IGM Financial has masterfully positioned itself in the evolving wealth management landscape through strategic investments in high-growth fintech companies. These winning bets provide multiple growth vectors and reduce reliance on traditional fee-based revenue models. Combined with successful exits, management has demonstrated superior capital allocation skills that create substantial shareholder value beyond the core operating business.
There’s also the fact that the company is one of Canada’s leading wealth management companies and reported record asset levels across its subsidiaries and strong competitive moats in the Canadian market. The firm is well-positioned to benefit from Canada’s aging demographics and growing wealth management needs, while its integration of digital capabilities through strategic investments enhances the value proposition for both advisors and clients.
Meanwhile the shares trade at just 12.6 times forecast 2025 earnings, a low multiple considering the company’s strong performance and significant upside due to acquisitions.
IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest independent mutual-fund provider. It also offers ETFs and wealth management services. Power Corp. owns 62.7% of the firm.
IGM has two main businesses: Mackenzie Financial sells funds and ETFs through independent brokers; and IG Wealth Management (formerly Investors Group) offers mutual funds and other services, such as portfolio management, through its more than 3,000 affiliated advisors.
The company’s fee income rises and falls with the value of the mutual funds and other securities it manages.
The company has formed long-term relationships with most of its clients. That makes them less likely to withdraw their funds during stock market downturns and the current uncertainty over tariffs and interest rates.
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In the past few years, IGM has invested in smaller firms that expand its presence outside of Canada. Those include a 28.7% stake in Chinese mutual fund seller China Asset Management, and 20.5% of U.S. investment firm Rockefeller Capital Management. As well, to better access younger investors, the company now holds a 26.7% stake in WealthSimple; that robo-advisor provides portfolios composed of ETFs tailored to an individual investor’s goals.
Those new businesses and rising asset values lifted IGM’s revenue in the three months ended June 30, 2025, by 9.4%, to $892.7 million from $816.3 million a year earlier. Earnings also gained 15.1%, to $1.07 a share (or a total of $252.7 million) from $0.93 a share (or $220.4 million).
IGM Financial’s assets under management hit a new record
Meanwhile, thanks to the strong performance of Canadian and U.S. stock markets, IGM’s assets under management (and advisement) rose 14.2%, to a record $302.6 billion as of September 30, 2025, from $264.9 billion a year earlier.
IGM has formed long-term relationships with most of its clients. That makes them less likely to withdraw their funds during stock market downturns and the current uncertainty over tariffs and interest rates.
As a result, the company reported a net inflow (net of redemptions) of $838.1 million in September 2025. That’s due to higher inflows at IG Wealth ($159.3 million) and Mackenzie ($678.8 million).
The stock trades at an attractive 12.6 times IGM’s projected 2025 earnings of $4.28 a share. The $2.25 dividend looks safe and yields a high 4.2%.
Recommendation in The Successful Investor: IGM Financial Inc. is a buy.
