Igm Financial Inc. · TSX:IGM
Igm Financial — Investor Day (November 2017)
188 slides from Igm Financial's investor day presentation, Nov 28, 2017
Slide 1: IGM Financial Investor Day
IGM FINANCIAL INVESTOR DAY N O V E M B E R 2 8 2017 1
Slide 2: Caution Concerning Forward-Looking Statements
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS Certain statements in this document 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 u
Slide 3: Non-IFRS Financial Measures & Additional IFRS Measures
NON-IFRS FINANCIAL MEASURES & ADDITIONAL IFRS MEASURES Net earnings available to common shareholders, which is an additional measure in accordance with IFRS, may be subdivided into two components consisting of: Adjusted net earnings available to common shareholders; and Other items, which includ
Slide 4: Agenda
AGENDA Welcome & Opening Remarks 8:15 AM IGM Overview & Strategy Overview & Strategic Direction Jeff Carney | President & CEO Regulatory Perspective: Client Centricity Rhonda Goldberg | SVP, Client & Regulatory Affairs Marketing & Branding Strategy Doug Milne | EVP, Chief Marketing & Strategy Office
Slide 5: Glossary
GLOSSARY AUA: Assets Under Administration AUM: Assets Under Management CAGR: Compound Annual Growth Rate CRM2: Client Relationship Model Phase 2 CSA: Canadian Securities Administrators DSC: Deferred Sales Charge ESG: Environmental, Social and Governance ETF: Exchange Traded Fund FSB: Full Service Br
Slide 6: Jeff Carney
JEFF CARNEY PRESIDENT AND CEO IGM FINANCIAL 6
Slide 7: Key Messages IGM Financial
KEY MESSAGES IGM FINANCIAL A leading Canadian Bold steps taken to Consistent execution New leadership Unique strategy, financial services position us for has resulted in driving “One IGM clear objectives and company with clear accelerated growth – record sales Approach” vision driven management adva
Slide 8: IGM At A Glance
IGM AT A GLANCE: A LEADING FINANCIAL SERVICES COMPANY IN CANADA Assets Under Administration $171.9B EBIT CONTRIBUTION Assets Under Management $150.0B #2 Investors Mutual Fund Market Share IN CANADA Group #1 CFPs1 Mackenzie Financial Planning PROFESSIONALS WITH 70% DESIGNATION Investments Clients ~2
Slide 9: Unique Business Model Based on Leading Brands and Multi-Channel Distribution
UNIQUE BUSINESS MODEL BASED ON LEADING BRANDS AND MULTI-CHANNEL DISTRIBUTION STRATEGY Comprehensive personal Diversified asset Integrated personal planning delivered through management solutions financial services company long-term relationships provider and business partner 2,147 Consultant Practic
Slide 10: Strategic Investments Made To Broaden Our Reach
STRATEGIC INVESTMENTS MADE TO BROADEN OUR REACH AND EXPAND OUR CAPABILITIES STRATEGIC FILTERS INVESTMENT 4% interest ($417MM 13.9% interest Personal Capital, Scale & Synergy Opportunities investment) with FMV of ($637.6MM investment) Wealthsimple, Portag3 $1.4B1 ($205MM investment) Geographic Divers
Slide 11: Strength and Scale As Part of Power Corporation
STRENGTH AND SCALE AS PART OF POWER CORPORATION GROUP OF COMPANIES1 Power Corporation Power Financial Corporation Great-West IGM Lifeco Financial Putnam Great-West Great-West Investment Investments Financial Life Mackenzie Investors Group Planning Counsel PanAgora London Life Canada Life Investments
Slide 12: Recognized Leader In Long-Term ESG Business Practices
RECOGNIZED LEADER IN LONG-TERM, SUSTAINABLE ESG BUSINESS PRACTICES Strategic focus areas include responsible investing, diversity, employee & community engagement Investors Group and IGM scored IGM is a constituent Mackenzie IGM ranked 8th “Leadership A-” of prestigious ESG Investments joined in Can
Slide 13: Bold Steps Taken To Transform Mackenzie
BOLD STEPS TAKEN TO TRANSFORM MACKENZIE; NOW MAXIMIZING POTENTIAL OF INVESTORS GROUP AND CREATING “ONE IGM APPROACH” Mar 2016 Oct – Nov 2017 IGM announces Sep 2016 IGM announces Jun 2014 single CEO Investors Group creation of single Mackenzie structure; Carney announces elimination global investment
Slide 14: Drive And Focus Has Led To Significant Improvement
DRIVE AND FOCUS HAS LED TO SIGNIFICANT IMPROVEMENT OVER THE LAST TWO YEARS INVESTOR DAY 2015 INVESTOR DAY 2017 CHANGE THEN NOW IGM AUM $131.6B $150.0B $18.4B IGM Mutual Fund Gross Sales1 $15.5B $19.1B $3.6B IGM Investment Fund Net Sales1 ($180)MM $3,172MM $3,352MM Mackenzie Advisor Perception Study2
Slide 15: Consistent Execution Has Resulted In Strong Momentum
CONSISTENT EXECUTION HAS RESULTED IN STRONG MOMENTUM AND MARKET SHARE GAINS TOTAL MUTUAL FUND NET SALES TTM AS % OF AVERAGE AUM Industry net sales at Record Q3 investment fund 2-4% of AUM net sales in IGM history 6.0% IGM starting to 4.0% capture share Record Q3 mutual fund gross sales in Investors
Slide 16: Our Strengths Position Us Well To Continue To Win
OUR STRENGTHS POSITION US WELL TO CONTINUE TO WIN AND GAIN SHARE Global, multi-industry Scale and operational Leading brands with experienced leadership leverage within IGM emphasis on financial team fostering a and as part of Power planning advice and winning and agile Corporation group of knowledg
Slide 17: Our Roadmap Forward
OUR ROADMAP FORWARD 17
Slide 18: Secular Growth Trends Remain Intact
SECULAR GROWTH TRENDS REMAIN INTACT AND ARE PROVIDING TAILWIND COMPELLING ROBUST EVOLVING, COMPLEX DEMOGRAPHIC TRENDS CLIENT NEED ENVIRONMENT Increasing wealth of affluent $4.1T in Financial Wealth Opportunities emerging from segment with growing with opportunity to help effective responses to deman
Slide 19: Compelling Demographics
COMPELLING DEMOGRAPHICS: GROWTH OF HIGH NET WORTH AND RETIREE SEGMENTS INDUSTRY HOUSEHOLD ASSETS BY WEALTH $7.4T BY AGE $7.4T CAGR CAGR SEGMENT SEGMENT Established Retirees 7.9% Age 75+ 6.6% Recent $1M+ $1MM+ Retirees 7.5% $4.1T $4.1T Age 65-74 Age 4.9% 55-64 $500K- 5.3% $1M $500K- $1MM $100K- Age 5
Slide 20: Banks Are In Our Sights
