IGM’s highly lucrative hybrid positioning as both a cash-flowing legacy enterprise and a high-growth fintech innovator is the single most compelling reason to buy this long-term favourite. While traditional competitors trade strictly on legacy wealth metrics, this firm holds a massive, unappreciated growth driver via its large ownership stake in Wealthsimple, which is currently dominating the next-generation Canadian demographic.
The stock trades at just 15.0 times the company’s forward earnings forecast, a highly attractive entry point that materially undervalues the corporation’s strong outlook.
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 63.4% 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.
Despite current economic uncertainty and stock market volatility due to the Iran war, IGM’s assets under management (and advisement) still rose. On June 4, 2026, IGM officially reported that its total consolidated assets under management and advisement had climbed to an all-time record high of $337.9 billion for the period ending May 31, 2026, signaling a major 21.2% year-over-year increase.
IGM has formed long-term relationships with most of its clients. That makes them less likely to withdraw their funds during stock market downturns.
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IGM’s high flying fintech app holding anchors record performance
Revenue in the first quarter ended March 31, 2026, increased 13.9%, to $997.9 million from $875.8 million a year earlier. That’s largely because rising stock markets are lifting IGM’s assets under management.
Excluding one-time items, its earnings rose 21.0%, to $1.21 a share (or a total of $284.3 million) from $1.00 a share (or $237.8 million).
IGM also owns 25.4% of Wealthsimple, a digital advisor that provides customers with no-fee
trading in stocks, options, ETFs, and cryptocurrencies, along with alternative investments such as private equity, and bank-like products such as savings and chequing accounts.
That stake is now worth about $2.30 billion. The value of that investment could go even higher if Wealthsimple ever decides to sell shares to the public.
In 2026, the company’s earnings will probably rise 10% to $5.08 a share, and the stock trades at a moderate 15.0 times that estimate. IGM also raised your quarterly dividend by 10.2% with the April 2026 payment, to $0.62 a share from $0.5625. The new annual rate of $2.48 yields 3.2%.
Recommendation in The Successful Investor: IGM Financial Inc. is a buy.
