IGM Financial Inc. (IGM) Earnings Call Transcript & Summary

Good morning, everyone. I'm Kyle Martens, Senior Vice President, Finance and Treasurer, and I'm thrilled to welcome you to IGM Financial's 2023 Investor Day. Thank you for joining us. Before we begin, I'd like to take some time to share a territorial acknowledgment, a small but essential step toward reconciliation. I'd like to acknowledge the original stewards of this land, we call Toronto. We're gathered today on traditional territory of many nations, including Mississaugas of the Credit First Nation, the Anishinaabeg, Haudenosaunee, Wendat and Huron indigenous peoples. We also acknowledge that IGM Financial's head office is located on Treaty 1 Territory, the original lands of Anishnabeg, Cree and Dakota Peoples and the homeland of the Métis Nation. IGM Financial is grateful to have the opportunity to work, live and learn here. And we'd encourage all of you to reflect on the history of this land and your relationship to it. Before we dive into the main event, a few housekeeping items. The presentation that will be shown on the screen is available to be downloaded on our website at igmfinancial.com. In addition to refreshments that will be available outside the room throughout the morning, our management team will be pleased to host all of our guests for a lunch after today's presentations. And I'd ask at this time, could you please mute your cell phones as well as turn down the volume on any other electronic devices that you have with you this morning. During the discussion today and within the presentation, we will make reference to non-IFRS financial measures, and make forward-looking statements that rely on certain assumptions based on current expectations. Please review the material, the cautions, notes that are included within the presentation. We have a compelling full agenda for you today. James O'Sullivan, President and CEO, IGM Financial, will set the stage for today's overall discussion. And Damon Murchison, Greg Fleming and Michael Katchen, leaders of our wealth management firms will share how each of their organizations are positioned for growth and success. We'll then pause for a wealth management-focused Q&A. And after we come back from a short break, asset manager CEOs, Luke Gould, Yimei Li, Stuart Waugh, will speak to the strategies of Mackenzie, China MC and Northleaf, respectively. Keith Potter, our CFO of IGM Financial, will then bring this all together through a financial lens. We'll follow that with a final Q&A session focused on our asset management businesses and IGM Financial overall. And with that, I'm pleased to welcome our President and CEO, James O'Sullivan to the stage.

Well, good morning, everyone, and welcome, and a particular welcome to those who are joining us on the webcast. We very much appreciate the support of our shareholders, and I must say the broader investment community for your attendance today. This is not something that we take for granted, I want you to know. Now we have 3 very simple messages today. First, we're described by some as a strong defensive play. Others describe us as a scale player with an attractive yield. And indeed, I think it's important to point out that we are very committed to our current dividend. And we're very committed to growing it over time. But today, we want to add to this. A company that is being built with a clear path to earnings growth. We've spent the past 3 years now reshaping IGM Financial. We believe this new configuration sets it up for meaningful growth in earnings in the years ahead. Secondly, today is about meeting the team. an experienced team driving IGM, Damon, Luke and Keith and a remarkable team of CEOs leading our strategic investments. Greg Fleming, Mike Katchen, Yimei Li and Stuart Waugh. We also have in the audience today the operating committee of IGM Financial, who will be taking questions as appropriate. The team is experienced, focused. And I can tell you, they have great energy. They clearly qualify, in my view, as a proven and deep bench. Finally, we're executing very well. We will share multiple proof points of this. IG and Mackenzie are leaders in their fields. Each has a clearly strengthening core value proposition. And we've proven that we can invest in these businesses and control expense growth, as we must. This industry enjoys tailwinds, but it also faces headwinds. Having a tight control of the business is essential as we move forward. Now a very simple visual captures the reshaping of IGM, 2 divisions: wealth management and asset management, wholly owned businesses and partially owned businesses. Here, I see growth. And I see opportunities that may lie ahead. Opportunities to work together and opportunities to deploy more capital. More capital in pursuit of growth with businesses we know and leaders we trust. I also see diversification across geographies and across business models. And I see very real opportunities for knowledge sharing and for business to be done right across this group. Finally, I see an objectively strong lineup of brands and businesses and a lineup of leaders in their respective industries. Now over the past 3 years, we've completed over $4 billion of acquisitions and divestitures. It's been a very productive time. We've been guided by several investing themes. First, we believe in diversification, in particular, geographic diversification. And we now own important strategic positions in leaders in the United States and in China. We have been risk smart. We did not dilute our shareholders on the way through. We did not cut our dividend to secure free cash flow. We did not compromise our strong credit rating. Our long-term borrowings have increased by only a modest amount. This reshaping has been risk-smart. And we've contributed to the group-wide goals of simplifying our story and selling noncore properties. Our acquisitions and divestitures have been very congruent with this goal. Finally, we've been a very active participant in the innovation ecosystem within the broader group. The paradox of incumbency, as it's called, is very real. Too often, incumbents can see the change that is coming, but they cannot alter their business models to address it. Our active partnerships with Portage Diagram, Conquest and nesto, and there's more to come in 2024, these position IGM to address this paradox of incumbency. Now let's return to growth. For 2 quarters now, we've been showing our assets on a look-through basis. That is, we are including our proportionate share of the assets of our strategic investments. The growth over the past 3 years has been substantial. $240 billion of assets are now $400 billion of assets. $400 billion and growing of fee-generating assets working for our shareholders. The underlying growth rates, I think, are informative. When we look at 1-year and 3-year growth rates in assets by business, we see some very impressive numbers here. Fully eight, 8 strong double-digit growth rates across these 2 time periods. Rockefeller, Wealthsimple and Northleaf are printing strong double-digit growth rates over both of these periods. We have invested in growth. To me, folks, that much is very clear. For all of that, I want to emphasize, underscore, highlight one very important point. IG Wealth Management and Mackenzie remain the core of our business. And they will remain the core of our business as we look out several years. Today, they account for approximately 75% of our earnings. Even with the higher growth expectations of our strategic investments, which Keith will speak to later, we expect IG and Mackenzie to account for almost 70% of our earnings 5 years from now. As we look forward to 2024 and 2025, our focus will be further strengthening IG Wealth and Mackenzie. We will be investing in our core. I should point out that these earnings projections assume no further acquisitions or further stakes in our strategic investments. There may very well be such opportunities. In any case, our priority over the next 2 years is crystal clear: invest in the core. As we think about our progress over the past 3 years, it extends well past the success of our core businesses and strategic investments. We've had 5 new C-Suite appointments including 3 CEOs, our CFO and our CRO. The transitions have been seamless. The team, as I said earlier, is well functioning and high performant. We have substantially completed major projects over this time frame. Led by Mike Dibden, our Chief Operating Officer, we have modernized our operations and technology stack through deep and effective partnerships with CIBC Mellon, CGI, Microsoft, Google, Salesforce and others. And I think we've demonstrated good discipline in our expense growth. We've averaged 2% growth over the past 5 years. In 2022, we took early action as markets turned in the spring. And in 2023, we took a substantial charge largely focused on workforce planning. And finally, and perhaps most importantly, there is good objective evidence of strong employee engagement and adviser satisfaction. Feedback through third-party investor relations firms also confirms that our shareholders believe that we are very much on the right path. Now in a previous role, I listened to IGM's quarterly calls and IR events and admired several things, including the organization's transparency and level of industry insight and leadership. Most of that organization and its leadership remain with us and they join us today. And most have been leading parts of this organization for 5 years or longer. As a result of this team's efforts, recognition of IGM has followed. In particular, we are proud to be recognized by Corporate Knights as one of the 100 most sustainable companies globally. That's globally. And I must say I'm proud of Mackenzie Investments for recognizing the high quality of this global group and building an ETF product in support of it. Our active participation in and support of important initiatives very much continues. Now the CEOs of our strategic investments will be presenting. They'll be taking questions, and they will join you for lunch. In the meantime, I want to point out the connectivity that exists between these organizations and IG Wealth and Mackenzie. These are not just investments. They are strategic, meaning we have a long-term interest in them and they are partners, meaning we actively look for ways to support each other and do business with each other. Greg Fleming calls this horizontal connectivity. It is something we've been actively building. This connectivity will only grow stronger in the years ahead. We opened with growth. I've spoken briefly to talent. A few words on execution. IG's progress in the annual rankings of investment executives dealer report card has been remarkable. IG finished first recently in 10 categories. And they are categories that matter, including support to onboard high net worth clients. Mackenzie's progress in the Environics Annual adviser Perception Study is equally remarkable. Ten years ago, Mackenzie ranked 12th. Now they're consistently top 3. While we've controlled our expense growth, we have at the same time, maintained business momentum. In 2018, we embarked on a journey to modernize our operating and technology environment. The journey started with automating and digitizing our client and adviser interaction and back office. Now the expectation was that it would deepen our client relationships and make our platform more attractive to clients and advisers alike. As it turns out, it was integral to managing our client relationships through COVID. We've driven savings, created scale efficiencies and delivered better experiences. Buying our core platforms and services from the best in the world has proven to be the right choice for us. And this journey never ends. We remain focused on automation opportunities as we speak, further cloud deployment as well as the potential for generative AI. I will close with our medium-term objectives and with our path forward to 2024 and 2025. For our employees, we target meaningfully above average engagement scores. These matter. We are a human capital company. For our advisers and clients, we target top 3 in Investment Executives Dealer Report Card and top 3 in Environics adviser Perception study. In other words, consistently a leader in our industries. For our shareholders, we target growth in EPS. We believe growth of 9% or higher will result from the reshaping of IGM Financial and our ongoing investments in our core businesses. Over the balance of the morning, we will build this case. So what should you expect of us in the near term? Expect us to invest in IG Wealth and Mackenzie. Expect us to further strengthen these core businesses and expect us, for example, to fully support the strategy that Damon Murchison will articulate next. He has been executing on this strategy now for 3 years. We are pleased to lay out our progress and plans for IG Wealth Management Next. Damon?

