandates managed by our North American equity team. [indiscernible] development, we've highlighted 4 new active ETF launches during the quarter, expanding our value in quant offerings within this delivery vehicle. We've also highlighted that we closed the market at the TSX a few weeks ago to celebrate the 10-year anniversary of our ETF business.

We're very proud of this capability that we built in-house and which has become a core delivery vehicle for us. We're now approaching $30 billion in ETF AUM with over 6 ETFs covering a range of active systemic smart beta and traditional data mandates. I'd also remind that with the launch of a number of successful active equity ETFs over the last 2 years, a large part of our retail net sales have been occurring within this vehicle type. And I'd remind that the pricing of these ETFs is full retail margins and aligned with their mutual fund counterparts. At the bottom of the slide, you can also see ChinaAMC and Northleaf's continued growth, and I'm going to speak to these on the coming slides.

Turn to Page 24, you can see the trend in the history of Mackenzie's net sales. On the left, you can see in the top chart that we had a solid investment fund net sales result for the first quarter with meaningful growth over 2025 and our third best Q1 ever. In the middle, you can see momentum continued in April with our second best April ever. And at the bottom is our overall net sales result of $1.7 billion, which as I mentioned, included $900 million in institutional SMA net sales. On the right side, with the last 12-month trailing trend, you can see continued momentum in retail and overall, and we're expecting this momentum to continue in the coming quarters as we believe we have winning conditions in a number of places within our product offerings.

On Slide 25, I'd highlight first in the bottom left that the industry environment is healthy, and the current mutual fund net sales rate for industry peers is around 2% of assets, which you can see here on the chart. You can also see that Mackenzie's overall invested fund net sales rate has moved above the industry rate, and we're gaining market share, driven by momentum in retail. In the top right, we've highlighted the year-over-year growth in retail with $700 million in retail improvement, contributing to an $814 million overall improvement in investment fund net sales. And also on the top right, we did have $934 million in institutional SMA net sales in the quarter. And as mentioned, $2 billion in additional awards in the quarter funding in Q2.

At the bottom right, I'd highlight the improvement in overall Morningstar ratings in the quarter with 51% of assets residing in 4- and 5-star funds. Importantly, our share of assets at 5-star funds is at its highest level in the last 4years and were among the highest in the industry on this measure.

Turning to Page 26, you can see the performance in net sales for our retail investment fund by boutique. This quarter, we've reoriented the slide to better orient our fundamental equity teams between core and different style and thematic offerings. Across the slide near the top, you can see [indiscernible] performance relative to peers across many of our capabilities. I'm going to talk about Quant, but beyond our Global Quant Equity Team. We've seen that sales start to improve in Q1 and into April for a number of our teams with compelling performance like Multi-Asset resources and Greenchip.

Towards the left, you can see the strong net sales into our Global Quant Equity capability, where we have retail net sales of $1.9 billion during the quarter. And importantly, as mentioned last quarter, we believe we're just getting started as we trail blades with quant in retail. We've launched 13 quant mandates in retail across mutual fund and EF delivery vehicles. These mandates have acceptable performance and cover some very large product categories like global equity and international equity, as well as some interesting liquid alt categories like our U.S. Alpha extension strategy. This holistic quant all-weather approach that marries AI and HI has delivered track records that are impressive in terms of the level of alpha, but also the consistency of alpha across different market environments.

Turning to Page 27, a few comments on the Chinese investment fund industry. Industry assets of RMB 37 trillion were up 15% over the last year and declined very slightly in the quarter. You can see in the bottom left that there were no redemption of around RMB 600 billion in long-term funds during the first quarter. This reflected institutional net redemptions of passive equity ETFs of around RMB 750 billion. This was offset somewhat by active equity fund sales of RMB 200 billion, which was the highest level of active equity net sales in the last 4 years falling robust equity market improvements.

On the right, you'll see ChinaAMC lost some market share in the period, declining to 5.6% from 6.2% and maintain its #2 rank in the industry. As the leading provider of ETFs in the training industry, it experienced just over RMB 200 billion in institutional passive ETF redemptions referenced earlier.

Turning to Page 28. You can see the growth in ChinaAMC AUM over time. As indicated on the last slide, you can see in the bottom right, net redemptions on past ETFs of around RMB 200 million referenced earlier. And I would highlight long-term investment fund assets were up 10% over last year, and Keith will review it all with the financial results and financial outlook for the company later on the call.

Turn to Page 29, you can see Northleaf's continued growth with a 10% increase in AUM over the last year and almost 20% cumulative annual growth since we made our investment. During the quarter, new commitments to the Northleaf funds currently in market remains solid. This has been a challenging macro environment. I'd note that Northleaf's offering is performing very well, and it continues to generate positive net flows and new commitments as these programs.

I'll now turn the call over to Keith Potter.

Thank you, Luke, and good morning, everyone. On Slide 31, you can see key highlights for Q1. Adjusted EPS is $1.21, up 21% year-over-year. We returned $330 million to shareholders in the quarter, including $185 million in share repurchases. At the same time, we ended the quarter with unallocated capital of over $1 billion and reduced our gross leverage ratio to 1.32x. We are maintaining expense growth guidance of 4% for 2026. And finally, I would note that we enhanced our interim MD&A in the quarter to condense and focus on material changes from the annual MD&A. And our objective was to maintain the same level of transparency move more in line with the industry.

Turning to Slide 32. You can see our AUM&A and low trend. First, as Damon noted, we have introduced the concept of non-fee-bearing assets. We are providing the total AUM for completeness and excluding non-fee-bearing assets to provide transparency into drivers of revenue and expenses, and I will reference AUM&A, excluding non-fee-bearing assets throughout my remarks.

For the quarter, while ending AUM&A was relatively flat. Average balances increased 2.4% relative to Q4, and 12.7% on a trailing 12-month basis. On Slide 33, you can see how higher assets drove solid revenue growth and a 21% year-over-year increase in adjusted EPS at the IGM level, driven by our core businesses and strategic investments. As I mentioned, we are maintaining expense growth guidance of 4%, and I'll speak more to expenses for Mackenzie and IG in a moment.

Slide 34 presents key profitability drivers for IG Wealth Management. On the left, you can see average AUM&A was up 2.5% from last quarter. And on the right, our advisory fee rate increased 0.3 basis points during the quarter, primarily driven by year-end mutual fund distributions paid into client cash positions where spreads are higher than the standard advisory fee rate. As our advisers work with clients during the quarter, some of this cash has been reinvested into long-term AUM, and we expect advisory fee rates to fall at just over 0.5 basis points in Q2. Cash balances decreased and a mix shift toward high net worth. Asset-based compensation rate was up slightly in the quarter and expect a modest increase in Q2.

On Slide 35, IG's overall earnings of $158.9 million is a record first quarter and were up 23.8% year-over-year on revenue growth of 14.4%, demonstrating strong growth and positive operating leverage in the business for consecutive quarters. On point 2, other financial planning revenue continues to demonstrate growth year-over-year, supported by momentum in the mortgage and insurance businesses. And on point 3, IG's operations and support and business development expenses were $170.2 million in the quarter, up 5.9% year-over-year.

Expenses would have been up just over 4%, excluding onetime seasonal expense true-up for year-end incentive programs that were favorable in 2025 relative to 2026. I want to remind that Q2 is a seasonally high expense quarter for IG with adviser conferences and marketing spend, and do expect expenses to be modestly higher in Q2 relative to Q1 2026 and then drop in the second half of the year.

Moving to Slide 36. We have Mackenzie's AUM by client and product type as well as net revenue rates. On the left, average AUM was up 2.1% versus Q4. And on the right, the third party rate, excluding Canada Life, decreased 1.1 basis points. This was less than the 2 basis points we guided to last quarter. And the reason for this is during Q1, we earned performance fees on institutional assets of $2.8 million that increased the rate by approximately 1 basis point that partially offset the full impact of institutional on-boarding and having 2 less days in Q1.

As we look to the next quarter, we expect the third-party rate excluding Canada Life to decrease approximately 3.5 basis points for 3 main reasons. First, the success of our strategic partners and institutional onboarding in Q1, and expected onboarding in Q2, as Luke referenced. Second, the impact of previously announced fee change that became effective April 1. And third, the nonrecurring performance fees earned in Q1 that will not be repeated in Q2.

Turning to Slide 37. Mackenzie's earnings of $57.4 million or up 9.1% year-over-year. Operations and support and business development expense growth was up 8.2% relative to last year and similar to IG, onetime seasonal expense true-ups for an incentive program were favorable in 2025 versus 2026. Our expenses are also driven by technology delivery and a couple of timing items. Looking forward, we do expect Mackenzie's expenses to drop in Q2 relative to Q1 2026. I would also remind that we have reclassified certain variable investment management advisory expenses from operations support, subadvisory. These expenses are also retrospectively restated for 2025 throughout our disclosure documents. .

Slide 38 has ChinaAMC results. Luke's already commented on AUM. ChinaAMC did deliver strong Q1 earnings of $34.6 million. For the full year 2026, we expect earnings growth in the mid-single-digit range relative to reported 2025 earnings. I would also highlight that we received an annual dividend of $61.5 million in the quarter.

Slide 39 has earnings contribution from companies in each segment, and I'll make a couple of comments. First, Rockefeller earnings of minus $1.8 million is in line with guidance from last quarter. As a reminder, Q1 has seasonally higher expenses. And as discussed on the last call, we would expect Rockefeller to move into positive earnings in the second half of 2026.

For Northleaf Q1 earnings of $6 million net of noncontrolling interest reflects the positive impact of annual incentive fees, but they were partially offset by negative foreign exchange relative to the U.S. dollar. And looking forward, $4.5 million, $5 million net of NCI, it's a reasonable expectation for average quarterly earnings in 2026 with expected quarterly variability.

On Slide 40, we continue to make progress against our capital allocation priorities. We returned $330 million in capital to shareholders in Q1, which is an all-time high for any quarter. And at the same time, we've maintained approximately $1 billion in unallocated capital. Our gross leverage ratio also ended the quarter lower at 1.32x.

As we enter on Page 41, as we introduced last quarter, we presented a framework on how management views the build up of IGM's indicative value now at approximately $85 per share. As a reminder, we derive the indicative value of our core operating companies using average PE multiples from a diversified group of wealth managers for IG, and asset managers for Mackenzie as of market close on April 30. The indicative value of our strategic investments is based on our historical approach to disclosures as listed on the page. And while IGM's share price has strengthened in the quarter, this framework continues to demonstrate embedded value at IGM Financial.

That will end our prepared remarks, and we'll open up the call for questions.

[Operator Instructions] The first question today comes from Scott Fletcher with CIBC.

I wanted to ask a question maybe for both sides of the core business. Just on investor behavior and what you're seeing. I know you mentioned volatility in the markets impacting how people are dealing with savings, but I'm just curious how you're seeing that through the first 4 months of the year and whether that's going to impact any -- the fee rates in any of the way that it hits the bottom line of your business?

Scott, it's Damon. I would say what we've seen in the first quarter is that a lot of our clients are -- have been desensitized to what they're reading and what they're seeing. We didn't see much change in investor behavior as a matter of fact. I mean, we -- we're an organization that just continually to talk to our clients about dollar average costing into the market. And that's exactly what they've been doing. And we expect that to continue.

Yes. It's Luke. I'll echo that. That one slide actually showed the net sales rate for the industry, tracking about 2% of assets. We characterize that as solid and normal. It's kind of normal conditions when you look at the competition by asset class and just the level of contribution is really normal.

Okay. That's good to hear. And then maybe one for Damon. Just on the wealth and the growth of the clients, it seems like that's -- the momentum is still quite strong there. Is there anything to call out in terms of what's driving that or if it's more just more execution on the same plan?

Well, to be honest, it's an intersection of the value that we're providing to our clients and where there's demand in the marketplace. What we find is more and more Canadians that we're meeting with are looking for advice that extends beyond just investment advice. They want to help us navigate their wealth and how they're going to explain their wealth to their kids. They want us to help navigate how they're going to pass on this wealth efficiently and effectively to who I want to go to. They're talking to us about how they want to leave a legacy. I mean, it's all the things that we spoke about in the past that's coming to fruition. So for us, it's really that intersection of where the traffic is.

The next question comes from Graham Ryding with TD Securities.

Maybe, Luke, I'll start with you. Slide 25. I think, it shows an encouraging trend, therefore, Mackenzie's flows rate. I just want to make sure I'm understanding it correctly. 1.8% for the industry, is that mutual funds only excluding ETFs? And then your flows rate, are you including ETFs in your flows rate?

Yes. Good question, Graham. So yes, our -- the industry is mutual funds. Ours includes our ETFs. And of course, our ETFs are -- it's retail. What I would say is we are working with firms like Investor Economics on getting better industry reporting for ETFs. A lot of the data that you see on ETFs includes, I'll call the incest of mutual funds investing in ETFs and so unpacking the institutional and mutual fund investment from the ETFs is important to get a proper view of ETF net sales. But I would say, we are working on that view to be able to present what's being purchased in ETFs in retail. But yes, ours does include our ETF net sales.

Okay. Understood. I just want to make sure I'm understanding that chart, but don't [indiscernible] positive chart. The outflows at ChinaAMC, it seemed to be outsized relative to the Chinese fund industry. I didn't quite get all your information there. Can you remind me or can you explain what drove the outsized outflows ChinaAMC relative to the industry?

Yes, absolutely. So for the industry, we add about -- so there's $600 billion in net outflows in long-term funds for the industry. And this was a consequence of $750 billion of redemptions from passive ETFs. ChinaAMC is the largest ETF provider in the industry. And of that $750 billion in industry net outflows in past ETFs, ChinaAMC had just over $200 billion of it. I would also comment, it's been reported.

China's national team as they call it, has been engaged in financial market stabilization for about 2 or 3 years. And in the quarter, it's been reported that there was redemptions from that stabilization team as a consequence of a robust equity market improvements. So we view it as a big show of confidence. And indeed, there were a lot of net sales into active equity funds during the period. But that's what you're seeing in the industry there. It was about $750 billion of past ETFs that were redeemed and ChinaAMC is seeing the largest ETF provider experienced about $200 billion of that.

The next question comes from Romel Sabat with Jefferies.

So my first question is on the non-fee-bearing capital. Could you give us some color on who they are and what is the capital invested in? And what is the long-term strategy on the non-fee-bearing capital? Like, are they expected to be converted into fee-bearing capital over time?

Yes. So it's Damon here. So that is what I would call a special circumstance where we've -- we're working with Rockefeller. They have got a number of ultra-high net worth families that have Canadian assets and they're in individual securities. And we're working with Rockefeller to make sure that we do what's right by those clients here. So over time, I think there is maybe an opportunity to diversify into some fee-bearing assets. But I wouldn't focus primarily on that, quite frankly.

