President's Message

On July 1, 2022, Luke Gould took on the role of President and CEO of Mackenzie Investments, succeeding Barry McInerney who announced his retirement. We thank Barry for his contributions. Drawing upon more than 25 years of experience in executive roles across IGM, Luke is well-positioned to guide the firm into the future.

Despite significant market turbulence and an environment in which the industry experienced investment fund net outflows of $50.2 billion, Mackenzie delivered solid results, relative to other firms. Total AUM stood at $186.6 billion, compared to $210.3 billion at the end of 2021. Mackenzie saw investment fund net redemptions of $1.0 billion and total net redemptions (including institutional) of $1.9 billion in 2022.

Challenging market conditions are nothing new for Mackenzie. We are confident in our strategy and look forward to continuing to capitalize on key opportunities, such as our exciting new partnership with Primerica. Together we launched the Mackenzie FuturePath product suite: 25 exclusive funds designed to meet the needs of Primerica’s network of 7,000 advisors and 250,000 clients.

Retail and institutional investors continued to look for sustainable investment options that deliver dependable risk-adjusted returns and support positive social and environmental change. During the year, Mackenzie’s Greenchip boutique, which focuses on environmental thematic investing, continued to be among our top-performing and best‑selling capabilities.

Alternative investments, which are expected to account for approximately 50% of the global asset management pool by 2024, are an important asset class that retail investors in Canada have only recently been able to access. Through our partnership with Northleaf Capital, we are democratizing alternative investments, including private equity, private credit and infrastructure, by making these types of opportunities more available to retail investors. This included the launch of the Mackenzie Northleaf Private Credit Interval Fund (a first-of-its-kind retail offering in Canada), and the Mackenzie Northleaf Global Private Equity Fund, which further expanded retail investor access to private market investment solutions.

Strategic investments are an effective way for IGM and our businesses to enter new sectors, expand our core operations, and create rewarding investment opportunities across our various businesses. On January 12, 2023, we completed the acquisition of an additional 13.9% equity interest in ChinaAMC, increasing our holdings to 27.8%. Among other things, this further enhances our participation in the rapidly growing Chinese asset management industry, through a meaningful ownership position in one of the country’s leading asset managers.

In addition to our ownership stake in ChinaAMC, we are the largest shareholder in Wealthsimple, which grew its number of clients by 16% to almost two million (excluding Weathsimple Tax users). As part of our new agreement with nesto, we also made a minority equity investment in the company. Further, we are a key investor in Portag3 Ventures, a global venture capital investor targeting the fintech sector, which enables IGM to participate in the growth of these companies and leverage expertise and learnings in our core business.

Over the last several years, IGM has pursued a strategic digital transformation to modernize and enhance the experience we provide to employees, advisors, and clients.

We built on this foundation during the year by partnering with recognized leaders in innovation and service, including Google Cloud and Salesforce. In July, we announced a strategic agreement with CGI to deliver the next generation of mutual fund transfer agency platforms in Canada. Later in August, we announced a collaboration with Microsoft Canada, choosing the company’s Azure cloud computing platform to support our ongoing modernization of key infrastructure and practices. In October, we transitioned the IG Contact Centre to a digital platform, Salesforce Service Cloud Voice, a foundational step in our modernization story.

One of the defining workplace changes to come out of the pandemic is the shift to new ways of working. In partnership with our employees, IGM adopted a hybrid work model based on flexibility for our leaders and the needs of their teams. This has allowed our people to balance their professional and personal lives while still providing external advisors and clients with exceptional levels of support and service. Additionally, special days off and wellness programs that accommodate both virtual and in-person activities contributed to impressive employee engagement results in 2022

Working to build a just, equitable and inclusive society is a priority for IGM, our employees and advisors. We recognize that we have a role to play and are committed to doing so. Across our operations and communities, IGM continued to foster diversity, equity and inclusion (DEI) through performance targets, hiring initiatives, training and community investments.

We have set targets for increasing the number of employees from underrepresented groups across IGM within the next three years, including women executives, Black executives and Indigenous employees. To help build a more diverse and inclusive culture, we support seven Business Resource Groups – 2SLGBTQIA+, Black Advisory Council, DiverseAbility, Green, Indigenous, Pan-Asian and Women – aligning their programs and initiatives with IGM’s DEI strategy and business priorities.

As part of our ongoing reconciliation journey, in 2022 IGM provided 4 Seasons of Reconciliation training to all employees and field members. This included time to reflect and honour Canada’s National Day for Truth and Reconciliation in the workplace and in the community. We continue to partner with Prosper Canada in helping to ensure First Nations have access to services that help build their financial confidence. A common thread that runs through IGM is helping

people prepare for the future. A similar focus guides our effort to help address the global issue of climate change, which we recognize as a defining challenge of our time. In 2022, we continued implementing the Task Force on Climate-related Financial Disclosure recommendations, including enhancing reporting on investment-related carbon emissions. Additionally, we set interim climate targets at Mackenzie to engage companies in which we invest and encourage wider adoption of science-based targets. Further, IGM engages with portfolio companies across a range of sustainability-related issues, including climate. We are proudly Canadian and strive to advance the decarbonization and resilience of the Canadian economy.

Our efforts are being recognized. We were once again named by Corporate Knights as one of the Best 50 Corporate Citizens in Canada, as one of the Global 100 Most Sustainable Global Corporations, and also as a leader in climate action and disclosure by CDP. These awards reflect our sustainability focus and performance and our commitment to engage our business in serving the interests of people and our planet.

In an ever-changing world, IGM continues to be guided by our values and our purpose. Throughout the year, we worked to ensure the financial well-being of our clients, to help our employees and advisors build their careers, to support the communities where we live and work, and to use our influence and capacity to fight climate change and drive positive social impact.

Looking ahead, we will remain focused on driving growth by working to attract and support great employees, advisors and clients and continuing to build a high-performing, engaged and diverse workforce. We will also advance our modernization initiatives and continue to look for opportunities to strengthen our ability to compete with global asset managers and grow our wealth management business with HNW and ultra-HNW clients. Thoughtfully, prudently, and strategically, we will keep moving forward.

The world is adopting new ways of working and collaborating to move past the pandemic. While market and macroeconomic factors impacted results, we are pleased with the underlying performance of our businesses and are well positioned to come out even stronger as markets recover. Equally, we are delighted by the ongoing commitment and determination of our leaders, employees, and advisors to navigate these times. Heading into 2023, we are confident in our strategy, people and culture, and sure in the belief that we will continue to better the lives of Canadians and deliver lasting value for our shareholders.

On behalf of the Board of Directors,