Asset Management Stocks in Canada
What You Should Know
- In Canada, most asset management is done by banks and insurance companies, which have diversified into asset management.
- Brookfield Asset Management, CI Financial and Fiera Capital are publicly traded Canadian financial asset management companies.
- Brookfield Corporation, Power Corporation and Fairfax Financial are large Canadian physical asset managers (conglomerates).
- Brookfield Corporation and Fairfax Financial have both provided their investors with phenomenal returns over the medium and long term.
| Top Canadian Asset Management Stocks | ||||||||
|---|---|---|---|---|---|---|---|---|
| Company | Ticker Symbol | P/E | P/B | D/E | Annualized Total Return | |||
| Brookfield Corporation | BN | 101 B | 32.8 | 1.8 | 5.1 | 52% | 13.8% | 15.4% |
| Brookfield Asset | BAM | 23.5 B | 26.3 | 5.4 | N/A | 24.5% | N/A | N/A |
| IGM Financial Inc | IGM | 9.2 B | 10.2 | 1.3 | 0.7 | 6.9% | 1.46% | 3.6% |
| Onex Corporation | ONEX | 7.2 B | 6.9 | 0.6 | 0.5 | 14.9% | 4.3% | 10.2% |
| CI Financial | CIX | 2.48 B | 4.8 | 2.6 | 3.6 | 7.2% | -2.8% | 3.2% |
| Sprott Inc. | SII | 1.43 B | 18.3 | 3.4 | 0.1 | 34% | 9.1% | 6.3% |
| Guardian Capital Group | GCG | 1.0 B | 22.7 | 0.85 | 0.02 | -0.2% | NA | NA |
| Fiera Capital | FSZ | 790 M | 7.6 | 2.7 | 2.6 | 45% | 1.8% | NA |
| Data from morningstar.ca as of 27 August 2024. | ||||||||
This page focuses on independent asset managers that are included in the S&P/TSX Composite Index. These companies are Brookfield Corporation, Brookfield Asset Management, IGM Financial, Onex Corporation and CI Financial. We have excluded Sprott Inc, Guardian Capital Group and Fiera Capital. The last two are not members of the TSX index, and all have smaller market capitalizations.
The financial sector is the largest sector of the main Canadian stock market index, the S&P/TSX Composite. It constitutes 31% of the index as of July 31, 2024. The financial sector mainly comprises Canadian bank stocks, Canadian Insurance stocks, and asset managers. You can use WOWA’s stock profit calculator to calculate your return on investment (ROI) after each stock trade.
We should also mention Mackenzie Investments and Aviso Wealth. Mackenzie is a fast-growing pure asset management company in Canada. Aviso Wealth was created in 2018 as a result of a merger between Credential Financial, Qtrade Financial Group, and NEI Investments. These two asset managers are not considered in this page because here, we are focused on public companies, Aviso and Mackenzie are both held privately.
Brookfield Corporation
Brookfield Corporation | ||
|---|---|---|
| Exchange: Ticker | TSX: BN, NYSE: BN | |
| Indices | S&P/TSX Composite, S&P/TSX 60 | |
| Main business | Physical Asset Manager, real estate, renewable energy | |
| Forward dividend yield | 0.7% | |
| Trailing dividend yield | 0.6% | |
| Price/Sales | 0.6 | |
| Last Price | ||
| Data from morningstar.ca as of 27 August 2024. Stock price from Yahoo as of Invalid Date | ||
Brookfield Corporation is a leading global alternative asset manager with a diverse portfolio that includes real estate, infrastructure, renewable energy, private equity, and credit. Headquartered in Toronto, Canada, Brookfield has a strong track record of acquiring and managing high-quality assets with a long-term investment horizon. The company is known for its expertise in investing in tangible assets and for delivering consistent, strong returns to its investors. Brookfield operates globally, with a presence in over 30 countries, and is recognized for its disciplined approach to value creation across its various business segments.
Brookfield manages close to $850 billion of assets. Its subsidiary, Oaktree Capital, specializes in distressed equity investment. Brookfield corporate headquarters are in Toronto, with offices in the world's leading financial centers, including New York City, London, Mumbai, Shanghai, and Sydney.
It was founded in 1899 to construct and manage electricity and transport infrastructure in Brazil. Traction, Light and Power Company was incorporated in Toronto and listed as a public company to be the parent company for Sao Paulo Tramway Co and Rio de Janeiro Tramway Co in 1912. Edper Investments acquired Traction, Light and Power Company in 1959.
