Company Reports

IGM Financial finished the second quarter of 2026 with CAD 341 billion in fee-earning assets, up 9% sequentially and 20% from the year-ago quarter. Revenue rose 20%, and adjusted earnings per share rose 32%.

IGM Financial traces its history to 1926, starting as the Investors Group wealth management firm. In 2001, IG acquired Mackenzie asset management, creating IGM Financial. The wealth management segment accounts for 70% of its revenue, and is still IGM's bread and butter.

IGM Financial continues to benefit from market appreciation, with assets under management or advisement of CAD 343 billion at the end of June versus CAD 310 billion at the beginning of the year.

IGM Financial finished the first quarter with CAD 311 billion in fee-earning assets, roughly flat sequentially and up 13% year over year. Revenue rose 14% and adjusted earnings per share rose 21%.

IGM Financial traces its history to 1926, starting as the Investors Group wealth management firm. In 2001, IG acquired Mackenzie asset management, creating IGM Financial. The wealth management segment accounts for 70% of its revenue, and is still IGM's bread and butter.

IGM Financial finished 2025 with CAD 290 billion in consolidated assets under management, up 15%. Due to fee compression, wealth and asset management fee revenue was up 12%, and adjusted operating income rose 18%. Shares rose 5% in intraday trading.

IGM reported a strong third quarter with revenue up 14% year-over-year and adjusted EPS up 23% amidst rising markets and slightly improving flows. In addition, the firm marked up its stakes in Wealthsimple and Rockefeller. Shares popped 2% on the news.

IGM Financial traces its history to 1926, starting as the Investors Group wealth management firm. In 2001, IG acquired Mackenzie asset management, creating IGM Financial. The wealth management segment accounts for 70% of its revenue, and is still IGM's bread and butter.

We are transferring coverage of IGM Financial, a nonbank Canadian asset and wealth manager, to a new analyst.

IGM Financial traces its history to 1926, starting as the Investors Group wealth management firm. In 2001, IG acquired Mackenzie asset management, creating IGM Financial. The wealth management segment accounts for 70% of its revenue, and is still IGM's bread and butter.

IGM Financial ended June 2025 with CAD 267 billion in consolidated assets under management, or AUM. With average AUM being up 8.8% year over year, and fee rates basically flat, second-quarter revenue increased 9.4%, with adjusted operating margin rising 120 basis points year over year to 39.5%.

While IGM Financial has historically produced solid operating margins and held a leading share in the Canadian mutual fund market, we've been less than impressed with its organic AUM growth. Both its asset-management (Mackenzie Investments) and wealth-management (IG Wealth Management) arms have consistently struggled to generate positive flows in their asset management operations, despite meaningful price cuts aimed at making their funds more competitive. To us, this is a sign of the weaker competitive position IGM has relative to the Big Six banks and life insurers in the Canadian market, with poor investment performance, higher fees, and a reliance on a closed advisor network leaving the firm more exposed to the industry's secular headwinds.

IGM Financial ended March 2025 with CAD 258 billion in consolidated assets under management, or AUM. While average AUM was up 11.6% year over year, declining fee rates left first-quarter revenue up just 8.2%, with adjusted operating margins declining 120 basis points year over year to 38.8%.

There was little in no-moat-rated IGM Financial's fourth-quarter results that would alter our long-term view of the firm. We are leaving our CAD 47 per share fair value estimate in place and view the shares as being fairly valued right now.

We've increased our fair value estimate for no-moat-rated IGM Financial to CAD 47 per share from CAD 42 to account for revised near-term expectations for AUM, revenue, and profitability since our last update. IGM closed out September 2024 with CAD 249.3 billion in combined assets under management, or AUM, up 13.9% year over year. Consolidated net outflows of CAD 288 million during the quarter were reflective of a negative 0.5% annualized rate of organic AUM growth, at the upper end of our forecast range of negative 3% to 0% for average annual organic AUM growth during 2024-28.

While IGM Financial has historically generated solid operating margins and held a leading share in the Canadian mutual fund market, we've been less than impressed with its organic assets under management, or AUM, growth. Both its asset-management (Mackenzie Investments) and wealth-management (IG Wealth Management) arms have consistently struggled to generate positive flows in their asset management operations, despite meaningful price cuts aimed at making their funds more competitive. To us, this is a sign of the weaker competitive position IGM has relative to the Big Six banks and life insurers in the Canadian market, with poor investment performance, higher fees, and a reliance on a closed advisor network leaving the firm more exposed to the industry's secular headwinds.

There was little in no-moat-rated IGM Financial's third-quarter results that would alter our long-term view of the firm. We are leaving our CAD 42 per share fair value estimate in place and view the shares as being slightly overvalued.

There was little in no-moat-rated IGM Financial's second-quarter results that would alter our long-term view of the firm. We are leaving our CAD 42 per share fair value estimate in place. We view the shares as being modestly undervalued right now.

While we no longer believe that IGM Financial has an economic moat, we have raised our fair value estimate to CAD 42 per share from CAD 40 to account for revised near-term expectations for assets under management, revenue, and profitability. We've become increasingly concerned that a greater-than-expected correction in the equity markets over the next 5-10 years and/or an even more aggressive push by the Big Six banks—Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, Bank of Montreal, Canadian Imperial Bank of Commerce, and National Bank of Canada—to use price to drive growth and take more share of the Canadian fund market would leave firmwide returns on invested capital well below the weighted average cost of capital in some years during the next decade. This is the case in most years of our bear-case scenario, which includes equity market declines greater than our base-case market corrections in 2026-27 and 2031-32, but no aggressive push by the Big Six—just a continuation of existing competitive pressures.

While IGM Financial has historically generated solid operating margins and held a leading share in the Canadian mutual fund market, we've been less than impressed by its ability to generate positive flows. Both its asset-management (Mackenzie Investments) and wealth-management (IG Wealth Management) arms have consistently struggled to generate organic growth in assets under management, which has only been modestly positive the past five years for the combined subsidiaries despite meaningful price cuts aimed at making their funds more competitive. To us, this is a sign of the weaker competitive position IGM has relative to the Big Six banks and life insurers in the Canadian market, with poor investment performance, higher fees, and a reliance on a closed advisor network leaving the firm more exposed to the industry's secular headwinds.