BANKS ARE IN OUR SIGHTS; SHARE FOR IGM TO GAIN PRIVATE WEALTH $0.4T ONLINE/DISCOUNT $0.5T CANADIAN NON-BANK FSB & PLANNERS FINANCIAL WEALTH BY DISTRIBUTION $0.7T1 CHANNEL BIG-6 FULL SERVICE BROKERS $0.9T $4.1T TARGET IGM AUA 4% of BANK BRANCH Total Wealth $1.4T Strategic Insights; Investors Economic
Slide 21: Four IGM Strategic Enablers
BUILDING ON STRONG FOUNDATION, FOUR IGM STRATEGIC ENABLERS TO ENHANCE EXECUTION, GENERATE SIGNIFICANT SCALE BENEFITS & DELIVER ON OUR CLIENT-FIRST STRATEGY STRATEGIC FOCUS & CLIENT 01 CULTURAL TRANSFORMATION Create flatter, leaner organization with “One IGM Approach” 02 CENTRICITY Champion organ
Slide 22: Strategic Focus & Cultural Transformation
STRATEGIC FOCUS & CULTURAL TRANSFORMATION 01 DRIVING TOWARD “ONE IGM APPROACH” New IGM Executive leaders responsible for advancing Shared Service Platform and “One IGM Approach” strategy execution Chief Operating Officer: Michael Dibden Strategy Execution Office: Chuck McDevitt Chief Marketi
Slide 23: With The Right Talent In Place
WITH THE RIGHT TALENT IN PLACE, 01 WE WILL ACHIEVE OUR GOALS Barry McInerney Michael Dibden Luke Gould Doug Milne Rhonda Goldberg Kathy Allan Blaine Shewchuk Chuck McDevitt President and CEO, Chief Operating Officer SVP & CFO, Mackenzie EVP, Chief Marketing SVP, Client and EVP, Human Resources SVP,
Slide 24: Strengthened Leadership Team Since 2015
STRENGTHENED LEADERSHIP TEAM SINCE 2015 TO DRIVE AGILE AND WINNING CULTURE IGM Executives Information Services Human Resources Mackenzie Investors Group Distribution Barry McInerney Sam Burns Paul Collins Subhas Sen Brent Allen Nicholas Shields President & CEO SVP, Information Services VP, Org. Deve
Slide 25: Client Centricity
CLIENT CENTRICITY 02 Created unique Client and Regulatory Affairs office dedicated to client-centric decision making Building on Mackenzie’s investor-centric focus and recently rolled-out new client-first strategy at Investors Group IMPACT Implementing technology and processes to better serve
Slide 26: Operational Efficiencies
OPERATIONAL EFFICIENCIES 03 Simplifying client and advisor experience while achieving cost efficiency by implementing new technology with straight-through processing to back office Shifting how we make decisions on outsourcing; leveraging IMPACT leading technology partnerships for innovation, ca
Slide 27: Digitization & Value-Added Technology
DIGITIZATION & VALUE-ADDED TECHNOLOGY 04 Implementing digital technology to enhance client and advisor facing experience Creating digital tools to enhance productivity of Consultants and Advisors IMPACT Leveraging new data warehouse and advanced analytics to gain unique insights into customer
Slide 28: Reaffirming 2017/2018 Guidance and Introducing 2020 Targets
REAFFIRMING 2017/2018 GUIDANCE AND INTRODUCING 2020 TARGETS ANNUAL NON-COMMISSION MARKET SHARE 2018 Guidance Assumptions EXPENSE GROWTH GROWTH Previously announced 1. Initiatives to expand 2017 2018 2020 Ongoing shared service model 2. Implementation of single global Mackenzie 8% 5% 3% Net Sales a
Slide 29: Summary
SUMMARY Clear plan in place to optimize strong IGM brands; experienced, passionate leadership team driving positive change Client-centric approach underpinned by higher service levels, segmentation, product innovation and digitization; significant opportunity to capture market share across our brand
Slide 30: Rhonda Goldberg
RHONDA GOLDBERG SVP, CLIENT AND REGULATORY AFFAIRS IGM FINANCIAL 30
Slide 31: Key Messages
KEY MESSAGES Evolving regulatory Championing a Regulatory risk at Investors Mackenzie well-positioned environment presents client-first approach and Group has been significantly for regulatory evolution opportunities for decision-making across reduced with recent actions with a holistic approach to
Slide 32: Objectives Of Client And Regulatory Affairs
OBJECTIVES OF CLIENT AND REGULATORY AFFAIRS REINFORCES A CLIENT-CENTRIC FOCUS ACROSS IGM CHAMPION A Establish IGM as a thought leader and advocate by working across business CLIENT-FIRST functions and leadership teams to embed a client-centric vision within APPROACH corporate initiatives, business
Slide 33: Our Actions: Client-Centric Lens
OUR ACTIONS: CLIENT-CENTRIC LENS APPLIED TO ALL CORPORATE DECISIONS INVESTORS GROUP IGM CLIENT-FIRST APPROACH MACKENZIE Eliminated DSC Strong momentum in Business CORPORATE Planning unbundled fee-based Moving to unbundled fee- STRATEGY solutions based products Focus on advisor tools, Align
Slide 34: Current Regulatory Landscape Expected To Lead To Change
CURRENT REGULATORY LANDSCAPE EXPECTED TO LEAD TO CHANGE Proposed Cooperative Capital Markets Authority (CMRA) still lacks clarity and uncertainty on timing BROADER More changes Review of insurance regulation intended to harmonize with securities regulation REGULATORY still to come Regulatory f
Slide 35: Key Areas Of Focus – NI 31-103
KEY AREAS OF FOCUS – IGM WELL POSITIONED FOR NI 31-103 TARGETED REFORMS AREAS OF FOCUS IMPACT TARGETED Know Your Client (KYC) Firms must assess whether Enhanced KYC and suitability expectations REFORMS TO Know Your Product (KYP) any remuneration or incentive raise need for heightened profici
Slide 36: Key Areas Of Focus – Best Interest Standard
KEY AREAS OF FOCUS – IGM WELL POSITIONED FOR BEST INTEREST STANDARD AREAS OF FOCUS IMPACT An overarching standard and governing Firms and advisors must act in their clients’ best INTRODUCTION principle on firms and advisors in their interests, placing their clients’ interests first OF REGULATORY
Slide 37: Key Areas Of Focus – Discontinuing Embedded Compensation
KEY AREAS OF FOCUS – IGM WELL POSITIONED FOR DISCONTINUING EMBEDDED COMPENSATION AREAS OF FOCUS IMPACT If implemented, includes at a Applies to all investment funds and structured notes OPTION TO minimum, the elimination of DSC DISCONTINUE and trailing commissions paid by Advice fee is expecte
Slide 38: What's Next?