Good morning, everyone, and thank you for making this a priority. Let's talk IG Wealth Management. Although we've been around for 97 years, and we're a leader in this country in many respects, we're not resting on our laurels. We have a clear path to gain market share and to drive growth in this country, executing our strategy. And there's 3 key elements to our strategy. The first is our focus on attracting and servicing mass-affluent and high net-worth Canadians and helping them navigate a key set of industry wealth drivers. Second is our ability to leverage a segmented advice model to better meet the needs of our clients, scale our business and create a best-in-class advice experience that allows us to match client financial planning needs with our advanced financial planning resources. And the last one is our ability to continue to invest in technology and partnerships to further digitize the business, drive productivity growth and elevate our adviser and client experience. So I'm going to focus on each of these in detail this morning. But before I do so, I think it's important that we just take a few moments to level set on our model at IG because it truly is a unique model in this country. And there are a lot of areas that we would deem ourselves to be above market standard. The first is we're an organization made up of financial planners. We have a long-term relationship with our clients. A lot of times, it spans multi-generations and we take care of all aspects of their financial future. That means we know our clients well. We know their families well. We're invested in their lives, and they're investing in IG Wealth Management. We're national in scope. Our financial planners are located in every community across the country, which allows us to compete for business and for them in the communities that they reside. As I said, we take care of all aspects of their financial lives by advising on insurance, mortgage and banking and investments in leading -- leveraging an industry-leading platform. And lastly, we believe in transparency and managed solutions. And those are important for 2 reasons. Number one, it means that our clients understand the value of advice that we provide and what we charge for that advice and our advisers have the capacity to provide that advice. I think it's important that we understand that because the companies that we compete with in this industry might have 2, maybe 3 of those elements, no one has all 5. So let's talk about strategy. It's been over 5 years since we had our last Investors Day. And to say that we're not the same company we were back then would be a significant understatement. Back then, we were an organization that was focused on high volume. We're a manual, paper-based organization focusing on the mass market and the mass affluent. We did everything through one channel, the only channel we have, which is our entrepreneurial channel, our traditional channel. And only 12% of the inflows that we were getting on an annual basis were coming from clients $1 million or more. Juxtapose that to today and who we are. We're more focused, more transparent, more client-friendly organization. We're focused on the mass affluent and the high net worth side of the market. And we're dedicated to quality and productivity at both the adviser and the client level. And we're leveraging an industry-leading tech stack and digital capabilities. We're 166% more productive than we were back then with a lot less advisers. And over 25% of the flows that we're receiving on an annual basis are coming from Canadians with $1 million or more. So where are we going? Looking 5 years out, we'll be an organization built in scale to attract and service high net worth Canadians and help them navigate a set of key industry wealth drivers. We will also be an organization that will take a multichannel approach to providing advice in this country, where we will match our client's financial planning needs with the appropriate channel. And we expect that over 1/3 of the inflows that we receive from our clients will come from clients $1 million or more. So that begs probably 2 questions. Damon, why are you confident you're going to be able to get there? And how are you going to be able to do it. So let's talk about the why and then we'll go through the how. Why? The first is leadership. Meet the IG leadership team. Along with being talented at dynamics, 80% of this leadership team was not in their current roles the last time we held an Investor Day. We've added significant horsepower, leadership horsepower to this team over the last 3 years. Not only bringing complementary skills to IG but these leaders all have 3 things in common. Number one, they have proven expertise working with advisers. Number two, they have knowledge and experience working on the high net worth side of the Canadian marketplace. And number three, they've all worked with firms that have leveraged a segmented advice distribution model. So the leadership team has both success and experience. Second reason why we're confident is because this leadership team in this organization is solely focused on the things that are going to matter to high net-worth Canadians. The most important thing, we believe that high net worth Canadians are going to face a set of key financial challenges over the next 10 to 20 years. We call these our wealth drivers. IG Wealth Management is being built to be able to help our clients navigate each one of these wealth drivers and add value through advice, let's call it, alpha across each of these drivers. So I'll go through them one by one. The first, tax planning and optimization. Everyone would know here, we're one of the most heavily taxed countries in the world. And with alternative minimum tax, luxury tax, you can see where this is going. High net-worth Canadians are truly beginning to understand it's no longer about how much money you make, it's how much you keep. And working with high net-worth Canadians to make sure that they optimize their tax situation, not only in the short term but also for the long term, is going to be paramount. Number two is retirement planning, retirement readiness. We know what the aging population. We've been focused on retirement over the last 97 years as an organization, that's not going to change, making sure that Canadians are prepared for their retirement. Estate planning and inter-generational wealth transfer. We know that we will have the largest sum of money passing hands from one generation to the next, in the next 10 years than we've ever seen, and working with high net-worth Canadians to make sure they understand what a true estate plan looks like. And they have one and it executed is going to be crucial going forward. Along that same line with the aging population, those that own small and medium-sized businesses in this country. Forecasted over 75% of those companies will be sold within the next 10 years, generating over $2 trillion of wealth that is not currently in the system. Working with our clients, the small and medium-sized business owners across the country, to value their business and monetize their business is something that is going to be a significant differentiator for IG Wealth Management going forward. High net worth financial literacy. It doesn't matter what publication you read. You will read that high net-worth families are having a hard time explaining their wealth to their kids. Working with high net-worth clients to help them understand how do we explain the wealth to their kids when and why is going to be crucial to our success going forward. And the last one, makes sense, philanthropy and legacy planning. A lot of high net-worth individuals want to leave the country at a better place than they found it. They want to give to their causes that matter to them, and helping those clients create a true legacy plan and execute that legacy plan while they're living is going to be something that's more important tomorrow than it is today. So as I said, we're building IG Wealth Management to navigate each of these key wealth drivers. So that's the why. How about the how? How are we going to get it done? This comes back to our strategic priorities that are both specific and completely aligned to what I've just talked about. We want to focus on creating a best-in-class advice experience but in a segmented way. We want to make sure that we continue to invest in our platforms, our products and our services, so that we can elevate them particularly so they resonate with the high net worth side of the market. And the last one is we want to continue to invest in technology and partnerships to further digitalize this business, drive productivity growth and elevate our experience for both client and the adviser. So let me take some time now, and we'll go through each of these individually one by one. So best-in-class advice experience. When I say that best-in-class advice experience, you're probably saying, what is he talking about? What it means to us at IG Wealth Management is that we want to create a regional family office type of experience that our advisers can provide to our clients. How are we going to do it? We're going to combine the skills with the tools and the process with the knowledge. What are the skills? That's our financial planners. 74% of our financial planners that lead their teams have their CFP or plan in. That makes us leaders in this country. As I said earlier, we are national in scope. We are located in every community across this country, which allows us to scale this. The tools, we have an industry-leading suite of financial planning tools that our client -- that our advisers don't just have access to, that they use every single day. These tools do a few things. Number one, they make the financial planning process interactive for our clients. And number two, they make the complex simple. And that's the future. Third, it will allow us to create a 360-degree view of our clients so that we can truly be comprehensive when we plan. We combine the people, the skills and the tools with the process that's proven at this organization. We call it the private wealth planning experience. And the private wealth planning experience is a process for which our advisers understand how to engage a high net-worth Canadian at every stage, from the introduction to the discovery, to the consultative, to the recommendation stage. And they understand how to engage those clients and how to get repeatable results. Included in that process is when and how to connect our clients with our advanced financial planning expertise. This advanced financial planning expertise provides dedicated advice across a number of disciplines that are correlated to the wealth drivers that I've talked about. So ultimately, what we are doing is we're packaging this, the people, the tools, the process and the knowledge. And we are aiming it very specifically at key high net worth segments in this country. Namely those that own small and medium-sized businesses, professionals, doctors, dentists, lawyers, pre-retirees and retirees, executives, fishers and farmers and those that are new to this country. And what we're doing with our advisers is ensuring that they have above-market knowledge of each of these segments. What's important to these segments, how we can add value from a planning perspective alpha against each of these segments, how you can structure your team, to provide value against these segments and how to work with your COIs to identify where to find these segments. Ultimately, we believe that we can scale this best-in-class advice experience because we're leveraging a segmented advice model. So let me go through this. In 2018 we only have one channel, one way to do business at IG Wealth Management, and that's leveraging our traditional channel, which we call our entrepreneurial channel. Many of you would know back then in 2018, later in that year, we created what was called the National Service Center, which was built to service our clients, who are under $100,000. Since then, we've made significant progress in expanding our multichannel approach. What have we done? First, we rebranded the National Service Center. It's now called IG Wealth Connect. Number two, we continue to scale Wealth Connect. You can see right now, it's a $2.5 billion and has 25% of our clients. To remind you, Wealth Connect is all about making sure that we service our clients through pooled, digital advice model, where these clients get to work with a pool of advisers that are employees and salary-based. These clients tend to need a different type of relationship, tends to be a transactional relationship. And this allows them to work with an adviser when they want, how they want. Third thing we've done is, late last year, November of 2022, we've created a third channel. It sits on top of Wealth Connect. We call it the dedicated channel. And the dedicated channel is there to work with our clients that have between $100,000 and $250,000. And as the name suggests, we are matching these clients up with a dedicated financial planner. Exactly like Wealth Connect, these dedicated financial planners are employee salary-based. And what we've done is we've created a different avenue for some of our entrepreneurial advisers, who are great planners. They love the plan. They know our tools, they know our products. They know our culture. And they want a plan, but they don't want the stress of having to go look for their next client and build the business. You can see that channel is now $2.2 billion, represents 3% of our clients. Together, the dedicated channel and Wealth Connect make up what we call the corporate channel and IG Wealth Management. And this segmented advice model, we believe, will be a significant lever of growth for our organization. And let me go through the reasons why. Number one, we believe that we can provide a better planning experience for our clients under $250,000 leveraging this corporate channel because they have different needs than our mass affluent and high net-worth clients. Number two, by creating this corporate channel, we create significant capacity for our entrepreneurial advisers because they now have a home where they can move their clients under $250,000 seamlessly in a place where we know -- they know we're going to be able to take care of those clients. You see we've already moved 28% of our clients to the corporate channel. The third thing, it's going to allow us to leverage our industry-leading tech stack and digital capabilities across all 3 channels, which will drive ultimately better advice and better cross-sell opportunities. So let's delve into this segmented advice model a little further. Because we truly believe this will unlock our ability to gain share in a meaningful fashion, in the mass affluent and high net worth side of the market. First, starting with the corporate channel. The corporate channel is dedicated to working with our existing clients. With our existing clients, it's about providing them an elevated planning experience. It's about increasing share of wallet and if it's about cross-selling opportunities through mortgage, banking and insurance. And ultimately, working with those clients to move them up the wealth bands. In our entrepreneurial channel, it's about freeing up capacity to allow them to spend more time with their mass affluent and high net-worth clients, which will drive greater share of wallet. And it's about freeing them up to spend more time to prospect to get in front of the high net-worth clients that I talked about in the segments that I discussed by leveraging the regional family office approach. You can see the success that we've had over the last 5 years on the right of this slide, going up market. We believe this is only going to continue and intensify as we would create capacity for our entrepreneurial advisers. The second priority, as I talked about, was continue to invest in our platforms, our products and our services. To elevate them, particularly those that resonate with the high net worth side of the market. So let's go through these right now. Number one, on the investment side, it's about continuing to invest in our platform to make sure that we elevate our adviser and client experience. And a big one for us is just continue to invest in what we believe is an industry-leading managed solutions suite. Because we're a managed solution shop, which includes access to some of the best asset classes in -- that you can get around the world and the best sub-advisers around the world. For mortgage banking and insurance, it's about driving adoption to the nesto partnership. We believe through nesto, we do have an industry-leading adviser and client experience as it relates to mortgage and HELOC financing. We want to extend that to banking over time and then potentially look at private banking, which would be a natural inclination when you're dealing with the high net-worth side of the market. We've proven that lending is an integral part of the financial planning process. And that by working with our clients, so they make the right short-term decisions, they're going to be okay long term. Prime example of that is less than 2% of our clients have amortizations over 25 years. We believe that we can materially increase our market share in mortgage and banking by leveraging our multichannel approach and by leading with financial planning first. Next is insurance. So on the insurance side of the business, we want to focus on a few things. Number one, we want to expand our insurance partnerships to allow us to be more competitive in the marketplace. And then number two, which is a biggie, we want to make sure that we continue to invest to improve the adviser and client experience. Insurance can be very, very complicated, not just for our clients but also for advisers. Unless you're in that world every day, it is complicated. So we'll be investing in technology and leveraging partners that create a nesto type of experience on the insurance side, is going to be extremely important. Because much like banking and mortgages, we believe that we can gain market share in insurance by focusing on cross-sell opportunities in Wealth Connect and the dedicated channel and for the entrepreneurial channel, going upmarket. By leveraging the estate in a generational transfer driver that we talked about, focusing on the high end of the estate planning insurance side of the market. Actually, I'll go back for a second here. Can you go back? Thanks. Last one is private company adviser. We want to continue to scale this business. For the reasons that I've talked about before, this business is in place so they can work with our clients that have small and medium-sized businesses, value those businesses and sell those businesses. This is not only going to do that, it's going to allow us to attract high net-worth Canadians that own their own business that are currently in our ecosystem. So we're going to continue to invest in this business, and it is a great value-add our advisers. Now on to the last priority, which is continue to invest in technology and partnerships to drive productivity, continue to digitalize the business and elevate our adviser and client experience and really activate our wealth drivers. Let's go through this one-by-one because this is all about investing in our existing technology, investing in new technology and partnerships. So on the existing technology side, what are we focused on? We're focused on our client portal. The look-through that our clients have into our organization, into their relationships at IG, and we want it to make sure that the client portal is more meaningful to our clients, and it's more interactive to our clients. And we're going to be able to leverage this across all 3 of our channels. On the new technology, new partnership side, it's all about activating the wealth drivers that I've talked about. So here are some examples of some of the things that we're looking at: Estate planning, partnering with an organization that not only will help our clients construct a will and construct a true estate plan, but also enable their executor and settle that estate. We're looking at companies on the insurance side, and I just talked about it, that will allow us to provide a nesto-like experience but for insurance, to get rid of the opaque nature of that business. About tax, partnering with an organization that will normally allow our clients to prep their taxes but also file their taxes. And last one, aggregation. Turning on the functionality to allow us to bring in third-party financial data so that our advisers have a true 360-degree view of our clients. So how are we going to measure our success? We've got key KPIs here and take a look at our strategy, I think these should be intuitive. Really 4 key areas: number one, engagement and brand health; engagement across all key stakeholders, advisers, clients, employees; our ability to digitalize the business; and create operational efficiency which ultimately drives growth in the business. And we're looking at a number of areas for growth. Number one, our ability to scale the corporate channel. Number two, that should fuel our ability to go upmarket and drive growth in our mass affluent and high net worth acquisition. And third, other financial planning revenue driven by our multichannel approach and leveraging our tech stack and digital capabilities. So in closing, I'll leave with a few key takeaways. We believe that we have a clear path to gain market share and drive profitable growth at this organization. [ Marcus ] notwithstanding, the lever to drive earnings, we know exactly what they are, and we believe that we can drive them. The first is to leverage a segmented advice model, to make sure that we match client financial planning needs with the appropriate channel and the appropriate resources. That will, in turn, free up capacity for our entrepreneur advisers to get in front of more mass affluent and high net-worth clients, and leverage a best-in-class advice experience and help them navigate the 6 wealth drivers that I've talked about. In turn, we will leverage our digital capabilities and our tech stack to be able to cross-sell across all channels and drive other financial planning revenue. So with that, I will say thank you and I will turn it over to Greg Fleming.

