Power Financial is the holding company for the Desmarais family’s financial interests. The company owns 67.8% of Great West Life, Canada’s second-largest life insurer, as well as 61.4% of asset manager IGM Financial, which owns Investors’ Group and Mackenzie Investments. Power also owns 27.8% of European conglomerate Pargesa and 81.7% of Wealthsimple Financial, an online advisory platform.
Income Investor
Despite remodelling its life insurance business, Power’s share price is 3% below the price of my original recommendation, made as long ago as 2005. The dividend increases since 2014 have not been enough to offset investor pessimism over the future of the traditional mutual fund business. Reluctantly it’s time to Sell Power Financial. However, with dividends, the total return is 60%.- Gavin Graham
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PWF was first recommended here on July 20, 2005