Letter to shareholders

Our asset management segment is anchored by Mackenzie Investments and includes strategic investments in Northleaf Capital Group Ltd. (Northleaf) and China Asset Management Co. Ltd. (ChinaAMC).

At Mackenzie Investments, President and CEO Luke Gould and his team made significant investments to strengthen and diversify our core capabilities to compete against global players and fuel sustainable growth into the future. These investments accelerated our digital transformation by upgrading our back and middle office processes, tools, technology and training to drive operational excellence and an enhanced client and advisor experience.

Mackenzie’s total AUM was $213.3 billion, compared to $195.7 billion at the end of 2023. Investment fund net redemptions were $1.6 billion and total net redemptions (including institutional) were $2.0 billion.

Throughout the year, we introduced new products, improved client experience and investment quality and found new ways to showcase Mackenzie's strengths worldwide. For example, we introduced eight new Exchange Traded Funds (ETFs), including Mackenzie International Equity ETF and Mackenzie Global Equity ETF, that further broaden our diverse offering.

Additionally, our Global Quantitative Equity team had a strong year, introducing nine new retail products in 2024, including five ETFs and four mutual funds. We take great pride in not only being a leading quant investing firm for retail investors, but also a growing participant in the institutional space. The team now manages $12.9 billion in AUM, diversified across a broad clientele including institutional, sub-advisory to financial institutions and increasingly retail investors.

We remain committed to extending retail investors’ access to private asset classes and we finished the year with $325 million in AUM in our Mackenzie Northleaf products, an increase of 101.2% from 2023.

We made strong progress in our ongoing modernization strategy, transitioning the majority of our back-office transaction processing services to CGI to help accelerate our digital transformation. As a result, we have improved the quality and efficiency of our client servicing capabilities, including faster transaction times. Further, we advanced the transformation of our middle office functions through a collaboration with BNY Mellon, providing a modern and innovative solution for our investment management team.

One of the key highlights of the year was the opportunity to be lead sponsor of the world’s pre-eminent responsible investing conference, PRI in Person, held in Toronto. It was one of the most attended events in PRI history and a testament to our ongoing efforts as we unlock investment opportunities and expand relationships with institutional investors.

Mackenzie continued our track record of strong results in the 2024 Advisor Perception Study (APS) from Environics. We maintained our #2 position on brand equity and strong showing across large investment managers, with our overall score increasing to 7.6 from 7.5 in 2023. These results demonstrate the high level of confidence our clients place in us and highlight Mackenzie’s growing reputation as a preferred partner and leader in the industry — a testament to our drive to create a more invested world, together.

Our strategic investments in two leading asset managers continued to drive results for us in 2024. Northleaf Capital, a Canadian leader in the private asset management space, experienced impressive growth in 2024. Total AUM grew 20.3% to $32.0 billion from $26.6 billion at December 31, 2023, and the firm saw ongoing strength in fundraising throughout the year as alternative assets become an increasingly important and growing component of the global asset management pool.

Similarly, our interest in ChinaAMC, China’s second-largest asset manager, contributed meaningfully to our success. Assets grew substantially, driven by strong net sales and improved market share of long-term funds. ChinaAMC’s AUM was RMB¥ 2,464.5 billion ($486.2 billion) at December 31, 2024, an increase of 35.1% (CAD 42.6%) over 2023.

IGM is committed to creating positive change. We challenge convention, celebrate initiative, and embrace and cultivate unique perspectives to ensure we are doing what is right.

After more than a decade of progress in our environmental and social initiatives and a recognition of capital markets’ role in driving a sustainable future, IGM introduced a refreshed sustainability strategy in 2024. Action today, better tomorrow includes three strategic pillars: Action on Indigenous reconciliation, Action on climate and Action on economic empowerment.

IGM’s businesses are dedicated to helping build strong communities across Canada. In 2024, we launched the IGM Gives Portal, an online giving hub that makes it easier and more convenient for our employees and advisors to schedule and track volunteer activities and have their donations matched when they give to a registered Canadian charity.

Our IG Wealth Management Walk for Alzheimer’s has become one of the top eight non-profit fundraising events in Canada. In 2024 IG employees and advisors raised more than $500,000 out of a record-breaking $6.8 million in donations to this important cause. We also introduced several new community partnerships as part of IG’s Empower Your Tomorrow community platform, which helps build financial confidence among underserved groups.

At Mackenzie, we proudly celebrated the 25th anniversary of our employee-led Mackenzie Investments Charitable Foundation, which has donated approximately $16 million to more than 90 Canadian grassroots charities since 1999. Additionally, we continued to support the economic empowerment of women and families through the Mackenzie Together Grants program, which helps fund the important work being done by charitable organizations across Canada as well as through partnerships with universities and industry associations.

Inclusion continues to be an important part of how IGM supports its employees, clients and communities. Fostering a high-performing and diverse culture is a priority at IGM. We opened the first Downie Wenjack Legacy space in our Toronto office to ensure Indigenous perspectives are represented and celebrated in the workplace. And we added new Accessibility Training and updated our Accessibility Policy in support of our commitment to create an environment where people experience barrier-free access to employment, learning, services and facilities.

Our collective efforts to support our people, enrich communities across the country and improve the lives and financial well-being of Canadians brought IGM renewed recognition in 2024. We were named one of Canada’s Top 100 Employers (2025), Canada’s Greenest Employers (2024), Canada’s Best Diversity Employers (2024), and one of Manitoba’s Top Employers (2024) by Mediacorp Canada in its annual ranking of companies that provide an outstanding workplace for their employees. We were also pleased to rank second among capital markets companies on Corporate Knights’ ranking of the Best 50 Corporate Citizens in Canada and, for the sixth consecutive year, we were recognized as one of Corporate Knights’ 2025 Global 100 Most Sustainable Corporations.

Our teams worked hard in 2024 to protect and grow the financial wealth of our clients, and we would like to thank them for embracing the transformational changes we have put in place to strengthen and diversify our core businesses. These measures have improved our overall offering and will continue to support solid earnings growth in the future as we build upon our increasingly competitive global presence.

We know that 2025 will not be without its challenges. Come what may, we will continue to take the same thoughtful and prudent approach for our shareholders as we do for our clients. At our core, we believe sound professional advice and diversification are important investment tools for all Canadians. We balance varied opportunities against risks, geopolitical events and market uncertainties with the help of professional management, our deep bench of talent and thoughtful expense management.