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September 3, 2014
IGM FINANCIAL Scotiabank Financials Summit
2
Caution Concerning Forward Looking Statements
Certain statements in this report other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial’s current
expectations. Forward-looking statements are provided to assist the reader in understanding the Company’s financial position and results of operations as at and for the
periods ended on certain dates and to present information about management’s current expectations and plans relating to the future. Readers are cautioned that such
statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition,
expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, as well as the outlook
for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in
nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “bel ieves”, “estimates”, “seeks”, “intends”, “targets”,
“projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-
looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be
appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove
to be incorrect.
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts,
predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.
A variety of material factors, many of which are beyond the Company’s, and its subsidiaries’ control, affect the operations, performance and results of the Company, and its
subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors
include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign
exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial
condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes , operational and
reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory
proceedings, catastrophic events, the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company’s
and its subsidiaries’ success in anticipating and managing the foregoing factors.
The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. The reader is also cautioned to
consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements.
Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or
circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or
results, or otherwise.
Additional information about the risks and uncertainties of the Company’s business and material factors or assumptions on which information contained in forward-looking
statements is based is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedar.com.
3
• Net earnings available to common shareholders, which is an additional measure in accordance
with IFRS, may be subdivided into two components consisting of:
– Operating earnings available to common shareholders; and
– Other items, which include the after-tax impact of any item that management considers
to be of a non-recurring nature or that could make the period-over-period comparison of
results from operations less meaningful.
• This report may also contain non-IFRS financial measures. Non-IFRS financial measures are
used to provide management and investors with additional measures of performance. However,
we caution that non-IFRS financial measures do not have standard meanings prescribed by
IFRS and are not directly comparable to similar measures used by other companies. Specific
instances of such measures that may be referred to within this document include “Operating
Earnings”, “Operating Earnings per Share” and “Earnings before Interest and Taxes” (EBIT).
• We refer you to the appropriate reconciliation in the Management’s Discussion and Analysis of
these non-IFRS financial measures to measures prescribed by IFRS.
Non-IFRS Financial Measures
4
Please refer to the following documents relating to IGM Financial for a more comprehensive
summary of the corporation’s business and results:
• Interim reports for the quarters ended March 31, 2014 and June 30, 2014
• 2013 Annual Report
• 2013 Annual Information Form
• Press releases subsequent to June 30, 2014
These documents are available on the Company’s website at www.igmfinancial.com and/or at
www.sedar.com.
IGM Financial Public Disclosures
5
1. Overview
2. Investors Group
3. Mackenzie Investments
4. Summary
6
IGM Financial Overview
• Comprehensive personal
planning delivered through long-
term client and Consultant
relationships
• Approx. 4,900 Consultants
• $72.9 billion mutual fund AUM
• Investment management and
related services offered through
diversified investment solutions
• > 30,000 third party advisors
• $49.1 billion mutual fund AUM
• $71.1 billion total AUM
• Integrated personal
financial services company
• > 900 financial advisors
• > $22 billion assets under
administration
• $3.7 billion mutual fund AUM
IGM Financial manufactures and distributes financial products and services
through its three subsidiaries, with an emphasis on financial advisors.
AUM refers to assets under management
As at July 31, 2014
0
25
50
75
100
125
150
IGM Financial Assets Under Management
Chart reflects actuals to July 31, 2014.
IGM Financial Assets Under Management ($ Billions)
7
Mutual
Funds
Total
$142.1 billion at
July 31, 2014
$125.8 billion at
July 31, 2014
During 2014, IGM Financial’s mutual fund assets under management have
increased to $125.8 billion, reflecting a 6.9% increase year to date and a
record month-end high.
2014 2010 2011 2012 2013
IGM Financial Distribution
8
IGM Financial enjoys broad and diversified distribution capabilities with an
emphasis on financial advisors across Canada.
9
Value of Advice – CIRANO Research
No advice
4-6 years of advice
7-14 years of advice
15+ years of advice
Difference in household financial assets attributable to financial advice
2.73X 1.99X 1.58X
CIRANO research provides quantitative evidence of significant advantages for
advised households.
Source: An econometric analysis of the value of advice in Canada, by Claude Montmarquette, CIRANO, 2012
10
Real Return of a GIC
1 Year GIC Rate Less Inflation
Pe
rce
nt
Source: Bloomberg
-4
-3
-2
-1
0
1
2
3
4
Dec-97 Dec-99 Dec-01 Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13
After adjusting for inflation, recent history of 1-year GIC rates has not been very
attractive for Canadians with many periods of negative real returns.
TotalCanadian
wealth
Residential mortgages
Other household credit
Financial wealth (incl. non-
discretionary)
Realestate
Non-discretionary
fin. assets
Equity in privatebusinesses
$9.8T
-$1.7T
Financialwealth byproduct
Mutual Funds and
Segregated Funds
Wraps
Discretionary management
Stocks & bonds
GICs/GIAs
Savings deposits
$3.1T
Financialwealthby age
<45
45-64
65+
$3.1T
$0-100K
$100-500K
$500K-1M
$1-2M
$2-5M
$5M+
$3.1T
Financialwealth byhousehold
wealth level
11
Canadian Household Wealth
Significant opportunity for long term investments with over $1.2 trillion or
40% of Canadian household wealth on the side-lines in GICs and deposits.