WHAT’S NEXT? Expect continued CSA Staff Notice 33- CSA expected to CSA, MFDA and 319 identified have a regulatory IIROC compliance priority reforms to direction by early scrutiny on NI 31-103 with rule- 2018 on option to compensation making to discontinue conflicts and sales commence in 2018 embedde
Slide 39: Summary
SUMMARY Significant change is expected to continue across the securities and insurance regulatory environment; we are well-positioned to navigate change and excel We are aligned with client interests; we have made bold, preemptive changes to address reforms and standards ahead of schedule Launched C
Slide 40: Doug Milne
DOUG MILNE EVP, CHIEF MARKETING AND STRATEGY OFFICER IGM FINANCIAL 40
Slide 41: Key Messages
KEY MESSAGES Strong brand Shared Services Transforming & Shifting to data- foundations to unlock enabling top digitizing the and ROI-driven with bold refresh talent, capabilities client experience marketing and synergies through our new function segmentation models 41
Slide 42: Unleashing IGM's Potential
UNLEASHING IGM’S POTENTIAL: DISPROPORTIONATE GROWTH AND FINANCIALLY CONFIDENT CANADIANS ESTABLISH CLEAR & BUILD ENGAGED, BECOME A 01 02 03 COMPELLING BRAND EMPOWERED & DIGITALLY- PROPOSITIONS HIGH-PERFORMING ENABLED BRAND TEAMS & BUSINESS INSTITUTIONALIZE FOCUS & 04 DATA, SEGMENTATION & OPERATIONAL
Slide 43: Investors Group: Solid Brand Foundation
INVESTORS GROUP: SOLID BRAND FOUNDATION 01 TO BUILD FROM RESEARCH FINDINGS: Proven Strengths, No Barriers COMPETITIVE BRAND Investors Group >85% have positive or CONSIDERATION neutral opinion of Investors 58% have neutral or Group Top 5 consideration no opinion with $100k+ Investors Group negati
Slide 44: Mackenzie: Brand Returns To Strength
MACKENZIE: BRAND RETURNS TO STRENGTH 01 SIGNIFICANT #1 Share in TURNAROUND media mentions & earned content from 12th 3rd in 4 years in Advisor Mackenzie experts most sought after Perception Study1 by Canadian media Mackenzie KEY OPPORTUNITY: Communicate our breadth of solutions & strong performanc
Slide 45: Shared Services Marketing Team
SHARED SERVICES MARKETING TEAM ENABLING 02 TOP TALENT & UNLOCKING KEY SYNERGIES Same headcount with expanded capabilities across firm Extended data Added Strengthening Operational science & strategy & digital team synergies across advanced innovation capabilities Creative Services, analytics functio
Slide 46: Transforming Digital Client & Advisor Experience
TRANSFORMING DIGITAL CLIENT & ADVISOR FACING 03 EXPERIENCE IN 2018 MODERNIZING INVESTORS BRINGING PROPRIETARY TOOLS & TRAINING GROUP’S WEB & MOBILE ACCESS TO MACKENZIE ADVISOR DESKTOPS New Site Precision Fund Mackenzie 2018 Comparison Institute 46
Slide 47: Becoming A Data Driven Marketing Organization
BECOMING A DATA DRIVEN & OPERATIONALLY 04 DISCIPLINED MARKETING ORGANIZATION BUILDING A PROPRIETARY CLIENT & ADVISOR SECURED GLOBAL BEST-IN-CLASS MARKETING SEGMENTATION MODEL AS ENTERPRISE ASSET ROI MODELING & ATTRIBUTION SERVICES Advertising ROI vs. Industry Benchmarks1 $3.00 $2.50 $2.00 $1.50 $1.0
Slide 48: Focus And Maximize Community Engagement
FOCUS AND MAXIMIZE COMMUNITY ENGAGEMENT & 05 ACTIVATION FOR GREATER IMPACT INVESTORS GROUP MACKENZIE Moving to a company-wide Focusing sponsorship & community purpose-driven platform centered around programs on most effective financial literacy and empowerment partnerships with greater activation 48
Slide 49: Summary
SUMMARY New team at the IGM level taking enterprise-wide marketing approach Foundational work identified significant opportunities; multi-year strategy in place to unleash IGM potential Investors Group new brand roll-out will have significant impact on growth and Mackenzie brand refresh will drive g
Slide 50: Michael Dibden
MICHAEL DIBDEN CHIEF OPERATING OFFICER IGM FINANCIAL 50
Slide 51: Key Messages
KEY MESSAGES IGM delivers strong A transformation is needed to meet Efforts will deliver material Non-financial benefits client and advisor tomorrow’s challenges financial benefits will also be significant experience; enhancing • Digitization: Enhance client and • Support advisor practice – most imp
Slide 52: Facing Tomorrow's Challenges From A Good Starting Point
FACING TOMORROW’S CHALLENGES FROM A GOOD STARTING POINT RISING WE HAVE MANY STRENGTHS… …BUT NEED TO DO MORE EXPECTATIONS New leadership team Enable consistent multi-channel service Investments in data Provide better tools to advisors to New dealer platform increase productivity Large vol
Slide 53: Technology & Operations Transformation
TECHNOLOGY & OPERATIONS TRANSFORMATION 01 DIGITIZATION BACK-OFFICE 02 SIMPLIFICATION 03 CAPABILITIES 53
Slide 54: Elevate Client And Advisor Relationships Through Digital
ELEVATE CLIENT AND ADVISOR RELATIONSHIPS 01 THROUGH DIGITAL CLIENTS ADVISORS Financial planning and advice Client information available through facilitated through digital collaboration digitally integrated advisor tools Access to critical information and Flexibility in providing advice to c
Slide 55: Efficiency Gains Through Simplification Of Back Office
EFFICIENCY GAINS THROUGH 02 SIMPLIFICATION OF BACK OFFICE COMPLEXITY LEGACY NOT SCALABLE BACK OFFICE ~450 business applications Outdated architecture Paper, manual processes CHALLENGES Duplicative capabilities Customized, internally Business growth adds across areas hosted applications c
Slide 56: Enhancing Capabilities To Support Transformation
