Key Morningstar Metrics for IGM Financial
- Fair Value Estimate: C$47.00
- Morningstar Rating: ★★★
- Morningstar Economic Moat Rating: None
- Morningstar Uncertainty Rating: High
IGM Financial IGM ended June 2025 with C$267 billion in consolidated assets under management. With average AUM 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%.
Why it matters: Considering the changes in both the S&P 500 TR Index and the S&P/TSX Composite Index, as well as our forecast for flows during the June quarter, there were few surprises in the results.
- IGM ended the second quarter with C$267 billion in combined AUM, up 3.3% sequentially and 12.4% year over year. Managed assets also rose to C$271 billion during July as rising equity markets continue to benefit the firm.
- The firm generated consolidated net inflows of C$354 million overall during the June quarter, reflective of a positive 0.5% annualized rate of organic AUM growth. During the past four calendar quarters, the firm generated positive 2.0% organic AUM growth, a big improvement on the negative rates of growth posted annually during 2020-24.
The bottom line: With the United States and Canada engaged in a trade war, we expect equity and bond market returns to be more volatile in the near term, which could affect not only market returns but also flows for the Canadian asset managers.
- There was little in no-moat IGM’s results that would alter our long-term view. We believe the firm is on the right track, with improving flow results from both its IG Wealth Management and Mackenzie Investments operations being a positive sign. That said, we’d like to see several years of positive results to be convinced that the worst is behind the firm.
- We expect to leave our C$47 per share fair value estimate in place. We view the shares as fairly valued.