Good morning. That's not so good. Let's try it again. Good morning. Thank you. I'm Greg Fleming, I'm the President and CEO of Rockefeller Capital Management. I want to thank you all for being here. Over the next 10 minutes or so, I'll set out the key elements of the firm that we're building at Rockefeller Capital Management. And then I'm happy to take questions, and I think we have 2 designated segments for follow-up questions. So to start with the key messages we want you to take away. First, we are building our firm on an iconic global brand, around which we've proven we can gain share in the world's biggest and deepest high net-worth and ultra-high net worth wealth market. We are also driving an industry-leading adviser and client digital experience. Through, best-in-class operating and technology platform and a comprehensive suite of investment and family office capabilities. And more on this later. And we are capturing clear synergies with IGM to pursue opportunities for collaboration, enhanced distribution and new products and solutions. And I have some examples of this later as well. So let's talk about the firm that we're building at Rockefeller Capital Management. I'm going to go through a little bit of history here first. So we bought, in 2018, Rock & Co, which was originally the family office of John D. Rockefeller way back in 1882. So arguably the oldest family office in the United States. It became a multifamily office in the 1970s. We bought it. We changed the name to Rockefeller Capital Management because while the Rockefeller family is integral to what we're doing at Rockefeller Capital Management, we wanted to make it clear that we were going to take this iconic name and build the business out across the United States. And that's what you see on the right-hand slide here. So today, we have over 45 offices in 28 major wealth markets. And the notion, right from the beginning, was to take this iconic name and build out an extensive footprint in every major wealth center in the U.S., and we're far along in doing that now. We have approximately $112 billion in client assets, 130-plus teams. When we started the firm, we talked about 200 or 250 teams in total. So arguably, we're about halfway there in terms of the inorganic growth footprint. And our headcount at Rockefeller Capital Management is north of 1,200 today. So let's talk about our services. The Rockefeller Global Family Office business is complemented by Rockefeller Strategic Advisory on one side and by Rockefeller Asset Management on another, increasing organic growth opportunities across the firm. And James used the word -- a phrase that we love within Rockefeller Capital Management that I've adopted after a long career, horizontal connectivity. Our people across the firm, including in the 3 specific businesses are working together on behalf of clients and looking to drive success for those clients and organic growth. All 3 businesses have strong connectivity around the wealth management client. So Rockefeller Global Family Office is the heart of the firm. We provide comprehensive services to high net-worth and ultra-high net worth individuals and families. I'm going to go through this more in a moment. We built Rockefeller Strategic Advisory from scratch when we started the firm, and this was quite intentional. In the United States, many families make wealth from building businesses. It's one of the great strengths of the United States and it goes on today. We wanted to be able to provide those families with strategic advice. If they wanted to talk about selling the business, taking it public, just advice on how to grow it, we wanted to have experienced investment bankers available to talk to those clients. And that was a big part of creating Rockefeller Strategic Advisory right from the beginning. That connectivity exists at Rockefeller Capital Management today. It's hard to do in big, scaled organizations where you have thousands of advisers and thousands of investment bankers. Here, the investment bankers are there to talk to the clients of our private advisers even if it's a preliminary conversation. You can have a conversation with a senior investment banker and that's core to the strategy that we put in place from the beginning, and it's working quite well. Within Rocket Strategic Advisory, we also provide advice directly to private and public companies. In Rockefeller Asset Management, we have strong capabilities across global equity, fixed income, alternatives, and thematic investments. Many of these capabilities today are utilized by our advisers on behalf of their clients, our clients in an open architecture framework. So it's the adviser and the client that draw on these capabilities. Fixed income is a great example. In the higher rate environment that we've been in, in the last 12, 18 months, many of our clients and advisers are using our fixed income capabilities within Rockefeller Asset Management. So the message here is the 3 businesses are quite closely connected within Rockefeller Capital Management on behalf of the high net-worth and ultra-high net worth clients. Okay. What makes us different? Number one, we drive everything through elite wealth advisers uniquely positioned with experience. They've been working with high net worth and ultra-high net worth clients and complexity that comes with that for many years. through the Rockefeller brand. Everybody carries the Rockefeller brand. We spend a lot of time on this internally. We need to get the right advisers in the first instance. That's core to our strategy. Second, I have a deep and experienced leadership team. It's frankly, as good as I've ever had. Many of them in the industry for decades, complemented by some earlier in their careers that provided an important complementary perspective. And then as I mentioned earlier, let me come back to this, it's 2023, without great technology, whatever the industry is, whatever the business is, you're challenged. We spend a lot of time poking on the technology stack. Our technology and operations is run by an industry veteran and Mark Alexander, who was with me at Merrill Lynch, was 24 years at Merrill Lynch, stayed on after the merger with Bank of America. And we are working on building best-in-class technology and operating platform for our advisers and our clients. So the right-hand side of this page is the points of differentiation that are embedded in the Rockefeller Global Family Office model, and there are a number. We've spent time building this out over the last almost 6 years now. So if you go around starting just before 12:00, the personalized investment advice through the elite adviser. We put everything through the adviser. So the point of contact is that world-class adviser for everything on this wheel. We have holistic family office solutions. We have customized investment solutions. Our clients, high net worth, ultra-high net worth clients in the United States, can get access to product really everywhere. They're looking for us to bring investment solutions that are unique and tailored to the high net worth experience. Philanthropic Advice. Many, many of our clients are focused on philanthropy. We want to be there to give them advice. And we have terrific people that are part of that effort within Rockefeller Global Family Office. Financial education. We're doing more and more of this for families that want next generations to learn more about the financial side of the equation. Curated lifestyle advisory. These are partnerships we have with outside firms that provide advice on health care, elder care, security, things that high net-worth and ultra-high net worth families are focused on. Estate planning, we have 2 trust companies. We do a tremendous amount of generational work. Proactive tax-focused wealth strategies. We have a wealth strategies group. And again, now this has been built out across the country that helps the adviser with the client on pre and post-tax and more complicated things that fit within a high net-worth portfolio. All of these things are brought together back to the horizontal connectivity on an efficient manner across the firm through the adviser to the client and their points of differentiation. They're hard to find, particularly in this mix within our competitors. We have a clear strategy to drive profitable growth. As I said earlier, our business model and growth strategy is built around a premier wealth management franchise aligned with strategic advisory and asset management businesses. The core of our strategy has been recruitment of high-quality adviser teams, effectively integrating them upfront, helping them bring their clients over from wherever they were previously and then driving organic growth. And the phrase organic growth is everywhere within Rockefeller Capital Management. Everybody is focused on doing more for existing clients and bringing more clients in the door. This has created financial growth and momentum as you see in the right-hand side of this slide. From 2019 to the third quarter of this year, we've had annualized revenue growth of 50% a year. And if you annualize the third quarter adjusted EBITDA, it's USD 161 million on an annualized basis. What do we look at to measure our progress? Not surprising on this page, 1 and 2 both have the same word, growth, as James said, big focus. So organic growth. We're trying to grow organically away from the market. So this excludes the market at an annual rate of 6% to 8%. Inorganic growth, I've talked about the recruiting of the advisers. We look to add elite advisers. And we spend a lot of time, again, making sure we're getting the right ones, representing about $120 million in production acquired per year which translates depending upon the specific adviser, the specific book to $15 billion to $20 billion of client assets a year. You put it together and you get revenue growth. I talked about the revenue growth to date 2024, our target revenue growth is 25% to 35%. IGM and Rockefeller Capital Management are working together. Here, we talk about collaboration, distribution and then strategic advisory. On the collaboration front, Damon and his senior leadership team were just in New York last week, with Chris Dupuy, who's the President of Rockefeller Global Family Office for an off-site. And Chris and team will be coming to Toronto early in 2024. I think they're hoping for the weather to get a little better, so maybe in the spring. I got off the plane yesterday and it was 10 degrees colder than New York, and I said, back in Canada. But Chris and team will be coming and Damon will be hosting them in the early part of 2024. They focused on best practices and leadership culture, and there's a lot of cultural similarity. The team's got along tremendously well. The focus within IGM and James' leadership, on growth, on execution but in a collaborative, collegial constructive environment. That's what we have at Rockefeller Capital Management. This is a great partnership from a cultural standpoint. And then they talked about growth and things that are happening here under Damon's leadership and the things that Chris and team are doing in the U.S. to drive growth. So that was a big positive event. And the feedback from my team was terrific. We also had the IGM Board meeting in New York at Rockefeller Center in October. So we had the entire IGM Board led by James obviously and team, and they had their Board meeting there, and that was another great way to continue to enhance the collaboration. Distribution, there's great investment product. A lot of it in the room. You're going to hear Stuart and others come up later. So we're looking at distribution into the U.S. and from our Rockefeller Asset Management and Investment platform through Damon's world as well, so distribution clear potential synergy as well. And then Strategic Advisory, having the investment bankers and James is one, by training as is Jeff or and myself, it creates incremental opportunities for everybody to look at. So the strategic advisory side of the equation is another point of synergy. What do we want you to leave with. The left-hand side of the page is the most important one. We are building a premier wealth advisory firm for high net-worth and ultra-high net worth clients in the broadest and deepest market for wealth in the world. One of the keys to doing that is this state-of-the-art technology stack. Again, I said it earlier, it's 2023. The clients expect it, and it's not millennials and generation Z. Everybody expects state-of-the-art technology from a firm with the name Rockefeller and we're delivering that. It's quite important to the adviser, the way the adviser interfaces with the client, the adviser workstation, all of that. And then the third takeaway. This is a clear and compelling growth strategy embedded within Rockefeller Capital Management. It's complementary to the other businesses that James is leading and are represented here. And we think there's plenty of things that we can continue to do to enhance that complementarity going forward. So it's great to see everybody here. I think I've got Michael Katchen coming up after me, and I'll be here for both Q&A sessions. So thanks again for being here.

Super. Hi, everybody. All right. Excellent. Thank you. Thanks for having me this morning. I'm Mike, I'm the Co-Founder and CEO of Wealthsimple. Thrilled to be here. IGM has been a really important partner to Wealthsimple. Almost 8 years or so, trying to look at Rhonda to confirm that. But I'm thrilled to tell you a little bit about the progress we've made recently and what we're up to. So I started Wealthsimple in 2014 with the goal of making financial services simpler, more accessible, more human for everybody. And we're thrilled about how that's going for us here in Canada. So today, Wealthsimple is one of Canada's fastest-growing financial services companies, Canada's leading fintech. And really at the core of what we're trying to do is build a deeply trusted relationship with our clients. I think if I reflect on the first 10 years in business, 1 of the things if not, the most important thing I'm most proud of is the Globe and Mail ran a study last year that showed, for young Canadians under 45, Wealthsimple is now the most trusted financial institution in the country. And it's that trust that we build with clients that is at the heart of everything we do and informs how we're trying to expand that relationship by a broader set of financial services needs. So in 2014, we launched, always hated the term, but is a robo-adviser, a digital financial adviser. And in the last number of years, we've expanded that suite of services. So we now do wealth management. We do brokerage, banking, tax filing and crypto. And it's all built on having that deeply trusted relationship with clients and expanding the way we serve them over time. And ultimately, it's all driven by a great technology platform. We are a technology company first, try to build world-class experiences for our clients and wrap it in what we call the most human brand in financial services around the world, something that speaks very differently than what people might come to expect of a traditional financial services company but resonates in particular with the segment of clients. That is our priority. So how is it going for us? Well, in our first 10 years, we've grown to surpass 2 million clients in Canada, another 1.5 million or so will file their taxes with us this year, which is pretty exciting. And we're today serving over $25 billion in assets under administration. And maybe 2 things that don't pop off on the page here, just in terms of the scale of growth at which we're achieving, we're adding about $1 billion of net deposits a month right now. So that's about the kind of growth rate that we've been able to achieve. And I think there's going to be an exciting announcement later today from the government of Canada. The new FHSA, which is an important new financial savings vehicle that was launched just within the last number of months to help first-time homebuyers, now has achieved 300,000 accounts across the country. Wealthsimple represents over 100,000 of those. And I think that's a pretty reasonable representation about the share of growth of new investment accounts and new entrants into the investment market that Wealthsimple is able to capture today and something we're pretty focused on maintaining and growing as we expand what we're up to. And for us, the strategy revolves around these 4 important points. So the first is client trust and really focusing on a segment of the market we refer to as modern investors, younger folks in their financial lives, earlier stage, getting started with their financial journey, maybe just married, buying their first home. That's really who we think of when we think about our primary segment that we're focused on. The second is a technology-driven experience. You can do everything from your phone. When we launched 10 years ago, we were the first investment service in the country where you could open up an account completely online. Obviously, that's become ubiquitous, but we continue to try and push the envelope every year with new innovations that just make it simpler and easier for people to manage their financial lives. Three is a diversified business, so continuing to expand the suite of ways we serve our clients and really pull them out of the banking environment so that they can have their entire financial life on Wealthsimple. And the fourth, obviously, brand led, something that we've become extremely well-known for in Canada with something like 75% of Canadians now knowing and loving the Wealthsimple brand. So we're focused on the segment of the market we call modern investors. And I think that's represented by this really exciting stat at the top, which is 50% of Wealthsimple clients say we were the very first time that they invested. And I think one of the other things I'm proud of as I think about our impact in Canada is I wouldn't be surprised if we've actually brought down the average age of entrants into investing as a market. And when you think about the impact that, that will have on Canadians' lives over the series of an investment horizon, it's going to be tens of billions of dollars in Canadians' pockets as a result of starting early. So it's something we're really focused on, is helping people get started. Today, 1 in 5 Canadians under 40 years older are clients. I actually heard a wild stat. In some markets, we've actually surpassed 50%. I think 50% of all people in Victoria are now clients of Wealthsimple or something like that, which is pretty exciting. And I think we've tried to build an investment service that speaks to this generation. So a few examples of that where actually IGM and Mackenzie have been very important partners to us, is bringing socially responsible ETFs in the country. I think we're still -- we were -- I think we're still the largest socially responsible ETF in the country. Mackenzie is the adviser on those products, a Shariah-compliant ETF, a green bond ETF. And recently, we started entering into the alternative asset management space. We've launched 3 funds: venture fund; private credit; and just in the last week, private equity, and trying to help younger clients get some exposure to what typically are reserved to high net worth or ultra-high net worth investors in a responsible way. So we're pretty excited to see not only -- Wealthsimple is known for being simple, but simple doesn't mean simplistic. And I think we're pretty excited to become even more sophisticated in the way that we're serving our clients in the years ahead. As I said, a real big focus for us is product innovation, technology-driven experiences for clients. And I think we've become known for many firsts over the years. We were the first introduced commission-free trading to Canadians, which has propelled us to be the second largest brokerage firm in the country measured by clients. We launched a regulated crypto platform. As you remember, in the pandemic, everybody wanted exposure to crypto. Now we thought that was okay so long as you could do it in a safe and responsible way. So we worked closely with the regulators to become the very first crypto platform with a license to offer that service to Canadians and perhaps maybe the first regulated platform to do it globally, so always trying to find a trusted, responsible way to serve our clients with their financial needs. We're the first to offer fractional shares on hundreds of securities for Canadians. And most recently, as we expand beyond wealth management to everyday banking and transaction-light services, we became the first securities dealer to join Interac. And we became the first non-bank to be granted a direct settlement account with the Bank of Canada, so really giving us access to some of the fundamental payments infrastructure that's going to be a very important part of our growth story in the years ahead. And today, I think a big focus for us is continuing to expand the suite of services that we're offering clients. So I mentioned going from wealth now into everyday banking. Our goal is to ultimately be the only financial relationship that our clients need, that you can live your entire financial life on Wealthsimple. And we are very early in that journey but excited about the progress that we're making. Lots more to come in the year ahead. Ultimately, Wealthsimple is perhaps best known for our brand. And a few ways that you can see that, I hope you've seen our new Martin Short ad, came out in the last few weeks, really cute spot. One of the things that's less known by folks is other ways we've tried to expand the brand relationship we have with clients beyond just the ads that we run. And one of the ways that that's worked incredibly well in the last year is the launch of TLDR, which is our brand newsletter. Today, TLDR has 4 million subscribers across Canada. Half of those subscribers read it every single week. It is now the largest financial newsletter in the country. It has larger circulation than the Globe and Mail. It's a pretty incredible way to engage with clients. And a big focus for us is we have not tried to make it transactional. It's not obvious that it's going to be driving immediate business or cross-sell opportunities with clients. But it's a great example of the way that we try to expand the relationship, drive engagement, drive love and loyalty amongst our client base, which we think in the long term is what's going to pay off incredibly well for us. And where are we going? So as I mentioned, we're growing very fast, really focused on continuing to grow. And our goal is between now and 5 years to get from a roughly $25 billion or so today to $100 billion in Canada and achieve a very meaningful position of scale in the Canadian market. So the key takeaways for us, truly becoming the financial institution of choice for the next generation of Canadians, increasingly serving them with a broader set of their financial needs by building this absolutely stunning financial experience delivered on their phone or on their desktop, and building a brand that becomes ubiquitous with trust, knowledge about financial services and an entirely different paradigm for how Canadians might relate to their financial services partner. And with that, thank you so much for having me.

All right. So that's the wealth management lineup. I think it's a pretty remarkable collection of brands, businesses, leaders, and we'd love to take questions. We have 20 minutes for questions, so please fire away.

Geoff Kwan at RBC. My first question was for Damon. The Wealth Connects and then the dedicated service in IG Wealth, can you just kind of walk through, I guess, the difference in terms of like the products and services that are offered at each level? But also from the adviser level, I'm assuming that the advisers are dedicated to each of those. Like there's no overlap in it. And then also, would there be different skill sets as to what type -- like why advisers would be in a certain one versus others? Like can they migrate up if they get a broader skill set?

