You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. This week, global tax and consulting firm EY’s deal report on the financial services sector found that, in North America, “M&A activity fell in 2025, with a 5% yoy decline in the number of publicly disclosed deals.”  Drilling down further into the wealth and asset management sector, however, and the picture looks more familiar to readers of Wealth Management: deals rose in North America by ...

Core Points - A group of wealth management and asset management firms has agreed to a $25.5 million settlement in a class action lawsuit regarding job mobility and remuneration suppression for financial professionals [1][2] - The settlement is pending final court approval and will benefit over 4,400 current and former employees [1][2] - The lawsuit claimed that firms, including Mariner Wealth Advisors and American Century Companies, violated antitrust laws by not recruiting each other's employees [2][4] Company Details - American Century manages approximately $230 billion in assets, while Mariner manages about $65.9 billion [4] - The settlement aims to provide prompt compensation to affected employees and reduce the costs associated with ongoing legal proceedings [4] Settlement Distribution - Settlement payments will be based on employment length, with an estimated average payment of around $3,700 for each eligible employee [5] - Plaintiffs' lawyers are expected to seek up to one-third of the settlement fund, approximately $8.5 million, for legal fees [5]

Core Insights - LPL Financial has acquired a minority ownership stake in Private Advisor Group, enhancing strategic alignment and enabling innovation and advisor growth [1][2][3] Company Overview - Private Advisor Group is a leading financial services firm with over $41.3 billion in assets under management as of June 30, 2025 [6] - LPL Financial supports over 32,000 financial advisors and manages approximately $2.3 trillion in brokerage and advisory assets for around 8 million Americans [8] - Merchant Investment Management, a partner in this investment, manages over $300 billion in assets across 125 partner firms and RIA practices [10] Strategic Implications - The partnership aims to deepen collaboration among Private Advisor Group, LPL Financial, and Merchant, focusing on enhancing resources for practice management and succession planning [1][4] - The investment is expected to create new opportunities for advisors while allowing Private Advisor Group to maintain its independent brand [5] Historical Context - The relationship between Private Advisor Group and LPL Financial has been built over nearly 30 years, emphasizing shared values in driving advisor success [3] - Since partnering with Merchant in 2021, Private Advisor Group has made significant investments in technology and resources, including the launch of the WealthSuite investment management platform [3]

Core Insights - The wealth management industry is expected to experience significant consolidation, with an estimated 1,500 major transactions anticipated by the end of 2029, leading to about 20% of existing firms being acquired [2][4] - Analysts predict over 100 deals per year in wealth management through 2029, with estimates ranging from 120 to 150, excluding smaller transactions [4] - The total assets managed globally reached $135 trillion in 2024, marking a 13% year-over-year increase, while global financial wealth held by private households grew by 8% to $301 trillion [6] Industry Dynamics - The dealmaking activity in the registered investment advisor and asset management sectors, which began around 2020, is expected to intensify in the latter half of the decade [2] - The wealth and asset management industries may remain fragmented, but profitability is possible with a focused team and a limited client base, despite tighter revenue margins and rising costs due to technology and AI investments [3] - Clients in wealth management are increasingly seeking more comprehensive services, including multi- and single-family offices [3] Dealmaking Drivers - The consolidation in the industry is driven by four key factors: cutting costs through scale, expanding client segments and geographies, enhancing capabilities, and accessing capital for business funding [3] - A higher volume of dealmaking is anticipated among asset managers (60 to 90 deals per year) and alternative asset managers (80 to 120 deals per year) compared to previous years [5] - There is a decline in the number of new mutual fund or ETF managers annually, reflecting a broader trend in the industry [5]