Brookfield Corporation (BN)
In 1969 the company became Brascan Limited. During the 1970s, the company divested its Brazilian investments and made significant investments in real estate, timber and mining, mainly in Canada.
In 2005, it was renamed Brookfield Asset Management. Between 2013 and 2018, Brookfield returned to Brazil with nearly $10 billion in energy, infrastructure and real estate investments.
Principal public subsidiaries include Brookfield Infrastructure Partners, Brookfield Renewable Partners, Brookfield Property Partners and Brookfield Business Partners.
In 2018, Brookfield bought the bankrupt nuclear reactor manufacturer Westinghouse Electric Company for $4.6 billion. It also acquired most of Oaktree Capital Management in 2019 for $4.7 billion. In the same year, Brookfield bought an Indian luxury hotel chain. Mark Carney, a former governor of the Bank of England and Bank of Canada became a vice-chair of Brookfield in 2020.
Qatar Investment Authority is a major Brookfield investor. There have been many claims against Brookfield, including death spiral financing and an attempt to influence the former US administration. But none of these claims are proven.
Brookfield Asset Management Inc
Brookfield Asset Management Inc | ||
|---|---|---|
| Exchange: Ticker | TSX: BAM, NYSE: BAM | |
| Indices | S&P/TSX Composite | |
| Main business | Wealth management products | |
| Forward dividend yield | 3.7% | |
| Trailing dividend yield | 3.4% | |
| Price/Sales | 3.4 | |
| Last Price | ||
| Data from morningstar.ca as of 27 August 2024. Stock price from Yahoo as of Invalid Date | ||
Brookfield Corporation listed its financial asset management business and distributed 25% of its shares to its shareholders on 12 December 2022. Brookfield Corporation still holds 75% of Brookfield Asset Management and keeps a very large investment in Brookfield Asset Management funds. As a result, you invest in BAM as a purely financial asset manager vs BN, which is engaged in managing physical assets.
Brookfield Asset Management
IGM Financial Inc
IGM Financial Inc | ||
|---|---|---|
| Exchange: Ticker | TSX: IGM | |
| Indices | S&P/TSX Composite | |
| Main business | Wealth management products | |
| Forward dividend yield | 5.8% | |
| Trailing dividend yield | 4.4% | |
| Last Price | ||
| Dividend yield from morningstar.ca as of 28 August 2024 Stock price from Yahoo as of Invalid Date | ||
IGM Financial is a subsidiary of Power Corporation of Canada, a diversified international management and holding company. Power Corporation owns IGM Financial through its holding in Power Financial Corporation, which is also a subsidiary of Power Corporation. This relationship places IGM Financial within a broader network of financial services companies under the Power Corporation umbrella, including Great-West Lifeco and other financial services businesses.
Business Overview:
IGM Financial operates through subsidiaries like IG Wealth Management, Mackenzie Investments, and formerly Investment Planning Counsel (IPC). These companies provide a range of financial services, including investment management, financial planning, and mutual funds. In 2023, IGM sold IPC to Canada Life which itself is a subsidiary of Great West Life.
Financial Performance:
The company earns revenue primarily through management fees from assets under management (AUM), sales charges on financial products, and performance fees.
IGM Financial has a history of paying consistent and stable dividends, which can be attractive to income-focused investors.
Market Sensitivity:
The performance of IGM Financial is closely tied to the broader financial markets. Fluctuations in stock markets, interest rates, and economic conditions can significantly impact AUM, client inflows/outflows, and revenue from management fees.
The financial services industry is competitive, with pressure from both traditional players and newer fintech companies. IGM Financial must continually innovate and adapt to maintain its market share.
IGM Financial Inc
Onex Corporation
Onex Corporation | ||
|---|---|---|
| Exchange: Ticker | TSX: ONEX | |
| Indices | S&P/TSX Composite | |
| Main business | Wealth management products | |
| Forward dividend yield | 0.4% | |
| Trailing dividend yield | 0.4% | |
| Last Price | ||
| Data from morningstar.ca as of 28 August 2024 Stock price from Yahoo as of Invalid Date | ||
The company's founder and CEO, Gerry Schwartz, is the largest individual shareholder. Through his ownership stake, Schwartz has significant influence over the company’s strategic direction. His leadership has been instrumental in shaping Onex’s growth and investment strategy since its founding.
Business Model:
Onex is a private equity firm that invests in a diversified portfolio of companies across various sectors, including healthcare, industrials, and technology. It acquires companies, adds value through strategic initiatives, and eventually exits these investments to generate returns.