ENHANCING CAPABILITIES 03 TO SUPPORT TRANSFORMATION INCREASE STRENGTHEN BUILD STRATEGIC PROJECT VALUE ORGANIZATION PARTNERSHIPS Smaller, agile projects Flatter structure Leveraging external replacing multi-year expertise and vendor One IGM-wide team programs partnerships New talent, expert
Slide 57: Transformation Will Change Our Expense Growth Trajectory
TRANSFORMATION WILL CHANGE OUR NON-COMMISSION EXPENSE GROWTH TRAJECTORY COO span of control over expenditure ~$450MM or ~45% of total excluding commissions; 1,900+ employees $M 500 KEY AREAS OF SAVINGS 2018 450 ~445 ~455 ~455 1. Spans and layers reduction Incremental investment of $20MM ~405 2. Ap
Slide 58: Summary Transformation Benefits
SUMMARY TRANSFORMATION BENEFITS Simplified organization ORGANIZATION More value from projects Support advisors in More innovation growing their practice Better advisor tools TECHNOLOGY Enhanced client and advisor experience More robust and secure infrastructure Materially change Better
Slide 59: Summary
SUMMARY Committed to transformation agenda through digitization, back office simplification and enhancing our capabilities; at the beginning of our journey Significant benefits to be delivered to clients and advisors Investing $100MM over 5 years, forecasted to result in annualized reduction of recu
Slide 60: Barry McInerney
BARRY McINERNEY PRESIDENT AND CEO MACKENZIE INVESTMENTS 60
Slide 61: Key Messages Mackenzie Investments
KEY MESSAGES MACKENZIE INVESTMENTS We have successfully Executing on Sustained Supporting team Clear line of sight executed Mackenzie foundational performance based success and cost for 2018 and turnaround; shift strategy; nimble on top talent and efficiency through beyond; exciting from equity mutu
Slide 62: Mackenzie At A Glance
MACKENZIE AT A GLANCE DIVERSIFIED ASSET MANAGEMENT SOLUTIONS PROVIDER KEY STATISTICS AUM BY ASSET CLASS3 VEHICLE AGNOSTIC SPECIALTY Total AUM $132.8B1 INCOME Mutual funds Clients 1 Million+ ETFs CANADIAN EQUITY Advisors Served 30,000+ HNW pools ASSET ALLOCATION Pooled Funds Employees2 938
Slide 63: Diversified Retail And Institutional Distribution
DIVERSIFIED RETAIL AND INSTITUTIONAL DISTRIBUTION AUM BY INVESTMENT VEHICLE1 RETAIL INSTITUTIONAL SEPARATELY MANAGED ACCOUNTS (SMAs) 21% Sub-advisory Dealer Platform 30,000+ Dealer Head Office INVESTMENT Financial Advisors Institutions FUNDS 79% HNW and Mass Market Power Financial Affiliate – Strate
Slide 64: Strong, Experienced Mackenzie Leadership Talent
STRONG, EXPERIENCED MACKENZIE LEADERSHIP TALENT WITH CANADIAN AND GLOBAL EXPERTISE Tony Elavia Michael Schnitman Damon Murchison Chris Boyle David Faassen Michael Cooke Subhas Sen EVP, Chief SVP, SVP, Head of Retail SVP, Head of SVP, Marketing SVP, Head of ETFs SVP, Business Investment Officer Head
Slide 65: Foundational Strategy Is Sound
FOUNDATIONAL STRATEGY IS SOUND; WE ARE FOCUSED ON EXECUTION AND BEING NIMBLE KEY DRIVERS Deliver competitive and consistent 01 risk-adjusted performance Offer innovative and high-quality 02 investment solutions 03 Advance brand leadership 04 Accelerate distribution Drive operational excellence 05 an
Slide 66: Execution Over The Past Four Years
EXECUTION OVER THE PAST FOUR YEARS HAS LED TO A STRONGER ORGANIZATION WHAT WE HAVE DONE INVESTMENTS BRAND PRODUCT SOLUTIONS DISTRIBUTION Smart Beta Relaunched in 2015 HNW Pools Transformed Canadian Retail Absolute Return Mackenzie Tour - PGA ETFs Canada Targeted Global Quantitative
Slide 67: Transformation Has Been Successful
TRANSFORMATION HAS BEEN SUCCESSFUL ADVISOR INVESTMENT ADVISOR SALES BRAND PERCEPTION STUDY PERFORMANCE PENETRATION EQUITY #3, up from #11 in 20141 72% of AUM in 1st or 2nd Ranked #2 and increasing1 Ranked #2 and increasing1 Highest overall score ever quartile over 10 yrs2 Improvement in
Slide 68: Mackenzie Is Gaining Mutual Fund Share
MACKENZIE IS GAINING MUTUAL FUND SHARE IN THE ADVICE CHANNEL; STRONG INVESTMENT FUND SALES LONG-TERM MUTUAL FUND NET SALES TTM AS % OF AVERAGE AUM 6.0% Best Year to Date Mutual Fund Gross Sales in History 4.0% $7.0 Billion 2.0% 0.0% Best Year to Date Investment Fund Net Sales in 18 Years -2.0% $1.4
Slide 69: Broad-Based Momentum Across All Distribution Channels
BROAD-BASED MOMENTUM ACROSS ALL DISTRIBUTION CHANNELS IN 2017 YTD MACKENZIE INVESTMENT FUND NET SALES ($MM)1 1,607 2 1,990 #2 in Canada 789 in Mutual Fund YTD Net Sales 688 444 383 3 Improvement over 20164 69 (154) (49) (489) (574) (623) #1 among Retail Mutual Funds Institutional Mutual Funds ETFs T
Slide 70: Innovative Product Solutions Delivered
INNOVATIVE PRODUCT SOLUTIONS DELIVERED $3.0B IN NET SALES OVER PAST 4 YEARS, INCLUDING $1B+ IN AUM FROM 2016 ETF LAUNCH NET SALES FROM NEW INVESTMENT FUNDS MACKENZIE ETF AUM ($MM) $3.0B ETFs $906 Over $1B at Emerging Markets End of October $333 Global (Low Volatility, $622 Equity) Private Pools $282
Slide 71: Strategic Themes 2018 & Beyond
STRATEGIC THEMES 2018 & BEYOND: BECOME CANADA’S PREFERRED ASSET MANAGEMENT SOLUTIONS PROVIDER AND BUSINESS PARTNER WIN IN RETAIL IN BUILD INSTITUTIONAL 01 A SEGMENTED WAY 02 BUSINESS WITH TARGETED APPROACH DELIVER INNOVATIVE CONTINUE TO FOSTER 03 INVESTMENT SOLUTIONS 04 HIGH PERFORMING & DIVERSE TAL
Slide 72: Win In Retail Through Broader Coverage
WIN IN RETAIL THROUGH BROADER COVERAGE, 01 SEGMENTATION AND TECHNOLOGY WHAT HOW Seize Market Share Opportunity Expand Wholesale team Take advantage of “Money in Motion” with shifting competitive landscape in Canada Accelerate Gross and Net Sales momentum Broaden Advisor Coverage Continue to gr
