IGM Financial Inc.

IGM feb 17 2015

This blog has, for some odd reason, never looked at IGM. It is a mutual fund selling operation consisting of Investor Group, Mackenzie and some planning counselling outfit. It is your very basic and elementary “investment dealer” that embraces the keep-it-simple approach wholeheartedly. It is your mom and pop , knock on doors , type of operation that has done surprisingly well over time. This, paradoxically, may be the case because of the low level of sophistication of the investing public in general and their clients in particular. Their fees are not simple and quite high.

      Analysts rate this stock unanimously as a “buy”. Needless to say, I do not. The pattern is perfectly clear with an extended 5th wave into the top, followed by a first wave downAngel, and then the ubiquitous B back up right into the double top level. From there the C has started but has a lot further to go. The 4th wave of previous degree is always a good potential focus point for determining a potential target. Nothing says that it has to stop there.

     If you happen to be in this business you may just want to make hay while the sun shines. This chart starts in 1987 which is roughly where the first mutual funds were introduced. I do not know if it was the first but the Horizon fund was definitely right up there. It was sold with a DSC of 9% and, I believe, a 7 or 8 year period  to be free of a claw-back. A broker with assets under management (AUM) of just one million could generate ( in those days) an income of $100,000 just churning the book. So in this chart you essentially see the entire history of the Canadian mutual fund industry. A lot has already changed but much more will have to be changed to get to world standards.