Guardian Directed Equity Path Portfolio (GGEP.F) · TSX:GGEP.F
Guardian Directed Equity Path Portfolio (GGEP.F) — Guardian Capital Group — Shareholder Meeting (May 2014)
32 slides from Guardian Directed Equity Path Portfolio (GGEP.F)'s shareholder meeting presentation, May 22, 2014
Slide 1: Annual Meeting of Shareholders
Guardian Capital Group Limited Annual Meeting of Shareholders May 22, 2014 James S. Anas George Mavroudis Chairman of the Board President and Chief Executive Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” with respect to Guardian Capital Group Limited and its products and services, including its business operations and strategy and financial performance and condition. These statements, characterized by such words as
Slide 3: Agenda
Agenda • Overview of Guardian’s businesses • Financial Highlights • Investment Management • Financial Advisory • Questions 3
Slide 4: Guardian's Businesses
Guardian’s Businesses Investment Management Financial Advisory AUM of $23.2 billion* AUA of $12.2 billion* Corporate Activities and Investments Management expertise, financing, coordination of business activities and support Shareholders’ equity: $438 million* Securities holdings: $468 million * TSX
Slide 5: Guardian's Fee Generating Assets
Guardian’s Fee Generating Assets Investment Management Financial Advisory Assets Under Management Assets Under Administration As at period end ($ billions) As at period end ($ billions) $23.2 $22.2 $12.2 $11.6 $18.8 $9.9 $16.3 $15.9 $8.7 $14.0 $7.8 $7.1 2009 2010 2011 2012 2013 Q1 2009 2010 2011 201
Slide 6: 2013 Financial Highlights
2013 Financial Highlights ($ millions, except per share amounts) 2013 2012 % change Net revenues $101.3 $86.4 17% Operating earnings $26.9 $20.1 34% EBITDA $32.3 $25.2 28% Net earnings, available to shareholders $34.4 $22.6 53% AUM $22,228 $18,832 18% AUA $11,559 $9,918 17% Shareholders’ equity, per
Slide 7: Q1 2014 Financial Highlights
Q1 2014 Financial Highlights ($ millions, except per share amounts) Q1 2014 Q1 2013 % change Net revenues $27.7 $23.2 20% Operating earnings $8.6 $5.1 68% EBITDA $9.8 $6.5 52% Net earnings available to shareholders $10.9 $5.5 97% AUM $23,237 $20,351 14% AUA $12,227 $10,497 16% Shareholders’ equity,
Slide 8: Net Revenue
Net Revenue For the years ended December 31 ($ millions) • 2013 net revenue of $101 million, 17% increase over prior $101.3 year $50.9 million in net management $86.4 fees, 20% higher on higher AUM and $73.7 improved margins $61.1 $64.9 $23.1 million in net commission revenue, 22% higher due to
Slide 9: Operating Earnings
Operating Earnings For the years ended December 31 ($ millions) • Operating earnings increase $26.9 $6.8 million, or 34%, from the prior year $20.1 Positive contributions to growth in operating earnings from all business $17.1 segments $13.5 • Q1 2014 operating earnings of $8.7 $8.6 million, 68% i
Slide 10: Operating Earnings
Operating Earnings $8.0 Past five quarters’ operating earnings by segment ($ millions) $7.0 $6.0 $5.7 $5.6 $5.0 $3.9 $4.0 $3.3 $2.7 $3.0 $3.0 $3.0 $2.9 $2.9 $2.0 $2.4 $1.0 $- Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Operating Segments Corporate Activities & Investments • Growth in our Operating Segme
Slide 11: Dividends
Dividends Per share For the years ended December 31 ($’s) • Total of $0.30 per share paid in $0.30 2013 Annual dividend in March increased 18% to $0.20 from $0.17 Transitioned to quarterly dividends of $0.05 per share in July and $0.16 $0.17 November 2013 $0.15 $0.15 • Two dividend increases in
Slide 12: Dividends
Dividends Per share For the years ended ($’s) • Dividends increased: $0.065 9.6% CAGR since 2009 15% CAGR since 2012 $0.050 $0.043 $0.040 $0.038 $0.038 2009 2010 2011 2012 2013 F 2014 • For years 2009 to 2012 the amounts represent the effective quarterly dividend rates • 2014 rate is the recentl
Slide 13: Share Buybacks
Share Buybacks For the years ended December 31 ($ millions) • 13% of outstanding shares $12.4 repurchased since the start of 2009 $39.6 million in cash returned to $8.7 shareholders $7.8 $7.9 4.9 million shares repurchased Average purchase price of $8.08 per share • In 2013, $17.1 million was
Slide 14: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity per share, diluted As at period end ($’s) $13.93 $13.17 • 10.3% CAGR in shareholders’ $11.16 equity per share since 2009 $10.01 $9.90 $9.19 • 18.0% increase in Shareholders’ equity per share during 2013 • 5.8% increase in Q1 2014 2009 2010 2011 2012 2013 Q1
Slide 15: Investment Portfolio
Investment Portfolio Securities per share, diluted As at March 31, 2014($’s) • Provides a stable stream of $468 million or $14.88 per share revenue $0.51 $0.09 • As at March 31, we have invested $16 million of a $25 $3.15 million commitment into our new real estate fund with the $11.13 proceeds from
Slide 16: Investment Management
Investment Management $23.2 billion in AUM* Competitive investment products Executing on opportunities Growth across all distribution channels Institutional Investment Private Wealth Management Management $1.9 billion in AUM* $21.3 billion in AUM* 16 * As at March 31, 2014