If I step back, what the real opportunity is with Rockefeller, we always talk about horizontal connectivity is really a cross-border advisory services program or service that we do in conjunction with Rockefeller by which we refer to them clients, our clients that are working in the U.S. that have assets in the U.S. that are high net worth and opportunistically high net worth and they work with them, and they do the same thing with IG Wealth. This would drive our fee-bearing business, our traditional business. And -- so that's what we're focused on, and there's a real opportunity there long term.

Okay. That makes sense. And then my next question is a 2-part question on Wealthsimple. Could you give us a rough time line as to when we should expect earnings contribution from Wealthsimple? And the second part is maybe you could explain how the synergies from Wealthsimple with the core business will be realized? Like how would Wealthsimple help boost revenues for the wealth management and asset management businesses.

Sure. It's James. I'll start on that. So I think the first thing to point out is that the momentum is absolutely continues. And indeed, it feels like the momentum at Wealthsimple is accelerating. March was their best month ever for flows. And Q1 was their best quarter ever for flows. So the business is very, very strong.

In terms of profitability, that's -- I think Wealthsimple needs to take advantage of this momentum. I think they need to continue to build share. They've got a great engine now for acquiring clients. They've got a great revenue model. But for so long as they can attract clients at the pace at which they're attracting clients. I'm not focused on profitability. The profitability will come. But I think they've got a window here to achieve a very meaningful position alongside the Canadian bank alongside all of the major Canadian financial institutions. And I wholeheartedly encouraging them to focus on acquiring share continue to develop their offering and continuing to develop the revenue model. Profitability will follow in due course.

Actually, I'll follow up with that, part of that question was just the synergy with the other businesses. And I remind that Mackenzie obviously helps fuel the product offering Wealthsimple. So we're a proud supplier of ETFs to its Wealthsimple as an investment platform.

The next question comes from Bart Dziarski with RBC Capital Markets.

I guess just sticking with Wealthsimple. So a couple of weeks back, Robinhood had announced that they're planning on launching a crypto offering in Canada later this year. So could you maybe just speak to, one, what is the crypto exposure for Wealthsimple from a business mix perspective? And just, kind of, how you think about the competitive environment with the new entrant coming in?

Yes. It's Keith here. To answer the first question, crypto exposure. You can see the AUM is about $125 billion, crypto would be, call it, less than 2% of total AUM. I commented that on the last call, we look at what differentiates Wealthsimple as a very, very diversified business, a diversified revenue stream are not as reliant on crypto. And you probably noticed pure multiples in the fintech sector under a lot of pressure in Q1. A lot of that was due to exposure to crypto and general trading activity. And so Wealthsimple, it's structured quite differently and it's quite a different business with diversified revenue. And this is one of the core reasons that we've maintained the fair value of $2.3 billion in the quarter.

And I'd just add, Bart, I don't think anyone in the Canadian market innovates as quickly as Wealthsimple and I don't expect that to change. There will be competition to be sure there will be new entrants to be sure. But I can't think of a business that's better positioned to face the marketplace and deliver for clients than Wealthsimple.

Okay. Great. And then I had a question on Northleaf . Maybe it's a bit of a mechanical one. But when I look at the Northleaf AUM bridge, there's fundraising return of capital and FX and normally for an alt manager in an AUM bridge, you see fair value gains. So am I missing something in that bridge? Should that be included? And if not, like what's been the historical MOIC, if you will, for Northleaf's portfolio?

Great question. I'll take that. I guess, Keith, it's Luke. On that bridge, the way we presented AUM and it's a choice. We used the measure of AUM that reflects the base upon which they earn revenue. And for most of the Northleaf mandates, they don't earn revenue as a percent of fair value. They are based upon what funded. So that's why you don't see the -- any market returns as part of that bridge.

So it's fee paying AUM?

Yes.

Congrats on your tenure with IGM.

The next question comes from Jaeme Gloyn with National Bank Financial.

I just wanted to clarify or just dig into the expense guidance, pretty large growth rate in Q1 and then it requires a pretty decent step down in upcoming quarters. So just wanted to get your rationale for the confidence in that step down and the trajectory, I suppose, of how you expect that to flow? Is it more back half weighted?

Yes, thanks, James. It's Keith here. Yes, as I mentioned, part of the higher expense in Q1 was seasonal related to the incentive true-up a little bit higher tech spend if you look back to Q1 of 2025, we didn't have as high a tech delivery. What I would say is you can expect Mackenzie expenses to drop in the next quarter throughout the year. And then similar to what I said at IG, where it's seasonally high next quarter, you can expect to drop in the second half of the year. But I would say that this was in line with what we expected for Q1 and are sticking with the 4% guidance and our confidence in 4% for the rest of the year.

[Operator Instructions] The next question comes from Tom MacKinnon with BMO.

Just a question on some of the marks you put on ChinaAMC. It's based on the kind of the run rate of the earnings you suggest that you're carrying it at 17x earnings like these are like BlackRock type valuations here. There is has been some pressure perhaps in terms of an outlook for the name. How should we be -- can you remind us how those -- how this $2.1 billion carrying value is developed? And if any, do you look at peers, what goes on in that?

Yes, Keith here. I'll take that. So for ChinaAMC, it's really the carrying value is based on equity method of accounting. And so that is the carrying value at the at the $2.1 billion. So we would increase it by earnings reported and decrease it by the dividends paid. So that's the actual carrying value, which is based on the equity accounting.

When we think about ChinaAMC and their future potential and potential growth as the second largest player in the mutual fund industry and have a diversified business as it relates to institutional. So they have a very, very strong position within the China Asset Management industry, and we're comfortable with future growth with the company.

Okay. So -- and then just following up on the Wealthsimple. This -- the mark you have there is associated with that round that was done in October. Even -- I take your point on Robinhood, you know Robinhood, and that's down quite a bit. But even a company like Schwab, which is reporting very strong March is down like 15% or so. Maybe you can -- if can you describe your process in assessing this fair value mark each quarter on Wealthsimple?

Yes. No, sure. It's Keith here again. So as you mentioned, we certainly have two relevant transactions for the fourth quarter that we look to. That really demonstrated value at that time. When you look at Wealthsimple performance this period, it was exceptional. James mentioned, they had a record March for net flows. They had a record Q1 for net flows and you can see the substantial growth in AUM and that also translates into revenue. So despite the fact we have seen fintech multiples come down in the quarter and it wasn't that Schwab, it was others. Wealthsimple, this has outgrown any downward pressure that we've seen in market multiples in the quarter.

I know, Tom, it's -- I mean, value in private companies within public companies an interesting kind of topic. And so kind of the recency of real transactions is very relevant to ourselves and to both that review our work, including Deloitte.

The other thing we pay a great deal of attention to is Wealthsimple's financial plans and how they're doing relative to plan and what the fair value of the company as we DCF those cash flows. And they continue to surprise to the upside. And those are -- and so while the publicly traded comps are very visible. What's not as visible is their aggressive plans and how well they're doing at beating their aggressive plans, and that has value implications as well.

Okay. And James, congrats on good tenure at IGM and best of luck as you move on to Power.

This concludes the question-and-answer session. I would like to turn the conference back over to Kyle Martens for any closing remarks.

Thank you, Betsy. We'd once again just like to thank everyone for joining us this morning on the call, and Betsy with that, we can end the conference call.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Fourth Quarter 2025 Analyst Call and Webcast. [Operator Instructions] The conference is being recorded. [Operator Instructions].

I would now like to turn the conference over to Kyle Martens, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you, Rocco. Good morning, everyone, and thank you for joining us. On the call today, we have James O'Sullivan, President and CEO of IGM Financial; Damon Murchison, President and CEO of IG Wealth Management; Luke Gould, President and CEO of Mackenzie Investments; and Keith Potter, Executive Vice President and CFO of IGM Financial.

Before we get started, I would like to draw your attention to our cautions concerning forward-looking statements on Slide 3 of the presentation. Slides 4 and 5 summarize non-IFRS financial measures and other financial measures used in this presentation. On Slide 6, we provide a list of documents that are available on our website related to IGM Financial's fourth quarter and fiscal 2025 results.

And with that, we'll take us to Slide 9, where I'll turn it over to James.

All right. Thank you, Kyle, and good morning, everyone. 2025 was clearly a strong year for IGM Financial. Growth in client assets across our compelling lineup of wealth and asset management businesses, including in our core businesses of IG Wealth and Mackenzie demonstrated strength and momentum during the year. This broad-based success drove IGM's adjusted earnings per share up 17% year-over-year to a record high of $4.61. 2025 was also a year where we had the opportunity to showcase the embedded growth within our strategic investments with the announcement of 2 important transactions later in the year. The Rockefeller transaction, which Keith will speak to in greater detail was an important business milestone and with the value of our equity interest nearly doubling in 2.5 years, our investment decision of 2023 has clearly been validated.

Our participation in the transaction was guided by the key principles of supporting the positive evolution of Rockefeller's ownership structure, while maintaining IGM's significant influence and privileged position as the second largest and only wealth manager in the company's cap table. Our support of the transaction demonstrates our long-term strategic perspective on Rockefeller. The Wealthsimple transaction, another long-term strategic investment reflected its explosive growth and significant shareholder value creation. Our strategic investments continue to elevate IGM's diversified growth profile, complementing the strength and momentum in our core businesses.

Turning to Slide 10. With clear momentum across our businesses, 2026 will be a year of capitalizing on accelerating growth and our financial strength. At IG Wealth, the focus remains on extending our success in the high net worth and mass affluent client segments, leveraging our segmented advice model and increasingly embracing AI-powered tools to further elevate the adviser and client experience. At Mackenzie, we will maintain our focus on product innovation, expanding distribution reach and investing in our client and adviser experience as we continue to build on our strengths in advanced data analytics and artificial intelligence to further elevate investment excellence. And across the 6 wealth and asset management businesses, we continue to pursue opportunities to work collaboratively across businesses to elevate our capabilities and create collective value. We refer to this as the benefit of horizontal connectivity.

Shifting now to capital allocation, with strong business momentum and fundamentals, combined with clear financial strength we enter 2026 positioned to meaningfully increase capital return to shareholders. During December, we launched a normal course issuer bid for up to 5% of our shares outstanding. And over the past 2 months, we've been quite active. Our intention is to repurchase the full 5% over the remainder of the year. And yesterday, our Board approved a 10% increase in our quarterly common dividend. The increase demonstrates the management team and the Board's confidence in our financial position and growth trajectory.

Before passing the call over to Damon and Luke to discuss more details on their businesses, I'll shift briefly to the fourth quarter, starting on Slide 11. Q4 adjusted earnings per share of $1.27 was another record high. During the quarter, IGM was once again recognized for our efforts as one of Canada's top 100 employers and among Corporate Knights Global 100 most sustainable companies.

Turning to Slide 12 on the operating environment. After a 15% year in 2024, IG and Mackenzie's average client return was nearly 12% during 2025. Notwithstanding the evolving global economic environment, the strong market returns, along with easing inflation during the year are supporting a constructive backdrop for our businesses as we start 2026. Slide 13 demonstrates the earnings growth across our Wealth and Asset Management segments, with consolidated 2025 adjusted net earnings, up 16% year-over-year, including a 21% increase in the fourth quarter. Slide 14 highlights our asset growth on a look-through basis, which in aggregate grew by 17% at the IGM level with contributions from each of the 6 businesses.

I'll turn it now over to Damon to speak to the Wealth Management segment next.

Thank you, James, and good morning, everyone. Turning to Slide 16 and Wealth Management's fourth quarter highlights, including IG Wealth, Rockefeller and Wealthsimple. I've been speaking about the momentum at IG Wealth more than a year now. And in the fourth quarter, that momentum accelerated. Our quarter end AUM&A of $159 billion was a record, up 13% from Q4 of last year. Our gross flows of $4.8 billion and sales of $4.5 billion were both Q4 records and demonstrated strong year-over-year growth. New client growth inflows of $1.6 billion grew almost 19% versus Q4 2024 with 81% of those flows coming from mass affluent and high net worth clients.

The quarter also delivered strong total net inflows of $694 million and net sales in the IGM product or IGM product of $347 million, representing the 6 consecutive quarters of positive net flows in sales. Our momentum continued in January with adjusted net inflows of $102 million and strong net sales into IGM product of $704 million. Of note, our total net inflows during January of $3.4 billion included $3.3 billion inflows from our institutional clients related to our strategic investment in Rockefeller. We view these flows as further evidence that our investment is truly strategic and as James just spoke about, an example of horizontal connectivity.

One of the drivers of our success has been our ability to share our views with both current and prospective clients across leading financial planning and investment topics. For the third consecutive year, we ranked #1 and earned media share of voice among both national banks and independent firms continue to confirm that our voice is being heard. Lastly, both Rockefeller and Wealthsimple continue to deliver growth. I'll speak to more of this on upcoming slides.

Moving to Slide 17. On the left-hand side, you can see solid growth in our adjusted flows with record gross inflows across all periods, which are supporting our strong net inflows. The graph on the right demonstrates the strength of our business and ability for our advisers to work with their clients as a dollar average cost into the market. This slide also represents a visualization of the returns that our business is reaping from investments that we've made in the past. These investments have elevated our competitiveness in the marketplace in both client and adviser experience. This business is built to gain market share, and we fully expect that our advisers will continue to gain both share of wallet and market share in their respective communities.

Turning to Slide 18. This provides our view into our operating results, which continue to provide great insight into the strength of this business. Moving to Slide 19. Our gross inflows from new acquired clients demonstrates the new client acquisition force that IG Wealth has become. During 2025, gross inflows from newly acquired clients of $5.3 billion represented 17% growth over the prior year, with almost 79% of these inflows coming from mass affluent and high net worth claims. Turning to Slide 20. This showcases the growth that we've delivered in both our mortgage and insurance businesses with mortgage funding up 23% year-over-year and new annualized insurance premiums up 16% versus 2024. We continue to see strong growth prospects in both of these businesses.

Now let's turn to Slide 21 and talk about Rockefeller's progress. Client assets grew by 31% year-over-year, driven by organic growth, inorganic growth as well as the markets. Over the last 12 months, organic growth has driven $10.2 billion in client assets, while the addition of 76 advisers during 2025 has supported inorganic growth of $15 billion in client assets over the same period. We are as confident as ever in Rockefeller's ability to continue to execute on their growth-oriented business model.

