IGM Financial’s Record $292.6 Billion AUM&A and Strategic Growth Momentum

In Q2 2025, IGM Financial achieved a historic milestone, with assets under management and advisement (AUM&A) surging to $292.6 billion—a combined total of its IG Wealth and Mackenzie Investments segments. This represents a 21% year-over-year increase, driven by robust net inflows, strategic cross-segment synergies, and a dual-core business model that positions the firm for sustained growth in a competitive wealth and asset management landscape [1].

AUM&A Growth: A Testament to Strategic Execution

IGM’s AUM&A growth underscores its ability to attract and retain clients amid macroeconomic volatility. IG Wealth Management alone reported $146.7 billion in AUM&A, a 13% year-over-year increase, fueled by $1.2 billion in gross inflows from new clients. Notably, mass affluent and high net worth clients accounted for nearly 80% of these flows, reflecting the firm’s success in penetrating key demographic segments [1]. Meanwhile, Mackenzie Investments’ retail channel experienced a notable recovery, with its best Q2 investment fund net sales since 2021, signaling renewed investor confidence in its product offerings [1].

The firm’s strategic integration of its wealth and asset management divisions has further amplified growth. By consolidating mutual fund and investment dealers into a dual-registered dealer model, IGM has enhanced operational efficiency and advisor flexibility, enabling advisors to serve clients more holistically [3]. This structural alignment has not only reduced costs but also strengthened client retention, a critical factor in sustaining AUM&A momentum.

Net Inflows and Client Retention: A Dual-Engine Approach

IGM’s Q2 results highlight its ability to convert client acquisition into long-term value. Despite a $24 million outflow linked to a pension transfer, the firm reported $249 million in net inflows for the quarter [1]. This resilience is attributed to its targeted client retention strategies, including tailored offerings for high-net-worth individuals and digital enhancements via its Wealthsimple platform. The latter’s fair value surged 21% to $1.5 billion, reflecting its role as a growth engine for IGM’s digital wealth management initiatives [1].

Power Corporation, IGM’s parent company, has also emphasized scaling alternative asset management platforms to bolster client retention. During its Q1 2025 earnings call, the CEO highlighted the importance of leveraging cross-segment synergies to consolidate market share and improve capital efficiency, a strategy that directly supports IGM’s long-term growth objectives [2].

Cross-Segment Synergies: Fueling Competitive Differentiation

IGM’s dual-core business model—anchored in wealth and asset management—has become a cornerstone of its competitive positioning. The firm’s cross-segment synergies are evident in its ability to leverage data and infrastructure across divisions. For instance, Mackenzie Investments’ expertise in institutional asset management complements IG Wealth’s retail focus, enabling a seamless client experience. This integration has also allowed IGM to optimize its cost structure, with adjusted EPS reaching a record $1.07 in Q2 2025, a 15% year-over-year increase [1].

Moreover, IGM’s strategic investments, such as its stake in Wealthsimple and Rockefeller, have created additional value drivers. The 21% fair value increase in Wealthsimple to $1.5 billion exemplifies how IGM’s ecosystem of investments enhances its ability to capture market share in digital wealth management [1]. These synergies are further amplified by Power Corporation’s capital allocation strategy, which prioritizes shareholder returns through significant share repurchases in 2025 [3].

Long-Term Investment Case: Sustained Growth in a Competitive Landscape

For institutional and retail investors, IGM’s performance in Q2 2025 presents a compelling case for long-term investment. Its dual-core model, combined with cross-segment synergies and disciplined capital allocation, positions the firm to outperform peers in both stable and volatile markets. The firm’s focus on client retention—driven by digital innovation and tailored financial solutions—ensures a steady flow of assets, while its strategic investments in alternative assets and technology platforms provide a buffer against sector-specific risks.

As IGM continues to execute on its growth initiatives, its ability to scale efficiently and adapt to evolving client needs will be critical. With a clear roadmap for leveraging synergies and a proven track record of AUM&A expansion, the firm is well-positioned to maintain its momentum and deliver value to stakeholders in the years ahead.

Source:
[1] IGM Q2-2025 Earnings Call,
https://www.alphaspread.com/security/tsx/igm/investor-relations/earnings-call/q2-2025
[2] Earnings call transcript: Power Corporation Q1 2025,
https://www.investing.com/news/transcripts/earnings-call-transcript-power-corporation-q1-2025-sees-revenue-beat-eps-miss-93CH-4045163
[3] Earnings call transcript: IGM Financial Q2 2025,
https://www.investing.com/news/transcripts/earnings-call-transcript-igm-financial-q2-2025-reports-record-earnings-93CH-4177984