Onex also manages third-party capital through its asset management business, earning fees and carried interest.
Financial Performance:
Onex earns revenue from its investments (capital gains, dividends) and from its asset management activities. Its performance is linked to the success of its portfolio companies and its ability to generate returns for investors.
Onex is known for maintaining a strong balance sheet, which provides flexibility to seize investment opportunities and weather economic downturns.
Investment Strategy:
Onex focuses on acquiring businesses where it can drive operational improvements and enhance long-term value. It often invests in companies that are leaders in their industries or have significant growth potential.
Onex has a global investment footprint, allowing it to capitalize on opportunities across various markets and industries.
Market Sensitivity:
As a private equity firm, Onex’s performance is sensitive to economic cycles. Economic downturns can affect the profitability and valuation of its portfolio companies, while recoveries can boost returns.
The ability to successfully exit investments (through sales or IPOs) at favorable valuations is critical for Onex’s profitability.
CI Financial Corp.
CI Financial Corp. | ||
|---|---|---|
| Exchange: Ticker | TSX: CIX | |
| Indices | S&P/TSX Composite | |
| Main business | Wealth management products | |
| Forward dividend yield | 4.8% | |
| Trailing dividend yield | 5.3% | |
| Trailing annual revenue | $2.6 B | |
| Price/Sales | 1 | |
| Last Price | ||
| Data from morningstar.ca as of 27 August 2024. Stock price from Yahoo as of Invalid Date | ||
CI Financial is based in Toronto. It offers investment management and wealth management together with brokerage and trading services. The main operating divisions are:
- CI Global Asset Management (Formerly CI Investments),
- CI Assante Wealth Management,
- CI Direct Investing,
- CI Investment Services,
- and CI Private Wealth
Universal Savings Fund Management Ltd was established in 1965. It went public as C.I. Fund Management in 1994. BPI Financial Corp. was acquired in 1999 for $206 million. CI Fund acquired the Canadian operations of financial firm Assante Corp. for $846 million in 2003. Around the same time, it acquired Spectrum Mutual Fund Services.
CI Financial Corp.
Sun Life Financial formed Spectrum in 1987. This transaction (purchase of Spectrum) made Sun Life Financial the owner of 37% of CI Financial. In an attempt to improve its wealth management business, Scotiabank bought this stake from Sun Life for $2.3 billion. But a conflict between CI Financial and Scotiabank management prompted Scotiabank to sell its 37% stake in CI in 2014.
It changed its name to CI Financial in 2005 to reflect its diversification. CI Financial purchased Rockwater Capital in 2007 for $250 million. CI purchased Hartford Investments' Canadian operations in 2010. In 2015, CI acquired First Asset Capital Corp to enter the ETF business.
In 2016, CI acquired 80% of Grant Samuel Funds Management to expand into Australia and New Zealand. In 2017, CI acquired Sentry Investments for $780 million and also BBS Securities Inc., which owned online brokerage Virtual Brokers.
In 2019, CI bought 49% of Redpoint Investment Management to increase its presence in the Australian market.
| Canadian Assets Under Management | |
|---|---|
| Asset Type | Amount in Billions |
| Pension Assets | $1,196 |
| Mutual Funds | $1,118 |
| Private Clients | $508 |
| Insurance Company (General Funds) | $342 |
| Corporate Assets | $282 |
| ETFs | $237 |
| Wrap Accounts | $123 |
| Other | $303 |
| Total of Managed Assets | $4,109 |
| As of mid-2022 | |
We should also mention Mackenzie Investments and Aviso Wealth. Mackenzie is a fast-growing pure asset management company in Canada. Aviso Wealth was created in 2018 as a result of a merger between Credential Financial, Qtrade Financial Group, and NEI Investments. These two asset managers are not considered in this page because here, we are focused on public companies, Aviso and Mackenzie are both held privately.
| Largest Canadian Financial Asset Managers according to Canadian Institutional Investment Network | |
|---|---|
| Asset Manager | Canada Pension Assets Under Management (in million) |
| RBC Global Asset Management | $393,803 |
| TD Asset Management | $367,772 |
| BlackRock Asset Management Canada | $246,441 |
| CIBC Asset Management | $185,497 |
| Brookfield Asset Management | $179,833 |
| Fidelity Canada Institutional | $170,957 |
| Manulife Investment Management | $142,931 |
| Fiera Capital Corp | $112,636 |
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.