Now let's move to Slide 22 and talk about Wealthsimple as they continue to deliver. Over the last year, Wealthsimple has grown their AUA by 74%, with fourth quarter delivering sequential growth of 10%. At the same time, Wealthsimple has increased their clients served by 24% year-over-year, ending the year with 3.2 million clients. Wealthsimple continues to demonstrate an ability to attract new clients and grow client share of wallet at the same time.

So with this, I'll turn the call over to Luke Gould.

Great. Thanks, Damon. Good morning, everyone. Turning to Page 24, you'll see highlights from Mackenzie and the Asset Management segment for the quarter. During the fourth quarter, we continued our momentum across a number of dimensions. We ended the quarter with record high assets of $244 billion, up 2% in the quarter, driven by investment returns for our clients and net sales of $1.5 billion. Our net sales were once again up meaningfully from last year with momentum across channels and overall sales were $1.5 billion.

Importantly, in the top right, we have highlighted the continued momentum in retail, where we continue to have positive flows and meaningful year-over-year improvement. I'll give a bit more color on the coming slides. We've also highlighted another $2 billion in institutional awards during the quarter that are expected to fund during early 2026. Also earlier this month, we reported our January sales results, this was our second best January investment fund net sales in the last 25 years with significant momentum in retail, where gross purchases were up close to 100% and net sales of $134 million were up meaningfully from 2025.

We've been very busy bringing innovative and compelling products to market with 23 new products launched in 2025. And in the bottom right, we're pleased with a lot of our sales momentum coming from products launched during the last 36 months. You can see we've highlighted 4 new products launched in Q4, which extend our privates, our quant and our value offerings. And at the very bottom, you can see both ChinaAMC and Northleaf continue to generate good growth. ChinaAMC's investment funds are up 28% from last year, while Northleaf continued to have strong fundraising of $5.8 billion during '25 and $1.5 billion during the quarter.

Turning to Page 25, you can see the trend in the history of Mackenzie's investment fund net sales. At the bottom left, we've introduced Mackenzie's overall annual net sales results of this slide to provide an opportunity to showcase the breadth across client segments. This $6.7 billion in full year 2025 is an all-time high for us with several awards from institutional investors and financial service partners across several geographies. And on the top left, you can see January 2026 was our second best net sales in the last decade, and Q4 in the middle was our third best in the last decade. And these improvements in 2025 were driven by retail. On the right-hand side, you can see the last 12-month trailing trend with good momentum in retail and overall. And we believe that we have winning conditions entering 2026. And as our sales organization leans in opportunities, we're confident in the continuation of the strong upward momentum.

Turning to Page 26 at the top left, you can see our net sales segmented between retail and institutional and by delivery vehicle. We've once again circled the improvement within our retail investment funds, which accounted for a large majority of our improvement from Q4 -- relative to Q4 '24. Now on the right-hand side, we provide a snapshot of our top 5 net selling actively managed investment funds, including both mutual funds and ETFs. We wanted to highlight that increasingly active equity ETFs are among our top net sellers with the launch of a full suite of active equity ETFs over the last 2 years. And here you can see that [ MIQE ], our Mackenzie GQE International Equity ETF was our second best-selling fund.

We want to highlight that we have a pricing philosophy of being clear, consistent and competitive everywhere, and our management fees are the same on our active ETFs as on the traditional mutual funds. In the bottom left, you can see that we've been gaining ground and we are poised to break through the overall industry last 12-month trailing net sales rate.

Now turning to Page 27. you can see performance and our net sales for our retail investment funds by boutique. Across the slide, looking near the top, you can see compelling performance relative to peers across multiple boutiques. If you look towards the middle, you'll see continued exceptional relative performance at our global fund equity boutique as well looking through the boutiques you'll see strong performance across time frames for our Greenchip, Cundill and multi-asset boutiques. I do want to highlight at the bottom looking at investment fund flows in the quarter. Our global Quant equity boutique put up strong net sales in Q4, but we believe we're just getting started as we trailblaze with quant in retail. Their holistic quant all-weather approach that marries AI with HI has delivered performance track records that are leading and impressive, not just in terms of the returns, but also in terms of the consistency of alpha across different environments.

Turning to Page 28. A few comments on the Chinese investment fund industry. On the left, you can see the industry grew by 14% over the last year and 3% in the quarter, driven by the strong market rebound in Q3 as well as continued industry net flows. On the right, we're pleased with the continued strong performance of ChinaAMC relative to peers, with a second-ranked market share on long-term funds of 6.7% of the industry, up from 6.2% last year.

Turning to Page 29, you can see the strong growth in ChinaAMC's AUM. Overall AUM remained just over RMB 3 trillion and is up 22% from last year. The investment funds increased by 1% in the quarter and net outflows on money market fund partially offset the net sales into long-term funds. Last, on Page 30, you can see another very strong quarter of fundraising at Northleaf, with $1.5 billion of raising in the quarter. Over 2025, fundraising was strong across private equity, private credit and infrastructure resulting in $5.8 billion of fundraising. This was the best year Northleaf has had in fundraising since we commenced our partnership in 2020.

I'll now turn the call over to Keith Potter.

Thank you, Luke, and good morning, everyone. On Slide 32, you can see key highlights for Q4. Adjusted EPS was $1.27, up 21% year-over-year and excludes Lifeco's other items and gains on partial sales of investments in associates. We returned $263 million to shareholders in the quarter, including $130 million in share repurchases. As James commented, we expect to return more capital to shareholders in 2026 and 2025 through higher level of share repurchases, including the use of proceeds from the Rockefeller transaction, which contributed to unallocated capital of approximately $1 billion.

In December, we filed an NCIB for 11.8 million shares which is 5% of the outstanding and our intent is to repurchase the maximum permitted under the bid. We also increased the dividend in the quarter from $0.5625 to $0.62, and prior to the increase, the last 12 months trailing cash dividend payout rate was 57% and 50% on a run rate basis. And as we go forward, we will review the dividend if the payout is below 60%, while giving consideration to our overall capital allocation priorities and general market environment. We also closed on our incremental $100 million investment in Wealthsimple and finalized the Rockefeller transaction, I'll speak to in a few moments. And finally, in 2025, expense growth came in at 4.2%, in line with guidance, and we expect growth of 4% in 2026.

Turning to Slide 33. You can see our AUM&A and flows trend, we achieved solid asset growth during the fourth quarter with ending AUM&A up 2.5%, while average balances increased 5.4% relative to Q3 and 14% year-over-year. On Slide 34, you see how higher assets drove solid revenue growth and a 21% year-over-year increase in adjusted EPS at the IGM level. Drilling down to the operating company level, Slide 35 presents key profitability drivers for IG Wealth Management. And on the left, you can see that average AUM&A was up 4.8% from last quarter. And related to the strong asset growth, our advisory fee rate declined 0.7 basis points during the quarter, primarily driven by clients moving up well and fast.

On Slide 36, IG's overall earnings of $166.9 million in Q4, up 23.4% year-over-year on revenue growth of 12.5%, demonstrating strong growth and positive operating leverage in the business. On point 2, other financial planning revenue continues to demonstrate growth, supported by momentum in the mortgage and insurance business. And on point 3, IG operations support and business development expenses were $165 million in the quarter, up 0.7% year-over-year and up 1.6% for the full year, which is lower than guidance.

Moving to Slide 37. We have Mackenzie's AUM by client and product type as well as net revenue rates. And on the left, you can see average AUM was up 5.4% versus Q3, and on the right, the third-party rate excluding Canada Life decreased primarily due to the onboarding of $2.6 billion in institutional SMA and ETFs during Q3 and Q4. And as we look forward to Q1, we expect this rate to drop approximately 2 basis points for mix shift driven by institutional onboarding, the strength of our wealth management partnerships and having 2 less days in Q1. And the changes in the Canada Life rate was driven by a few items, including a rebalancing mix shift, a onetime annual fee true-up and admin fees that remain stable as AUM increases.

Turning to Slide 38. Mackenzie earnings of $60.4 million are down slightly year-over-year. One of the main drivers is net investment income and other, that was $8.5 million last year versus $2 million this quarter, primarily from seed capital gains and excluding this earnings would have been up 6%. Operations support and business development expense growth of 9.5% was primarily driven by higher wholesale compensation from improving net sales that Luke commented on as well as other variable items. And as a reminder, wholesale compensation is expenses paid and it is not capitalized and amortized.

Turning to Slide 39. On operations and support and business development expense guidance. Overall, we expect expense growth of 4% in 2026. I will note that starting Q1 2026 certain investment management advisory expenses at Mackenzie that are primarily variable with AUM and revenue will be reclassified to sub-advisory expenses from operations and support. These expenses were $7 million in 2025. And beginning in Q1, it will be retrospectively reclassified from operations and support to sub-advisory expenses. So pro forma these reclassifications, we expect our operations and support and business development expenses to grow by 4%, continuing to balance prudent expense management while growing our businesses. Slide 40 has ChinaAMC results. On the right, you can see ChinaAMC's earnings of $22 million. It was impacted by seed capital losses in the quarter and onetime items. Adjusting for this Q4 it would have been in the range of Q4 2024 through Q2 2025 and in line with our expectations.

Slide 41 has earnings contribution from companies in each segment. I'll make a few comments here. First, Rockefeller had strong earnings of $12.2 million, with growth coming from their core family office business as well as significant contributions from their strategic advisory M&A practice and other transactional activities, which can vary from quarter-to-quarter. Excluding the contribution from the variable revenue, earnings would have been closer to $6 million to $7 million, which builds from last quarter earnings of $2.9 million. For Northleaf lease, Q4 earnings of $8.8 million benefited from a year-end tax true-up and a couple of onetime items. Looking forward, $4.5 million to $5 million net of NCI is a reasonable expectation for average quarterly earnings in 2026 with expected quarterly variability. And I would remind Q1 could be somewhat higher due to annual incentive fees.

Turning to Slide 42 for further details on the Rockefeller transaction. As we announced in October, we participated in Rockefeller's recapitalization transaction which saw our investment nearly double in value as compared to the value at the time of the initial investment in April of 2023. The transaction had a few components, including the recapitalization, which included equity, debt and adjustments to the management incentive programs as well as a cash distribution to existing investors. A meaningful outcome of the transaction is IGM receiving pretax proceeds of $394 million from the sale of a small portion of our investment and the receipt of a distribution to existing investors, combining the sale of a portion of our interest and impact of the long-term equity incentive program. IGM now holds 17.2% interest in Rockefeller valued at CAD 1.16 billion.

We supported the goals of the transaction by selling a small portion of the investment, while remaining the second largest shareholder and only wealth manager in the capital stack with this investment remaining long term and strategic to IGM. As we look forward to 2026, we expect Rockefeller and the overall transaction to contribute to IGM's adjusted EPS growth. First, we expect proceeds from the transaction to support our NCIB share repurchases and the amount would represent a notional annualized earnings contribution of approximately $27 million or $0.12 per share.

Second, we expect Rockefellers contribution to IGM's reported 2026 earnings to be approximately breakeven and excluding the potential impact from certain equity incentive programs to be positive and in line with 2025. And for context earnings will include incremental interest expense and certain expenses related to equity incentive programs have made great period-to-period variability given the expected accounting treatment under IFRS. And we will provide updates in future quarters on this. I would note that in Q1, it could be slightly negative due to seasonally higher expenses and then move to breakeven and positive for the remainder of the year. Overall, we expect the combined performance of Rockefeller and the impact of the transaction to contribute to EPS growth in 2026 and accelerate into 2027.

On Slide 43, we demonstrate significant progress on execution against our capital allocation priorities we returned $263 million in capital to shareholders in Q4 while increasing unallocated capital of $1 billion, including the proceeds from the Rockefeller transaction. Also, our leverage ended the year lower at 1.37x. As mentioned, the Board approved a 10% quarterly dividend increase of $0.62 per share, reflecting IGM's strength on strong strategic positioning of our underlying businesses, and we currently expect to maximize our share buybacks under the new NCIB.

Slide 44 presents a framework for how management views the buildup of IGM's indicative value. The methodology behind us is consistent with the sum of the parts disclosure we've used in the past, that builds up an indicative NAV per share of over $82. We've introduced this view to provide a perspective on the value of our collective businesses given the strong momentum at IGM. I just note that we derive the indicative value of our core operating companies using an average PE multiple from a diversified group of wealth managers for IG and asset managers for Mackenzie as of market close on Wednesday. The indicative value of our strategic investments is based on our historical approach to disclosures. This valuation framework demonstrates the embedded value at IGM Financial.

That will end our prepared remarks and we'll open it up for questions.

[Operator Instructions] And today's first question comes from Scott Fletcher at CIBC World Markets.

The market narrative over the last few days has really been around AI disruption and the wealth managers were sort of -- we're not immune to that. Just wanted to get your thoughts on AI and wealth management and how you see the rapid development impacting both on the wealth and the asset management sides of the house?

Sure. Scott, it's James. I'll start and then I'll have Damon and Luke make a comment. Maybe the most important thing for me to say at the outset is that the last couple of days to serve as a reminder that every move in the market does not represent a change in value, but it does represent a change in price. We're going to integrate AI tools, we are integrating AI tools. And we're doing it to build and deliver an even better adviser experience and an even better client experience. We have a substantial project underway as we speak on AI. And I expect, Scott, we're going to have meaningfully more to say on this topic during the first half of this year. With that, a few comments from Damon and from Luke on each of wealth management and asset management.

So Scott, for IG, we really truly see this as an opportunity for us that we are a little bit unique in the industry. We believe we have a world-class tech stack. And we have global partners that we partner with that are all investing heavily in AI, and our tech stack is integrated. So it's really the trifactor. We've got a clean data. We've got integrated across all systems and tools and they're AI-enabled. So what really that's going to allow us to do is significantly improve our adviser and client experience, and we're looking at it, leveraging our segmented model. So both the corporate channel and the entrepreneurial channel. We're focusing on many different things.

One example would be pre-during and post meetings with clients, how can we leverage AI to make sure that the meetings are sharper. Our adviser more prepared. What we're talking about is more relevant personalized for the client. At the end of the day, it's going to be -- it's going to mean for us, we're going to be able to do more meetings and better quality meetings driving better client outcomes. So that's what we're focused on from an IG perspective.

Yes. Look, I'll just follow up with a few comments related to asset management. First, I'd say people pay us for Intellect, for process and for investment edge. So technology and any tools that can harness that are critical to us. I'd say when you look at Mackenzie. First, we've got our quant team and we've also had quant capabilities embedded into our multi-asset team. And we view this as giving us a competitive advantage. We believe we are a world-leading and do have something really special here. Beyond that, I'd say when it comes to AI, we've been integrating these tools into our investment processes everywhere, fundamental equity, fixed income, et cetera. And this is just a natural evolution in how investment management is delivered. But I'd say this is fundamental to what we do to actually incorporate technology and where we stood up to capitalize on.