Yes. So Geoff, let's start with your last question. I'll answer first. So it is a dedicated group of advisers for Wealth Connect and for the dedicated channel, so there is no overlap. The skill set that we're looking for in Wealth Connect are advisers that can handle a lot of questions, that can handle a lot of transactional activity and make sure that they provide advice and they provide planning. But from a light perspective given that that's -- those -- that's exactly what those clients want. They're digitally enabled. On the dedicated channel, they're more of a traditional financial planner. They have a book of business. They have a dedicated relationship with the clients, and their job is to solely focus on those clients, not look for new clients but service those clients. In terms of the products and services they sell, they sell exactly the same types of products and services that we sell in our entrepreneurial channel. They leverage the exact same platforms, the exact same technology. And there is, once again, the progression. You can move from the pooled Wealth Connect to dedicated, dedicated to entrepreneurial or vice versa.

And then my other question was for Greg. The U.S. wealth management is -- obviously is extremely large. Just wanted to understand how much runway there is for growth to be able to bring on that kind of $15 billion to $20 billion of assets per year? Is there a point where you hit a kind of a step function, the threshold of you've got to invest more in other technology systems, those sorts of things?

It's a great question. For the foreseeable future, there's plenty of runway. And in the final analysis, it may be less that you run out of runway and more that we are bringing a very high-touch set of capabilities to -- through these advisers to the clients. So there's a level of scale at some point that, that makes it harder to do as an organization. We see that as well down the line, and frankly, the investment in the technology and the operating platform will give us more room to continue to grow on an inorganic basis longer. The U.S. wealth market really is amazingly decentralized in the sense that there are so many pockets of significant wealth across the country in these geographic areas.

It's Tom MacKinnon here with BMO Capital. James, your -- when you were talking to a slide that talked about $4.1 billion in M&A transactions since 2020, I think you said there was more to come in 2024. So can you -- I'm not sure if I misinterpreted that. But can you elaborate as to what other things you'd like to invest and build on? Because I think there are -- Damon indicated there are some other things that you invested in, in order to grow there, too.

Tom, we're done. We're done. If that's what you heard, I misspoke. Our very clear focus for the next 2 years will be investing in the core, investing in IG Wealth and investing in Mackenzie and strengthening those 2 businesses. And quite frankly, when that window opens for M&A again, I don't expect it to be new names, new brands or leaders you have not met. I think it's going to be opportunities in the companies that you're meeting today. But our expectation is a 2-year period of investing internally and in the core. And after that 2-year period, there might very well be opportunities for us to invest further in these companies, and that would obviously be of some appeal to us. Having said all of that, Tom, you've been at this as long as me. You never know when the phone is going to ring and who's going to be calling. We -- I will pick up the phone. But my expectation is that we're done with M&A in any material way at least for a little period of time here.

And in terms of some of the investing to grow within the core capabilities, I think Damon's remarks talked about expanding partnerships with respect to mortgage and banking and insurance, exploring fintech accelerators. Those seem to be -- are those -- can you elaborate on some of those -- the size of those investments? What's needed there? And that's all in keeping with this 3% kind of operating OpEx growth that you're talking about as well.

Yes. So we've got a number of things that we're looking at. We're not at a stage where we're going to say here's exactly what we're doing. But I think the word investing is the one that we're getting caught up on because, investing, you can take an ownership position, but that's also investing in a partnership where you're spending time, you're making effort, you're getting your people rallied around it and you're bringing a different organization, a different type of capability to the organization. And then there's the investing in do you want to actually connect the systems between one organization or one fintech and our system. So we're looking at all those things right now. The big thing for us is making sure that whatever we do, we want to do it well, and we want to set up our advisers for success because their time is extremely valuable. And with all the things that we've asked them to do over the years, they've repapered clients 3 or 4 times over the last 5 years. It's extremely important that we make sure that we give them that time back. So we're going to be very thoughtful in terms of what we're doing, but I was honest as it relates to what we're looking at.

And then my final observation is, James, you're talking about an earnings growth company. We appreciate Greg's comments, but it's a revenue growth story, and then Mike's is an asset growth story. But we didn't get kind of earnings growth metrics out of those 2. Is that to come later? Or how should we be thinking about it?

Yes. No, absolutely. In Keith's section towards the end of the morning, he will deconstruct that 9% plus between the core businesses, IG Wealth and Mackenzie, on the one hand and these strategic investments. And for each of them, with the exception of Wealthsimple, which is currently fair value through OCI, we absolutely expect their growth to translate into accrual earnings. And Keith will walk us through that.

We'll see that 15 that he talks about broken down into those segments? Or is it just 15 in total without visibility in each 1 of those?

It's 15 in total, but Keith will be -- Keith has got a 20-minute section where he will peel it back a bit. And we'll take questions after that segment as well.

It's Graham Ryding from TD. James, maybe I'll start with you. Just there was a comment about just horizontal connectivity. Maybe speaking towards Michael and Greg's businesses, but like what can you hold up as sort of examples of how you've been successfully able to connect those businesses back to IGM today? And then maybe where are you seeing opportunity for that to increase further or become a little bit more connected even [indiscernible]?

Sure. So let me start with Wealthsimple. There is today a very important relationship, a partnership between Mackenzie and Wealthsimple, and Michael gave some examples of products that Mackenzie is currently advising on or sub-advising on as the case may be. And we are regularly looking for those opportunities with Michael and team. So that will very, very much continue. With respect to Rockefeller, Graham, it's early, obviously. The transaction closed in April. But I think already we're -- our team has gone down there. Their team is coming up here, as Greg described. Rockefeller is, as we speak, and has been for some time, a sub-adviser to some of the IG climate portfolios. So we see a lot of opportunity. It's not just going to be mandates moving northbound or southbound. A lot of this is going to be knowledge sharing. I mean it's not -- I think one of the more important points is where Damon aspires to take his business is where Greg has already taken his business and beyond. So there's going to be an awful lot of learnings about how you serve high net worth clients and do it really well that Damon will be embracing. Equally, I think it's fair to say, and I'll let Greg speak to this, I think Rockefeller is learning from IG Wealth. It's not lost on them that IG Wealth is now 97 years old. It's been competing against the Canadian banks for 97 years and competing very successfully. And so there's learnings in both directions. But Greg?

Yes. That was a clear takeaway from the session last week, and I told that to Damon. But Chris Dupuy, who is President of Rockefeller Global Family Office, he was with us at Merrill for almost 30 years, and he's the leader there. He and his team came away saying there were things that happened in Damon's business in terms of driving growth and measuring productivity and how to, frankly, just run the business better that we took away. So there's knowledge sharing in both directions, and I think there's a lot of space for that. When you're talking to the -- an analyst community, everybody wants to quantify. This will be quantifiable over time. That was one of the clear messages that came out of this session last week for us, and I would assume for Damon as well.

Yes. and I'll jump in here. So I'll give you 2 things to hang your hat on that are very, very evident to me. Number one, we are moving to that segment -- the segmented distribution advice model. This is something that Greg and his team -- they worked at Merrill Lynch. They did a long time ago. They know exactly where we're going. They know 3 years out, Damon, 4 years out, 5 years out, here are the challenges you're going to face. Here's what we did. And then two, we're creating that regional family office type of experience. Rockefeller's built on a family office, has been around for 140 years. So all of the services that they provide and that experience, we're going to learn from that, and we're going to figure out, okay, what makes sense for high net worth Canadians and how can we Canadianize that at IG Wealth Management. So those are very, very 2 clear things from what I just talked about, where there is 100% alignment between Rockefeller and IG Wealth Management.

Nik Priebe with CIBC. I want to start with a question on Rockefeller, and I think there was a reference to the potential for distribution opportunities in the U.S. of Mackenzie and Northleaf's investment management capabilities. Can you just tell us a little bit more about that initiative in terms of timing, what capabilities will be most suitable for those clients, and just about how you would approach the integration of proprietary products onto the shelf of an open architecture platform like Rockefeller?

Sure. That's a great question. And it's core to our strategy in the U.S. and for our clients. We have something we call the investment solutions group, which deals with all third-party managers, whether it's long only and traditional through all the different alts providers. And that group does diligence on literally hundreds of firms a year. We get a lot of inbound, you can imagine, given the scale we've achieved. Almost everybody who's developing an asset management strategy that they want to distribute through high net worth calls and high net worth -- the high net worth and ultra-high net worth channel for all of the major asset management firms in the U.S. is a significant focus for growth. All the major alts managers, as you know, are very focused on growing in high net worth and ultra-high net worth. So that's a big group for us now. And we spent a lot of -- we've invested a lot in it. We spent a lot of time screening managers, and they really do need to be best in class. There are best-in-class asset management companies in this room that you're going to hear after the break, and they're well down the path from a diligence standpoint with our team on specific products that I can't get into today, but that's how it works. And as I said, it's a rigorous process, and you've got to have a good investment process, good numbers and everything else to be part of that. And there are firms in this room that do.

Okay. And then maybe just shifting over to Damon for my second question. I wanted to hear a little bit more about the private company advisory business, just where that's at in terms of its development, how much incremental spend would be required to get to that service to full scale and whether that spend can be navigated within the context of low single-digit expense growth at the enterprise level.

Yes, we're about 75% way there, 80% of the way there scaling the team, and they're taking on deals right now. The way that it works is we expect that team to fully fund itself as they start to close deals. And I have no worries about being able to stay within the expense guidelines that we've expressed. So this is not a team that we're going to scale to the capacity of an RBC or a Rockefeller or whatnot. This is meant to be a team that strictly works within the confines of our distribution network and works within the confines of our existing clients, and then helps us bring in new clients that are high net worth and small business -- small- and medium-sized business owners.

Nik, as you know, it's just -- it's a remarkable number of Canadians or percentage of Canadians who have achieved real wealth, who have achieved it, in fact, through a small- or medium-sized business. And so that connectivity opens the door wide open to building relationships with business owners and to serving existing business owners.

And are there any other competitors in the market that may have a similar offering? Or is that kind of a unique differentiator for IG Wealth?

Well, outside of the banks? I don't know of anyone that has an offering like this. And I -- don't quote me on record, but I do not know anyone that we compete with, particularly on the independent side, that has something like this. Well, no, I shouldn't say that. Canaccord would, so aside from Canaccord.

Bryan from Foyston. Just, I guess, a question for Damon. Just in terms of that slide where you showed the traditional IGM channel and then you got the 2 new channels, so 2 questions. First one is can you just give us a sense of the market share trajectory on the mass and the high net worth. And just I know this is going to sound dumb but just to find the threshold, I think high net worth is $1 million plus and mass is $250,000 to $1 million. Is that correct?

Yes, that's correct.

Okay. And so just if you could just talk about your share. And then the second one is I'm curious to know kind of the economics of those 2 new channels. They're smaller and you seem like you've built in a fixed cost kind of structure if I can put it that way. But can you just help us understand the economics of those ones? When do they -- are they at scale? When do they reach scale kind of profitability? I'm just trying to understand what the mix implication is as you grow those 2 categories.

Yes. So on that last question, I'll turn it over to Keith to answer that, but I'll answer the first question first. So in terms of market share for the 3 channels, because of our history and the fact that we are focused on the mass market and mass affluent for so long, our market share is higher in those smaller bands. And then as you move up, it gets lower. But we've been increasing our market share over the last 5 years significantly. And we expect to accelerate that. And that's why creating the capacity for our entrepreneurial advisers is so important. When you talk about an adviser and their team's running a business, there's 2 levers you really have. One is their capacity, and number two is our capabilities. Their capacity, which is time, there's 2 things that you want to be able to do. You want to be able to digitalize the business to save them time to service their existing clients. And number two, you want them to segment their business so that they can make sure that they have the right number of clients. And we're focused on both through the digitalization and through the corporate channel. And then on the capabilities, it's what can you do to make sure that they provide more value to their existing clients. Michael talked about that. Greg talked about that. For us, it's the wealth drivers. And then it's helping them team, help them find complementary skills, advisers they can add to their team so they could be more meaningful for their clients. So we're focused on all 4 things that we really expect us to be able to gain market share on the $500,000 to $1 million plus. And really we're looking at $500,000 to $25 million. That's where we'd like to play. Keith, did you want to answer that?

Yes. I'll just say the benefit of the channel is really focused on productivity, as Damon commented. I will speak to this later in the afternoon. But what I would say is the adviser -- entrepreneurial advisers today that are being paid as a base comp sales, base comp that will fund the channel that we're servicing here. So for 2024, don't expect a significant impact on expenses, but over time, we think they will go down moderately.

Please, go ahead.

Just one more. A question for you, Greg. Just curious to know -- and I guess I'm just thinking in the context of maybe before the injection of equity and the ownership, but can you talk about the financing model of buying those teams? Does Rockefeller -- like are you taking on more incremental leverage over time based on your growth rate? Like can you just talk about the economics of sourcing teams and buying them? And kind of is that changing your leverage in anywhere? Can you self-finance?

Yes. Our leverage has been coming down dramatically really in the last 3 or 4 years, so -- and Keith can run through that as well. The whole trick here, the challenge in the model is to make sure you hire the right adviser teams and then they deliver the clients. And from our vantage point, not only are we bringing the clients over. And part of that is the brand, the quality of the advisers, all the different services that we have supporting the advisers, the leadership team and the reputation. But as long as you deliver the assets -- and we're focused on delivering them quickly, too. So when we bring an adviser over, the adviser of the team, and we have groups supporting them, to get the clients to onboard to Rockefeller Global Family Office quickly, if that happens and then you build a firm that the adviser wants to stay at for a long time -- and we have forgivable notes with these advisers. The tenure of those notes is much longer than they used to be in the industry. We have some advisers that come onboard for a 16-year note. So if all that works, the economic model is a very strong set of returns.

We'll take a final question for this segment if there is one. No? Okay. Thank you very much, and to the panel, thank you very much. [Break]

Okay. Thank you, everyone, for making your way back to your seats. We're now going to get started with the second half of our morning with the 3 asset management businesses that make up a critical component of the IGM Financial growth story. First, Luke Gould will speak to Mackenzie's strong positioning and his team's compelling strategy for growth. Then, Yimei Li, who is joining us today from ChinaAMC's head office in Beijing, will give you a special lens into her company. Stuart Waugh will then speak to Northleaf's robust private markets platform. Luke, come on up.