Financial wealth concentrated in high net worth and retiree market with
complex financial planning needs.
Over $1.2T
Source: Investor Economics. As at December 31, 2012.
12
1. Overview
2. Investors Group
3. Mackenzie Investments
4. Summary
13
Investors Group Consultant Network
Number of Investors Group Consultants
As at December 31 (unless otherwise indicated)
Investors Group Consultants have been providing comprehensive financial plans
for clients for over 85 years, through an exclusive network of approximately 4,900
Consultants. The Consultant Network grew by 140 during Q2, 2014.
+208
+198
2005 2006 2007 2008 2009 2010 2011 2012 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14
3,668
3,917
4,331
4,479
4,633 4,686 4,608
4,518 4,465 4,550 4,599 4,673 4,731
4,871
14
Investors Group Consultant Initiatives
Stronger offer for new
Consultants
Division and Regional
Directors income alignment
More Associates and Teams
More effective Consultant
succession planning
Enhanced Financial
Planning Focus
Client service survey
During October, 2013 Investors Group launched a group of initiatives aimed at
enhancing its current and future success in Consultant Network development.
October 2013
Announced
Enhancements
5.1
2014 YTD
Investors Group Client Experience
Investors Group Client Account Rate of Return Experience (%)
15
The median Investors Group client return was approximately 12.2% during 2013
and 5.1% year to date 2014.
12.2
0
5
10
15
20
25
2013 Annual
90% of clients
had returns
within this range
Median
Returns
8%
9%
10%
11%
12%
13%
5.0
5.5
6.0
6.5
7.0
7.5 Gross Sales
Redemptions
Redemption rate on long-term funds
Investors Group LTM Mutual Fund Sales
16
Investors Group has experienced continuing sales momentum, with gross
sales improving during the last twelve months and the redemption rate
declining.
Mutual Fund Gross Sales and Redemptions
(Last Twelve Month Trailing - $ Billions) Redemption Rate
2014 2011 2012 2013
Most recent data point reflects the twelve months ending June 2014.
Comprehensive Financial Planning
17
Investors Group continues to experience strong growth in its distribution of
insurance and mortgage products.
2011 2012 2013 2014
734
1,182 1,170
1,566
2011 2012 2013 2014
25.0 25.8 27.1 25.7
31.0
34.7 35.9
32.1
New Annualized Insurance Premiums
Six months ended June 30
($ Millions)
Mortgage Originations
Six months ended June 30
($ Millions)
Group
Insurance
Individual
Insurance
18
Investors Group Investment Management
There have been a number of changes and enhancements to Investors Group’s
investment management capabilities.
Winnipeg
Toronto
Montreal
Dublin
Hong Kong
• Jeff Singer was appointed
Executive Vice-President & Chief
Investment Officer – October, 2013
• Dom Grestoni retired
on June 30, 2014
• Martin Downie assumed
portfolio manager responsibility
for Investors Dividend Fund
• Les Grober hired as Head of
Asset Allocation and will oversee
all asset allocation strategies at
Investors Group – August, 2014
• Seamus Kelly joined the
Dublin portfolio management
team during September, 2014
• Nick Scott hired as Head of
Asian Equities and will be leading
Investors Group’s Hong Kong
investment team – July, 2014
19
1. Overview
2. Investors Group
3. Mackenzie Investments
4. Summary
Mackenzie’s Vision and Strategy
20
Mackenzie has affirmed its vision and established a number of strategic
priorities to drive future business success.
EFFECTIVE RESOURCE UTILIZATION
Mac
ken
zie’
s St
rate
gic
Pri
ori
ties
21
Mackenzie Leadership Team Changes
Mackenzie has implemented a number of senior management personnel
changes to achieve its strategic priorities.
Brian Gooding Appointed
Executive Vice-President
Head of Distribution
• Strategic Alliances and
Mackenzie Institutional
under one leader
− Chris Boyle Appointed
Senior Vice-President
Institutional
− Damon Murchison Appointed
Senior Vice-President
Retail Sales
Product and marketing functions separated into two distinct
teams with new leadership
Distribution Marketing Investment
Management Product
Michael Schnitman Appointed
Senior Vice-President
Product
Su McVey Appointed
Senior Vice-President
Marketing
Tony Elavia Executive Vice-President
Chief Investment Officer
• Investment management
team and process
enhancements
− Alain Bergeron Appointed
Asset Allocation Team
Lead
− Darren McKiernan Appointed
Global Equity & Income
Team Lead
− Konstantin Boehmer Appointed
Portfolio Manager, Fixed
Income
22
Mackenzie Investment Management Teams
Mackenzie’s assets under management are diversified across 10 investment
teams with different asset classes, management styles and mandates.