Great. Really appreciate the commentary there. And then I just had a second question on the Rockefeller transaction and taking some of the chips off the table there. Certainly realized a nice return. So wondering if there's any desire to sort of take a similar approach with any of the other investments or if this is really just unique to the transaction here?

Yes. It's James. I'll share a few thoughts on Rockefeller and then more -- perhaps more broadly. I think Rockefeller, Scott, emerges from this transaction with really a remarkable shareholder base that it now includes a number of families globally that I can tell you are committed to its long-term success. And I think very importantly, and I've said this before, what I love about Rockefeller is they do not need to reinvent the wheel every year. They need to continue to do what they've been doing now for 8 years. They need to do it with focus, with determination, with excellence.

So for us to almost double our investment in 2.5 years, repatriate kind of pretax, almost $400 million to Canada for share buybacks. It represented a great opportunity. And of course, we sit here today, still as the #2 shareholder, the only strategic in the capital stack, and I can assure you our interest remains strategic and long term. I will use the opportunity to share with you that any further purchase would have to be both what I would call risk smart, we claimed that phrase in 2023, and it would have to be earnings aware, that is mindful of how we trade. But I think we've now completed 2 transactions with Rockefeller very consistent with these principles. And subject to those principles, we'd be pleased to own more in the future.

To your broader question on whether we take chips off the table or sell more of anything else. I think the short answer is no. I think our ownership position in ChinaAMC is long term stable. Wealthsimple, if anything, I would see us potentially deploying some capital depending on how it evolves strategically.

And similarly, with Northleaf, we've restructured the 2020 deal to ensure that the founders and the key employees are long-term owners of the exact same instruments as us being common shares, and we will be purchasing a little bit more of Northleaf both this year and in the coming years. So no, I'm not looking to -- I think we've got -- I really think, Scott, we're sitting here with the businesses we want. We don't need to look further afield if we want to deploy further capital kind of strategically in businesses. We've got a lineup of 6 great businesses, and that's where we'll be looking.

And our next question today comes from Tom MacKinnon with BMO Capital Markets.

Yes. Just further clarification as to how we should be looking at the Rockefeller going forward. Should we just assume that your earnings that you've got out of Rockefeller, net of NCI in 2025 are going to be the same as 2026? Or are they going to be 0 and you're just going to make up for that loss of earnings through share buybacks? Just a little bit, if you can clarify?

Sure, Tom. It's Keith here. Yes, what I'd say is, there is an equity incentive program that can create variability. We'd say the earnings we'd expect, excluding the variability would be in line with 2025. So you can think about that being approximately $10 million. It makes that variability, may have a negative impact, and we'd say it would be closer to breakeven for the entire year. And to your other point, I would comment that, yes, we will be repurchasing shares of the proceeds, and you can think about that being worth about $0.12 per share, close to $30 million in notional earnings coming from Rockefeller and the overall transaction.

Okay. So it seems $10 million outlook for Rockefeller for 2026?

Yes, I think, Tom, that would be a good number to use.

Okay. And then -- okay. Now just further digging into the AI disruption that we're kind of seeing, especially with wealth managers. You mentioned here, AI tools really helping your advisers serve their clients better. But AI tools are clearly increasing clients capabilities as well. So -- when we look at that, what does that mean for the general model? I mean does that mean we would potentially get more do it yourself? What does that mean for fees when someone can do some of the stuff on their own? And do they not necessarily need to be paying an adviser to do all the other stuff that they can sort of ChatGPT with. So just comments with respect to that because we've really seen the wealth managers hurt more on this. And I take your point that the market does overreact, but comments with respect to what I just said would be great.

Yes, Tom, it's Damon. So I guess you're asking will AI replace advisers. And you could look at it as AI could replace certain types of advisers, particularly those that just focus on investing people's money. You're just focusing on investment people's money and market commentary, chances are AI is going to be able to do it cheaper, faster and at scale. So that's how we look at things. And just a reminder, at AI -- at IG, that's not what we do at all. What we focus on is multigenerational family dynamics and planning. We focus on complex tax optimization, estate structuring, legacy planning, business succession planning. We work with our clients. We were on our fifth generation of clients. We build trust. We build relationships. A lot of what we do is emotional coaching in life situations. That cannot be replaced by AI at all...

Well, I would argue that estate planning could be replaced by AI?

Certain type of estate planning, not complex estate.

So some of your -- some of the services that you provide could be AI replaced?

Well, once again, we're talking about complex situation. So a simple situation, some of it yes, for sure. But complex, we do not believe so. And in totality, well, we believe this is going to just allow us to better demonstrate what good advice means to the marketplace. I mean, if you were to ask me, why are we growing so fast now, how are we getting so many clients? This is how we're doing it. There is a significant need out there in this industry to make the complex simple and help us plan our lives because our lives are far more complicated than they have been in the past. And that's what IG delivers.

And Tom, it's James. I'd just add that, I mean, the way I think about this is I think you've got a look kind of wealth management model by wealth management model and ask the question, how do advisers add value in that model? And kind of how wide or not is the moat that they create as a result of how they add value? And so in models where advisers across the country are just picking stocks. I don't view that as -- I really don't view that as adding sufficient value to create much of a moat. But what I've always loved about IG including before I was here, is that this is a model that's really been thoughtful about the division of labor. What should the house do? What should the adviser do? Where should we leverage third parties.

And I think it's evolved to the point where compared to some other models, the IG model, led by planning. I really do think creates a bigger moat than some other models where the value add, I just view as significantly narrower. I take your point on fees, Tom. I mean -- but I'd also say that this industry has been dealing with the headwind of pressure on fees now. Well, certainly, the entirety of my career. But I'd say that has been -- as headwinds go, that has been a moderate headwind, and I think the trilogy of kind of rising markets, net sales opportunity and the opportunity for positive operating leverage over time have allowed us to continue to grow the business. And I expect that to continue.

But I think this is definitely going to sharpen the focus on the wealth management model and just how much value add is each adviser contributed to the client and that relationship. And I think relatively, we are well positioned. And as I said earlier, we're going to be coming back to you and your peers in a few months with a lot more to say on this topic because it's an important topic.

Our next question is from Bart Dziarski with RBC Capital Markets.

Congrats on the strong quarter. Just following up on the wealth management topic and AI. So I hear your comments and color, but you did increase your expense growth guidance in that segment. So last year, you were calling for 2.5% growth, this year looks like 4% growth. Is that a defensive posture? Or is that an offensive posture in terms of the spend in that business?

That's an interesting point. I don't know, Bart, that I'd read too much into it. I mean I was sharing with the Board yesterday that what I love about Damon and his leadership team is they don't play in quarters or years. They've actually got a multiyear plan for this business. And when expenses are running a bit hot, he can tap on the brakes when we see a little bit of runway, he can kind of press on the gas.

And so I really wouldn't read too much into the 4% other than -- it's just -- we really did want to establish our credentials, if you will, as an organization that was serious about respecting the shareholders' money. And I think we've done that. But in the current environment including the current level of inflation as it relates to services that we consume in this business, 4% kind of felt about right for now, subject to, as I say, some ongoing work, some very important ongoing work that we're doing to see how we can, if anything, accelerate our deployment of the AI tools. Damon?

Yes. I would agree with James. And I would just say that there are major projects go that extend beyond AI with total cost reporting and a number of regulatory things that we have to get accomplished this year that everyone has to get accomplished in the industry this year as well as it's our 100th anniversary. So we've got a lot of things on the go at IG that we're very excited about.

Great. That's very helpful. And then just on the market volatility, so you also agreed price and value can be quite disconnected sometimes. But we have seen Robinhood had come down 50%, that's a pretty meaningful move. And so just as a read-through to Wealthsimple, how are you thinking about the kind of stability of the mark there in light of that move?

Yes. It's James. I'll start and then Keith will add. I mean let me start by just saying, Bart, that with each kind of passing Board meeting, my confidence is growing that Wealthsimple is really establishing themselves as a prominent part of Canada's financial sector. And so from an operational perspective, the beat goes on. I can't promise a straight line here, but I can tell you the direction of travel for that asset is up. And I'll also share with you that the -- it's a very highly integrated and expansive platform.

And when I think of the Wealthsimple platform, I start with the trade platform. I then think about the Invest platform. It also has kind of outstanding save crypto and work platforms, but it's a remarkably integrated, expansive and nimble platform. The Wealthsimple transaction closed, I believe, Keith, in December.

And in some respects, Bart, this is the difference between public markets and private markets, right? I mean in private equity or private markets, generally, if there was a large trade in December, you would -- no one would even think of trading -- changing the mark kind of 6 weeks later. And I think it's back to the point that you just reaffirmed that we do from time to not time need to remind ourselves that there is a difference between price and value. Keith?

Yes. No, I agree with everything James said. And to James' point, we marked this in December. It is quite a diversified platform. You think about where growth is coming from for Wealthsimple. It's coming from a broad group -- a broad diversified growth. It's as James said, it's the trade platform. It's the Invest platform, it's the Banking and Safe platform and reading the media that Wealthsimple is not nearly reliant on crypto like some other players in the industry. So it's a Canadian company built for Canadian clients, and they're growing quite well, and we're looking that forward to what they're going to do in the future here.

And our next question today comes from Graham Ryding with TD Securities.

Just to follow up on that. Is there any color you can give us on -- it seems like is the piece that's sort of weighing on some of those U.S.-based comps that might be a read-through for Wealthsimple. Can you give us some context for how significant crypto is in terms of that sort of AUA mix within Wealthsimple or how diversified that AUA is? Just trying to get some comfort that the overhang on crypto is not overly material for Wealthsimple?

Yes, it's Keith. I'll -- I can say that crypto is a very small component of their AUA, but we're not going to get into details of the mix. They're private company, but I can give you that comfort.

Okay. And then most of my questions have already been asked. But just on the Rockefeller piece, if I missed it, I apologize. But can you give us some context on why you decided to sell down a piece of Rockefeller? Was it opportunistic perhaps just to generate some proceeds to fund buybacks going forward? And how should we think about your longer-term positioning in Rockefeller? Would you be open to selling down again? Or are you committed at this level?

Yes. We were at 20% and change, and we're now at 17% and change. A chunk of that, frankly, is the settlement of a management incentive plan. The result of which is management very, very happily or meaningful shareholders in this company. And the delta small portion of that move from 20% to 17% or a portion of it does represent a sale. We could have sold more. We chose not to. We actually chose to reinvest some of what we could have taken to kind of bag in the business, to be clear. But the bit that we did sell, I would really say it was an accommodation, by that, I mean, there are some high-profile global families that wanted into this capital stack, and we wanted them in the capital stack. So this is kind of how it shook out.

To be clear, over time, I would like to own some more of Rockefeller. But as I said earlier, there's 2 principles that any transaction is going to have to be faithful to, any transaction will have to be both kind of risk smart as we coined it in 2023, and it's going to have to be earnings aware, which means that it's going to have to be mindful of how we trade. We have a very limited ability to do things that our shareholders don't see value in or cannot reflect within a reasonable period of time in our share price. But I actually think the opportunity to do something that's both risk-smart and earnings-aware with Rockefeller in the coming years will be real. And on that basis, we would desire to own more.

[Operator Instructions] Our next question today comes from James Gloyn National Bank Financial.

First question just on the dividend. As you -- I believe commented that you will look to review it with payout ratios below 60%. Is that -- I just want to clarify or understand the time line. Is that an annual review? Or is it something you'll review more regularly quarter-to-quarter?

Yes, Jaeme, it's Keith here. I think you can expect more of an annual view. We expect and we've guided to growing earnings at 9% per year. And on an annual basis, we'll -- you can expect that to be the moment in time that we do review. We all know that we -- in the industry we're in, our business can be cyclical, but that would be a reasonable expectation on an annual basis.

Okay. Great. Maybe a question for Luke in the Mackenzie business. Obviously, quant and multi-strategy doing very well, but a couple of other platforms, not so much. Can you talk about perhaps some of the strategies or what you're doing in Mackenzie to get it a stronger turnaround of Bluewater or Ivy or something -- a couple that are maybe less robust on the net flows perspective.

Yes. Great question, James. So on Page 27, we've got a boutique approach. What it means is we seek to stuff that's relevant and compelling in every market environment and for every client need. Some of the boutiques invariably find themselves in environments that don't favor their approach and favor their style. They remain disciplined to it. And we obviously coach to make sure that they're leading in their investment edge. Right now, for Bluewater for growth, there's a few of them that have had soft performance and we remain behind these teams, coaching them and making sure that they're doing what they told clients they're going to do and making sure we're raising the bar and investment excellence everywhere that we've got quality across all of our boutiques.

And that when the market environment comes, it suits their particular approach that they're delivering on it and have a clear client expectations everywhere and all the time. But yes, we are very pleased with this particular approach that we've got a lot of stuff right now that where we've seen some net redemptions in Bluewater based upon the performance over the last 24 months. We actually have a lot of stuff that's being leaned in on, and right now, there's more people selecting Mackenzie than in the history of the company when you look at the gross purchase activity.

And then last, just to maybe come back to the AI team one more time. How much of a friction point do you think the regulatory environment would present in terms of either advisers or IPS construction, things of that nature? Like how much would regulatory environment create a friction for that type of disruption?

Jaeme, it's Damon. I think from a regulatory standpoint, the regulators would be open to working with wealth managers to integrate AI as long as you'd have the technology and the infrastructure and the internal controls to back it up and make sure that you have quality control. I think they would be all for it, because it would improve client outcomes, and that's what the regulators are focused on. And quite frankly, we've had discussions with them on a number of topics, including AI. So we're excited about the future here.

Yes. I think I meant more around would there be any hurdles for potential AI disruptors from a regulatory standpoint, but if they're supportive for you, I'm sure they're supportive of all that as well.

And our next question is a follow-up from Bart Dziarski with RBC Capital Markets.

Just a follow-up on the dividend. So the growth rate of 10% is above your EPS 9% plus target. So I just want to check, is that a signal in terms of confidence in your EPS growth outlook? Or am I reading into that too much?

Well, I mean, -- we're very committed to our 9% medium-term target to be sure. But I think what it really reflects is that this company's financial condition has never been stronger. And we took our board through it in some detail yesterday. If you look at the client assets, look at revenue, look at earnings, look at unallocated capital and look at what's becoming objectively a very low leverage ratio. The financial condition has never been stronger. And so I think we -- the 10% became a number that was well justified.

I'm also -- we're also mindful that it's been a while since we increased our dividend. And if you have this kind of financial strength and that level of confidence in your medium-term EPS the difference between 9% and 10%, particularly in a year where you plan to buy back as much stock as we do. The run rate kind of delta or carry is pretty small, and it's very manageable.

