Power prospers with IGM

Article Excerpt

POWER CORP., $39.49, is a buy. The conglomerate (Toronto symbol POW; Shares o/s: 622.0 million; Market cap: $26.8 billion; Above Average; Dividend yield: 4.5%; www.powercorporation.com) owns 62.1% of IGM Financial (symbol IGM on Toronto). IGM is Canada’s largest independent mutual-fund provider with $253.1 billion in assets under administration. IGM 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. That stake is worth $1.15 billion. Power Corporation is a buy. buy…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.