IGM Financial's April AUM&A Growth Masks Underlying Challenges: A Closer Look at Net Flows and Segment Performance

IGM Financial’s April 2025 assets under management and advisement (AUM&A) figures reveal a complex narrative of resilience and vulnerability. While the company’s total AUM&A rose by 9.2% year-over-year to $269.5 billion, month-over-month declines and widening net outflows underscore near-term headwinds. This analysis unpacks the interplay of growth, client dynamics, and segment performance to assess the broader implications for investors.

Year-Over-Year Growth, but Month-to-Month Slippage

The 9.2% increase in total AUM&A year-over-year reflects strong underlying demand for financial services, driven by robust market conditions and client engagement. However, the $5.5 billion drop from March 2025’s $275.0 billion highlights short-term volatility. This decline stems from both segments:
- IG Wealth Management (IGWM): Its assets under advisement (AUA) fell by $2.4 billion to $139.1 billion, though net outflows narrowed to $85 million from $192 million in April 2024.
- Mackenzie Investments: AUM dropped by $4.9 billion to $213.7 billion, with net redemptions surging to $345 million—more than five times April 2024’s $61 million.

Net Flows: A Mixed Picture

Total consolidated net outflows hit $430 million in April 2025, up sharply from $253 million in April 2024. This divergence is critical:
- IGWM’s Silver Lining: Despite net outflows, its gross sales hit a record $1.3 billion, a 17% jump from April 2024. This suggests strong client acquisition, even as redemptions persist.
- Mackenzie’s Struggle: Its net redemptions jumped from $61 million to $345 million year-over-year, reflecting broader market pressures or fund-specific issues. The segment’s $22 million in investment fund redemptions were offset by larger undisclosed outflows, raising questions about asset retention strategies.

Segment Dynamics: A Tale of Two Businesses

The performance of IGM’s two core units tells a story of strategic priorities and execution gaps:
1. IGWM’s Advisory Strength:
- Record gross sales at $1.3 billion indicate a robust advisory platform, likely fueled by client trust in wealth managers.
- Net sales of $58 million (versus $269 million in redemptions in 2024) suggest improved fund performance or marketing efforts.

1. Mackenzie’s Redemption Pressures:
2. While investment fund redemptions fell to $22 million from $201 million in April 2024, total net outflows rose due to broader fund-level withdrawals. This could signal investor skepticism toward Mackenzie’s product mix or market conditions.

The Bigger Picture: Resilience vs. Retention

Year-over-year AUM&A growth of 9.2% reflects long-term resilience, bolstered by a 9.8% increase in IGWM’s AUA and Mackenzie’s 7.1% AUM gain since April 2024. However, April’s results highlight two critical challenges:
1. Client Retention: The $430 million net outflow suggests investors are pulling capital despite strong gross sales. This could reflect market volatility, competitive pressures, or dissatisfaction with returns.
2. Segment Imbalance: While IGWM’s advisory business thrives, Mackenzie’s struggles may indicate a need for product innovation or cost discipline.

Conclusion: A Growth Story with Execution Risks

IGM Financial’s April data paints a cautiously optimistic picture. The 9.2% AUM&A growth year-over-year and record gross sales at igwm signal a healthy demand base and strong advisory capabilities. However, the widening net outflows and Mackenzie’s redemption pressures introduce near-term risks. Investors should monitor two key metrics:
- Whether IGWM can convert record gross sales into net inflows by reducing outflows.
- Whether Mackenzie can stabilize net redemptions through improved fund performance or strategic shifts.

The company’s exclusion of discontinued operations (e.g., IPC’s sale) also suggests a focus on core businesses, but execution in retaining assets will be key. At current valuations, IGM’s stock appears fairly priced—its 12-month trailing P/B ratio of 1.2x (vs. 1.4x for peers) reflects these near-term challenges. However, the long-term growth trajectory hinges on resolving retention issues while capitalizing on advisory demand. For now, IGM remains a “hold” with an eye on improving net flows in the coming quarters.

In the end, the numbers tell a story of promise and pitfalls. The resilience of IGM’s advisory model is undeniable, but without addressing the outflow pressures, this Canadian financial giant may struggle to fully capitalize on its potential.