IGM Financial Inc. · TSX:IGM
IGM Financial — Scotia Capital Financials Summit 2004
38 slides from IGM Financial's conference presentation, Sep 14, 2004
Slide 1: IGM Financial Inc. - Scotia Capital Financials Summit
IGM Financial Inc. SCOTIA CAPITAL FINANCIALS SUMMIT SEPTEMBER 14, 2004
Slide 2: Caution Concerning Forward Looking Statements
Caution Concerning Forward Looking Statements This presentation may contain forward looking statements about the Company, including its business operations, strategy and expected financial performance and condition. forward looking statements include statements that are predictive in nature, depend
Slide 3: Agenda
1. About the Companies 2. Industry 3. Investors Group 4. Mackenzie Financial 5. Investment Planning Counsel 6. IGM Financial 3
Slide 4: IGM Financial
IGM Financial • IGM Financial is manufactures and distributes financial products and services through its subsidiaries. - Market Capitalization of $9.0 billion - Float of $3.6 billion - Listed on TSX as ticker “IGM” - Dividend yield of 3.52% - Largest mutual fund manager in Canada, with $79.7 billio
Slide 5: Leading Scale in Asset Management
Leading Scale in Asset Management • IGM Financial is the largest mutual fund manager in Canada, with nearly double the mutual fund assets of its closest competitor. Mutual Fund Assets Under Management 79.7 ($ Billions at June 30, 2004) 44.4 40.8 40.9 41.6 34.4 31.0 24.1 22.1 19.5 Franklin BMO AGF Fi
Slide 6: IGM Financial Subsidiaries
IGM Financial Subsidiaries IGM Financial • 3,300 Investors • > 30,000 third party • > 600 financial Group Consultants financial planners planners and full service • $44.8 billion in brokers • $7.4 billion in client assets client assets • $42.3 billion in client • $42.5 billion in assets • $1.3 billi
Slide 7: Advice Channel Strategy
Advice Channel Strategy • IGM Financial has broad and diversified distribution. IGM Financial • 3,300 • > 30,000 • > 600 • 1,100 Gold • 2,900 • 13,000 Investors third party financial Key advisors Freedom insurance Group financial planners 55 advisors Consultants planners and Financial associated ful
Slide 8: Financial Planning Channel
Financial Planning Channel • IGM Financial owns two of the five largest financial planning companies in Canada. Assets Financial ($ B) Advisors Ownership 1 Investors Group 44,796 3,294 IGM Financial 2 Dundee / Cartier 27,665 3,000 Dundee Wealth 3 Assante / IQON 23,646 1,300 CI Fund Management 4 Berk
Slide 9: Agenda
1. About the Companies 2. Industry 3. Investors Group 4. Mackenzie Financial 5. Investment Planning Counsel 6. IGM Financial 9
Slide 10: Attractive Industry
Attractive Industry • IGM Financial subsidiaries operate in a profitable and growing industry. • High growth rate - Demographics support continued savings - Built in growth through underlying market return • Profitable • Significant advantages to industry incumbents - Scale - Brand - Distribution 10
Slide 11: Industry Trends and Influences
Industry Trends and Influences • Consolidation at both the manufacturing and distribution levels • Increasing links between distribution and manufacturing • Large multi-channel competitors • Low interest rate environment and recent recovery in equity markets 11
Slide 12: Demographics
Demographics • The number and proportion of Canadians in their prime savings years is projected to continue to increase during the next decade. Number of Canadians in Prime Savings Years (40 - 65 years old, millions) 12.0 12.2 12.3 11.4 10.1 2001 2006 2011 2016 2021 % of Adult Population (>20 years
Slide 13: Distribution of Canadian Financial Assets
Distribution of Canadian Financial Assets • 57% of discretionary financial assets in Canada are distributed through financial advisors. Canadian Discretionary Wealth Assets Advice Channel Composition ($ Billions) Private Bank Branch Total $1.52 Trillion 865 Client Advice Deposits 9% 14% 654 Direct S
Slide 14: Agenda
1. About the Companies 2. Industry 3. Investors Group 4. Mackenzie Financial 5. Investment Planning Counsel 6. IGM Financial 14
Slide 15: Investors Group
Investors Group • Investors Group provides comprehensive financial planning through its network of 3,300 Consultants. Product Offering Support Platform • Investment • 112 region offices management • Industry-leading • 140 mutual funds training • 11 brands Consultant - Client • Advanced financial • S
Slide 16: Investors Group Emphasis
Investors Group Emphasis • Enduring client relationships – Long term Consultant / client relationship – Financial planning ethic – Not confined by location nor time of day • Strong culture – Entrepreneurial – Mentorship – Heritage – Corporate citizenship • Solid growth – Strong loyalty – Recruiting
Slide 17: Recent Initiatives
Recent Initiatives • The last two years has been a period of repositioning for growth. • Product pricing realignment • Consultant compensation and support – Enhanced competitiveness of offering – Consultant retention • Improvements to planning model – SymphonyTM Strategic Investment Planning – Alto
Slide 18: Symphony
SymphonyTM • Investors Group’s strategic investment planning approach has been very well-received by IG Consultants and clients. • Provides clients with optimized risk-adjusted portfolios and enhanced reporting • Alto and Allegro portfolios, built exclusively using Symphony, had net inflows of $379
Slide 19: SolutionsBanking
SolutionsBankingTM • SolutionsBanking has been widely adopted by the IG Consultant Network since launch during June, 2003. • Investors Group’s private label banking solution in association with National Bank • Includes 17 deposit, lending and credit insurance products • One year following launch, ov
