IGM Financial Signals Confidence with Expanded Share Buyback Plan

WINNIPEG, MB – December 17, 2025 – IGM Financial Inc. (TSX: IGM) today confirmed it has received regulatory approval to significantly expand its share repurchase program, a move that signals strong confidence from management in the company's financial health and market valuation. The wealth and asset management giant will renew its Normal Course Issuer Bid (NCIB), authorizing the buyback of up to 11,784,802 common shares, representing approximately 5% of its total shares outstanding.

This new authorization, which commences December 23, 2025, marks a substantial increase from the previous year's plan, which permitted the repurchase of up to 6 million shares. The decision to nearly double the program's size is a powerful statement in a competitive financial landscape, suggesting the board believes its own stock is a compelling investment and a primary vehicle for returning capital to shareholders.

A Strong Signal in a Shifting Market

Share buyback programs are a standard tool in a public company's financial playbook, used to reduce the number of shares on the market, which can in turn boost key metrics like earnings per share (EPS). However, the scale and timing of IGM Financial's announcement carry particular weight. By committing to a larger buyback, the company is effectively telling the market it believes its shares are undervalued and that repurchasing them is a superior use of capital.

This action follows a period of diligent execution. Under its prior NCIB, which concludes on December 22, 2025, the company had already repurchased nearly 5.3 million shares at an average price of $48.44. The near-complete utilization of the previous authorization demonstrates a consistent commitment to the strategy. The new, larger program suggests an even more aggressive stance on capital return.

Market analysts, who have largely maintained a 'Hold' consensus on the stock, may view this expanded buyback as a catalyst. While many see the company's stock as fairly valued after a period of solid performance, this decisive capital allocation move could be interpreted as management’s belief in untapped growth and future cash flow generation. The market registered a muted but positive response to the news, with IGM's shares trading up slightly to $62.58 on the Toronto Stock Exchange.

The Capital Allocation Tightrope

The renewed NCIB serves a dual purpose, as outlined by the company: mitigating the dilutive effect of employee stock options and executing broader capital management. This reflects the delicate balancing act modern corporations must perform. To attract and retain top talent in the competitive financial services industry, companies rely on equity-based compensation. However, issuing new shares to employees can dilute the ownership stake of existing investors.

A robust buyback program directly counteracts this dilution. By removing shares from the open market, IGM can offset the new shares created through its compensation plans, protecting shareholder value while still offering attractive incentives to its employees.

This buyback does not exist in a vacuum. It is one pillar of a sophisticated and multi-faceted capital allocation strategy. IGM Financial has a track record of rewarding shareholders through consistent dividends, maintaining a healthy payout ratio. Simultaneously, the company has been actively deploying capital into strategic investments designed to fuel long-term growth and diversification. These include significant stakes in U.S. advisory firm Rockefeller Capital Management, Canadian fintech leader Wealthsimple, and global private markets investor Northleaf Capital. This three-pronged approach—dividends for income, buybacks for per-share value, and strategic investments for growth—presents a comprehensive strategy aimed at creating value across multiple fronts.

A Strategic Play in a Competitive Landscape

IGM Financial's move is also reflective of broader trends within the Canadian wealth and asset management sector. In a mature industry characterized by strong cash flows, leading firms are increasingly turning to share repurchases as a primary method for returning excess capital to shareholders, especially when large-scale M&A or internal reinvestment opportunities are not immediately apparent.

Competitors like CI Financial have also employed aggressive buyback strategies, sometimes seeking to repurchase up to 10% of their public float. This industry-wide practice underscores a collective belief among management teams that their companies' public market valuations may not fully reflect their intrinsic worth or long-term earnings potential. By investing in their own equity, these firms are making a definitive statement about their prospects.

For IGM, with approximately $311 billion in assets under management and advisement, the expanded NCIB reinforces its position as a disciplined and shareholder-focused institution. The program provides the flexibility to act opportunistically, repurchasing shares when market conditions are favorable, thereby maximizing the value of every dollar spent.

Mechanics of the Mandate

The program will be executed over the next year, concluding on December 22, 2026, or earlier if the repurchase limit is reached. Purchases will be made on the open market through the TSX and alternative Canadian trading systems at prevailing market prices. All shares acquired under the NCIB will be cancelled.

To ensure orderly trading, daily repurchases on the TSX are capped at 68,536 shares, which is 25% of the stock's average daily trading volume over the last six months. However, the rules permit larger 'block purchases' from a single seller under specific conditions, giving the company additional flexibility.

Furthermore, the renewal includes an Automatic Securities Purchase Plan (ASPP). This mechanism allows the buyback program to continue operating during the company's internal trading blackout periods, ensuring a consistent and steady pace of repurchases according to pre-established parameters. This structured approach highlights a long-term commitment to the program, rather than a short-term tactical maneuver. As investors and analysts watch the coming year, the execution and pace of this significantly larger buyback will be a key indicator of IGM's ongoing strategy and its outlook for the future.