Okay. Thank you, Kyle, and good morning, everybody. It's great to see everyone. And bear with me. I'm used to having walk-up music from Northleaf's music royalty catalog. So I promised the team, I'm not used to this, but we'll have it next time, Stuart. So I am just delighted to be here today and talk about who Mackenzie is, to talk about how we've enhanced our offering and enhanced our market position over the last 5 years, and to talk about how we're going to build our earnings and build our business in the future. As many of you know, our goal and objective is to be Canada's preferred and global investment solutions provider. You're going to hear today, we have a number of foundational qualities that provide competitive advantage to us. And this serves us well with Canadian financial advisers, which has been our traditional core market. And it also gives us the advantage in diversifying outside of Canada and to institutions and partners. And you're going to see that we're proud of how we've executed. We've executed very well on our strategy over the last 5 years. It's positioned us as one of the leaders in our core market, and we're excited that we're poised for future growth. So here's Mackenzie in a snapshot. We're 1 of Canada's leading investment managers with just under $200 billion in assets under management and 1 million clients. We operate under a boutique approach, with 16 autonomous investment boutiques and just over 150 investment professionals. As you can see on this slide, we have diversified distribution with our traditional core being serving financial advisers in Canada, and we are big believers in financial advice. This is 25% of our assets and about 2/3 of our revenue. And also, we serve institutions and partnerships, and this includes our sisters, IG Wealth and Canada Life, among many other institutions and partners. And this is now 75% of our assets and 2/3 of our revenues. So this slide in front of you shows our strategic framework. This is going to guide my comments for the day, and you can see our mission, creating a more invested world together. This is our purpose, is what our teams wake up every day to do. We want to encourage Canadians and investors to be invested in their finances, so they can achieve their goals and also to be invested in the things that matter to them in their life. We have a number of foundational qualities, which we believe are competitive advantages that help us serve our clients and grow our business. Fundamental is our boutique approach and having a breadth of capabilities. We're a part of the Power Group ecosystem. And as you've heard this morning from my colleagues, this actually benefits all the companies and Mackenzie especially. We have brand leadership and have invested heavily in sustainability, both in how we run our business and in sustainable investing. And people and talent is core to who we are and core to us winning because people hire us for our intellect and having the best minds in the investment industry is core to our success. Those qualities serve us well in our strategic mandates. And you can see these mandates are complementary and provide us diversified avenues for growth. Number one is win in Canadian retail, which for us is being the favorite provider for Canadian financial advisers. Our second mandate is building meaningful strategic partnerships, leveraging our strengths. And then lastly, a smaller mandate but one with exciting growth prospects for us is developing presence in institutional market and with group clientele with a targeted approach. Fundamental to winning on these strategic mandates is our priorities. And these ones should be obvious, but it drives us every day. One is investment excellence with institutional quality processes. Second is product innovation. We have a history of being an innovator in our market. And so product innovation with a breadth of relevant capabilities is our second. And expanding relationships with a segmented approach is our third. And these are the priorities that are going to drive us and make sure we're successful in those mandates. We seek to be the product provider of choice to financial advisers. You can see on the left, we have a very broad product offering. It's diversified by mandate, by asset class, by style, by delivery vehicle, and it's bolstered by support services we offer to advisers. On the right, you can see we're a Canadian company. However, our investment reach is global. We have 7 investment locations, a number in Canada and outside of Canada. We're in Hong Kong, Dublin and Boston. We have sales reach around the world. And importantly, 90% of our AUM is Canadian, but we have a very rich opportunity to expand institutionally and expand outside these borders, and we feel the opportunity is very exciting. We often say and many of you have heard this from me, we're portfolio managers. We believe in diversification. We have a boutique approach that we think is very unique, and it provides us with a number of advantages. When we say we're boutiques, we have these 16 investment teams, which each have their own articulated edge. They're autonomous. They don't share best ideas. And our job is to really nurture them in their own disciplines to make sure they provide excellence to their clients. We have listed some of the advantages on the right. Importantly, we do not have group think. We ensure that we have something compelling and relevant across market cycles and for different client needs. As a consequence of this, we tend to have the most consistent net flows among our peers. In fact, we have had the most consistent net flows among our peers. And really, really important to us, the boutique approach allows us, when we're missing something we believe is relevant, to tuck in new capabilities without destroying the character of what we've acquired. I want to highlight 3 places we've done this in the last few years. We acquired the quant team based in Boston, our global quant equity team. That was a capability we were lacking, and we found a tremendous team to bring this to life. We care very deeply about sustainable investing, and we've added 2 new boutiques here in the last 5 years. One is our Better World team that's based in Vancouver. We also acquired our Greenchip team that's based here in Toronto. And I'd also add on to this theme, our acquisition of a stake in Northleaf, where we knew private asset classes was critical to our success going forward, and we're so pleased to have the partnership with Stuart and his team at Northleaf. We have a target, and you can see it here, to have 60% of our assets in 4- and 5-star funds rated by Morningstar on an ongoing basis. Many of you might say why not 100%. And the answer is that Canada is a very small country. And as a consequence, these Morningstar categories are very broad, and you have many of these categories that have all the styles situated within them. So all of our teams are focused on what they do and their investment objectives. And we've done back testing to know, if we can be between 40% and 60% of our assets between 4- and 5 -- star funds on an ongoing basis, this gives us confidence that we can gain market share and be one of the most relevant leaders in the Canadian marketplaces throughout all environments. This chart is an interesting one, and usually, we have the words Intel Inside. Mackenzie, and when I say Mackenzie, I include Northleaf as well as ChinaAMC, Mackenzie seeks to be the Intel Inside, the product offerings of these great wealth managers throughout this ecosystem. We're a strong partner to Canada Life and IG Wealth, and we work so hard to give them advantage as they're delivering product solutions to their clients. We also serve Wealthsimple as well as IPC. And you can see, when you look at the great firms in this ecosystem, there's a lot of places for us to expand where we could give advantages to these sister companies of ours. You've also heard from the team this morning, beyond product and distribution relationships, we benefit through cooperation with all these groups and sharing expertise that includes fintech as well as all the expertise that resides within this group of companies. So we've been really, really busy over the last few years, and we've been working hard to bolster Mackenzie's scale and Mackenzie's scope. You can see we've incorporated the in-house investment teams at both IG Wealth and Canada Life. We've tripled our assets and doubled our earnings over the last few years. We've also invested heavily in talent, systems and capabilities. And our mantra is we have the resources we need to compete and win. We can manage expenses to a very reasonable level of growth. And we've got a lot of operating leverage in the business. When you look at the chart on the right, you can see we increased our earnings organically by 40% in 2021 alone just on the basis of this operating leverage and growing market share. I'd also highlight our EBIT margin is around 40%, which puts us among the world's leaders in profitability. So our brand, I could talk about this all day. We love our brand. We love our mission of creating a more invested world together. We've launched our slogan this year of Be Invested. And we've actually been able to trademark that, which surprised me in 2023, but we're so delighted. We love the message, and we love the visuals. Our brand equity is very strong in our core market. We ranked second among our peers in terms of asset managers under the adviser perception study. And we are also recognized as the only investment manager in Canada rated 1 of Canada's 150 most iconic brands, which is something we find very cool. We are a leader in sustainable investing in Canada. We've invested heavily in it, and we're so proud of the recognition we've received. We were ranked #1 among large peers under the adviser perception study this year for the quality of our ESG offering. We have the leader in terms of the largest fund in thematic sustainable investing. And we've put sustainability on the same slide as culture and talent because this purpose is something that drives all of our people, making sure that we're coming in and creating a more invested world together. As all of you know, talent is quarter of success, and we want to provide a great place to work, a place where people can do their best work and a place where people are aligned with the purpose of what we do and the impact we have in people's lives. We have listed some of our accolades here. The one that I'm most proud of is being rated by Glassdoor 1 of the top 25 places to work in Canada. What's important about this one is this is a rating of employees about their employer, and it gives us great pride that our employees have given us this feedback about how they feel about Mackenzie as a place to work. We've heard from James, Damon, Greg and Mike about the strength of their teams. At Mackenzie, we feel so proud of this experienced team that we have, an engaged team we have to drive our business forward. I do want to highlight, within the IGM ecosystem, this team of 9 leaders is supplemented by another 7 leaders who have responsibility across our group of companies. I'd also highlight that we made some changes in the second quarter to reduce the leadership team to really drive effectiveness and make sure that the team just gels. This is one of the most important slides I'm going to read today, and this is the 3 strategic mandates we have. Importantly, these mandates complement each other, and they provide us diversified paths for growth. When we talk about winning Canadian retail on the left, this is being #1 with financial advisers in Canada. And you can see our position here is one of leadership. We rank a clear #2 on almost every dimension, and we feel this is a very exciting place to be that we're #2 with momentum. And of course, our goal is to be #1. We measure #1 in terms of the overall score on the adviser perception study, which is done every year by Environics. And being #1 to us means you're the most respected, relevant and admired in the marketplace with these key clients being financial advisers. In the middle, you can see our second mandate is building meaningful strategic partnerships, leveraging our strengths. You can see here our position is credible. We have $125 billion. We do asset allocation, portfolio construction. We provide component pieces. We serve IG Wealth, Canada Life as well as many, many other wealth managers, where, often, we're a preferred or exclusive partner. And we believe this credibility and strength gives us great avenues to grow outside of Canada with other wealth managers and also within Canada. Right now, we have a targeted list that we're focused on, and we're quite excited about our prospects for growth there. And then lastly is developing presence in institutional with a targeted approach. In spite of being 55 years old, Mackenzie has a very small presence in the traditional institutional channel, and this actually excites us. We have 16 boutiques. They've got world-class capabilities. And importantly, when you look at how retail is evolving, being able to cultivate business with the most sophisticated and discerning clients is important to us because we're increasingly facing sophisticated gatekeepers everywhere. So at the same time as harnessing our craft with sophisticated gatekeepers, there's a real opportunity for growth where we right now are advising only $10 billion with traditional institution. And you'll see in a few slides, we have these great capabilities, and there's trillions of dollars at play that we can actually advise someday. So many of you know me and know that I love the research that's done by Investor Economics. They published their most recent household balance sheet a few weeks ago. And this gives us a bit of context on the Canadian savings landscape as we talk about winning in Canadian retail. On the left, I'll just remind that the primary savings vehicles for Canadians are investment funds and discretionary securities, which is where we're focused, and you can see the growth that's expected in these categories over the next decade. On the right, financial advisers are expected to continue to be the leading channel for Canadian savings, which makes sense. The wealth resides with those who have complicated needs and financial advisers do a great job in serving those with complicated needs. Before leaving this slide, I'd give a bit more context. When you look at the financial adviser channel, about half of the assets in that channel are investment funds, and it's expected to stay at about half over the next 10 years. I'd highlight that ETFs are a very small part of the investment fund offering today. It's expected to experience high growth, but high growth means going from 11% of investment funds to 15% over the next 10 years. I'd also highlight that within the ETF offer, almost half of the ETFs in this channel are smart beta and active. And I remind that Mackenzie provides a breadth of offerings across our ETF suite. We measure market share in terms of having a surplus net sales rate in relation to our peers. You can see, over the last 8 years, we've enjoyed a surplus of about 2% to 4% over the peer average as we gain market share. We've highlighted here Investor Economics' projections for net sales rate into investment funds over the next 10 years and 5 years, and you can see it's about 2% per year. As mentioned, you can see it here. We have the most consistent net sales in the industry given our boutique approach and our distribution strength. And I just want to walk a bit through the math. If the industry has a net sales rate of about 2% of assets per year and if we have slight market share gains, we'd expect to be net selling at 2% to 4%. When you add on investment returns for our clients of, say, 5% to 6%, this equates to AUM growth of 10% per year. I talked earlier about the operating leverage in our business, and 10% increase in AUM really creates meaningful growth potential in earnings. When I talk about Canadian retail, and many of you have heard us talk about this KPI before, we're so fortunate to have the adviser perception study, which has been done for over 30 years by research firm Environics. This study actually measures 41 dimensions of what matters to a financial adviser from a product provider, and we get to see how we've done in every single one of those dimensions and how we've done in relation to every single one of our competitors. You can see on the left the significant progress we've made on this study, moving from 12th or median in 2013 to a consistent top 3 in the overall score. Our sales penetration, the percent of advisers actively purchasing our products, actively recommending our products, has gone from 41% of advisers in Canada up to 55%, and we're second across adviser types. Our brand equities increased from third place to second place. And the lapsed advisers, the percent of advisers holding our assets but not actively purchasing, has declined from 31% down to 12%, which is at industry-leading levels. One theme that we've tried to pull out in these slides is this trend to knowing your product, which our regulatory changes brought in the last 10 years, and advisers trying to have the most effective and productive practices they have -- they can. And as a consequence of these 2 things, advisers have been consolidating the number of product providers they deal with. And as you can see on the right, Mackenzie and the industry leaders have been real beneficiaries of this trend. You can see how Mackenzie has increased, on the right, from 41% of advisers working with us to 55%. You can see that #3, 4 and 5 are now distant behind Mackenzie, and you can also see how many peers have seen significant declines in the percent of advisers that are working with them. At the same time, I'd highlight, there's a bunch of peers who worked here 10 years ago, and those folks tend to be focused in niche players. And I'd just highlight, with Mackenzie's boutique approach, we believe we can be the product provider of choice and be a leader while, at the same time effectively fending off any of these niche or focused providers. So I'm going to change gears a little bit and talk about our 3 priorities to help drive our success in our 3 strategic mandates. First is investment excellence through institutional quality processes and capabilities. The 3 themes that you can see here, talent management excellence, institutional quality process and being well-resourced, so our people can do their best work, are intuitive and every year, we have initiatives designed to improve on these 3 dimensions. I'm going to give a few examples of recent things we've brought to life on these themes. On talent management excellence, earlier in the year, we reduced our investment complement by about 10%. We consolidated 2 boutiques into 1, and we did this to make sure that our clients had the very best of our capabilities everywhere. And we did it to make sure we are bolstering our remaining boutiques to create great talent, great career paths for people as well as making sure there's great and clear succession. On institutional quality processes, we're focused on making sure each and every boutique is leveraging their edge and that we've got appropriate risk management and great risk management, so we're executing on clear client objectives. And lastly, on well-resourced, we announced just a week ago, a new deal that we've done with BNY Mellon to create a new middle-office environment that ranks us among the global leaders, so our people coming into practice investment management can have the very best environment to do their best work. The other thing I'd highlight in well-resourced is, like so many of you, we're focused on AI and making sure that we're leveraging and investing in AI to improve productivity while also increasing alpha. We love our tradition of product innovation here. We're focused on the most relevant areas with the greatest growth potential. We believe with our advantages and our strengths, we have a lot of advantage in actually being an innovator. With our strong distribution relationships, it makes sure that we're close to the client to understand their needs, and it also helps us get sales presence early on in the product life cycle. With our boutique approach, we can easily tuck in new capabilities where we need them to be innovative. And with the breadth of what we do, it helps us bring new ideas to life and really exercise a lot of possibilities. You can see our delivery focus, which echoes a lot of what Damon talked about this morning. You can see our emphasis areas, which should be very intuitive. And I'd highlight a few of the things we brought to market in the last 5 years that are meaningful and that we're proud of. First, I do want to highlight the private and the 4 funds that we've launched with Northleaf in private equity, private credit and infrastructure. We declared these asset classes the missing middle for retail investors. And this is a focus of ours, and we see great potential there to improve the risk return dynamics of Canadians' portfolios and for Mackenzie to be a leading provider, bringing these asset classes to retail investors. Through this launch, we also launched the first interval fund in Canada and worked with the regulators to get a special exemption to do that, and we're quite proud of how this once again demonstrates us as an innovator in what we bring. Second, I want to highlight sustainable investing and Greenchip. We started working with Greenchip in 2017, and we acquired the boutique in 2020. Greenchip is a world leader in thematic investing to combat climate change. We're proud of their capabilities. They've got a great track record. They're compelling. And the global Greenchip Environmental All Cap Fund has actually been our best-selling fund over the last 3 years and is actually the leader in the market in terms of AUM. I do want to highlight, most important to us is just the ecosystem we have for ongoing innovation, and we're so confident about our ability to deliver on an ongoing basis. And lastly, on priorities, distribution has been a real strength of Mackenzie's for its 50-year history. We're focused on 3 priorities here, the first being segmentation. Segmentation for us takes many forms. One of the things we're working on is integrated dealer account planning, where we're making sure that we're tailoring the offering for different dealer types and different adviser types. Sometimes segmentation takes the form of different markets, and we have a Quebec strategy that we're executing on for that unique market. And sometimes it takes the form of setting up dedicated support and service models, which is something we've proved quite good at. In the middle on support and partnership, Mackenzie is a leader on supporting advisers and dealers. We provide tax and estate, practice management, training, regulatory support, as well as digital tools, and this helps us to deepen our relationship with advisers and dealers. And then on reach and effectiveness, we've been focusing on expanding our presence, and you can see on the right we've doubled the number of wholesaling teams we have across the country, and we're going to continue to grow this presence. At the same time as increasing our distribution presence, we've been investing in digital wholesaling. And we have a leading digital wholesaling offering, which makes us more effective in our sales efforts. I'm looking at our Head of Distribution. Would be remiss if I didn't talk about conceptual-based selling, which is something we've rolled out this year, to make sure that we understand our client needs and are really helping them in managing their practices. And we also leverage our relationships across the Power Group to get us in front of leading institutional investors and sovereign wealth funds. I'm going to talk a bit about our second strategic mandate of increasing our strategic partnerships. I first want to highlight IG Wealth Management and Canada Life. We are a core provider to their shelves, but importantly, they can hire anyone in the world to bring excellence to their clients. We go through the same sub-adviser oversight process as everybody. We work to make sure we're giving them advantage in their market. And this sub-advisory scrutiny that they give us, along with everybody else, makes us better with other clienteles and really makes us better at our craft. And I'd say we expect to win all ties. We'll be clear on that, but we do have to earn this business, and we think it's a real advantage going through their processes. I want to highlight a deal that many of you are aware of, which is our exclusive relationship with Primerica that we brought to life last year. Primerica named us 1 of 2 exclusive providers to them in Canada, and we built a whole investment fund family just for them. It's 27 funds, including managed solutions. We've included third-party sub-advisers to complement Mackenzie's in-house capabilities. We stood up a dedicated support network. We're now over a year into the product offering and the track records are exceptional. And we're so pleased with this -- the way this is showcased, what we're capable of as a business partner. Right now, we've raised over $0.5 billion into the product, and we're over 40% of all of the sales going into that dealer's product offering. With a targeted approach, we know there's a number of wealth managers in Canada and beyond where we can partner, the way that we partner with Primerica, Canada Life, IG and all the others that you're aware of. And then in developing presence in institutional channels with institutional clientele, we want to bring forward our global quant equity team based in Boston, the Mecca of quant investing, to really showcase some of the capabilities that we're promoting actively in this channel. So we accrued this team in 2017. We've given them the time and space to invest in track records in a number of mandates. You can see they're now managing over $10 billion or approximately CAD 10 billion across a number of client types. And the team has really delivered in not only demonstrating their ability to generate alpha but to do it with a process that is all weather. On the emerging markets mandates where we now have a 5-year record, we rank among the top in the world and the very top among quant managers in terms of track record. We're really excited about business development opportunities the team has in front of it, and we've -- we were pleased to announce earlier this year that we're awarded a $0.5 billion mandate from SEI. And right now, this team is in front of some of the largest sovereign wealth funds and institutional investors in the world as they should be. And we're leaning all in, and we're not going to let them down. I also want to highlight developing the institutional channel. We've got global sales presence. We're leveraging the Power group of relationships where appropriate and our partners. And we have a number of boutiques beyond the global client equity boutique that we're investing in. This includes Greenchip, our Asian equity team based in Hong Kong; our North American equity and income team; and our fixed income team. And all these boutiques have qualities and characteristics as well as track records that make them very suitable for institutional clientele. I do want to close by saying we have some very basic KPIs. All of the compensation of our teams are aligned around them. We think they're the right KPIs to continue to drive growth of this great company. Client engagement, client outcomes, market share, profitability, employee engagement and business priorities, which typically includes risk management and sustainability, we believe, are the right measures, and we're really excited about the future. So thank you very much, everybody. And I'm going to turn it over to Yimei Li, who's joining us from Beijing. It's very late there, so I want to thank Yimei in advance for joining us. And thanks all.