Slide 20: Investors Group Consultant Network
Investors Group Consultant Network • The size of the Consultant Network has been stable during the last year, with recent growth emerging. Number of Investors Group Consultants 3,294 3,300 3,223 3,219 3,207 3,186 3,192 3,200 3,100 3,000 Q2, Q3, Q4, Q1, Q2, July, 2003 2003 2003 2004 2004 2004 At June
Slide 21: Investors Group Asset Retention
Investors Group Asset Retention • Driven by strong Consultant retention, Investors Group’s redemption rate declined from 11.5% to 9.4% during the last year. Redemption Rate on Long Term Mutual Funds (Last Twelve Month % of Average Assets Under Management) 18% 16% Industry (excluding 14% Investors Gr
Slide 22: Investors Group Sales
Investors Group Sales • Sales momentum has been building. Consultant Network mutual fund sales have increased by 22% during 2004 relative to 2003. Mutual Fund Gross Sales Mutual Fund Net Sales Seven Months Ended July 31 ($ millions) Seven Months Ended July 31 ($ millions) 2,975 315 2,447 (578) 2003
Slide 23: Investors Group - Management Focus
Investors Group - Management Focus • Providing a competitive proposition to IG Consultants • Growing the size and quality of the Consultant Network • Enhancing Investors Group’s product and service offering • Continued cooperation with Mackenzie, Investment Planning Counsel and other PFC companies •
Slide 24: Agenda
1. About the Companies 2. Industry 3. Investors Group 4. Mackenzie Financial 5. Investment Planning Counsel 6. IGM Financial 24
Slide 25: Mackenzie Financial
Mackenzie Financial • Mackenzie Financial is one of Canada’s premier mutual fund managers. • Unmatched breadth of product offering and access to quality sub-advisors - 144 mutual funds advised on by 25 leading investment management firms • Strong investment management performance • Demonstrated abil
Slide 26: Symmetry
SymmetryTM • Mackenzie launched SymmetryTM, its new strategic asset allocation program, during February, 2004. • Designs customized portfolios optimized on an ongoing basis according to the client’s objectives and preferences • Web-based interface enables advisor input into portfolio construction wi
Slide 27: Mackenzie Investment Performance
Mackenzie Investment Performance • Mackenzie has more Morningstar-rated five star funds than any other company in Canada • 60% of Mackenzie’s assets are ranked first or second quartile in terms of five year returns. Funds in First or Second Quartile at June 30, 2004 74% 60% 53% 49% 45% 44% % of Asse
Slide 28: Mackenzie Investment Performance
Mackenzie Investment Performance • Mackenzie investment philosophies and styles are arranged within eight well-defined sub-brands. 28
Slide 29: Mackenzie Sales
Mackenzie Sales • Mackenzie gross mutual fund sales have increased by 43% during 2004 relative to 2003. Mutual Fund Gross Sales Mutual Fund Net Sales Seven Months Ended July 31 ($ millions) Seven Months Ended July 31 ($ millions) 4,196 699 2,927 (200) 2003 2004 2003 2004 29
Slide 30: Industry Sales - Third Party Distribution
Industry Sales - Third Party Distribution ($ millions) • Mackenzie has ranked first in gross sales during each of the last two years. Fund Manager Assets Gross Sales Gross Sales Rank Net Sales July, 2004 2003 2004 YTD 2003 2004 YTD 2003 2004 YTD Mackenzie 35,183 5,255 4,196 1 1 (70) 699 AIM Trimark
Slide 31: Agenda
1. About the Companies 2. Industry 3. Investors Group 4. Mackenzie Financial 5. Investment Planning Counsel 6. IGM Financial 31
Slide 32: Investment Planning Counsel
Investment Planning Counsel • During Q2, 2004, IGM Financial completed its arrangement to purchase Investment Planning Counsel Inc. • Fifth largest financial planning firm in Canada • $7.4 billion in assets under administration • Over 600 financial planners • Strong momentum in Counsel funds • $1.3
Slide 33: Investment Planning Counsel - Transaction Rationale
Investment Planning Counsel - Transaction Rationale • Expands presence in the financial planning channel • Strong momentum in Counsel Funds, Investment Planning Counsel’s asset management offering • Experienced and committed management team • Investment Planning Counsel benefits from the scale, expe
Slide 34: Investment Planning Counsel - Growth Profile
Investment Planning Counsel - Growth Profile • Consistent growth in assets under management. Counsel Assets Under Management 1,340 ($ millions at August 31) 956 551 220 96 2000 2001 2002 2003 2004 % of Assets Under Administration 1.9% 3.2% 8.5% 14.6% 18.5% 34
Slide 35: Agenda
1. About the Companies 2. Industry 3. Investors Group 4. Mackenzie Financial 5. Investment Planning Counsel 6. IGM Financial 35
Slide 36: IGM Financial
IGM Financial • IGM Financial provides a stable and attractive vehicle for participation in a high growth industry. • Advantages of scale from being largest player in industry • Diversified distribution • Broad product capabilities, quality brands and leading sub-advisors • Advantages as part of Pow
Slide 37: Earnings Per Share
Earnings Per Share • Consistent increases in Earnings Per Share. IGM Financial Fully Diluted Earnings Per Share ($) 2.01 1.85 10 10year yearCAGR CAGRof of19.8% 19.8% 1.56 1.35 1.12 0.89 0.70 0.56 0.46 0.40 0.29 0.33 0.27 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Excludes goodw
Slide 38: Dividends
Dividends • Consistent increases in Dividends Per Share. • IGM Financial’s current annualized declared dividend is $1.20 per share (3.52% yield). IGM Financial Dividends Paid Per Share (cents) 99.0 86.0 10 10year yearCAGR CAGRof of23.0% 23.0% 73.0 61.0 49.0 38.0 30.0 24.5 18.5 15.5 11.0 12.5 10.0 19
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