Slide 17: Investment Solutions
Investment Solutions Canadian Equities Foreign Equities Fixed Income $13.0 billion* $1.9 billion* $6.4 billion* Global / EAFE Core Large Cap Core Global / EAFE Income Credit Quality Growth U.S. Credit Long/Short Income Emerging Markets Income Liability Driven Small/Mid Cap
Slide 18: Equity & Fixed Income Highlights
Equity & Fixed Income Highlights Equity Strategy 1-year Quartile 3-year Quartile 5-year Quartile 10-year Quartile return ranking return ranking return ranking return Ranking Canadian Growth Equity 21.9% 2nd 6.1% 3rd 16.8% 2nd 10.2% 2nd Canadian Equity Income 17.1% 4th 11.4% 1st 22.8% 1st 12.2% 1st G
Slide 19: Investment Solutions - Real Estate
Investment Solutions - Real Estate • Total capital committed raised $80 million; $55 million committed from clients with approximately $30 million to date deployed $25 million committed by Guardian with approximately $16 million to date deployed • Purchased 10 properties to date for total value
Slide 20: Distribution Channels and Target Clients
Distribution Channels and Target Clients Institutional Private Wealth Retail Intermediary $10.6 billion* $1.9 billion* Sub-advisory Wrap Defined Benefit $5.8 billion* $4.9 billion* Direct client Pension Plans relationships Defined Contribution Bank-owned Segregated Funds Independent Advisors Pension
Slide 21: Institutional Clients
Institutional Clients Assets Under Management As at period end ($ billions) • AUM increased 16% in 2013 $10.6 $10.3 • Future growth opportunities $8.5 $8.9 remain strong Continued success in developing leads $7.3 $7.3 through key consultants Zephyr acquisition will provide new product capabiliti
Slide 22: Retail Intermediary Clients
Retail Intermediary Clients Broker-Dealer Wrap Programs Assets Under Management As at period end ($ billions) • AUM increased 29% in 2013 +340% growth since 2009 $4.5 $4.9 • Canada’s leading money manager in the Separately $3.5 Managed Wraps* Significant representation, $4.0 billion, on the 5 ma
Slide 23: Retail Intermediary Clients
Retail Intermediary Clients Sub-Advised Mutual Funds Assets Under Management • AUM increased 12% in 2013 As at period end ($ billions) 29% growth since 2009 $5.8 $5.6 • Expanding our client base $4.9 $5.0 $5.0 7 relationships in 2013 compared to $4.5 only 3 in 2008 Partnering to sub-advise on
Slide 24: Private Wealth Management Clients
Private Wealth Management Clients Assets Under Management As at period end ($ billions) • AUM increased 24% in 2013 58% growth since 2009 $1.8 $1.9 • Experienced client-focused investment professionals $1.5 $1.4 $1.4 offering bespoke services in the $1.2 major Canadian markets of Toronto, Vancouve
Slide 25: Financial Advisory
Financial Advisory $12.2 billion in AUA* National distribution platform The leading platform for Canada’s independent investment advisors Life Insurance MGA Mutual Fund and Securities Dealers $2.7 billion in AUA* $9.5 billion in AUA* 25 * As at March 31, 2014
Slide 26: Life Insurance Managing General Agency
Life Insurance Managing General Agency • IDC Worldsource Insurance Network is one of Canada’s leading MGAs Life insurance Disability and critical care insurance Segregated funds, term deposits and annuities • Significant presence in the key Canadian high growth markets Southern Ontario Alb
Slide 27: Life Insurance Managing General Agency
Life Insurance Managing General Agency Premiums on Life Insurance Policies Sold Assets Under Administration For the years ended December 31 ($ millions) As at period end ($ billions) $38.5 $36.3 $2.67 $2.46 $2.23 $1.63 $20.0 $0.72 $5.6 $6.2 $0.42 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Q1
Slide 28: Life Insurance Managing General Agency
Life Insurance Managing General Agency Net Insurance Commission Revenue For the years ended December 31 ($ millions) $14.1 • Annual sales generate first year commissions • Continuing service fees are $10.4 added in the following years, which have a high persistency (95%) $6.1 $2.3 $1.9 2009 2010 201
Slide 29: Mutual Fund and Securities Dealers
Mutual Fund and Securities Dealers • Worldsource is a national financial advisory services business for independent investment advisors Licensing alternatives – MFDA and IIROC Availability of best in class products for their clients Exclusive access to the various Guardian mutual funds Suppo
Slide 30: Mutual Fund and Securities Dealers
Mutual Fund and Securities Dealers Assets Under Administration As at period end ($ billions) • AUA grows by 18% across our $9.5 $9.0 platforms in 2013 The pipeline for recruiting new $7.6 advisors remains strong $6.9 $6.6 • Guardian products included in $5.6 2013 AUA is $150 million and $162 milli
Slide 31: Summary
Summary All key financial operating metrics set historical highs in 2013: » AUM & AUA » Net revenue » Operating Earnings » EBITDA » Shareholders’ Equity Continued growth in Q1 2014 Solid investment performance Improving sustainable growth in operating earnings provides opportunity to fund re
Slide 32: Questions?
Se GUARDIAN CAPITAL Our history. Your future. Questions?
Guardian Capital Group — Shareholder Meeting (May 2014) on 6ix