Good morning, everyone. I'm honored to virtually attend IGM's Investors' Day and present our firm, ChinaAMC, a leading asset manager in China. Here are some key messages that I would like to share with you in the speech. Here is the snapshot of ChinaAMC. It was founded in 1998, which is also the inception year of China's asset management industry. Over the past 25 years, we have grown to be one of the largest asset managers in China with CAD 338 billion of assets under management. We serve more than 240,000 institutional investors and more than 210 million retail investors, which accounts for roughly 1/7 of Chinese population. Our majority shareholder is CITIC Securities, the largest securities firm in China. Mackenzie Investments, which is 100% owned by IGM, owned 27.8% of our stake. Mackenzie is not only our second largest shareholder but also our trusted and supportive partner in Canada. As the chart shows, throughout the 25 years of history, we have always been a bold pioneer in business innovation, multi-asset management, digital transformation, ESG and sustainable investing. I joined ChinaAMC in 2001 and have stayed here ever since. I personally witnessed many firsts over the past 2 decades, shown in this slide. For example, China's first ETF product back in the end of 2004, throughout the strategic initiatives and product innovation, we not only grow with the industry but also become a key driving force to shape the industry. We are a pioneer in multi-asset management. We are building an all-around, cross-asset platform, enabling us to create and redefine assets. We deem this as our core competency. As asset allocation plays an increasingly important role in asset management, having a comprehensive toolbox of underlying strategies is becoming a vital differentiator among asset managers. As ChinaAMC, we have diverse strategies across all assets, all sectors and all themes. With the support of our cross-asset, one-stop platform, we can provide full process, cross-asset solutions according to clients' different return objectives and risk appetite. We are a pioneer in digital transformation as well. From research platform, sales and marketing to product and trade management, digitalization and automation empower and accelerate innovation. In addition to artificial intelligence, we also attach great importance to HI, human intelligence. We are invested in hiring and nurturing talent and building the best team to drive firm-wide digitalization and automation process. The strong combination of AI and HI gives us strong edge among our peers in the industry. We are also a pioneer in ESG and sustainable investing. ESG is at the heart of our corporate culture and investment research. We are proud to be the first full-service Chinese asset manager that signed up for PRI in 2017, the first Chinese asset manager to support the Climate Action 100+ in 2018 and the first Chinese manager to manage a China ESG UCITS fund in 2020. In 2021, we became the first Chinese asset manager to achieve net zero in [ corporate corporations ]. As a firm believer in sustainable development, we invest not only to create asset value but also to actively engage our investee companies to improve their corporate governance and low carbon transition. With these pioneering initiatives, we are able to deliver outstanding return consistently. In terms of active equity, our overall 10-year annualized return reached 9%, and our 3-year annualized return reached 13.71%. With accumulated dividends of over RMB 210 billion, we are the first asset manager to hit the RMB 100 billion dividend line, and our equity funds ranked top 1 in terms of cumulative dividends. ChinaAMC's equity investment return in the past 3 years ranked 2 out of 12 major equity fund houses reviewed by Haitong Securities. The strong performances helped us to outpace robust industry expansion with a growth rate in the past few years beating industry average. From the end of 2017 to 2023 Q3, our AUM CAGR is 23%, far exceeding industry average of 16%. In terms of market share, we ranked the second in long-term fund in China with a 5% market share. The record growth is also from clear strategies that we polished all through the time. Our strategic goal is to be an all-around, cross-asset management platform. There are 3 keywords to interpret our strategy: elevating, growing and capturing. In terms of the first keyword, elevating, we kept innovating all through the time, including product, service and technology innovation. In terms of the second word, growing, ChinaAMC's AUM has grown at 23 CAGR over the last 5 years. By sustainable growing, we capture greater share and maintain industry leadership position. And the third word is capturing. We are a pioneer in emerging frontiers, such as ETF, private pension and REITs in China market. And we are supported by the strength of stable and long-term shareholders. There are unique strategic benefits and synergies for us. The partnership enhances Mackenzie's participation in the rapid growing Chinese asset management industry. It enables best practices and industry knowledge sharing between Mackenzie and ChinaAMC, and it strengthens global distribution for both Mackenzie and ChinaAMC. Looking forward, we set ambitious goals for our expansion, backed by several growth catalysts. Our grand goal is to maintain the top 2 market position in long-term mutual funds. The grand goal is underpinned by clear catalysts. We will maintain our largest share in China's booming ETF market and the largest player in the nascent private pension market. We will maintain industry-leading position in REITs and other alternative assets. We will strengthen leading edge of international business among China's mutual fund companies. We have already established our leading position in China's ETF and the pension market, laying a solid foundation for us to grasp abundant opportunities ahead. As shown in the chart, China's equity ETF market has been enormously growth in the past 3 years with the size of more than doubled from almost RMB 700 billion 3 years ago to RMB 1.68 trillion by the end of last quarter. ChinaAMC has been China's largest equity ETF manager for consecutive 18 years. Our AUM has grown at a CAGR of 32% in the past 3 years, far outpacing that of China's mutual fund growth. The market share has been stable at about 22%. But due to the fast expansion of the total market, our ETF size has grown from RMB 164 billion 3 years ago to nearly RMB 380 billion by Q3. Another catalyst is China's private pension market with a Chinese equivalent of U.S. IRA. The market has just kicked off last year with a pilot scheme in 36 Chinese cities. In less than 1 year, more than 40 million private pension accounts have been opened until mid-2023. But I'd say that we are still at a very early stage. Looking forward, the third pillar is set to grow substantially to supplement the widening shortfall of China's first pillar. Compared with major economies, China's pension assets to GDP ratio is substantially lower, suggesting huge growth potential. We have already built a first-mover advantage in this market. ChinaAMC now leads peers in asset, number of products and number of holders, which lays a solid foundation for us to grasp the future growth. Despite exponential growth in the past years, we think there remains enormous opportunities both for industry and for our company. With a household saving rate of 46% in China, Chinese saves much more than people in Canada or U.S. do. China's investment fund assets accounts for only 21% of GDP, while the number in the U.S. is 112% and 99% in Canada. This implies that the mutual fund market in China has huge potential to sustain high growth. Based on multiple consultants forecast, China's asset management market will continue to grow at mid-double digit per annum. The high growth rate is primarily driven by 3 factors: one, the growing household wealth and the strategic shift of household wealth from real assets to financial assets; second, the aging population underpins the urgency for pension system reform, offering potentially huge growth for private pension and annuities asset management; and third, innovation in products and service, including REITs, ETF and third-party investment advisers. I am confident that ChinaAMC is well positioned to grab the historical opportunities based on the 6 unique competitive advantages we have built along the way. They are our investment in the -- product, investment, advisory services, talent, technology and ecosystem. To sum up, ChinaAMC has always been a trailblazer in China's asset management industry with the ability to create, redefine and manage assets and outpace peers. With an all-around, cross-asset platform and significant presence in innovative products and solutions, we are confident to capture additional share in a rapidly growing market. Third, we present clear strategic benefits to Mackenzie through participation in rapidly growing Chinese asset management industry, collaboration and expanded distribution reach. Today, we are very proud to present ChinaAMC to you, and I really hope that I can host you in the future in Beijing and welcome to ChinaAMC. Thank you, and have a great day.

Thank you, Yimei, for that window into ChinaAMC and the Chinese asset management industry overall. Next up, we have Stuart Waugh, Managing Partner, Northleaf Capital Partners. Stuart?