Investment Team Asset Class Management Style # of Mutual
Funds Managed1
All Cap Value Equity All cap value 11
Asian Fixed Income Fixed Income Asian credit 2
Asset Allocation N/A Managed assets 23 2
Cundill Equity Deep value 15
Fixed Income Fixed Income Canadian and global fixed income 21 3
Global Equity & Income Equity Global equity and income 11
Growth Equity Growth 14
Ivy Equity Quality growth 13
Large Cap GARP Equity Large cap GARP 2
Resource Equity Natural resources & precious
metals 4
1. As at June 30, 2014 and excludes Quadrus funds.
2. Mackenzie Asset Allocation Team is responsible for the oversight of Mackenzie’s balanced funds, managed asset
programs, diversified fund-of-fund strategies and concentrated funds of best ideas.
3. Includes funds where the Mackenzie Fixed Income Team manages the fixed income portion of balanced funds.
1 & 2 Stars 3 Stars 4 & 5 Stars
35% 37%
28%
19%
55%
26% Mackenzie
All Morningstar-Rated
Mackenzie Investment Performance
23
Morningstar Ratings – Proportion of Morningstar-Rated Funds
(As at June 30, 2014)
1
Source: Morningstar
1. Excludes Quadrus funds.
Mackenzie continues to deliver solid investment performance, 81% of
mutual funds managed by Mackenzie reside in funds with a 3, 4 or 5 star
Morningstar rating.
Mackenzie Product Innovation
24
SERIES D
New mutual fund series sold exclusively
through the discount brokerage channel
Mackenzie Investments is dedicated to creativity and innovation in our products
and services.
Dec, 2008 Dec, 2009 Dec, 2010 Dec, 2011 Dec, 2012 Dec, 2013 Jul, 2014
35.8 40.6 43.4
39.1 40.4 46.0 49.1
18.9
23.024.9
22.5 21.1
19.3
22.054.7
63.6 68.3
61.7 61.5 65.3
71.1
Mackenzie Assets Under Management
1. Includes sub-advisory, separately managed and other institutional accounts.
2. Includes mutual funds, asset allocation programs and funds of funds.
Mackenzie has approximately $71.1 billion in assets under management.
Mackenzie is focused on providing investment management and service
excellence to a diverse range of distribution channels and end clients.
Mutual Funds
Institutional
34% 36% 36% 36% 34% 30% 31% Institutional % of AUM
25
1
2
Mackenzie Assets Under Management
($ Billions)
Mackenzie Mutual Fund Gross Sales
26
2008 2009 2010 2011 2012 2013 YTD 2014
10%
30% 26% 23%
36%26% 24%
21%
16% 26% 29%
29%
33% 37%
54%
44%39% 37%
31% 39% 38%
15%10% 9% 11%
5%
Mackenzie’s investment style and expertise diversity ensures the company’s
product shelf remains relevant through every stage of the market cycle and
through changes in investor preferences.
1. Prior periods have been adjusted to remove the impact of significant rebalancing activity.
2. Year to date June 30, 2014.
1
Sector / other
Equity
Income Oriented
Balanced
2
Gross Sales Mix of Long Term Mutual Funds by Asset Class
Twelve months ended December 31 (unless otherwise indicated)
27
Mackenzie LTM Mutual Fund Sales
Mackenzie has experienced continuing strong sales momentum, with net sales
of $245 million in the last twelve months, a significant improvement relative to
last year.
2014 2011 2012 2013
Mutual Fund Gross Sales and Redemptions
(Last Twelve Month Trailing - $ Billions)
2014 2011 2012 2013
Mutual Fund Net Sales
(Last Twelve Month Trailing - $ Billions)
1. Q4, 2013 mutual fund flows include $405 million of gross sales, $247 million of redemptions and $158 million of net sales related to
institutional rebalancing during the period.
2. Q4, 2012 mutual fund flows include $556 million of gross sales, $620 million of redemptions and $64 million of net redemptions related to
institutional rebalancing during the period.
1,2 1,2
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
Gross Sales
Redemptions
Redemption rate on long-term funds
245M
(3.0)
(2.0)
(1.0)
0.0
1.0
28
1. Overview
2. Investors Group
3. Mackenzie Investments
4. Summary
29
IGM Financial Summary
As at August 26, 2014
Market
Capitalization
• Listed on TSX as ticker “IGM” with a market capitalization of $13.2 billion
• Largest publicly traded asset manager in Canada and sixth largest global
asset manager as measured by market capitalization
Dividend Yield
Ownership
• Dividend yield of 4.1%
• 2nd highest dividend yield of all Canadian financial services firms
• Part of the Power Financial group of companies, which includes Great
West Life, London Life, Canada Life, Irish Life and Putnam Investments
2.93
2.96
3.02
3.07
3.12
Jun 30,
2013
Sep 30,
2013
Dec 31,
2013
Mar 31,
2014
Jun 30,
2014
741
748
764
777
790
Jun 30,
2013
Sep 30,
2013
Dec 31,
2013
Mar 31,
2014
Jun 30,
2014
IGM Financial Operating Earnings
30
IGM Financial has a track record of solid financial performance.
IGM Financial Operating Earnings
Last Twelve Months Trailing ($ millions)
IGM Financial Operating Earnings Per Share
Last Twelve Months Trailing ($)
September 3, 2014
IGM FINANCIAL Scotiabank Financials Summit