Slide 73: Continue To Build-Out Institutional Business
CONTINUE TO BUILD-OUT INSTITUTIONAL 02 BUSINESS WITH TARGETED APPROACH WHAT HOW Canada Sub Advisory, Fund Administration (GWL, IPC), Currency and Asset Allocation, Global Equity, Dealer Platforms (SMA), DB Plans, DCIO, Fixed Income Endowments & Foundations, Consultants International Small Cap, G
Slide 74: Access Greater China Through China AMC
ACCESS GREATER CHINA THROUGH CHINA AMC 02 CHINA AMC: One of the top asset managers in China TWO-PRONGED APPROACH China to become #2 asset management market in 1. Enhance China AMC enterprise value through the world by 2019 with US$4.3T in AUM1 mutual engagement and partnerships China will accoun
Slide 75: Expanding Capabilities With Single Global Investment Management Organization
EXPANDING OUR CAPABILITIES WITH SINGLE GLOBAL 03 INVESTMENT MANAGEMENT ORGANIZATION; BOUTIQUE STRUCTURE AND WELL RESOURCED Dublin Beijing Montreal Mackenzie sales office Toronto and China AMC Combined Investment Management operations across IGM in October 2017 106 investment professionals globally
Slide 76: Continue To Introduce Innovative Mutual Fund Offerings
CONTINUE TO INTRODUCE INNOVATIVE MUTUAL 03 FUND OFFERINGS TO MEET EVOLVING CLIENT NEEDS EXAMPLES OF PRODUCT INTRODUCTIONS ACCESS TO NON-TRADITIONAL BENCHMARK-AGNOSTIC HOLISTIC RETIREMENT ASSET CLASSES STRATEGY INCOME SOLUTIONS Mackenzie Diversified Alternatives Mackenzie Unconstrained Fixed Ma
Slide 77: Canadian ETF Industry Continues To Gain Momentum
CANADIAN ETF INDUSTRY CONTINUES TO 03 GAIN MOMENTUM INDUSTRY ETF SHARE OF INDUSTRY MUTUAL FUND NET INVESTMENT FUND ASSETS SALES AND ETF NET CREATIONS ($B) ($B) 1,800 16% 35 ETF share of 1,600 14% 30 29.0 135 investment fund 1,400 114 4.6 12% assets is growing 1,200 77 90 25 22.3 10% consistently 1
Slide 78: Expanding ETF Building Blocks
EXPANDING ETF “BUILDING BLOCKS” TO LAUNCH 03 ACTIVELY-MANAGED ETF PORTFOLIOS ACTIVE ETF PORTFOLIOS - NEW 20181 Core Plus Global FI ETF Ivy Global Equity ETF Core Plus Canadian FI ETF Global Leadership Impact ETF STRATEGIC AND TACTICAL ASSET ALLOCATION: Constructed to maximize Floating Rate Income
Slide 79: Continue To Foster High Performing And Diverse Talent
CONTINUE TO FOSTER HIGH PERFORMING AND 04 DIVERSE TALENT Attract, develop and retain top level Infused senior leadership with key hires; 8 serve on Operating LEADERSHIP leadership at all levels Committee & TALENT Build talent pipeline comprising high Fostering an evolving culture focused on
Slide 80: KPIs To Drive Growth And Manage Costs
I KPIs TO DRIVE GROWTH AND MANAGE COSTS KPI OBJECTIVE CURRENT ADVISOR #1 Investment Firm Amongst Peer Group by 2020 Rank #3 PERCEPTION STUDY EMPLOYEE Top Quartile Gallup Engagement Score 74th Percentile ENGAGEMENT Top 3 Firm All Funds Balanced2 INVESTMENT % of AUM with Morningstar 4/5 Star Ratings 3
Slide 81: Summary
SUMMARY Our transformation is complete and we are focused on continuous improvement, innovation and executing our strategy We will continue to leverage our momentum • Record YTD gross sales and best investment fund net sales in 18 years with four consecutive positive quarters • Consistent increase i
Slide 82: Tony Elavia
TONY ELAVIA EVP, CHIEF INVESTMENT OFFICER MACKENZIE INVESTMENTS 82
Slide 83: Key Messages
KEY MESSAGES High conviction, active manager Strong fund performance across Recent consolidation of with broad range of capabilities several boutiques, including investment management delivered through 13 unique strength within the important capabilities across IGM will investment boutiques balanced
Slide 84: Focus On Achieving Performance Objectives
FOCUS ON ACHIEVING PERFORMANCE OBJECTIVES: 2016-2017 INVESTMENT TALENT DEPLOYMENT OF THE UPGRADE “IDEAL INVESTMENT PROCESS” • Successfully restructured Cundill team with new • Better targeting of portfolio risks to return targets hires in 2016 • Deeper understanding of rationale and methods • Comple
Slide 85: Solid Short-Term And Long-Term Peer Performance
SOLID SHORT-TERM AND LONG-TERM PEER PERFORMANCE MACKENZIE MUTUAL FUNDS IN MORNINGSTAR STAR RATINGS1 1ST OR 2ND QUARTILE1 (Proportion of Assets at Sep 30, 2017) (Proportion of Assets at Sep 30, 2017) 72% 39% 40% 36% 59% 32% 29% 44% 24% 40% Mackenzie Q3/17 All Morningstar Rated 1 Year 3 year 5 Year 10
Slide 86: Strong Balanced Fund Performance
STRONG BALANCED FUND PERFORMANCE; AN IMPORTANT INDUSTRY CATEGORY MACKENZIE BALANCED MUTUAL FUNDS IN MORNINGSTAR RATINGS 1ST OR 2ND QUARTILE1 CORE CATEGORY - BALANCED FUNDS (Proportion of Assets at Sep 30, 2017) 99% Series Series 77% 79% 74% Mandate A F Mackenzie Canadian Growth Balanced Fund 5 5 Mac
Slide 87: 4&5 Star Funds Across Several Boutiques
4&5 STAR FUNDS ACROSS SEVERAL BOUTIQUES SPEAKS TO BREADTH OF TALENT & BENEFITS OF OUR STRUCTURE MORNINGSTAR RATINGS AND AUM BY MACKENZIE INVESTMENT BOUTIQUE1 ($MM) Not Rated 1 or 2 Stars 3 Stars 4 or 5 Stars 10,000 7,500 5,000 Restructured Cundill 2,500 team with new hires starting 2016 0 1st qu
Slide 88: Formation Of Single Global Investment Management Organization
FORMATION OF SINGLE GLOBAL INVESTMENT MANAGEMENT ORGANIZATION ACROSS IGM ENHANCES ABILITY TO DELIVER SUPERIOR PERFORMANCE STRENGTHENS ABILITY TO DELIVER LEVERAGES OUR SCALE TO DRIVE 01 SUPERIOR PERFORMANCE ACROSS EXPANDED PRODUCT LINES 02 OPERATIONAL EFFICIENCY AND COST SAVINGS Retain high-perform
Slide 89: Majority Of AUM Managed By Newly Combined Boutique Structure
