IGM FINANCIAL INC. $47 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; SI Rating: Above average) is Canada’s largest mutual fund company, with $103.7 billion in assets under management.
It also offers retirement planning and other investment services. Power Financial controls roughly 55% of IGM’s stock.
IGM has two main subsidiaries. Investors Group sells its products through its own network of 3,600 …read more »
Holding companies tend to trade for less than the value of their various pieces (‘holding company discount’). Still, despite the apparent bargain, we only recommend the holding company over its subsidiaries when we have a high opinion of all the subsidiaries. A good example is our longtime favourite Canadian Pacific Ltd. When it broke itself up into five new companies …read more »
PENGROWTH ENERGY TRUST (Toronto symbols PGF.A $27 and PGF.B $26; Aggressive Growth Portfolio, Resources sector; SI Rating: Average) is getting rid of its dual-class system of “A” and “B” units. It put the two classes in place to comply with Canada’s foreign-ownership requirements and maintain its tax treatment as a Canadian mutual fund trust. However, new rules let Pengrowth keep …read more »
At one time, mutual funds within a particular ‘fund family’ often shared some key investment characteristic, such as a conservative or aggressive investment approach, or a stress on value as opposed to growth.
However, due to trends in the mutual-funds industry such as corporate mergers and takeovers, and more aggressive marketing, a fund’s membership in a fund family now has little …read more »
ROYAL BANK OF CANADA $47 (Toronto symbol RY; SI Rating: Above average) is the first of Canada’s five big banks to sell car and property insurance policies over the Internet; it already offers life and travel policies online.
In the past, Royal could only provide rate quotes; prospective clients had to contact Royal’s insurance operations separately to buy. The bank hopes …read more »
IUNITS DIVIDEND INDEX FUND $20.50 (Toronto symbol XDV; buy or sell through a broker) began trading in December, 2005. The fund currently holds the 30 highest yielding Canadian stocks. These stocks are included in the index based on their proportionate dividend-per-share weight. The weight of any one stock in the fund is limited to 10% of the fund’s assets. The …read more »
IGM FINANCIAL CORP. $46 (Toronto symbol IGM; SI Rating: Above average) sells mutual funds and other financial services through three main divisions: Investors Group, Mackenzie Financial and Investment Planning Council. IGM is currently Canada’s largest mutual fund company, with $94.1 billion in mutual fund assets under management. Power Financial Corp. owns 56% of IGM.
In the third quarter of 2005, IGM …read more »
Many investors limit their holdings in the Finance sector of their portfolio to Canada’s big five banks. While we have a high opinion of the banks, and recommend that every investor own at least one of them, we also advise investors to look beyond them.
Here are three non-bank financial services stocks that we see as buys for long-term gains. However, …read more »
CAE INC. $8.90 plans to spend $630 million in the next six years on research aimed at improving its existing flight simulator technology, and to develop simulators for other uses such as emergency response to disasters. Ottawa has agreed to pay for 30% of these costs in exchange for a share of future royalties. Still, that’s a big commitment for …read more »