There is a lot to like about this stock. Increasing EPS, increasing dividend, nice ROE, low debt, Canadian. But I never see Investor's Group advertise and have to think that even though they are the largest independent asset manager in Canada, they are at a huge disadvantage to RY and TD in attracting clients. Obviously with RY and TD already holding a customer's money, it is easy to advertise investing services.
Thoughts?
They have a large salesforce, but are still suffering from net outflow. However, at the moment, their net outflow is lower than their share buyback, thus their "net assets under management per share" is increasing.
That's interesting. I would think there would be outflow in times of market volatility and duress, such as now, for an investment company. Where do they advertise anyways? Do they have stores or partnerships with banks?
Hmmm ... I get flyers every couple of weeks from the local IGM rep. The local community paper has ads as well.Originally Posted by Banalanal
So I guess it depends on where you are and how the local agent is operating as to the advertising you'll see.
Cheers
Yes, it's up to the individual representatives as to how they go about soliciting business.
As an example, two local IG advisors host a phone-in radio program Monday evenings on one of our local radio stations. I'm sure that this has brought in lots of business for them as it makes a great first contact offering advice/solutions without any commitment.
Does anyone else think it odd that, on a forum that is strongly pro-DIY, a poster is suggesting that it's a good idea to buy stock in a company that essentially preys on people who are the opposite?
Where do you draw the line? Does it just end with asset management firms? What about banks and insurance companies that offer similar products/services? Fast food restaurants? Food processors?
You could make a case to boycott just about any sort of firm that makes a profit off of providing a good or a service that another individual might be inclined to do themselves.
the commission they are paying those sellers is huge.
it is a market to be in right now. RBC is expanding in this direction I believe. However, when consumers become more educated (or so I thought), they will soon learn that investing in low cost index funds beats actively managed funds in the long run.
We invest in companies that sell high mer mutual funds. I also like companies that sell cigarettes (PM) and alcohol, like corby. They make lots of $$$$$
Search "Investors Group" on this and other financial forums and read the litany of complaints about their marketing practices and high fees.
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