And that concludes our question-and-answer session. I'd like to turn the conference back over to the management team for any closing remarks.

Great. Thank you, Rocco. And we'd once again like to thank everyone for joining us on the call this morning. And Rocco, with that, we can end this morning's call.

Yes, sir. Thank you. That brings a close to today's conference call. You may now disconnect your lines. Thank you for participating, and have a pleasant day.

Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Third Quarter 2025 Analyst Call and Webcast. [Operator Instructions] The conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to Kyle Martens, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you, Betsy. Good morning, everyone, and thank you for joining us. On the call today, we have James O'Sullivan, President and CEO, IGM Financial; Damon Murchison, President and CEO of IG Wealth Management; Luke Gould, President and CEO of Mackenzie Investments; and Keith Potter, Executive Vice President and CFO of IGM Financial.

Before we get started, I would like to draw your attention to our cautions concerning forward-looking statements on Slide 3 of the presentation. Slides 4 and 5 summarize non-IFRS financial measures and other financial measures used within this presentation. On Slide 7, we provide a list of documents that are available on our website related to IGM Financial third quarter results. That will take us to Slide 9, where I'll turn it over to James.

All right. Good morning, everyone, and thank you for joining us today. We're pleased to report another record quarter across many dimensions of our businesses, including an all-time high adjusted EPS of $1.27. Most importantly, the outstanding third quarter demonstrates strength and continued momentum in our core businesses, IG Wealth and Mackenzie Investments. Last quarter, we noted an important inflection point in Mackenzie's retail adviser channel. That momentum continued in the third quarter, outside continued strength in the institutional and partnership channels, positioning Mackenzie, I think, for sustained growth. IG Wealth's leadership in delivering best-in-class advice to mass affluent and high net worth clients continues to be a powerful growth engine, driving record assets and reinforcing our position as a premier wealth management firm in Canada.

IG Makenzy combined achieved $2.4 billion in net inflows during the quarter and delivered year-over-year earnings growth of 24% and 15%, respectively. Complementing the strong performance in our core businesses, our strategic investments delivered continued growth and demonstrated value for IGM's shareholders. We have spoken in the past about narrowing the gap between trading price and net asset value by highlighting and demonstrating progress in our strategic investments. The Rockefeller transaction underscores its strong growth and adds new long-term investors further strengthening the ownership base. Importantly, IGM will remain Rockefeller's second largest shareholder when the deal closes later this year and the only strategic in the capital spec. After doubling client assets in just over a year, WealthSimple's financing round marked another key milestone for the firm as they continue their focus on developing and launching innovative solutions for the benefit of their clients.

IGM continues to be the largest shareholder of WealthSimple, pro forma the financing round. Each of these investments remains strategically important to IGM. We're naturally very pleased to share these developments that showcase the significant value and strategic optionality embedded within our Wealth Management segment. Looking forward, we are in a very strong position financially and look forward to returning increasing amounts of capital to our shareholders in 2026.

Moving to Slide 10 and the current operating backdrop. Markets have continued to be strong, driving IGM client returns of over 6% during the quarter. Resilient markets have continued to support investor confidence, helping drive another quarter of positive industry flows. At the same time, we're mindful that markets can correct at any time and we keep a keen eye on differentials between the financial economy and the real economy. Periods of volatility remain probable over the near and medium terms.

Slide 11 provides a snapshot of the strong double-digit earnings growth across all of our segments, which Keith will address later in the call.

Finally, on Slide 12, you'll see the double-digit asset growth across each of our businesses that contributed to IGM's record assets under management and advisement.

I'll now turn the call over to Damon.

Thank you, James, and good morning, everyone. Turn to Slide 14 in Wealth Management's third quarter highlights, including IG Wealth, Rockefeller and -- well Simple. Riding on the momentum IG has built, the third quarter continued to deliver record results we ended the quarter with record AUM&A of $156 billion, up 14% versus Q3 of last year, supported by record Q3 gross inflows and sales of $3.8 billion and $3.9 billion, respectively. Total net flows for the quarter were $426 million and represented our fifth consecutive quarter of positive net flows. IG Wealth continues to be a new client acquisition machine, delivering record Q3 new client gross inflows of $1.2 billion with 71% of these inflows coming from massive fluent and high net worth clients.

During the month of October, the momentum continued with our highest gross inflows on record and strong net inflows of $276 million. Also during the quarter, the Investment Executive 2025 dealer report card was published. And once again, IG was ranked as an industry leader. I'll speak more to this and to the demonstrated strength of both Rockefeller and well Sipple on the upcoming slides.

Moving to Slide 15. This shows the continued momentum that this business has built. On the left, you can see in all 3 periods that we are at record levels for gross inflows, which is in turn driving our strong net flows. The graph on the right illustrates the ability of our advises to work with their clients to dollar cost average into long-term IG solutions.

Turning to Slide 16. You can see our operating results, which continue to provide great insight into the strength of this business. I'll note our third-party AUA growth is driven by our ability to acquire new clients as we continue to drive new masserfluent high net worth client acquisition we expect to see similar growth in this category. Everything on this slide continues to point in the right direction, illustrating our growth and our advisability to work with their clients to dollar average cost in from GIC's HISA balances and in short-term investments over time.

Moving to Slide 17. Our gross inflows from newly acquired clients demonstrate the client acquisition machine that IG is today, and it's across all segments. Most notably, the newly acquired Matiffluent high net worth clients.

Turning to Slide 18. You can see the continued momentum in our mortgage and insurance businesses, both of which has delivered strong year-over-year growth. We continue to see strong growth prospects in our insurance business, while our advisers also see opportunity to engage their clients to win new mortgage business as their clients and mortgages come up for renewal.

Now turning to Slide 19. I want to briefly focus on the strategic pillars that we spoke to at our last Investors Day, investing in the business, elevating the business and driving a best-in-class advice experience. The wealth drivers is focused on our investment on partnerships to support the advice that our clients demand and our prospects seek. We're enhancing our advisers' capabilities through these partnerships, which in turn provides them a better line of sight to the client's full financial picture. At the same time, we're elevating our platforms and products by expanding our exposure to private assets, extending our growth in insurance and lending offerings as well as providing accounts to help our clients and their children safe for their first home. These initiatives are driving our strategy, resulting in success in both our entrepreneurial and corporate channels.

36% of our new client gross inflows are coming from the high net worth segment while our corporate channel represents 7% of our AUM M&A and 34% of our clients. Further validation of our success of our strategy as seen through the eyes of the industry's advisers. This year, IG continued a time ranking in the 2025 investment executive dealer port card, where we once again ranked first overall amongst our peers, improving our score year-over-year in placing first in 15 categories.

Now turning to Slide 20. I'll update you on Rockefeller's program. Client assets were up 25% year-over-year, supported by market inorganic and organic growth. Over the last 12 months, organic growth has driven $6.7 billion in client assets, while Rockefeller continued to add to their private advisory network. with 60 new advisers being added over the last 12 months.

Now moving to Slide 21. This slide illustrates well Simple's momentous upward trajectory. At our 2023 Investor Day, WealthSimple set a target of $100 billion in AUA by the end of 2028. During the third quarter, they achieved this, ending the quarter with $100.8 billion, up a remarkable 94% over last year and setting a new all-time record high with $16.3 billion in AUA growth during the third quarter. Well Simple has increased their clients served by 15% year-over-year, ending the quarter with over 3 million clients.

With that, I'll now turn the call over to Luke Gould.

Great. Thanks, Damon. Good morning, everyone. True to Page 23, you'll see highlights for Mackenzie and for Asset Management for the quarter. This was a quarter of very strong momentum across a number of dimensions. It was a good quarter for clients with investment returns of 6%, and we ended the quarter with record-high assets of just under $240 billion, up 6.6% in the quarter as a result of both investment returns and net sales of $2 billion in the quarter. This net sales result was up meaningfully from last year with momentum across channels. Investment fund net sales, you can see on the top right, of $407 million improved by $700 million from last year driven largely from improvements in retail.

Retail net sales of $7 million are up $510 million from last year, with strong momentum in quant and active equity ETFs in particular. We're pleased to see a lot of the momentum with products launched during the last 36 months. We also onboarded $1.6 billion from 3 institutional clients as we disclosed last quarter. Two of these clients were large foreign public pensions and wealth funds and the third was a large Canadian pension. We have another $400 million award funding in Q4 and a very good near-term pipeline. Few weeks ago, we received the results of the 2025 adviser perception study for each of mutual funds and ETFs. Results were broadly stable on the mutual fund study and we maintain rank of second on sales penetration across channels, brand equity and overall score relative to large peers. We experienced noteworthy improvements on the ETF study. with our overall score increasing to 7.9% from 7.1%. -- rank is tied for third versus our score of 8 last year. We're pleased to see this momentum on the ETF study given our activity in broadening our ETF suite around active and better beta mandates.

We continue to be very busy on the product launch side for retail. We've launched 11 new products in the third and fourth quarter of this year, and we launched 12 products in the first half of the year across mutual fund ETF and offering memorandum vehicles. These launches include this quarter, our fifth private markets fund the Mackenzie Northleaf multi-asset fund. We've also launched 4 better beta ETFs in the quarter as well as expanding our value style offerings and providing our U.S. health extension mandate in ETF 4. And at the bottom, you can see both China and C and North leap continue to generate good growth. China MC's investment funds were up 30% from last year and 7% during the quarter, supported by a robust rebound in Chinese markets, where equity markets were up 19% in Q3. And Northleaf continues to have strong fundraising of $5.2 billion over last year and $1.5 billion during the quarter.

Turning to Page 24. You can see the trend and the history of McKenzie's investment fund net sales on the left, you can see that this is our best invested funded sales across all 3 periods since 2021, with meaningful improvements from 2024 as highlighted earlier, a majority of the momentum in Q3 investment fund net sales was driven by retail, and you can see this improvement on the chart on the right. I'd also remind on the left that we don't publish ETF gross purchase and disposition activity due to data challenges, but we estimate that retail gross purchase activity include ETFs was up about 50% year-over-year. On the right, overall, we're positive and improving our last 12-month trailing basis. And you can see ending the year that retail is trending towards positive territory as well on a last 12-month basis.

We've also added a note on the right that we disclosed on our total results. Investment fund net sales were $235 million, a very good result and a meaningful improvement over 2025 and this excludes the $950 million net purchase of our passive ETFs by an institutional client who made allocations to Mackenzie within their managed solutions.

Turning to Page 25 at the top right. You can see our net sales segmented between retail and institutional and by delivery vehicle. We've circled the improvement within our retail investment funds with notable increases in both the mutual fund and ETF structure. You can also see the $1.55 billion onboarded institutional awards during the quarter. And at the bottom left, you can see our last 12-month trailing net sales rate has been closing ground relative to mutual fund industry peer group.

Turing Page 26, you can see our performance and net sales for our retail mutual funds and ETFs by boutique. Across the slides looking near the top of the slide, you can see compelling performance relative to peers across multiple boutiques. Towards the middle, you'll see our global quantitative equity boutique has exceptional relative performance across the 3 time periods where this team managed the money. And you can see the strong growing net sales for this team. I'd also highlight that we have strong performance and net sales or net sales improvement within a number of other boutiques, including our resources team, our green ship team, global equity and income and the multi-asset strategy team.

Turning to page 27, we've added a slide to give an update on our private market funds for retail investors with -- in our partnership with Northleaf. You can see at the top that we are on a mission to bring private asset classes, what we call the missing middle to Canadian households. We've been working hard to remove every impediment to Canadian households having a proper allocation to these asset classes. This has included education and promotion, helping with the adviser accreditation ensuring products are eligible for registered plan and ensuring that the products are scaled. The existing products, you can see on the left are achieving scale and have increased sales momentum.

In October, as mentioned, we introduced the McKinsey Northleaf Multi-Asset Private Markets Fund. This is a single ticket that brings private equity, private credit infrastructure together and provides a very nice complement to an existing 60-40 portfolio. The underlying products, you can see have delivered excellent track record since launch, and we provide a graphic in the middle of the slides convey the missing middle concept. We seeded our new multi-asset product with $100 million from our other managed solutions and we are looking very forward to promoting in the market. We've also in the bottom right, highlighted that we held our first private market Summit in London, England at the end of May. We're very proud of the strength of this event in terms of both the quality of the content and speakers as well as the engagement with the -- a lot of the investments that are held in the portfolio and the investee companies.

Turning to Page 28. A few comments on the Chinese investment fund industry. On the left, you can see the industry grew by 6% in the quarter, driven primarily by strong equity markets. In the bottom left, you can see the net sales trend and wealth overall industry net sales were positive, including money market long-term funds were in slight net outflows with equity funds where clients took some of the gains with the recent upturn in the market. On the right, we're pleased with the continued strong performance of China MC relative to peers. And they continue to see market share gains, our long-term funds increasing to 6.7% of the industry, up from 6.4% last quarter and 6.3% last year.

On Page 29, you can see the strong growth in Chinese AUM and the company is very proud to have reached an important milestone of KRW 3 trillion this quarter, so close to following its previous $2 trillion milestone just 6 quarters ago. You can see that investment fund assets were up 7% in the quarter and 30% over the last year.

And on Page 30, you can see another very strong quarter of fundraising at Northleaf with $1.5 billion in fundraising in the quarter and $5.2 billion over the last 12 months. Fundraising was strong across private equity, private credit and infrastructure, particularly in particular, as they closed their products they had to market. And I also want to recognize just a few days ago, we celebrated the 5-year anniversary of our partnership with Northleaf. I just want to say we're very pleased with the progress. We're very proud of this team, and we're very excited about the future.

I'll now turn the call over to Keith Potter.

Thank you, Luke, and good morning, everyone. On Slide 32, you can see key highlights for Q3. Adjusted EPS, which excludes Lifeco's other items, was $1.27, up over 23% year-over-year and a record high. These strong results were diversified and driven by our core businesses and contribution from our strategic investments. We returned $183 million to shareholders in the quarter, including approximately $51 million in share repurchases we have repurchased 3.6 million shares to the end of September, and we'll continue to be active repurchasing shares through the remainder of the year. In line with past quarters, we are also strengthening our financial profile by steadily lowering leverage and cash dividend payout ratio while maintaining financial flexibility with unallocated capital growing to approximately $700 million.

Finally, as previously announced in October, we have reported a $1.4 billion increase or approximately $6 per IGM share in the value of Rockefeller and WealthSimple combined details of the Rockefeller transaction are yet to be finalized, and we will update you on the Q4 call in February.

