IGM Financial's Record AUM Growth: A Strategic Bet on Wealth and Asset Management Synergy

IGM Financial Inc. has cemented its position as a leader in Canada’s wealth and asset management sectors, with its assets under management and advisement (AUM&A) surging to record levels. According to the Q1 2025 earnings call, IGM’s AUM&A reached $503.6 billion, a 19.1% year-over-year increase and a 4.2% sequential rise [1]. This momentum continued into Q3 2025, where the company’s AUM&A grew by 12.4% year-over-year, reflecting a strategic focus on diversification and client retention [4]. The surge underscores IGM’s ability to leverage synergies between its wealth management and asset management divisions while adapting to evolving market dynamics.

Diversified Business Model: Wealth and Asset Management Synergy

IGM’s growth is driven by its dual-core business model, which combines IG Wealth Management and Mackenzie Investments. In Q1 2025, IG Wealth Management reported a 10.6% year-over-year increase in assets under advisement, while Mackenzie Investments saw a 7.3% rise in AUM&A [1]. This diversification mitigates risks associated with market volatility, as the two segments cater to distinct client needs—personalized wealth planning for high-net-worth individuals and institutional-grade asset management for broader portfolios.

The company’s strategic investments further amplify this synergy. For instance, Wealthsimple, a digital wealth platform under IGM’s portfolio, reported a 14% sequential increase in assets under advisement and now serves 2.8 million clients [1]. Similarly, IGM’s stake in Rockefeller, a U.S.-based wealth management firm, has expanded its cross-border client base. These initiatives align with IGM’s focus on high-net-worth clients, who contributed 76% of new client inflows in Q1 2025 [1].

Client Retention: A Pillar of Sustainable Growth

Strong client retention metrics have been pivotal to IGM’s success. In Q1 2025, the company reduced its gross outflows rate from 11.2% in Q1 2024 to 9.7%, while achieving record gross inflows of $4.2 billion [1]. This improvement is attributed to enhanced client acquisition strategies and financial planning services, which increased the share of wallet for existing clients. For example, clients with over $1 million in assets now represent 43% of AUM&A, up from 30% in Q3 2024 [2].

The focus on high-net-worth clients has also stabilized IGM’s revenue streams. As noted in the Q2 2025 earnings call, the company’s adjusted earnings per share (EPS) hit $1.07, driven by consistent inflows from affluent clients [3]. This trend is expected to continue, with IGM targeting further growth through strategic acquisitions and digital innovation.

Strategic Investments and Shareholder Returns

IGM’s AUM&A growth is not solely organic; strategic investments have played a critical role. The fair value of its Wealthsimple stake increased by 21% to $1.5 billion in Q2 2025 [3], while its investment in Grifols, S.A. (a non-core holding) demonstrated the company’s willingness to diversify into high-growth sectors [4]. These moves align with IGM’s long-term vision of balancing asset management with alternative income streams.

Shareholder returns remain a priority. In 2025, IGM repurchased 2.6 million shares year-to-date and plans to repurchase 5 million shares by year-end [3]. This commitment to capital efficiency, combined with a 12.4% AUM&A surge, positions IGM to outperform peers in a competitive market.

Conclusion

IGM Financial’s record AUM&A growth is a testament to its diversified business model and client-centric strategies. By harmonizing wealth and asset management, the company has created a resilient framework that thrives in both bullish and bearish markets. As it continues to refine its client retention tactics and expand strategic investments, IGM is well-positioned to sustain its momentum, offering investors a compelling case for long-term value creation.

**Source:[1] IGM Financial Q1 2025 slides: Record AUM&A of $503.6B [https://www.investing.com/news/company-news/igm-financial-q1-2025-slides-record-auma-of-5036b-drives-64-eps-growth-93CH-4035985][2] IGM Q3-2024 Earnings Call [https://www.alphaspread.com/security/tsx/igm/investor-relations/earnings-call/q3-2024][3] IGM Financial (IGM) Earnings Dates, Call Summary [https://www.tipranks.com/stocks/tse:igm/earnings][4] Q3 2025 Earnings Roundup for the Evolve Canadian Banks and LifeCos Enhanced Yield Fund [https://evolveetfs.com/2025/09/q3-2025-earnings-roundup-for-the-evolve-canadian-banks-and-lifecos-enhanced-yield-fund/]