MAJORITY OF AUM MANAGED BY THE NEWLY COMBINED BOUTIQUE STRUCTURE Investors Group Mackenzie Investment IPC Counsel IGM Financial Total AUM Funds & Institutional Funds Consolidated Assets ($85.8B) ($69.2B total, $59.1 ex advisory to IG & IPC) ($5.2B) Under Management $150.0B 3rd Party Mackenzie 3rd Pa
Slide 90: Optimized Talent With Three New Boutiques
OPTIMIZED TALENT WITH THREE NEW BOUTIQUES AND NEW LEADER OF AN EXPANDED NORTH AMERICAN EQUITY BOUTIQUE HIGHLIGHTS 3 new boutiques from Cundill Ivy Canadian Growth Resources Investors Group providing Systematic Global Equity Growth Strategies & Income European, Asian and Norwood/Wong Musson DeGeer
Slide 91: Summary
SUMMARY Continued focus on top tier performance by driving best practices across all teams Consolidation of investment effort across IGM resulting in broader and deeper investment skills, product shelf, new product development capabilities and operational efficiencies 91
Slide 92: Damon Murchison
DAMON MURCHISON SVP, HEAD OF RETAIL MACKENZIE INVESTMENTS 92
Slide 93: Key Messages
KEY MESSAGES Strong retail Intense focus on Product agnostic Significant runway to Building on current distribution talent development approach driving leverage technology momentum to leadership team through talent expanding product to enhance advisor become the #1 executing the acquisition, robust
Slide 94: Mackenzie Retail Overview
MACKENZIE RETAIL OVERVIEW IIROC and Primary Channels MFDA Penetration2 52% | 2nd MFDA Advisors Advisors Served 30,000+ IIROC Penetration 2017 2 38% | 3rd 2015 Mackenzie Investment Advisor Perception:2,3 $54.3B #2 Funds AUM1 Wholesaler Number of Advisor Perception: 2017 2,3 42 #2 Sales Teams Inside W
Slide 95: Attractive Opportunity In Canadian Retail
ATTRACTIVE OPPORTUNITY IN CANADIAN RETAIL; EXECUTING TARGETED GO-TO-MARKET STRATEGY IN EACH CHANNEL $1.1T – FULL SERVICE BROKER AUA1 $364B – FINANCIAL PLANNER AUA1 $1.1T 8.5% $364B 7.4% CAGR CAGR $27B FULL SERVICE FINANCIAL $788B BROKERS $242B 8.4% CAGR PLANNERS $831B GROWING $17B GROWING $610B INVE
Slide 96: Our Focus Has Been On Execution
OUR FOCUS HAS BEEN ON EXECUTION OVER THE PAST 15 MONTHS BUILDING ON INVESTMENTS MADE Outpacing the Industry Invigorated Employee and Driving Gross Sales Engagement & Advisor Capture Perception Accelerating our capture rates Strong employee engagement Breadth across investment categories Impr
Slide 97: Mackenzie Retail Sales Growth Outpaces Advice Channel And Industry
MACKENZIE RETAIL SALES GROWTH OUTPACES BOTH THE ADVICE CHANNEL AND TOTAL INDUSTRY YTD LONG-TERM MUTUAL FUND GROSS SALES ($B) 171 3.9 148 2.8 102 2016 2017 87 2016 2017 SEP SEP 51 56 SEP SEP YTD YTD YTD YTD Total Industry Deposit Takers & Other Advice Channel (exc IGM) Mackenzie Retail Channel YOY GR
Slide 98: Experienced Retail Distribution Leadership Team
EXPERIENCED RETAIL DISTRIBUTION LEADERSHIP TEAM DAMON MURCHISON SVP, HEAD OF RETAIL MIKE LALLY FRANÇOIS PROVOST MIKE EVANS RYAN DICKEY DAN GREMONPREZ RVP, RETAIL SALES RVP, RETAIL SALES RVP, RETAIL SALES RVP, RETAIL SALES VP, HEAD OF INSIDE SALES ANGEL LANGMUIR CAROL BEZAIRE PAUL ALLEN MICHELLE FOX
Slide 99: Significant Talent Acquisition Since 2014
SIGNIFICANT TALENT ACQUISITION SINCE 2014; DEVELOPMENT AND TENURE WILL DRIVE PRODUCTIVITY WHOLESALERS INSIDE WHOLESALERS SALES COORDINATORS Total FTE: 42 Total FTE: 42 Total FTE: 21 2 9 (10%) (20%) 21 21 (50%) (50%) 33 (80%) 19 (90%) New since 2014 Hired prior to 2014 New since 2014 Hired prior to 2
Slide 100: Broadening Our Advisor Coverage
BROADENING OUR ADVISOR COVERAGE; ENERGIZED TEAM TO DRIVE CONTINUED PRODUCTIVITY IMPROVEMENT AVERAGE ACTIVITY PER SALES TEAM YTD 2014 vs YTD 2017 WHOLESALER +79% INSIDE WHOLESALER +112% UNIQUE ADVISORS MET AND CALLED YTD 2014 VS YTD 2017 +55% 18,226 +51% 10,792 11,780 7,148 2014 2017 2014 2017 Unique
Slide 101: Increasing Our Product Breadth
INCREASING OUR PRODUCT BREADTH YEAR TO DATE GROSS SALES RANGES OF INDIVIDUAL FUNDS SOLD Raising the bar on sales team knowledge 41% Placing greater emphasis on new products Increase in 17 24 $50MM+ Fund Sales Employing agnostic approach to advice 10 7 Training on consultative selling 12 13 Jan - Sep
Slide 102: Focus On Performance Story Has Contributed To Declining Redemptions
FOCUS ON PERFORMANCE STORY HAS CONTRIBUTED TO DECLINING REDEMPTION RATE AND INCREASING SALES MACKENZIE REDEMPTION RATE1 LONG TERM RETAIL GROSS SALES CAPTURE RATE (TTM) BY ASSET CLASS vs. ADVICE CHANNEL $B SEP SEP % 20153 20173 CHANGE 2 Income Oriented 4.8% 2.2% -2.6% Balanced 3.8% 5.9% +2.1% Canadia
Slide 103: As An Agnostic Solutions Provider We Are Experiencing Broad-Based Momentum
AS AN AGNOSTIC SOLUTIONS PROVIDER WE ARE EXPERIENCING BROAD-BASED MOMENTUM YTD MACKENZIE NET SALES1 ($MM) Significant improvement 1,546 across all 1,163 2 product 789 structures 688 Sep YTD 2016 383 3 Sep YTD 2017 54 84 69 (49) (420) (351) (469) Retail Private ETFs Total Separately Total Mutual Pool
Slide 104: Strong Employee Engagement And Advisor Perception
STRONG EMPLOYEE ENGAGEMENT AND ADVISOR PERCEPTION IMPROVING EMPLOYEE ENGAGEMENT IMPROVING ADVISOR PERCEPTION RANKING (GALLUP) (Advisor Perception Study1) 2019 2014 2017 2014 2017 (Target) Retail Participation 98% 97% Overall Wholesaler Rank 11th 2nd 2 1st % of Wholesalers in the 1st 11% 45% 1st Perc
Slide 105: Driving Productivity Growth
DRIVING PRODUCTIVITY GROWTH AVG. GROSS SALES BY WHOLESALER TENURE GROWING WHOLESALER TEAM ($MM) (Number of Teams) +17% +81% +57% 42 39 $111 35 $83 $71 $46 $40 $34 Te n u r e < 1 8 Mos Te n u r e 1 8 - 3 6 Mos Te n u re > 3 6 Mos Sep-15 Sep-16 Sep-17 YTD 2015 YTD 2017 105
