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.
With CAD 236.4 billion in core AUM at the end of March 2024, IGM Financial is the largest non-bank-affiliated domestic asset manager in the Canadian market.
Bears
The largest Canadian banks and insurance companies have expanded the depth of their asset-management offerings and are taking share from purer-play asset managers like IGM Financial.
IGM Financial is the largest non-bank-affiliated asset manager in Canada. The firm is part of the Power Financial group of companies, which holds a 62% equity stake in IGM Financial as well as stakes in Great-West Life, London Life, and Canada Life. IGM has two main operating divisions—asset management (operated through Mackenzie Investments) and wealth management (via its IG Wealth Management subsidiary)—that provide investment management products and services. At the end of May 2024, IGM Financial had CAD 236.4 billion in AUM (including CAD 79.2 billion in AUM that was being managed for its IG Wealth Management arm) at Mackenzie Investments, CAD 113.8 billion in assets under advisement at its IG Wealth Management subsidiary, and CAD 14.7 billion in other AUA.