Summary of IGM Financial (IGIF.F) 2025 Conference Call Company Overview - **Company**: IGM Financial - **Date**: September 04, 2025 - **Key Speakers**: James O'Sullivan (President and CEO), Damon Murchison (President and CEO of IG Wealth Management) Key Points Financial Performance - **Record Quarter**: The second quarter was described as the most satisfying in five years, with earnings up 15% year-over-year [8][9] - **Earnings Growth**: IGM is on track to deliver 9% earnings growth over rolling three to five-year periods, having exceeded this target in the previous year and the first half of the current year [9][10][17] - **Earnings Contribution**: Current earnings do not include contributions from Wealthsimple or Rockefeller, which are expected to add significant value in the near future [11][12] Business Strategy and Market Conditions - **Business Architecture**: IGM has structured its business with embedded growth and diversification across two divisions: Wealth Management (IG Wealth Management, Rockefeller, Wealthsimple) and Asset Management (Mackenzie Investments, China AMC, Northleaf) [13][14] - **Market Dynamics**: The company acknowledges that while it controls its business execution, external market conditions are unpredictable. There is a cautious outlook on net flows and sales due to economic factors affecting Canadians' ability to invest [15][17] - **Operating Leverage**: IGM expects to benefit from operating leverage as revenue growth outpaces expense growth, particularly as the company has managed costs effectively [18][21] Industry Trends - **Wealth Management Evolution**: The industry is shifting towards providing comprehensive financial life management rather than just investment advice. This includes estate planning and wealth transfer strategies [22][32] - **Emergence of Alternatives**: There is a growing trend towards alternative investments, which IGM is well-positioned to capitalize on, particularly through its Mackenzie and Northleaf platforms [22][23] - **Technology and AI**: The integration of AI is expected to enhance personalization and customization in wealth management solutions, with IGM already seeing positive impacts in its quant equity team [24][26][36] Growth Opportunities - **Demographics**: A significant portion of financial advisors are nearing retirement, creating opportunities for IGM to capture market share with a younger advisor demographic [29][30] - **High Net Worth Focus**: Currently, 46% of IGM's assets under management (AUM) are from high net worth clients, with aspirations to increase this share further [45][46] - **New Product Offerings**: IGM is exploring expansion into estate planning, insurance, and mortgage services, with partnerships like ClearState for estate planning and Nesto for mortgages already in place [51][55][59] Competitive Positioning - **Market Penetration**: IGM has increased its penetration in high net worth households from just over 2% to nearly 3% over five years, with plans to double this in the next five years [41][42] - **Differentiation**: IGM's competitive edge lies in its holistic approach to wealth management, focusing on planning alpha through tax optimization, retirement planning, and generational wealth transfer [43][44] Strategic Investments - **Valuation Concerns**: The market has not fully recognized the value of IGM's strategic investments, which include significant stakes in Wealthsimple and Rockefeller. The company aims to demonstrate value through earnings growth and share buybacks [60][61][64] - **Share Buybacks**: IGM plans to buy back 5 million shares this year, with a focus on returning $800 million to $1 billion to shareholders in the coming years [66][67] Closing Thoughts - **Embedded Value**: There is significant embedded value within IGM that investors may be overlooking. The focus will be on demonstrating this value through earnings growth and strategic actions [68][69] Additional Insights - **Future Outlook**: IGM is optimistic about its growth trajectory, driven by demographic shifts, technological advancements, and strategic positioning in the wealth management sector [36][37][39]

Core Insights - Atos has successfully completed the data center migration project for IGM Financial, transitioning to a modern cloud-native solution utilizing Microsoft Azure and Google Cloud Platform [2][5] - The new cloud model enhances IGM's operational efficiency, control, speed, and scalability, allowing for rapid deployment of new applications and services without significant upfront investments [3][4] - The migration facilitates integration with advanced technologies such as AI, machine learning, and IoT, positioning IGM to remain competitive in a fast-evolving technological landscape [5] Company Overview - Atos is a global leader in digital transformation with approximately 72,000 employees and annual revenue of around €10 billion, operating in 68 countries [8] - The company specializes in cybersecurity, cloud services, and high-performance computing, and is committed to providing tailored AI-powered solutions across various industries [8] - Atos has established partnerships with leading public cloud providers, including Microsoft and Google, to enhance its digital transformation offerings [7]