Slide 106: We Are Embracing The Digital Revolution
WE ARE EMBRACING THE DIGITAL REVOLUTION TO DRIVE FUTURE PRODUCTIVITY OPTIMIZE MARKET DIGITIZE GENERATE 01 COVERAGE Leverage marketing 02 EXPERIENCES 03 LEADS Launch and integrate Leverage data to automation digital tools to simplify implement lead technologies to the advisor experience cultiva
Slide 107: Summary
SUMMARY Strong adoption of the “Mackenzie Way” has enabled us to outpace the market over the past two years We are intensely focused on talent development and client engagement to drive future growth New technology roll-out will enhance advisor productivity and client outcomes; significant opportuni
Slide 108: Jeff Carney – Investors Group
JEFF CARNEY PRESIDENT AND CEO INVESTORS GROUP 108
Slide 109: Key Messages Investors Group
KEY MESSAGES INVESTORS GROUP A leading financial New client-centric Strategy with enhanced Actions taken have services company in strategy and value focus on HNW segments already enhanced the Canada energized to proposition enabled by and product solutions, client experience with maximize its potent
Slide 110: Investors Group At A Glance
INVESTORS GROUP AT A GLANCE A LEADING FINANCIAL SERVICES COMPANY IN CANADA INSPIRING FINANCIAL CONFIDENCE SCALE AND PRODUCT DIVERSITY Assets Under 2,1472 Management (AUM) $85.8B 1 MILLION CONSULTANT CLIENTS PRACTICES3 Insurance Revenue $98.9MM1 FOUNDED IN #1 CFP/F.PL. 1926 Client Mortgages $12.9B PR
Slide 111: Strengths To Build On Since CEO Appointment
STRENGTHS TO BUILD ON SINCE CEO APPOINTMENT IN MAY 2016 STRENGTHS OPPORTUNITY Increase client-centric focus through more Leading financial services company 01 sophisticated data analysis and segmentation with scale, financial planning focus and holistic product solutions Accelerate efforts in HNW
Slide 112: Enhanced Focus On Mass Affluent And HNW Households
ENHANCED FOCUS ON MASS AFFLUENT AND HNW HOUSEHOLDS; BIG OPPORTUNITY TO WIN SHARE FROM BANKS INDUSTRY HOUSEHOLD ASSETS BY WEALTH BY BAND CHANNEL1 $4.1T $5MM+ $3.6T $0.4T PRIVATE WEALTH CAGR 14.5% $0.5T ONLINE/DISCOUNT $1MM-$5MM CAGR 8.6% $0.7T1 NON-BANK FSB & PLANNERS $500K-$1MM CAGR 4.6% $0.9T BIG-6
Slide 113: Opportunity To Strive For Optimal Client Outcomes
OPPORTUNITY TO STRIVE FOR OPTIMAL CLIENT OUTCOMES I llustrative OPTIMAL FINANCIAL WELLBEING OUR OPPORTUNITY FINANCIAL EROSION TYPICAL TIME 113
Slide 114: Our Strategic Vision
OUR STRATEGIC VISION OUR PROMISE WE INSPIRE FINANCIAL CONFIDENCE OUR VALUE PROPOSITION BETTER GAMMA, BETTER BETA, BETTER ALPHA OUR STRATEGIC MANDATE BE CANADA’S FINANCIAL PARTNER OF CHOICE OUR FOCUS Superior Advice Segmented Client Experiences Acquiring a deep know ledge of Canadian investors and us
Slide 115: Our Value Proposition Is Differentiated
OUR VALUE PROPOSITION IS DIFFERENTIATED AND WILL YIELD OUTSIZED RESULTS BETTER GAMMA BETTER BETA BETTER ALPHA The value of all efforts that sit outside The value created by a well The value of active of portfolio construction constructed portfolio management Better Gamma comes from the Better Beta i
Slide 116: We Have Significantly Improved Net Sales With Early Action
WE HAVE SIGNIFICANTLY IMPROVED NET SALES WITH EARLY ACTION Since discontinuing sale of DSC series and introduction of other enhancements INDUSTRY TOTAL MUTUAL FUND NET SALES TTM AS % OF AVERAGE AUM ACTIONS TO DATE 6.0% Eliminated DSC 4.0% 2.2% and increasing Refined recognition 2.0% Focused distribu
Slide 117: Record Operating Results
2017 RECORD OPERATING RESULTS Record Asset Level $85.8B Up 30% from 2016 Record YTD Gross Sales vs. Total Industry1 up 14% YTD Net Sales of $1.6B Best since 2007 Client Returns Positive portfolio returns in 1, 3 & 5 Year Periods Q3 annualized long-term fund redemption Strong Asset Retention rate of
Slide 118: More Results To Come With Continued Enhancements
MORE RESULTS TO COME WITH CONTINUED ENHANCEMENTS TO CLIENT & CONSULTANT EXPERIENCE TARGET CLIENT & SUPERIOR POWERFUL BRAND EXPERIENCE ADVISORY EXPERIENCE FINANCIAL SOLUTIONS Implement client segmentation Enhance planning advantage – Focus on managed solutions – “Better Gamma” “Better Beta” & “
Slide 119: KPIs To Drive Growth And Manage Costs
KPIs TO DRIVE GROWTH AND MANAGE COSTS KPI OBJECTIVE CURRENT CLIENT Launched Gallup NEW Receive Gallup results; set new target ENGAGEMENT in October EMPLOYEE Consistent Top 1/3 Gallup Engagement Scores 11th Percentile ENGAGEMENT Net Sales as a % of Average AUM > Peers 2.2%1 CANADIAN RETAIL MARKET SHA
Slide 120: Summary
SUMMARY Building on our momentum; well-positioned to capture share from banks in the mass affluent and HNW segments; large opportunity Employing new segmentation model to better serve our clients and drive sustainable growth Enhancing Consultant productivity with focus on Gamma, initiatives to enhan
Slide 121: Doug Milne
DOUG MILNE EVP, CHIEF MARKETING AND STRATEGY OFFICER IGM FINANCIAL 121
Slide 122: Key Messages
KEY MESSAGES Deeper understanding Establishing clear and Enhancing client/advisor of target market compelling brand experience through a through segmentation proposition; three-pronged approach work; new addressable relaunching Investors encompassing digital, verticals identified Group brand physica
Slide 123: Leveraging Proprietary Data Analytics To Refine Segments