Turning to Slide 33. You can see our AU M&A and flows on a year-to-year basis. Strong equity markets during the quarter supported ending and average asset growth with both up approximately 6.5% since Q2 and in particular, we saw a robust growth in the Chinese equity markets with the CSI 300 up 19% during the third quarter, which was supportive of Chinese's results. I'll speak to these in a few moments. On the left-hand side, similar to last quarter, it's worth noting that at the end of October, ending AU M&A is up approximately 5% from the Q3 average. And if markets remain stable, the increase in assets will a key driver for revenue growth in Q4.

Turning to Slide 34, .1 and .2 helped to illustrate the diversified drivers of our 23% year-over-year growth in adjusted EPS on point on a year-to-date basis, our combined operations and support and business development expenses are up 4.1% from last year, and we are maintaining guidance of 4% for the full year, and we look forward to providing our 2026 expense guidance on the February call.

On Slide 35, we present the key profitability drivers for IG Wealth Management. I'll highlight a few points. On the left side, you can see that average AUM&A was up 6.6% and on the right, as a reminder, the advisory fee rate includes advisory fees charged on AUA as well as interest earned on client cash on deposits. During the quarter, our advisory fee rate dropped 1.4 basis points primarily driven by clients moving up wealth pad with average AUA increasing 6.6% in the quarter, and secondly, by a decrease in client cash balances as adviser works with their clients to invest in long-term solutions. As I mentioned at the end of October, our AUMA is up approximately 5% from the Q3 average and assuming markets hold, we do expect to have an approximate 1 basis point impact on the advisory fee rate in the fourth quarter this client to move up wealth bands and expect moderately lower cash balances. And for context, similar to last quarter, these types of returns and impact are more in line with what you'd expect in 1 year versus 1 quarter.

Finally, the asset-based compensation rate was flat quarter-over-quarter. And as we look to the next quarter, we would remind that the rate is typically higher in Q4 due to year-end seasonal programs.

On Slide 36, IG's overall earnings of $155.3 million in Q3 or up 23.7% year-over-year. 1.2%, our financial planning revenue to be supported by strong mortgage and insurance performance. And on 0.3, IG operations in support of this development expenses were $164 million in line with last quarter and up approximately 4.1% year-over-year.

Moving to Slide 37. We have Mackenzie's AUM by client and product type as well as net revenue rates. On the left, you can see average AUM was up almost 6% versus Q2 and on the right, third-party rate, excluding Canada Life decreased primarily due to onboarding of $1.6 billion in institutional assets as we guided during the Q2 call. As we look forward to Q4 with the full quarter of the additional institutional assets and additional institutional ETF flows of during October, we expect to see this rate come down approximately 1.5 basis points in Q4.

Turning to Slide 38. Mackenzie's earnings were 682 million, up 14.8% year-over-year and 1.2% operations and support and business development expenses were $120 million, up 4.3% year-over-year and 1.6% sequentially.

And Slide 39 has China see the results. As I spoke to a few moments ago, the Chinese equity markets performed very well during the quarter, would support an investment fund AUM growth. And on the right can see CMC's strong earnings of $46.1 million that benefited from seed capital gains driven by strong equity returns. Adjusting for the fair value gains, Q3 results were relatively in line with the last few quarters. And as we look to the next quarter, I'd remind that the fourth quarter is traditionally a seasonally elevated expenses, and we do expect to see earnings contribution from the company, somewhere in the range of where we've seen over the past 3 quarters, excluding the impact of any significant market movement.

Slide 40 has earnings contribution from companies in each segment. I'll make a couple of comments here. First, Rockefeller earnings turned positive during the quarter, in line with our expectations. And as we look to the fourth quarter, we'd expect progress toward improved profitability, excluding any transaction-related expenses with the recent announcement. And as I mentioned, we will provide more details on the transaction during our February call. For Northleaf, during our Q2 call, we guided to earnings for the next few quarters of approximately $5 million. Q3 came in lower due to seasonality of some expenses, accrual true-ups and a few onetime items. I do expect quarterly earnings over the next few quarters of approximately $5 million on average. But to remind there is some variation in earnings from quarter-to-quarter.

A few points on Slide 41. We have updated the indicative values for Rockefeller and WealthSimple. The total value of both investments represent approximately $16 per share. It's worth noting that neither contribute meaningfully to IGM earnings but do contribute significant value. On Northleaf, we increased the carrying value by $33 million net of NCI for the earnout, which reflects continued strong fund rates also with highlighting, we did receive a $7 million dividend from Northleaf this quarter.

And finally, at the bottom right of the slide, you can see that strategic investments and unallocated capital have an indicative value of $8.3 billion in aggregate, which represents $35 per share value.

Slide 42 demonstrates continued execution against our capital allocation priorities we continue to return capital to shareholders and strengthen our financial flexibility. In addition to paying a quarter dated dividend and repurchasing shares, we continue to have a reduced gross leverage, now just over 1.4x. And we've also included debt net of unallocated capital, and you can see both measures present the same directional story. Our cash dividend payout ratio is now at 59% and is down from 62% last quarter. And finally, at the end of the quarter, our unallocated capital grew to approximately $700 million.

That concludes my remarks, and I'll turn it over for questions.

[Operator Instructions] The first question today comes from Jamie Gloyn with NBC.

Congrats, the business seems to really be humming on all facets. And so with that, and obviously, some strategic investments doing well, core business doing well. We have unallocated capital continuing to rise. James, is it something you're discussing with the Board now where maybe a shift in mindset around M&A. Over the last couple of years, focus has been on organic growth. But is that something that's entering discussions now? And then if not, should we maybe expect to see maybe a more accelerated buyback than just sort of like the 2% of shares we've seen over the last little bit here.

Sure. thanks for the question. I don't expect any meaningful change in our posture towards M&A. We have the business we want. We're proud of the construction of this business now 2 divisions, 6 businesses, 3 in each. We believe, James, that we're built for growth, build for diversification. And I think starting to show that. So as I look forward to 2026, I think thematically, 2026 is going to be about returning capital to shareholders. If there was a single theme to think about as we head into the year, that's what I'm thinking about. How do we return capital to shareholders.

And of course, we've got, as you point out, high levels of unallocated capital. We've got we've had strong growth in client assets, strong growth in earnings. So I think we're in a position to look very fully at that question. At both kind of buyback, how big a buyback do we do? What do we do with the dividend? -- everything's on the table, and we will be taking a capital plan to our Board in February.

Okay. Great. And then as I think about the strategic investments and what you could do there, a little bit more of an investment in WealthSimple. But is there -- what's the discussion with the parent around maybe where WealthSimple fits best -- is there anything you can share from your discussions on that?.

It's a question that's out there, and it is something that Jeff or and I discussed from time to time. But I would not be anticipating any change, certainly in the foreseeable future. as to where kind of well simple resides. It resides that power, it resides within IGM. I think each of us are proud of our position and very happy with our position -- and so I'm not contemplating any change in the local, if you will, of -- well Simple. It's a great business and collectively, we control it and they're very proud of their progress..

Okay. Great. And my last one, maybe for Damon. -- nice tick-up in the Net Promoter Score. It's always good to see that -- can you maybe sort of detail or describe what's driving that? What are you seeing in shifts? And when would you expect to see flow through from that nice jump?

Yes. Thanks, Jim. I think that's an indication of how we are planning for our clients and the areas that we are really focusing on with them. And it goes back to the wealth drivers that we've talked about. We obviously do a great job investing their money and we make the money, build their wealth. But it's about retirement planning, it's about the state planning and a generation of wealth transfer. It's about those that have small businesses. Whether they need financing or their ready versus succession plan. We help them there. We connect families together so that high net worth families can talk about their wealth openly and honestly. And we call that high net worth financial literacy. And then we're helping our clients create that want to give back and lead to what a better place and we help them create legacy plans while they're living.

So all of that, combined with our ability to manage money and make the money leads to higher Net Promoter Scores. And it leads to obviously getting greater share of wallet and it leads to new client acquisition.

[Operator Instructions] The next question comes from Graham Ryding with TD Securities.

I can just start with Luke, -- starting to see some pretty solid institutional flows at Mackenzie, an improvement in your retail flows but still lagging what we're sort of seeing at IG Wealth in terms of flow rates and momentum. What are the sort of the products or maybe the the strategic pieces needed to get Mackenzie flow sort of up to the next level on the retail side?

Yes. Thanks, Brent. Good question. Going back to Page 24, like we're feeling we got all the ingredients and heading into 2026, we've got this momentum. You can see the trend if you extrapolate it. We're pleased with the success we're bringing on. And when you look at the suite we've got in retail to promote right now, we're kind of just getting started. Just with quant and active ETFs as a theme, we're pleased with what we brought in 2 but the tip of the iceberg when you look at the broad categories that these products play in and just how compelling not only the investment process is but the demonstrated track record so as we're sitting here looking at our retail suite and the outlook for 2026, we're feeling very, very good.

And then if I could just jump to Wells, I think you said there's now $100 billion of assets at Wealthsimple. Can you give us a feel for how that mix looks across the different categories and distribution channels.

Yes. Look, it's a fair question as the company goes from strength to strength and gets larger and larger. It remains a private company. And so at least at this point, we're not going to be adding to current disclosures. What I've said in the past, I'll say Canada continues to be true. If you had to look at the composition of their assets or the composition of their flows, I think you'd be deeply impressed with the diversification across all of their businesses, including trading, invest, save, work, crypto. It remains a very well-diversified platform overall.

And the large ETF institutional flow that we saw in October, is that wealth simple related? Can you speak to that at all? And then just broadly, how much AUM is Mackenzie managing on behalf of Wealthsimple currently?.

Yes. Good question, James. So...

We generally don't disclose that clients when it comes to institutional flows. We do manage about $7 billion for WealthSimple in our passive ETFs. So we are part of the fueling of their product offering. PAUSE And we do have a private label suite that we manage for them. They are labeled wealth simply ETFs and McKinsey has them under management. And we are very pleased, obviously, for the partnership we have with them.

And any private assets with Northleaf in that channel?

We don't currently, but I know there's good discussions going on between Northleaf and -- well Simple, and Northleawould love to be on that platform.

This concludes our question-and-answer session. I would like to turn the conference back over to Kyle Martins for any closing remarks.

Thank you, Betsy. We'd once again like to thank everyone for joining us on the call this morning, and let you with that in today's conference call.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thank you for standing by. This is the conference operator. Welcome to the IGM Financial Second Quarter 2025 Analyst Call and Webcast. [Operator Instructions] The conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to Kyle Martens, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you, Galeen. Good morning, everyone, and thank you for joining us. On the call today, we have James O'Sullivan, President and CEO of IGM Financial; Damon Murchison, President and CEO of IG Wealth Management; Luke Gould, President and CEO of Mackenzie Investments; and Keith Potter, Executive Vice President and CFO of IGM Financial.

Before we get started, I would like to draw your attention to our cautions concerning forward-looking statements on Slide 3 of the presentation. Slides 4 and 5 summarize non-IFRS financial measures and other financial measures used in this material. And on Slide 6, we provide a list of documents that are available on our website related to IGM Financial's second quarter results.

That will take us to Slide 9, where I'll turn it over to James.

All right. Well, good morning, everyone, and thank you for joining us. Q2, I think, was a revealing quarter for IGM, one that showcased the strength and embedded growth in our wealth and asset management businesses as just about everything worked very well across our companies.

Q2 was a quarter where we delivered strong earnings and clearly, I think, revealed the path to continued earnings growth over time. Not only was the second quarter's adjusted EPS of $1.07, a record high second quarter, IGM's last 4 quarters adjusted EPS of $4.15 is also a record high for any period and was accomplished despite moments that were marked by uncertainty and volatility.

Our performance is also, I'd point out, before we receive any earnings contribution from either Wealthsimple, where we are the largest shareholder or Rockefeller Capital Management, where we are the second largest shareholder. Rockefeller's rapid growth trajectory positions it to begin contributing to IGM's EPS in the near-term, reinforcing our thesis of embedded value creation that will reveal itself in earnings contributions.

Continued strong performance at Wealthsimple contributed to the 21% increase in the fair value of this investment, which is now valued at $1.5 billion. As a reminder, our investment in Wealthsimple is currently classified on our balance sheet as fair value through other comprehensive income. As a result, IGM's earnings do not include the benefit of the significant growth in value of this business.

We also demonstrated value creation through our participation in Conquest Planning's secondary financing transaction. I think one of the unsung successes of IGM has been its participation in the Power Group's fintech ecosystem. Our participation has allowed us to be on the leading edge of innovation as we establish strong commercial partnerships.

And it has allowed us to be early investors in fast-growing innovative platforms. Examples of this include Wealthsimple, Personal Capital, Conquest, nesto, ClearEstate and others that are being stood up as we speak. And we continue to return capital to shareholders during the quarter through both our strong dividend and our share repurchase program. We are determined to repurchase more shares as we do not believe the current price adequately reflects the strength of IG, the very clear progress in Mackenzie nor the significant value embedded in our strategic investments.

Let's move to Slide 10, where I'll speak to the broader operating environment. The first half of 2025 was characterized by periods of heightened volatility, most notably the month of April. But as we moved through the second quarter in July, uncertainty and volatility subsided, returning markets to an upward trend. Overall, while much of the underlying uncertainty remains, the average Canadian's diversified investment portfolio has achieved strong investment returns through July and over the last number of years, which has very much helped to support improving investor confidence.

Slide 11 shows how improving investor confidence is supporting a stronger industry backdrop with industry net sales returning to their previous upward trend. Turning to Slide 12. Here, you will see how earnings growth at all 3 of our reporting segments contributed to IGM's overall 15% year-over-year growth.

And on Slide 13, we have robust client asset growth across each of our wealth and asset management businesses, which combined drove IGM's AUM&A up 21% over the past 12 months. Contributing to this growth was Mackenzie's momentum in the institutional and strategic partnerships channel, which continued through the second quarter and into July. There's no change there. Two, over the last 4 months is a very notable net flows inflection point in Mackenzie's retail channel, which I know Luke will be happy to speak to shortly.

But first, I'll turn it over to Damon to speak to the Wealth Management segment's operating results, including the continued strong momentum at IG Wealth.

Thank you, James, and good morning, everyone. Turning to Slide 15 and Wealth Management's second quarter highlights, including IG Wealth, Rockefeller and Wealthsimple. The second quarter was defined by numerous records at IG Wealth and is a great example of our ability to execute our strategy and build momentum. IG Wealth ended the quarter with record quarter end AUM&A of $146.7 billion, up a solid 13% year-over-year and up 3.6% during the second quarter, driven by financial markets and strong net inflows.

