IGM has an overlooked asset

Article Excerpt

IGM FINANCIAL INC. $44 is a buy. The company (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 238.5 million; Market cap: $10.5 billion; Price-to-sales ratio: 3.0; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.igmfinancial.com) is Canada’s largest independent mutual-fund provider with $253.1 billion in assets under administration as of April 30, 2021. Power Corp. owns 62.1% of the fund provider. The company is also the largest investor in robo-advisor Wealthsimple. Generally, robo-advisors provide portfolios composed of ETFs tailored to different investor goals. Wealthsimple recently secured $750 million in new equity financing from a group of private investors. As part of that financing, IGM is selling part of its stake for $295 million ($257 million after-tax). It will continue to hold 23% of Wealthsimple, which is worth $1.15 billion. IGM Financial is a buy. buy. …