IG Wealth Management has tapped Goldman Sachs Asset Management to oversee a multi-billion-dollar product suite and bring investment strategies that have long been accessed by institutional investors to the Canadian wealth channel, the Winnipeg-based firm announced on Tuesday.
As part of the firms’ new strategic partnership, Goldman Sachs Asset Management’s multi-asset solutions team will assume the portfolio management responsibilities for the IG Strategic Wealth Portfolios, formerly known as the IG Core Portfolios.
Altogether, the five portfolios that make up the suite have about $23.2 billion in assets. This includes income-focused, growth-focused and balanced funds.
IG combed through a list of a dozen asset managers to ultimately select Goldman Sachs Asset Management as the steward of the funds, which have thousands of clients invested in them already. The New York-based asset manager’s “opportunistic view to risk,” culture and track record of offering global multi-asset investment strategies to sophisticated institutional investors were what stood out, said Florence Narine, head of investment solutions at IG, in an interview.
“We are, at our heart, a wealth organization, so we really needed someone that can understand the needs and translate that kind of [institutional] investment expertise into a wealth framework,” she added.
Goldman Sachs Asset Management will add a private asset sleeve to the IG Strategic Wealth Portfolios, providing private market exposure to advisors and retail investors “who may not necessarily have that access point,” Narine said.
It will also dynamically manage the fund portfolios amid the rapidly evolving and unpredictable global market, said Alexandra Wilson-Elizondo, global head and co-chief investment officer of the multi-asset solutions team at Goldman Sachs Asset Management, in a release.
“We believe a modern approach to asset allocation, dynamic investment strategies, robust risk management processes and well-diversified portfolios help clients achieve their objectives across market environments,” Wilson-Elizondo said.
“We are excited to partner with IG to bring the capabilities of our multi-asset solutions team to IG’s clients across Canada.”
IG now has roughly 25 external asset managers overseeing its investment offerings. Asked why the firm has decided to outsource rather than insource these portfolio management responsibilities, Narine said the firm isn’t “looking to build out more investment acumen here — we really want that stewardship and accountability to hire the best, to hold us all accountable for delivering great results.”
As of Aug. 31, IG serves approximately one million Canadians and has roughly $178 billion in assets under advisement.