IG's AUM of $129.5 million represented a quarter end record and was up 13% year-over-year. Our gross inflows, gross sales into IGM products as well as gross inflows from new clients all set new Q2 record highs. Total gross inflows from newly acquired clients were $1.2 billion with mass affluent and high net worth clients representing close to 80% of these flows.

Excluding a $24 million outflow related to an IG defined benefit plan pension transfer to an SMA account at Mackenzie, total net inflows for the quarter were $249 million and net sales in the IGM product was $513 million, representing an increase in net sales of over $1 billion versus last year in Q2.July continued this momentum with strong gross inflows and gross sales as well as strong positive net inflows and sales in the IGM product.

Our mortgage and insurance business also delivered strong performance, which I will speak to in a later slide. July 1, we reached an important milestone as we received regulatory approval to merge our mutual fund and investment dealers into one dual registered dealer. I will touch on the operational benefits of this in a few slides.

Turning to Slide 16. You can see IG's gross and net flows over numerous periods. This slide shows the growing momentum that this business has. On the left, you can see in all 3 periods, we are benefiting from both increased gross inflows as well as declining gross outflows, which is a solid combination. The graph on the right illustrates the ability of our advisors to work with their clients to navigate volatility and dollar cost average into long-term IG solutions.

As a reminder, during July 2024, we saw significant flows, which were partially related to the now eliminated changes to Canada's capital gains rate policy. We remain as confident as ever in our advisors' ability to negotiate the complex market environment with our clients so that they can build, preserve, quantify and distribute their wealth.

Turning to Slide 17. You can see our operating results, which provide a great view of the strength of this business. Everything on this slide is pointing in the right direction, supporting our growth and our advisors continue to work with their clients to dollar average cost from cash, GICs and hybrid balances into the markets over time.

Turning to Slide 18 and our gross inflows from newly acquired clients, which continues to be dominated by new mass affluent and high net worth clients. Year-to-date, 78% of our gross flows from newly acquired clients are either mass affluent or high net worth and high net worth clients specifically represent 38% of these gross inflows, which exceeds our Investor Day commitment of 33%.

Turning to Slide 19. You can see the continued momentum in our mortgage and insurance businesses, both which have delivered strong year-over-year growth. Of importance in our insurance business, we are seeing different advisors leading insurance production than we did last year, reflecting our increased breadth and focus across this business. This is in line with similar trends that we are seeing in the mortgage business, which we spoke to last quarter.

Turning to Slide 20. I want to provide a quick update on our segmented model with a focus on how it's driving productivity, enabling growth in our business. In the middle of the slide, you can see growth in each channel, including the corporate channel, which now represents approximately $10 billion of AUA and 34% of our clients. The corporate channel has extended our entrepreneurial advisors' ability to focus on financial planning with their core clients. On the right-hand side, you can see the benefits of this as it supported our increased mortgage and insurance penetration and greater success in acquiring mass affluent and high net worth clients.

Turning to Slide 21. The merger of our legacy dealers into one dual registered dealer. Moving to one dealer supports our future growth and streamlines our processes driving operational efficiencies. This new model simplifies the client experience, streamlines our business operations and makes it easier for advisors to focus on building their business regardless of their license.

Now turning to Slide 22. Let me provide some updates on Rockefeller's progress. Client assets were up 22% year-over-year, supported by markets, inorganic and organic growth. Over the last 12 months, organic growth drove $5.9 billion in client assets, driven by Rockefeller's core wealth platform. Rockefeller also continues to add to their private advisor network with 15 new advisors being added during the second quarter.

Turning to Slide 23. Wealthsimple's momentum continues, driven by their ability to attract new clients and grow client share of wallet. Wealthsimple has increased their clients served by 13% year-over-year, while their AUA has increased by $11.5 billion during the quarter and is up 94% year-over-year.

With that, I'll turn it over to Luke Gould.

Thank you, Damon, and good morning, everyone. Turning to Page 25, you'll see a few highlights for Mackenzie and for Asset Management for the quarter. We ended the quarter with record high AUM of $224.6 billion, up 11% from last year and 3% in the quarter, and we had another 1.5% growth in July.

On the left, we had investment fund net sales of $187 million in the quarter. This is our best Q2 results since 2021 and a $900 million improvement from last year, driven by meaningful improvements in retail. Overall, we had net redemptions of $135 million. Previously announced awards in our institutional business funded during July, and we had institutional net sales of over $700 million coming just following the quarter end.

In the top right, we've highlighted the meaningful momentum that we experienced in retail during Q2, which has continued into the third quarter. And as James noted, July was the third consecutive month of positive retail investment fund net sales with significant year-over-year improvement.

As reported yesterday, overall net sales in the month, including institutional awards were $910 million. We also launched 9 new investment funds in the quarter, focused on areas of merchant growth and shelf completion. This supplements 15 launches during 2024, which have helped drive our recent success in retail. Q2 launches include expansion of our successful holistic quant offering with 4 new quant mandates, including Canadian Balance, Canadian Equity, Global Balance and our long/short U.S. Alpha extension strategy.

We've added to our fixed income offering during the quarter with target date fixed income ETFs as well as a AAA CLO ETF that brings proven capabilities we have in this space to retail and has a compelling yield that is currently over 6%. We have also augmented our fundamental equity product offering with an international equity fund that brings our Asian and European teams to Canadian retail. We've also launched Putnam's flagship U.S. value mandate here in Canada. This successful mandate has amassed over $50 billion in the United States.

And at the bottom, you can see both ChinaAMC and Northleaf continued to generate good growth in the quarter. ChinaAMC's investment funds are up 34% from last year due to strong net sales and market share gains, while Northleaf continued to have strong fundraising of $1.7 billion in the quarter and $5.2 billion in last year.

Turning to Page 26, you can see the trend in history of Mackenzie's investment fund net sales. As mentioned, on the left, you can see that this is our best second quarter investment fund sales since 2021, and this represented $900 million of improvement driven by those meaningful improvements in retail, which were net positive in May, June and July.

Also on the left, you can see that a noticeable part of our net sales were into our ETFs. Our top-selling ETF was our international equity ETFs managed by our quant team. This is an actively managed product and our pricing is agnostic between the mutual fund and ETF structures. I'd also note that we don't disclose gross sales on ETFs due to data challenges, but we estimate that overall investment fund gross purchase activity was up 20% in Q2 '25 relative to Q2 '24.

On the right, you can see the last 12 month trailing net sales overall and for retail. I had a question last quarter on whether our outlook is for positive net sales for investment funds in 2025. You can see that we are now there as we close out July and net sales are increasing nicely, driven by acceleration in retail.

On Page 27, at the top right, you can see our net sales segmented between retail and institutional and by delivery vehicle. The team circled the improvement in retail year-over-year, and this has largely been driven by the full-service brokerage channel with meaningful net sales into active equity ETFs there. Also noteworthy was declines in redemption rates across our shelf during the quarter.

As touched on already, our institutional SMA net sales in Q2 was impacted by the timing of the funding of one of our previously announced awards, and this came in, in early July and was $600 million. At the bottom left, you can see our last 12 month trailing net sales rates, where you can see we're nicely closing the gap to the industry. And in the bottom right, we experienced a number of Morningstar rating improvements to 4 and 5 star during the quarter, including our quant global equity fund being increased to 5 star and our Greenchip environmental flagship fund upgraded back to 4 star on the strength of very strong performance over last year.

Turning to Page 28, you can see our performance in net sales for our retail mutual funds and ETFs by boutique. In the bottom half of the slide, you'll see that noticeable improvement in flows occurred across a number of boutiques, including Ivy, resources, global quantitative equity, global equity income and fixed income. I'd also highlight we have compelling investment performance relative to peers across many of our boutiques.

On Page 29, we thought it was important to provide another update on our global quantitative equity boutique following the last update a few quarters ago. I'd remind everybody that GQE has a holistic quant approach that seeks to be all-weather across market environments. This team has continued to deliver exceptional performance through the recent volatility across their broad roster of offerings and continues to experience strong business growth, as you can see in the middle.

In the top right, we have been very focused on trailblazing and quant in the Canadian retail space. And with our Q2 product launches, we now have 13 different mandates offered in retail across the mutual fund and ETF delivery vehicles. Net sales are strong, growing and not yet near our potential. We had over $500 million in net sales in Q2 and $850 million year-to-date.

I'd also note on the bottom right, as previously announced, we had $4.3 billion in partnership and institutional awards that have all now funded. And I'm pleased to announce today that we have another $1 billion in awards across 3 clients that's going to fund over the coming months.

Importantly, we're pleased with the diversity of these clients by type and geography, and the clientele includes some of the largest public pensions in the world. We have a strong pipeline. And as we move into the back half of 2025, I look forward to updating you on future progress.

Turning to Page 30. A few comments on the Chinese investment fund industry. On the left-hand side, you can see that the industry grew by 7% in the quarter, driven by strong net inflows of CNY 1.8 trillion, split roughly equally between money market and long-term funds. On the right, we're pleased with the continued strong performance of ChinaAMC, which has continued to post market share gains on long-term funds, increasing to 6.4% of the market, up from 6.2% last quarter and 5.4% last year.

And on Page 31, you can see strong growth in ChinaAMC's AUM with investment fund AUM up 10% in the quarter and 34% last year, driven by CNY 153 billion or CAD 30 billion in net sales during the second quarter.

And on Page 32, you can see another quarter of strong growth at Northleaf with $1.7 billion in fundraising in the quarter and $5.2 billion over the last 12 months. Some of the particular strength of this quarter related to a very successful outing as the team concluded its fundraising effort around our infrastructure fund, NICP IV.

I'd also note that we're pleased with the strength of non-Canadian investors, which with around half of the fundraising over the last year related to foreign investors as Northleaf continues to expand its clientele globally.

I'll now turn the call over to Keith Potter.

Thank you, Luke, and good morning, everyone. On Slide 34, you can see key highlights for Q2. Adjusted EPS, which excludes Lifeco's other items, was $1.07, up 15% year-over-year and a record Q2 high. These strong results were diversified and driven by both our core businesses and contributions from our strategic investments.

We returned $168 million to shareholders in the quarter, including $35 million in share repurchases. We have repurchased 2.6 million shares year-to-date. And as James mentioned, we are determined to repurchase more shares and are on track toward our 5 million shares for 2025. As we continue to return capital to shareholders, we are also strengthening our financial profile by steadily lowering leverage and cash dividend payout ratio while maintaining financial flexibility with significant unallocated capital.

And finally, as James has already spoken to, we increased the fair value of Wealthsimple to approximately $1.5 billion and realized value from our 2020 investment in Conquest through a partial divestment with gross proceeds of $25 million.

Turning to Slide 35, you can see our AUM&A and flows. On a year-to-year basis, ending assets are up 12% while ending assets were up 3.2% versus Q1, the significant volatility during April caused average assets to decrease slightly versus the prior quarter. On the left-hand side, you can see the volatility in our AUM&A in the quarter. And it's worth noting that at the end of July, ending AUM&A is up approximately 5% from the Q2 average. If markets remain stable, the increase in assets will be a driver of strong revenue growth for Q3.

Turning to Slide 36. Point 1 and 2 help to illustrate the diversified drivers of our 15% year-over-year growth in adjusted EPS. On point 3, on a year-to-date basis, our combined operations and support and business development expenses are up approximately 4% from last year, and we are maintaining guidance of 4% for the full year.

On Slide 37, we present the key profitability drivers for IG Wealth Management, and I'll highlight a few points. On the left side, you can see that average AUM&A was down slightly due to the volatility experienced in April. And on the right, as a reminder, the advisory fee rate includes advisory fees charged on AUA and also includes interest earned on client cash on deposit. During the quarter, our advisory fee rate was up 1 basis point, and this is driven by a change in caring interest that is paid on client cash based on the amount on deposit.

As I mentioned, at the end of July, our AUM&A is up approximately 5% from the Q2 average. And assuming markets hold, we do expect to have an approximate 1 basis point impact on the advisory fee rate in the third quarter as clients move up wealth bans. And for context, this type of strong client return and impact are more aligned with what you'd expect over 1 year versus a quarter.

On Slide 38, IG's overall earnings of $131.5 million in Q2 are up 17.7% year-over-year. And I've already spoken to point one. On point 2, other financial planning revenue continues to be supported by strong insurance performance, which Damon provided some detail on. And new fundings in our mortgage business are growing, and we are now starting to see signs of growth in the mortgage book, which we expect to continue over the mid-term. For Q3, we expect mortgage income to be between $6 million and $7 million, excluding fair value adjustments.

On point 3, IG operations and support and business development expenses were $164 million versus our guidance from last quarter of $170 million, driven primarily by timing related to spend on technology initiatives. And we are maintaining our guidance for expense growth of not more than 2.5% for the full year.

Moving to Slide 39. We have Mackenzie's AUM by client and product type as well as net revenue rates. On the left, you can see average AUM is in line with Q1. And on the right, overall third-party rate, excluding Canada Life, decreased primarily due to the onboarding of $3.7 billion in institutional assets as we guided during the Q1 call.

And as we look forward to Q3, with the additional $600 million institutional assets onboarding in July and continued success of our wealth management partnerships, we expect to see this rate come down about 0.5 basis points in Q3, which is in line with the guidance we also provided in Q1.

Turning to Slide 40. Mackenzie's earnings were $57.8 million, up 3.4% year-over-year. And on point 2, operations and support and business development expense growth was $118 million and relatively in line with our guidance of $120 million.

Slide 41 has ChinaAMC results. First, on the left, we saw another strong quarter in AUM growth. And on the right, you can see ChinaAMC's earnings of $29.7 million was slightly below Q1 2025. And adjusting for currency, Q2 earnings would have been in line with Q1.

Slide 42 has earnings contributions from companies in each segment. A couple of comments on the strategic investments. First, Rockefeller earnings were close to breakeven this quarter, a meaningful improvement from last quarter. And as stated on the Q1 call, we do expect earnings to turn positive in the second half of the year.

Northleaf's second quarter earnings were up 76% from 2024 at $7.4 million after noncontrolling interest, driven by higher revenue and expense management. I would note that Northleaf has delivered very well during the first half of the year, including strong incentive fees during Q1 and solid revenue growth and expense management through the second quarter.

During the second half of the year, we would expect a base level of earnings closer to $5 million per quarter on average net of NCI with line of sight to upside driven by the final closing of a committed capital fund where clients that commit to the fund after the initial investment pay a catch-up fee sometime in the next couple of quarters.

A few points on Slide 43. First, you can see Wealthsimple's revised fair value of approximately $1.5 billion, up from $1.2 billion last quarter. The change considers the increase in public market peer valuations in the quarter, Wealthsimple's business performance that has seen AUM&A grow by over $20 billion year-to-date driving our revised revenue expectations as well as third-party secondary transactions that occurred at the end of the fourth quarter.