Great. Thank you very much, Kyle. As Kyle mentioned, I'm Stuart Waugh. I'm the Managing Partner and one of the co-Founders of Northleaf. I joined the firm in 2002 and have had the privilege of leading and being part of building the business now for more than 20 years. And I'm really glad to be here. They don't often let us private markets guys loose in rooms full of equity analysts and public equity investors. So thanks very much for enabling me to be here. And a big thank you to my partners at IGM for the opportunity to be here and share a little bit about the Northleaf story and importantly, how we're positioned in building a global private markets business as part of the IGM asset management platform. So James and Luke have both talked a lot about growth and the importance of growth to the IGM story. If I can impress one thing on you today is just how well positioned Northleaf is as a growth catalyst for IGM's private markets business. The partnership was formed in 2020. IGM and Great-West Life put a joint venture together that purchased a 70% stake, as you know, in Northleaf. And the remaining 30% is owned by the founders and the senior management team. And I want to give real credit to the IGM leadership team and, importantly, to Jeff Orr at Power Corp for the vision of the potential of embedding a private markets institutional business inside of IGM and the broader Power Corp ecosystem. Now for Northleaf, there was a very clear, what I call, industrial logic. We were pursuing an independent strategy of building out our institutional business beyond our Canadian base globally, and IGM and Great-West Life have given us additional resources and scale to be able to do that. From an IGM perspective, and this is what I really want to focus on in my remarks this morning, there were really 3 elements of the growth thesis for IGM as they evaluated Northleaf as a partner. First, in Northleaf, they found an established private markets player really sitting at the center of where global capital flows are going. Second, in Northleaf, they found a 20-year track record and a set of institutional capabilities that are well positioned for IGM to leverage as they think about how do they infuse private markets capabilities into the business that Damon is building through managed solutions into the broader distribution that Luke talked about in terms of retail products. And third, they found in Northleaf a business model that has scale and potential to serve as the foundation for the global private market strategy at IGM. We're 3 years in, and it's been a terrific partnership so far. We benefited from a very aligned strategic vision for the business. We benefited from a very compelling growth opportunity that we'll get into. And I think importantly, and Damon touched on this point earlier around culture and values, there's been a very good cultural alignment between our businesses and between our teams. And I think in part, that goes back to a common position as being firms with strong Canadian roots that are building global investment management businesses. So if I take you through the first thesis, you can see in the firm snapshot that in Northleaf, IGM found a business that was sitting at the center of where global capital flows are going. Across our private equity, private credit and infrastructure business, we have a sustainable competitive advantage as a mid-market player. You'll be familiar with the growth that the private markets has experienced over the last decade or so. Much of that growth has coalesced into a relatively small number of very large pools, and Northleaf has deliberately built a business that is a differentiated complement to what you can get from the large-cap market. We're 250 employees today across 9 global offices. We're proud to serve more than 250 institutional and family office investors who entrusted us with more than $30 billion of capital to date. You can see the growth over the past 20 years. We've been fortunate to have very strong, long-term support from a core group of institutional investors. That base began in Canada. The Canada Pension Plan Investment Board has been our largest investor since 2006. They've not only been a terrific partner for us, but they're a very valuable reference client as we continue to build opportunities and partnerships outside of Canada. You can see that we have maintained our growth momentum despite the broader market volatility and some of the headwinds over the last several years. 2023 has been a tough year for private markets fundraising generally. It's going to be the second best year on record for Northleaf with over $4 billion of additional capital across private equity, private credit and infrastructure. As I mentioned, the client base began really with Canadian orientation. Today, we're proud to serve investors in the U.S., Europe, the Middle East, Asia and Australia. And that will be a continued emphasis as we take that mid-market philosophy and that mid-market approach to investors outside of our traditional base. Sorry, can we go back one? That brings me really then to the second element of the IGM growth thesis, which is that in Northleaf, they found an institutional track record that dates back more than 20 years and a very strong set of core capabilities that they can leverage in building a private market strategy for their clients. So if we take each of these in turn, on the private equity side, we invest in a global portfolio of mid-market companies, and we access those companies through a combination of secondary market investments, third-party fund investments and direct co-investments. In credit, we're a direct lender predominantly to private equity-backed businesses. And Luke alluded to this earlier, we've also got an active specialty finance capability. So think of us as a lender to diversified pools of financial assets. So music royalties, health care receivables and litigation finance. All of that on a floating rate basis, so as you can appreciate, that's been a particular benefit to our investors in the current rate cycle. On the infrastructure side, there we're an equity investor, typically a control investor, in mid-market assets and projects that provide essential services to the functioning of a modern economy. Across each of those asset classes, we're at scale, and we're performing at or above the long-term return targets that we've established with investors. So again, from the IGM perspective, a very good building block. Across each of these asset classes, as you can appreciate, we've got specific investment objectives, specific portfolio construction guidelines that are tailored to what investors are looking for from each of private equity, private credit and infrastructure. But there's some common themes across the portfolio, the through line, as I mentioned, that focus on mid-market exposure. But in addition, a disciplined underwriting approach; a real emphasis around margin of safety; a prudent use of leverage both at the asset and at the fund level; and importantly, a real focus on sustainable cash flows, visibility on recurring revenues, contracted revenue frameworks. And as a consequence, we built a diversified portfolio that has stood our investors in very good stead, both through the exogenous shocks of COVID, but even more recently, through heightened inflationary and rate environment. And we deliver, and this is another important element, we deliver access to those private markets asset classes through innovative structures and funds that not only serve elements of our institutional client base but also make them terrific building blocks for IGM and for Canada Life as they think about ways to, as I say, infuse the private markets capability and track record into their products and into their client solutions. So if you take an example, this is our private equity evergreen fund. We launched that earlier this year, really designed to meet some of the objectives of our smaller institution and family office investors. It follows the same global strategy I outlined but does that in an evergreen structure that has lower minimums. It's got enhanced liquidity features, ease of access and administration and delivers a number of, what I'll call, user-friendly aspects that you just can't replicate in a traditional drawdown institutional fund. We do something similar in both private credit and infrastructure, and they're proving to be exceptionally valuable building blocks when you think about retail solutions and high net worth solutions as well. And that brings me really to the third element of the IGM growth thesis and investment thesis for Northleaf is that it's a scalable business model that can serve as the foundation for a long-term private market strategy. For Northleaf over the past 3 years, that's been significant resources to invest in our team and our capabilities. So we've added 75 people to our global team since the partnership was announced. We've opened new offices in L.A. and in Tokyo. We've got plans for another office in Seoul in 2024 as our institutional presence in North Asia continues to grow and flourish. And from an IGM perspective, we've been a very collaborative partner in working with them on the product development side. Luke alluded to this earlier. Damon alluded to the role that private markets are now playing inside of the IG Wealth Management solutions. You've heard from others about the potential distribution opportunities for us across other parts of the Power ecosystem. And we've also got active conversations going with other distribution partners in both Canada and globally, again, leveraging the collaboration and the best practice/knowledge sharing that we've had from having a partner in retail, a partner in the high net worth segment and a partner on the insurance side. And so there's some really interesting things to come as we think about not only growing our core institutional business but also being a partner of choice for IGM as it thinks about its private markets business. What does that mean in terms of overall growth? So I mentioned that we've invested heavily over the past 3 years on the Northleaf side. That's created scale and some operating leverage that will continue to drive additional earnings as the business scales, and we've been scaling it effectively. You can see, over the past 3 years, we've grown our assets under management of more than 20% annually. And important to note, in private markets, there's no capital appreciation and no market appreciation in these numbers. So this is based on net new commitments on net flows, if you will, with no market appreciation baked in. When I look ahead, the broader private markets business is projected to grow at somewhere between 8% and 9% over the next decade or so. We're going to do better than that. We've set a long-term target of at least 10% annual growth in assets under management, and we think there's significant potential to outperform that as we continue to lean into both high net worth retail and insurance where every indication is that those capital allocators see real value in increasing significantly their private markets allocation over the coming years. And that really brings me back to where I began, which is Northleaf as a platform, extremely well positioned as a growth catalyst within IGM and extremely well positioned to play a foundational role in IGM's longer private market strategy. So back to where I began again with a big thank you. It's been a terrific partnership. We're excited about the prospects ahead, and I'm looking forward to hopefully being invited back to keep you apprised of how we continue to execute on the growth strategy that we have ahead. Thanks very much.

Thank you, Kyle, and good morning, everyone. It's nice to see you in person versus our Teams and Zoom calls. So it's a pleasure to see you all today. I have 4 main messages. First, we've executed well on our 2017 strategy, and we're well positioned to grow earnings as markets stabilize and resume growth. During this time, we've also invested in high-quality wealth and asset management firms that tilt the company toward accelerated and diversified earnings growth. And from a capital allocation perspective, as James mentioned, the focus is investing in our core businesses at IG Wealth and Mackenzie, continuing to return capital to shareholders and investment companies we already have versus actively seeking new ones. And finally, we've laid out midterm financial targets, and we're confident in our ability to achieve a compound annual growth rate of 9% plus over a 5-year market cycle. We've taken meaningful steps to position the company for future earnings growth over the past 5 years. From an execution perspective, we've reengineered our businesses through outsourcing and partnerships, and we've taken tactical and strategic actions to manage expense growth. And at the same time, we've invested in our core businesses at both IG and Mackenzie, strengthening our value propositions and driving organic flows. As Damon and Luke both mentioned, we have a leading financial planning platform at IG, and Mackenzie has led with innovation, investment excellence and strong relationships with advisers. We've also executed on $4.8 billion in M&A transactions since 2017, and we now have ownership positions in 4 leading wealth and asset management firms. In asset management, we have a 27.8% stake in ChinaAMC. We have a 56% economic interest in Northleaf. And in wealth management, we have a 20.5% stake in Rockefeller Capital. And we remain the largest shareholder in Wealthsimple with an approximate 24% interest. At the last Investor Day in 2017, we committed to lowering expense growth that was running between 6% and 9% between 2015 and 2017 to 3% by 2020. We achieved that goal one year early and over the past 5 years have managed expense growth, averaging 2% per year. And we invested in our core value proposition, strengthening our businesses and achieved average net sales of $3 billion per year. As we strengthen the core business, we've also positioned it for higher growth. And you can see on the far right, a look-through of our proportionate share of AUM&A and our strategic investments is $147 billion at Q3 of 2023, and that's grown from $24 billion in 2017. As these companies gain scale, we see this AUM translating into earnings growth and value creation as we look over the next 3 to 5 years. We believe we're in a strong position to sustain earnings growth as markets stabilize and resume historical growth trends. Execution on our core business, positive market returns and contributions from our strategic investments led to a step change in earnings in 2021. Over the past 24 months, we've also demonstrated a step change relative to prior periods despite significant market volatility. In addition to solid earnings over the past 3 years, we've also returned capital to shareholders in the form of a dividend of $537 million, share repurchases and believe with a current dividend yield of 6.5%, it's very attractive given the future prospects of our business. IG and Mackenzie are core to earnings, while our strategic investments have increased their overall contribution. In 2017, 20% of our earnings came from strategic investments in IPC. That was primarily from our 4% investment in Great-West Lifeco. Strategic investments in IPC now represent 24% of earnings. And you can see, ChinaAMC and Northleaf now contribute -- are significant contributors to this, and we both -- expect both to continue to grow -- got a little frog in my throat here -- and we expect both to grow and be significant contributors as well as Rockefeller, we expect to be a significant contributor in the future. And just as a reminder, Wealthsimple is fair value through OCI and not a contributor to earnings. But it does create value, and it is an important source of value and currently is fair valued at $500 million. These strategic investments, they complement our core businesses. They diversify our earnings, and they set us up for accelerated earnings growth and value creation. We've been very deliberate to maintain a strong credit profile as we've repositioned the company for growth. We have significant tangible assets in the form of cash. We still have a 2.4% interest in Great-West Lifeco valued at over $900 million as well as we have our broader strategic investment portfolio. Earlier this year with the acquisition of Rockefeller, we communicated that we valued our A category rating and committed to maintain our debt-to-EBITDA ratio at no more than 2x and we stay committed to this. We also have financial flexibility with a conservative debt maturity profile with over half of our debt maturing in over 20 years. And we enjoy a strategic relationship with being part of Power, that has advantages to it. And for example, with our recent incremental acquisition of ChinaAMC with 13.9%, we funded that partially through the sale of part of our Great-West Life stake selling it to Power. That enabled us to simplify our organizational structure by consolidating the position under IGM, and it also enabled us to finance that transaction very conservatively and maintain our credit profile. As we look forward, our capital allocation priorities are focused first and foremost on investing in our core businesses for their long-term success. Second, we'll continue to return capital to shareholders in the form of a meaningful dividend as well as share repurchases that first focus on offsetting the dilutive impact of stock options. And finally, for M&A, as we commented, our focus is, first and foremost, on investing and the potential investment in companies we already have versus actively seeking new ones and do expect that there may be decisions to be made on these investments over the mid to long term. One of the areas we have invested in, in our core business, and Damon spoke to this, is the IG segment of channel and more specifically, the employee channel. We currently have $5 billion of AUM&A in these channels today. About half is in the National Service Center, and we've spoken to that in the past. And the other half is in the employee-dedicated channel, which we've really started to ramp up in the second half of this year. We expect these channels to grow to about 15% of our AUM&A or about $20 billion over the next 3 years. As I commented earlier, the most significant benefit is productivity to enable our entrepreneurial advisers to free up capacity to focus on mass affluent and high net worth. And for the employee-based channel, they're also able to service a different part of our clientele that are important in a different way. We also expect a moderately lower compensation expense over time as the channel scales up. From a capital investment perspective, we see upfront cost of transitioning these clients from the entrepreneurial channel to the employee channel. And you can think about that being on an ongoing basis that the benefit of that is going to be a lower servicing cost. So we do think IGM [ will be allocated ] approximately $80 million to $100 million to this in the course of 2024. As we look forward, the health of our industry, we have a positive outlook over the mid to long term. We certainly acknowledge that there are headwinds with higher interest rates as well as market volatility. But we do believe [ over the midterm ], Canadians are going to save for retirement and discretionary wealth assets. And [ investors ] economics forecast a contribution rate of approximately 2%, and we think that's a very reasonable expectation to have over the mid- to long term. IGM is well positioned to participate in industry growth across demographic groups when you look at IG, Mackenzie and Wealthsimple. Damon's strategy is clearly focused on the key wealth drivers he spoke to: retirement readiness, tax planning, estate planning, small business monetization, all targeted to gaining share in the mass affluent and high net worth. Mackenzie, one of the key imperatives is to win in retail, focus on innovation, focus on building out relationships with industry advisers and investment excellence. And finally, Wealthsimple, has a dominant position within the millennial segment, and it was a technology-first and innovative strategy to drive future growth. Based on our view of the industry and our prospects for our core business, we are confident in our ability to achieve a compound annual growth rate over the next 5 years of 7% in earnings, at least 7% in earnings. Now this is driven by growth in AUM (sic) [ AUM&A ] as a key -- of 8%, both from market returns of 5%, which is based on our company's asset mix; and a net flows rate of approximately 3%. That would be 2% expectation for industry and 1% market share gain. However, we do expect that over the course of the next -- as we head into 2024, it will be a challenging environment for net flows, as we've seen in the recent period. We are currently guiding to expense growth of approximately 3% for 2024, which will be -- we'll finalize that in February. And beyond 2024, we expect to manage expenses prudently. Our targets also contemplate moderate fee changes over time, both from mix shift in clientele and potentially from change in product mix as well as the potential for competitive dynamics to change. At IG Wealth, we've had been focused with the clientele, high net worth and mass affluent. And we have seen a shift and moderate reduction in our fee rates as we've had success in that channel over the past 3 years, and we continue to expect that over the coming period. In terms of fee rates with wealth or asset management and product fees at IG, we would expect that -- and as we looked at the industry over the past 3 years, they've been very stable. Since 2018, fee rates have been quite stable. But as we look forward, we still are confident in achieving a 7% earnings growth in the event that we do see fee pressure in the future. And finally, for IG, we have an opportunity to grow and diversify earnings in the mortgage insurance business. I can see doubling our revenue over the course of the next 5 years. We also expect to further diversify and accelerate earnings growth from our strategic investments. You heard from each of the CEOs today. We believe that each of these firms are top-quality firms. They both have advantages -- they all have advantages in the markets they participate in, and they have their unique measurements in how they're going to manage progress. But overall, we'd say collectively, this group, we expect to contribute a 5-year earnings compound annual growth rate of 15% plus. An important point to remember is that growth contributions from companies like Rockefeller and Northleaf have been quite moderate to date. And also, Wealthsimple is fair value through OCI. So when you look at IGM, we believe the best way to surface value is to look at some of the parts or give consideration for an earnings multiple that considers these investments. Combined, we're confident that IGM can achieve earnings growth of 9% plus over a 5-year period. And earnings are a very important measure of success, but also reminding that some of the parts is critically important. We believe the prospects for our core business combined with -- next slide, please. We believe the prospects of our core business, combined with high growth in our strategic investments, sets us up for diversified earnings growth into the future. Our capital allocation strategy is focused on building value for IGM Financial and strengthening our core businesses, and we're confident in achieving our financial targets over the next 5 years. Thank you.

