IGM’s strength and visibility of its core fee‑based engine is the first key reason to own this asset management leader. It sits at the center of Canada’s household savings and retirement system, generating recurring advisory and management fees on a growing base of client assets. Even modest revenue growth can translate into outsized earnings growth as fixed costs are spread over a larger asset base.
The second major reason is this firm’s capital strength, shareholder returns and embedded growth options. The firm enters 2026 with over $1 billion of unallocated capital, low leverage and an active buyback, and has just raised the quarterly dividend 10%. At the same time, high‑growth strategic stakes in Wealthsimple, Rockefeller, ChinaAMC and Northleaf provide leveraged exposure to digital wealth, U.S. high‑net‑worth, Chinese asset management and private markets.
Meanwhile, the stock trades at a low 12.7 times the company’s forward earnings forecast.
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.
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.
IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages.
The company continues to benefit from the strong performance of Canadian and U.S. stock markets. Its assets under management (and advisement) rose 13.8%, to a record $311.1 billion as of November 30, 2025, from $273.4 billion a year earlier.
The company continues to benefit from the strong performance of Canadian and U.S. stock markets. Its assets under management (and advisement) rose 13.8%, to a record $311.1 billion as of November 30, 2025, from $273.4 billion a year earlier.
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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 $753.0 million in November 2025. That’s due to higher inflows at IG Wealth ($186.1 million) and Mackenzie ($566.9 million).
IGM’s strong results fuel double-digit payout hike
Revenue in the third quarter of 2025 increased 13.9%, to $971.9 million from $853.2 million a year earlier. That’s largely because rising stock markets are lifting IGM’s assets under management. The company’s fee income rises and falls with the value of the securities it manages. Earnings also gained 23.3%, to $1.27 a share (or a total of $301.2 million) from $1.03 a share (or $244.1 million).
IGM also owns 25.5% of Wealthsimple, a robo-advisor providing portfolios composed of ETFs and tailored to an individual investor’s goals. That stake is now worth $2.26 billion, which is equal to 15% of IGM’s market cap. The value of that investment could go even higher if Wealthsimple ever decides to sell shares to the public.
The stock trades at an attractive 12.7 times IGM’s projected 2026 earnings of $5.07 a share.
The company will raise its quarterly dividend by 10.2% with the April 2026 payment. The stock now yields 3.9%. The company’s TSI Dividend Sustainability Rating is Above Average.
Recommendation in The Successful Investor: IGM Financial Inc. is a buy.
