IGM Financial Inc. (IGM.TO)

Any mutual fund company in Canada is going to be very unpopular in this market. Despite the really good value, the stock has taken it on the chin. It has now fallen down to a level of about $31-$31.50, which is terrific support with huge upside potential. Has a wonderful yield 6.7%, and the yield is nicely covered.

All asset management companies have been hurt in the last year, partly because the markets haven’t done very much, and they get their fees on how their assets do. Also, there are new regulations coming into the mutual fund business that is putting pressure on fees, which are way too high. A well-run company. Owns this indirectly through Power Financial (PWF-T). Thinks the asset management companies are getting into a range here where they are decent investments. He would look at this one.

Chart shows it has had 2 little bottoms, and is positive that the downtrend has been broken. Financials in general have been pretty weak. Until this one breaks out of the downtrend channel, he would not start a new position. Rising interest rates help financials. Dividend yield of 6.3%.

The stock is at a very attractive level to Buy. The volume has been going up a little bit. There is no reason to think it is going any lower than it is right now.

(A Top Pick Jan 22/15. Up 13.22%.) This is an area that is hard to get representation in Canada. This segment of the market probably has good growth potential from here.

He has no reason to think the dividend is not safe. The growth in the industry is stagnating. The only way to grow is to acquire. Margins are coming down. He has CIX-T in this sector and recommends it instead.

An amazing sales machine. They have great margins. They will be subject to the transparency rules coming into force next year. Companies like this will figure it out.

It has come off a lot. The dividend is 6%. They have about 5000 consultants with Investors Group, who are increasing their assets. Having their own consultants should give them the ability to continue on.

59% owned by Power Financial (PWF-T). Has an attractive yield of 5.6%. Historically it increases its dividend every year or 2. The pace of increases has slowed more recently, but this is more a function that they are so large and they can’t grow as fast a pace as they could in the past. With the disclosure rules that are coming out for mutual fund fees, this is an overhang on mutual fund companies. Thinks the dividend is safe.

(Market Call Minute) 5% dividend. They have a strong franchise.

One of the solid Canadian mutual fund companies. It has done well and is probably towards the higher end of its valuation right now. He would call this a “soft buy” here.

You want to buy their stock and not their mutual funds. The industry had really consolidated. They had a lot of issues because a lot of funds are high priced. We are moving into a world where they have to take less and less money. They have some high MER products. Own other parts of the power group.

(Top Pick May 22/14, Down 9.17%) It was about turning around redemptions. Earnings have gone up but there was compression of their multiple because of pressure on their fees. His price target is down a little from last year.

Has a phenomenal franchise. Outperforming the industry with AUM growth. There are new regulations that come into effect over the next few years and there is the feeling that this will drive mutual fund fees down. This may not be good for IGM. They are a dual class share company and he is not a fan of that. They have outperformed and gained market share.

(Top Pick Jan 22/14, Up 12.14%) Benefited from currency fluctuations. The technology sector runs a bit with the economy. You need to get your US content up and this is a safe way to do it. Good expense ratio. A good solid way to participate in the US tech sector. Broad diversification.