So during this session, we're going to have the opportunity to ask questions across both the asset management businesses you've heard from now in the second half of this morning as well as IGM Financial overall. So that means while we're not going to have everybody back up on stage, if there are questions that you want to throw to presenters from this morning that aren't on the stage, we can still do that and James will help [ do that while ] the mic runner bring it to them. They're still in the room on the side. So -- and Yimei will be rejoining us from Beijing for this Q&A. Fantastic. And I'll invite Luke, Stuart, Damon, Rhonda, Keith and James to the stage for a final Q&A.

All right. Let's open it up. Please, Geoff, go ahead.

Yes. Geoff Kwan, RBC. My first question was for Stuart. On the CAGR, the 10% growth over the -- I think it was the 5 years, can you kind of talk about how to think about dissecting it between how you expect that to be capital from Power Group of companies and their clients versus your other investors? And then would there be any sort of new product introductions or new platforms that you look to launch over that time period?

Yes. Great. Thank you. So over the past 3 years or so, if I think about the capital that we've raised from the insurance balance sheet from the managed solutions at IG and then what we've done in partnership with Mackenzie, that would represent somewhere between 15% and maybe 18% of the capital that we've raised since the start of the partnership. And I think that's a very good sort of long-term measure of the type of natural sort of interest there is in what we're doing across those different segments. I think there's opportunities to continue to grow, as we've heard even this morning with different distribution channels, but somewhere in around that range. And important to know, they invest on the same terms and conditions as all of our other investors. So they're certainly not crowding out anything of what we're doing in the broader segment.

Okay. And then just my other question was for Keith. The 9% EPS growth, you've got that disaggregated between the core and the noncore. Just trying to think about it from the dividend growth, I haven't had a chance to run the math on that, but the noncore, I think, typically isn't the type of cash flow that you can use to pay the dividend. In terms of when to think about when the dividend could be increased, is that kind of a couple of years out if the numbers that you project do come to fruition?

Yes. So the earnings growth at 9%, you can think some of that is cash, noncash. So you can think about maybe the cash closer to 8% versus the 9%. So pretty close. And in terms of the dividend, we've talked in the past when we hit a cash earnings of approximately 60% that we would take a look at the dividend and balance that with -- and make decisions on what our capital allocation priorities are at that time.

So while we're waiting for the next question, I want to point out, one of the things I'm proudest of with our Asset Management business has been our ability, I think, quite regularly to work with regulators and figure out ways to deliver new and innovative product to retail channels and, more than that, work with regulators to figure out ways to get more and more advisers regardless of how they're registered to be able to deliver innovative product to Canadians. And I thought, Rhonda, you might want to take a few minutes and just talk about some of the things that you and team have, working with the business of being able to accomplish over the past few years.

Sure. You already heard, I think, from Luke and from Stuart, we really do focus on where we can be innovative in the market. And I know that Canadian regulators certainly look to Mackenzie, look to us and our partners in that innovation. So we saw that in the first interval fund in Canada. I won't leave Mike out because we certainly work with Mike and Wealthsimple as well to bring innovative product to the market. And importantly, I think on the wealth side, we've taken the opportunity on Damon, other senior leaders. We've crossed the country to meet with securities regulators to really share with them the IG Wealth Management model, and this allows for the opportunity for us then to come to them when we want to talk about the type of product, including alternatives that we want to bring forward across our entire adviser base. So really focused on the client and Canadian investors having that equal opportunity and not be siloed within whatever proficiency band the advisers may have. So a lot that's been achieved, but I think more to come.

Excellent. Graham?

Maybe just with the EPS growth, just what are the assumption of the implications there for expense growth? I know you gave us some 3% for 2024. But what about for the next 5 years, is there some implied expense growth in that forecast?

Yes. I'd just say our expense growth beyond 2024, we take a prudent measure. I mean as we have in the past 5 years, depending on the market environment we're in, we're -- there might be moments in time that it's worth leaning in on and spending more and other times that we'll pull back. So not guiding specifically past 2024, but we do expect to manage it prudently based on the opportunities we have in front of us and the market conditions at the time.

And maybe if I could just jump in on Northleaf. Just how much of your AUM today would maybe be associated with that retail or high-net-worth customer base? And I assume that that's something that you want to see increase over time. Is there a target that you have for maybe 5 years out?

Yes. So we set out for -- overall, if you think wealth, asset and retail, we think over the next 5 years we could take it from where it is today, which would be sub-5% to close to 25% of our total AUM leaning in on both, what I'll call, wealth and insurance would be 2 of the 3 core growth vectors for our business, in addition to continuing to scale our institutional business. So small part today but significant opportunity ahead.

And is insurance part of that 25%?

Yes.

James, just an observation. If you look with Power Corporation sort of simplifying its structure by getting rid of -- collapsing Power Fin, so that story became a little bit more simplified. But your story becomes more of branching out with strategic investments, and that's becoming a bigger portion of IGM now. So it -- just observations on that. I mean there's sort of a bit of an NAV or a sum of the parts valuation that you're proposing for IGM. And then you look historically, it was like a pure-play Canadian asset management mutual fund type company. So I don't -- made just comment on that observation to some extent. And then maybe what do you see as simplifying IGM going forward? There's some movement with respect to that, but -- and how you might deal with some of the assets you still share with Power Corporation.

Sure. Well, thank you, Tom. I see it differently. So let me share my perspective. I think we're simplifying IGM, and part of what we wanted to communicate with that second slide this morning is that IGM Financial is a wealth management company and an asset management company. And then we've got 3 businesses in Wealth Management, and we've got 3 businesses in Asset Management. And indeed, as we look forward to February, Tom, you can expect us to very likely modify our disclosures and report IGM under those 2 principal divisions. There will be another as there always must be for what remains. But we believe we're simplifying our story by really coalescing this around wealth management and around asset management. And my observation, Tom, would be this. I think the creation of that third formal division a few years ago, Strategic Investments, it served IGM well because it allowed us to create a divisional structure and really shine a light on the Strategic Investments. And I think that was very valuable because that combined with the incremental disclosures allowed people like yourself and others to do a sum-of-the-parts valuation. And that, I think, was very helpful. But as we sit here today, in truth, I don't see these 4 companies as investments. I don't. I see them as strategic. I see them as long term. I see them as partners, and I view them very much as part of who we are. And so as we look forward to February when we release Q4, our current thinking is that we will change the divisional lineup, simplify the story of IGM and really build it around those 2 divisions. Question for Yimei?

Can you hear me?

We can hear you, Yimei. We're just waiting for the question.

Graham Ryding, TD. Maybe you can talk about just the connectivity between ChinaAMC and the rest of IG Wealth and where we can expect to see some complementary, some synergies working together to sort of either access IGM's distribution or IGM's investment management capabilities.

Yes. Thank you very much for the question. And I just -- actually, I visited Canada during this summer. And it has been wonderful to be back to Canada. And I definitely think there has been so many synergies that we can seek between -- for ChinaAMC and the whole IGM family. Especially, you probably know that we have already launched 3 products with Mackenzie to offer our investment management expertise for China specialty and in Canadian market. At the same time, there has been a lot of, I think, interactions, innovation in IT, AI and strategy building, et cetera. So there has been a lot of going on between ChinaAMC and Mackenzie. And on top of that, we have a lot of respect. And also, we learn so much from the Wealth Management part of IG. And this is something in China right now, we are, I think, just at very early stage and beginning of the whole wealth management concept and the industry. And we are looking forward to cooperate closely with IG actually to learn from financial planning and to bring financial planning to China, which I think is going to change the wealth management industry in China, and we are very excited about that. And lastly, but not least, I think alternatives, there are lots of opportunities we can bring to Chinese investors from Northleaf. So we are very excited about years down the road that we can seek synergies between ChinaAMC and the whole IGM family.

Luke, you were recently in China. Anything to add?

That was a great summary from Yimei. It was great to be back, and obviously, Mackenzie is a sub-adviser to ChinaAMC Hong Kong, and we love the collaboration between the firms, and it was very good to be back.

James, just in terms of the consolidation of the Strategic Investments into one division, are there any kind of puts or calls in any of those businesses that are out? Or are they basically evergreen? Just if you can -- if there's anything, in particular, a revaluation exercise for any of these -- a formal revaluation exercise between all the parties that could alter the capital structures.

I guess the one I would point out to would be Northleaf. There are arrangements in place beginning at the end of 2025. That might very well result in us increasing our ownership. Stuart and I are discussing those currently. I can tell you that we're going to be guided by -- the principal thing we're going to be guided by is what's right for the business, what's right for Northleaf. The founders and senior management have a strong desire to continue to be long-term owners in that business. And we're just delighted to hear that, and we're going to figure out a way to make sure that, that happens because a strong Northleaf is going to build a stronger IGM. So that would be one where there's formal -- there are sort of contracts in place that will kind of impact the future. Beyond that, I think we'll have to see. We've said in respect of Rockefeller that in the fullness of time, we would expect more to become available for sale. If it does, I fully expect us on the right terms to express interest because we have such high regard for that iconic brand, the business that's driving amazing organic growth as well as the quality of the executive team that Greg has put together. And for Wealthsimple, I'd say, we're just going to have to see. I mean they did a large fundraising, I suppose, early in '21. There's a lot of new shareholders in that shareholder base, and we'll see how the future unfolds. But we're extremely supportive of Mike Katchen and team. They are doing really quite a remarkable job, and we're very proud of them. The one where I would not expect kind of further changes, if you will, in terms of ownership, even over time is probably ChinaAMC because really, we don't expect any further shares to be available for sale to us. And on top of that, when we did that transaction with Power Corp, I think we communicated clearly that we believe we have rightsized it at about 10% to 15% of our earnings. And from a risk management perspective, a diversification perspective, that just felt about right to us. So I think I would not be expecting any changes over the medium term in ChinaAMC. But I think for Rockefeller, Wealthsimple and Northleaf, we'll see. But I want to underscore whatever we do, it's going to have to be in the interest of those underlying businesses because that's how we think about them.

Just a second quick one. You've got obviously incredible exposure to big wealth markets in the world, North America, the United States and China, which is -- growth looks amazing. But just Europe, is there any other markets that you feel like you need to participate in? Or do you think the -- what you've got right now is sufficient?

Not with another brand. And I can tell you, and I'll let Greg speak to it. Greg is as busy as a wealth executive can be with enormous opportunity in front of them in the United States. But I've said and I very much believe even taking a half step back, that, that is not just an iconic brand but a brand which, in the fullness of time, can and will travel well, if that is the wish of Greg Fleming and team. Greg?

Thanks, James, and thanks for the question. As James said, the opportunity in front of us in the U.S. remains significant, and we're going to stay primarily focused on that. We're approximately halfway through with the inorganic side, and we think we can continue to generate material organic growth around that. Having said that, the name is a remarkable name everywhere in the world, and it may resonate, on a global basis, more than any single name. So over time, we will look to take advantage of that. But it would be in partnership. Our organization doesn't have on-the-ground presence really anywhere else. We have a small office in London, which is focused on distribution into the continent of our asset management products. But away from that, we don't have any presence internationally. And we're not going to go build the kind of presence that larger organizations like my predecessor firms have. So we would be looking to do it in partnership to take advantage of the name and the fact that wealth creation is taking place on a significant basis all over the world. If you look at the Middle East today, if you look at Singapore and Asia, there are tremendous pockets of enormous wealth growth, and we think the name would play well there. But that's going to be more over time. In the near term, we're going to stay focused on the opportunity in the biggest, deepest and broadest wealth market in the world, the United States.

Any other questions? There's a bit of a glare, so others might see them. Okay. I think that's wonderful. So to the panel, thank you very much. And we will -- I will say a few words to wrap. But thank you. And thank you, Yimei. So we started a bit late. But we're finishing just about right on time, which is wonderful. Our goal today, folks, was pretty straightforward, 3 simple messages. One is we believe and believe strongly that we have reshaped, rebuilt IGM Financial to deliver good earnings growth going forward. That earnings growth will come not just from our core business as IG Wealth and Mackenzie, but it will come and likely come in size from the 4 strategic investments. So reshaping IGM Financial for growth is the first of our 3 simple messages. The second message is around the team. It's been a pleasure for me to work with this team over the past 3 years. I'm deeply proud of the team and deeply proud, frankly, of the quality of the leadership we have in these partner companies. It is a deep bench. It's a proven bench, and I want you to know it's a team that's working very hard each and every day for you as our shareholders. Finally, I hope we've conveyed that we're executing well. And I think that's true right across, again, the core businesses. It's wonderful to see IG achieve the progress that it's achieved in the investment executive report. It's wonderful to see Mackenzie consistently occupying a top 3 position in the adviser perception survey. And then the futures of these 4 strategic investments, I think, are very, very plain to see and exciting. So we are -- we believe all 3 make for a strong investment case. A business reshaped for growth, deep and proven bench of talent and a leadership team that is executing in difficult times is executing very, very well. So with that, I'm going to pass it over to Kyle because we have a lunch waiting for you. And before I get off the stage, I just want to say thank you to each and every one of you.