On Northleaf, we increased the carrying value by $40 million net of NCI for the earn-out, which reflects the very strong fundraising quarter. And finally, at the bottom of the slide, you can see that our strategic investments and unallocated capital now have an indicative value of $6.6 billion, which represents a $28 per share value.

Slide 44 demonstrates execution against our capital allocation priorities. We continue to return capital to shareholders and strengthen our financial flexibility. In addition to paying the quarterly dividend and repurchasing shares, we continue to reduce leverage now just under 1.5x and decrease our cash dividend payout ratio now at 62%, down from 64% last quarter. At the end of the quarter, our unallocated capital remained above $600 million.

That concludes my remarks, and I'll turn it over for questions.

[Operator Instructions] Our first question is from Tom MacKinnon with BMO Capital.

Just more of a strategic question with respect to ChinaAMC. I think at your Investor Day a few years ago, you talked about 15% growth in the strategic investments. And I think part of ChinaAMC, you were looking for assets to kind of grow in the 13% to 15% range. Now we've seen much better growth in ChinaAMC assets, but your share of the ChinaAMC earnings is probably up, I don't know, mid to high single-digits over the last couple of years, even if we adjust for the change in ownership.

What makes you feel comfortable in getting the 15% growth from ChinaAMC? And where does it sit strategically really with respect to IGM? Are there any other synergies you get from it?

Sure. Tom, it's James speaking. When I compare and contrast the external environment that ChinaAMC is operating in to the actual performance of the business, all that, that company has done for us is, frankly, surprise to the upside. The business performance has been excellent, having, as you know, navigated significant equity market declines a couple of years ago, a meaningful reduction in active equity fees and an even bigger reduction in passive ETF fees.

So as we came into this year, we said, look, they're going to earn through all of that, and we're expecting 2025 earnings to be flat to 2024. I think they may do better, which, again, all things considered, in particular, things that have occurred in the external environment, I think it's a pretty remarkable performance.

So as we look into 2026 and beyond, we're now expecting -- having come through this period that I think they've navigated particularly well, we're now expecting a return to growth. And that will be driven by a lot of the kind of the system, the macro factors, the retirement reforms, the move out of property markets and into financial markets. We're now expecting that growth to resume in 2026.

And a number of us, a significant number of us -- we'll be over in Beijing in September. And at those meetings, we -- this is the conversation that we're going to have, and we do expect to confirm a return to growth for ChinaAMC. Luke, do you want to add some comments?

Yes. Yes. Thanks, James. Yes, I just want to reinforce James' comments. The structural changes put forward in that industry in the last 24 months to reduce fees on active equity and balanced funds as well as ETFs were really designed to make sure this industry is realizing its full potential. And we're very supportive of the changes that have been made in the Chinese investment fund industry.

And we're as optimistic as ever that they are indeed going to continue to see this strong growth with Chinese investors increasingly using investment funds as a savings vehicle. Beyond that part of your question was how we get benefits outside of the direct holding. I'd highlight 2 that you're clearly seeing in our results. The first is the opening of doors for us in Asia. A number of the institutional client wins that we've announced over the prior quarters have occurred in the Asian market. So this has been a clear proof point on our investment in China and ChinaAMC.

The other thing that is less transparent is knowledge sharing across our businesses. This includes our investment team franchises as well as just sharing of information on how we run our business. So we're very pleased with this relationship and how it's going and the value that's being delivered for IGM and Mackenzie.

The next question is from Bart Dziarski with RBC.

I wanted to just dive into the simplification you announced where you merged mutual fund investment dealers. Like can you quantify some of the benefits you expect? You called out streamlining processes, supporting future growth. So any sort of numbers you can provide on those expected benefits?

Yes, it's Damon here. I'm not going to focus on the numbers, but I'll give you kind of our take as to how we see this. When you have 2 dealers, you have 2 legal entities. So you have multiple filings, multiple audits, multiple general ledgers, multiple client applications and forms. This all gets streamlined so that we can have one of each. And for us, that's extremely important. It improves the client and the advisor experience. Also along with that, we can finish our brand transformation because we can retire the Investors Group name finally. Investors Group Financial Services was our mutual fund dealer. Investors Group Securities Inc. was our securities dealer, and now future is IG Wealth Management, Inc.

So that's a good thing for us. But we're really poised for future growth with this move, and let me share you kind of why we feel that way. First off, it allows our advisors in a much more efficient and streamlined fashion to switch licenses if they so choose. And every advisor has the right to choose that and be able to ensure that they are able to compete in their marketplace.

Number two, we believe in the future, it's going to allow our advisors to be much more effective building high-performance teams. In our view, high-performance team does mean that you should -- you can have members of your team that have different licenses. So we're potentially excited about that.

The last one is it allows us -- it's going to allow us to be even a better recruiter out there, talking to experienced advisors in the marketplace that want to be financial planners and focus on competing in their marketplace. So for us, this was a big move.

That's helpful. And then just on Wealthsimple, maybe a 2 part question. One, help us understand the key drivers of that valuation mark increase. And then maybe more strategically, we're seeing capital markets come back. The environment is pretty healthy out there. Like any updated view in terms of monetizing that asset or leveraging further benefits in that regard?

Bart, it's Keith Potter here. Yes, in terms of the valuation for Wealthsimple, we take under consideration a number of factors. One, to the extent that there's a recent transaction, we can look to a recent transaction on the property. There was a couple of transactions at the end of 2024, so we took that into consideration. Also during the first half of the year, you can see a real rise and especially this quarter in fintech peer multiples in the marketplace. So that's another point of observation. Now we know private market firms don't necessarily trade like public market firms, but that's an important consideration.

And as importantly and more importantly, we've seen Wealthsimple business in the last, call it, 2 quarters, grow their AUM by $20 billion, and that results in sustained revenue growth. So when you think about the cash flows and the future forecast and for the business, we look at all those 3 elements for the valuation.

And Bart, it's James. I would just add to the second part of your question. Our interest in Wealthsimple is strategic. It's not financial. It's not a trade. We have no desire to monetize our stake I expect us to be a long-term shareholder. And as I said in my remarks, I think the earnings we're delivering here are before we get earnings, any earnings contribution from either Rockefeller or Wealthsimple. And I think an earnings contribution from Rockefeller, I think, is right around the corner. And in the fullness of time, we'll get, I think, a very significant earnings contribution from Wealthsimple as well. So it's a long-term driver of growth and another source of diversification within IGM Financial.

The next question is from Graham Ryding with TD Securities.

Maybe we could just touch on, Luke, just on the improvement in the retail flows. At Mackenzie, can you just maybe touch on what you think the key drivers are there and sort of turning that momentum, I guess, at the margin?

I guess really 2 things, Graham. Thanks for the question. One, it has really been the places in the market we've been leaning into. So a lot of our strength came from international equity, global equity, where we have that strong offerings in quant, our [ Global Div, ] which is a core global equity where we've seen that demand. Our emerging markets fund also by our team was added to a number of reckless. And so it's really been executing on the basics of making sure that we're leaning in to mandates where its compelling performance, and we see strong demand in the marketplace.

The other thing I'd highlight is just the sheer work effort of the retail sales organization. And we had an important event in London, England in May to showcase our Northleaf private capabilities. And this was another moment where we're going to report more on it next quarter, but we've seen a lot of momentum and scale building in our private business. And this effort to build privates for retail investors has helped us get in front of people that we didn't touch before and are getting to know Mackenzie's story, and that's building improved momentum as well.

Okay. Great. On that Northleaf, what's -- I think your result this quarter in terms of earnings is higher than what you've guided to for the second half of the year. So what's driving either the stronger earnings this quarter or the outlook for contraction in the second half?

Graham, it's Keith Potter here. Yes, the earnings were quite strong this quarter. Revenue growth has moved upwards. We expect that to continue. It was a very disciplined quarter for expense management at Northleaf. So that was one of the areas that even beat our expectation. And that's why guiding to something closer to $5 million for the next -- as a base for the next couple of quarters is what I commented on. But like I said, there is upside potential. There's an expected close of a committed capital fund where there is -- we do expect catch-up fees that could occur in Q3 or Q4. But that would be the main driver for this quarter, strong expense management.

Okay. Understood. And then just lastly, can you remind us what your sort of threshold is for considering a dividend increase. And with your excess capital, it sounds like buybacks and reducing leverage are sort of your primary focus. Is that correct?

Yes. We've -- it's James. We've long said that as we approach 60% payout ratio on a cash basis, we'll take a conversation to our Board as to whether it's time to increase the dividend. And so we're making -- I think we're making pretty good progress in that regard. So that conversation is not far away. But our current thinking is kind of unchanged to recent conversations we've had with you folks.

We just think we can add more value to our shareholders by buying back stock than by increasing the dividend. We have an attractive yield. Even today, it's about a 5% yield. But we look at what we've built. We look at the quality of the 6 businesses we're invested in. And we believe, as I said, our shares are undervalued, and that's where we should be committing capital.

And so when you look at the free cash flow generation of this business, when you look at the unallocated capital position of $600 million plus and you look at our leverage ratio, which is now 1.49, with snick under 1.5, I think there's lots of opportunity for us to approach 2026 with a goal of buying back meaningfully more shares than I expect we'll buy back this year. And as Keith said, this year, we're targeting $5 million.

[Operator Instructions] The next question is from Jaeme Gloyn with National Bank Financial.

First question for Keith. Just wanted to get a little bit more clarity on the advisory fees at IG Wealth and the moving parts quarter-to-quarter here. It sounds like there's going to be an impact, but it wasn't quite clear if it was moving up or down longer-term or if it was going to stabilize around these levels with some of the AUM coming in. So maybe just run through that again for me.

Yes, sure. Thanks, Jaeme. Yes, just in terms of the advisory fee and the change this quarter to our interest, you can kind of think about the 1 basis point being kind of a permanent increase of [ 1 ] basis point going forward. The comment on where that rate is going in the future, it really is going to be driven -- or my comment was assets are up about 5% at the end of July relative to the average last period. And as assets rise, clients will migrate up the wealth tiers where the higher the wealth tier, the lower the rate.

And so my comment is we've kind of guided to 0.5 basis points per quarter with the strength of moving toward high net worth mass affluent market. But given the strength of what we've seen in market returns, that could be up to 1 basis point next quarter. So I'd separate kind of the client interest comment where I think that's a permanent increase. And then -- but the overall rate will vary based on our clients moving up wealth tiers as it relates to our focus on high net worth and mass affluent.

Yes. Okay. That's more clear. Thinking about Rockefeller, the guidance now is that it should deliver positive income in the second half. My question -- I understand that. My question is maybe more around the trajectory of Rockefeller's income? Is this -- should we expect positive results consistently quarter-to-quarter going into 2026?

And then the guidance before was that it would replace IPC earnings. It doesn't seem like it's on track to do that in 2026. So maybe if you could just help us think through some of the data points to focus in on for Rockefeller, where that revenue or income can get to in 2026.

Yes, Jaeme, it's Keith again here. So if you look at last quarter, earnings of negative $4.4 million, now negative $7 million this quarter. a strong quarter of asset growth, like we would see trajectory into the third and fourth quarter of continued progress to that positive earnings. And as we head into 2026, we do believe that it's growing at a pace that could and would replace IPC's earnings. I talked about that last quarter. We're -- call it, about a year delayed, but we would see 2026 as that moment of opportunity.

Yes. And Jaeme, it's James. When you peel apart the business, the heart and soul of that business is what's called our GFO, Rockefeller's Global Family Office business. And that business is performing very well. It's strong. Overall, it's as was promised, I would say. They also have a strategic advisory business, an M&A business, if you will, and that's been softer, consistent, I think, with every M&A business on the planet that I'm aware of.

And finally, they have an asset management business that, it's doing reasonably well, but perhaps not -- the growth isn't quite as robust as we might originally have expected. So the sum of all of that is it will take a little bit longer. But I do want to highlight that Rockefeller has meaningfully increased their recruiting targets for 2025 versus 2024. They are more confident than ever that, that combination of a very successful business platform that they have and an iconic brand, great management team that that's going to continue to make them kind of the destination of choice for wirehouse advisors who are looking for a new home. So the heart and soul of that business is just going real, real well.

Okay. Great. And then last question. Obviously, a good chunk of unallocated capital today. It does sound like buybacks are still a very important focus for capital allocation. But thinking through the Rockefeller stake and other opportunities with -- also with leverage fairly low as well. Is Rockefeller the most likely strategy? Are there -- like maybe talk through some of the -- like is it an active -- more active market today than over the last few quarters for potential acquisitions? What else might you be looking for?

Yes. We said in December of 2023 that we were -- at our Investor Day that we were entering a 2 year period where the focus would not be M&A instead the focus would be investing in the core, investing in IG, investing in Mackenzie, and that's very much what we've done. And so that 2 year period will end, I suppose, at the end of this year.

So I suppose the door opens. And what I would say to that is I just want to reemphasize, we have the businesses we want. We're not looking for new businesses. We've got 2 divisions, 3 wealth management businesses, 3 asset management businesses, we're proud of the businesses, and we're not looking to add to the current kind of portfolio. So any M&A we do, you should expect it to be restricted to the current portfolio.

I'd also add, again, as we kind of close out on this 2 year period, we're thinking -- we are thinking about what are the criteria for any further capital deployment. And the 2 criteria that we're very focused on are that any further deployment of capital within the current portfolio, the deal needs to be 2 things. One is risk smart. We talked about that in the original Rockefeller deal. So the first is risk smart. The second is it has to be value creating, clearly, value creating for IGM shareholders.

So those are the kind of the 2 criteria. I look across the portfolio, and I can see a world where it's -- like we know we will be putting more capital into Northleaf, okay, because we have obligations happily to purchase more equity in Northleaf, which we're pleased and proud to do. But I also want to point out that as we do that, I'm also pleased to say that the founders and the employees of Northleaf are going to remain through -- at least through the medium-term shareholders in that business, owning the exact same instrument as us, common shares.

And then I look over to Wealthsimple and Rockefeller. And I do see a world where possibly we could put some more capital into one or both of those. But I do want to emphasize that the 2 criteria for any further capital deployment, particularly when we're in a world where our stock is trading where it is, the 2 criteria are the deployment of capital has to be both risk smart and value creating.

This concludes the question-and-answer session. I'd like to turn the conference back over to Kyle Martens for any closing remarks.

Thank you, Galeen. And once again, we'd like to thank everyone for joining the call with us this morning. And Galeen, with that, we can end the call.

Thank you. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.