LEVERAGING PROPRIETARY DATA ANALYTICS TO REFINE, ELEVATE & PERSONALIZE OUR SEGMENTS 35 - 44 45 - 54 55 - 64 65+ PRIMARY GROWTH OPPORTUNITIES FOR $1M+ HNW $251.8B $510.1B $705.9B $1.1T 1. Acquiring middle aged Strategic Savers Prudent Advancers Successful Planners Achievers $100K+ households (esp. bu
Slide 124: Taking A Data-Driven Approach To Reposition Brand
TAKING A DATA-DRIVEN APPROACH TO REPOSITION INVESTORS GROUP BRAND Expert Advice 32.5% BRAND Innovative research Negative Peace STUDY uncovered real drivers of Uncertainty of Mind financial planning and 26% KEY retirement go well beyond FINDINGS 8% numbers and advice Few, if any, have tapped 12%
Slide 125: Taking A Data-Driven Approach To Reposition Brand
TAKING A DATA-DRIVEN APPROACH TO REPOSITION INVESTORS GROUP BRAND Trustworthy Protector BRAND Financial Advisory and Experienced Helpful STUDY Planning Firms (FA/FP) Professional Supporter are most positively KEY perceived FINDINGS We have the opportunity Risky to own the category Predatory Gamb
Slide 126: Identified Winning Value Proposition
IDENTIFIED WINNING VALUE PROPOSITION Most highly trained CFPs and team of experts in Canada “Synchronized Plan” outperforms category Deepest, broadest and most integrated norms and leverages financial planning process our unique differences across clients’ entire financial life Lifetime of rel
Slide 127: Elevating The Investors Group Experience
ELEVATING THE INVESTORS GROUP EXPERIENCE ACROSS ALL ASPECTS OF THE BRAND Awareness Trigger Engage Consider Proposal Commit Relationship Advocacy Elevate Establish Owned & Events & Elevate Ongoing Client Social Media Brand Regional Advice Earned Prospecting Advisor Measurement and Look & Feel and Loc
Slide 128: Elevating The Investors Group Experience For HNW
ELEVATING THE INVESTORS GROUP EXPERIENCE FOR HNW 128
Slide 129: Summary
SUMMARY Deeper understanding of target through proprietary segmentation being institutionalized in everything we do Establish clear and compelling brand proposition and relaunch Investors Group brand in 2018 across High Net Worth and Mass Affluent Standardize and enhance Client/Advisor experience ac
Slide 130: Todd Asman
TODD ASMAN EVP, PRODUCTS AND FINANCIAL PLANNING INVESTORS GROUP 130
Slide 131: Key Messages
KEY MESSAGES Product strategy Access to Best-in-class Expansion of HNW Expansion of focused on managed investment management managed solutions simplified and solutions to deliver capabilities to deliver offering and IIROC competitively priced “Better Beta” to “Better Alpha” capabilities to enable un
Slide 132: Powerful Financial Solutions
POWERFUL FINANCIAL SOLUTIONS – EXTENSIVE PRODUCT BREADTH SUPPORTED BY PLANNING SPECIALISTS INVESTMENT GUARANTEED PRODUCTS INV. FUNDS INSURANCE MORTGAGES BANKING Broad range of mutual funds Broad range of guaranteed Broad range of insurance National mortgage lender Private labeled offering Managed as
Slide 133: Significant Insurance, Banking & Mortgage Offering
SIGNIFICANT INSURANCE, BANKING & MORTGAGE OFFERING COMPLETE INSURANCE OFFERING BANKING AND MORTGAGE OFFERING Term, Universal Life, Whole Life Investors Group is a national mortgage lender offering residential mortgages to clients Disability, critical illness, long-term care, personal health ca
Slide 134: Focus On Better Beta And Better Alpha
FOCUS ON “BETTER BETA” AND “BETTER ALPHA” ENABLES CONSULTANTS TO FOCUS ON “BETTER GAMMA” “BETTER BETA” MFDA OR IIROC IIROC Range of outcome- based, managed solutions across product Single Fund Wraps HNW Fund Wraps Discretionary Dealer- categories and licensing managed Accounts platforms Access to ca
Slide 135: Product Strategy To Focus On Managed Solutions
PRODUCT STRATEGY TO FOCUS ON MANAGED SOLUTIONS IS UNDERWAY AND BEING ADOPTED BY CONSULTANTS MANAGED SOLUTIONS 70.4% of gross MANAGED SOLUTIONS – KEY PRODUCTS SHARE OF LT FUNDS sales invested into portfolio solutions 80% Dynamic asset allocation 70% Retirement Income Focus 60% Share of Long Term Gr
Slide 136: Investors Group Focus On HNW Has Resulted In Strong Growth
INVESTORS GROUP FOCUS ON HNW HAS RESULTED IN STRONG GROWTH CANADIAN FINANCIAL WEALTH INVESTORS GROUP AUA BY WEALTH BAND1 BY ASSET WITH COMPANY2 $5MM+ $4.1T $84.2B $76.0B CAGR 19.6% $3.6T $5MM+ $1MM-$5MM CAGR 14.5% CAGR 14.8% $1MM-$5MM $500K-$1MM CAGR 8.6% CAGR 9.3% $500K-$1MM CAGR 4.6% $100K-$500K $
Slide 137: Expanding Managed Solutions To MFDA And IIROC
EXPANDING MANAGED SOLUTIONS TO MFDA AND IIROC CLIENT ACCOUNT PLATFORMS WITH FOCUS ON HNW NON-DISCRETIONARY: FUNDS DEALER MANAGED: FUNDS, ETFs & SMAs & ETFs1 (MFDA AND IIROC) (IIROC ONLY) HNW Fund Wraps (Pools) Mass Affluent & Affluent HNW Fund Wraps Funds/ETFs only FUTURE INVESTABLE ASSETS (Traditio
Slide 138: IIROC Product Strategy Emphasizes Consultant Focus
IIROC PRODUCT STRATEGY EMPHASIZES CONSULTANT FOCUS ON BETTER ADVICE & GAMMA, WHICH DIFFERS FROM TRADITIONAL IIROC FIRMS Sophisticated packaged solutions Simplicity of focused on client outcomes segmented models Dealer discretionary Best-in-class investment managers across investment management all “
Slide 139: Vision For IIROC Offering Will Further Enhance HNW
VISION FOR IIROC OFFERING WILL FURTHER ENHANCE HNW CAPABILITIES AND CONSULTANT PRODUCTIVITY TODAY: 70 PRACTICES WITH $5B (~6% AUM) GOAL: 350-400 PRACTICES WITH 25% OF AUM BY 2020 Strengthen IIROC Value Automated & Comprehensive Suite Robust IIROC 3-YEAR VISION Proposition for Clients & of IIROC Ma
Slide 140: Positioned For Continued Growth In HNW
POSITIONED FOR CONTINUED GROWTH IN HNW CLIENT SEGMENT AND UNBUNDLED PRICING STRUCTURES SIGNIFICANT GROWTH IN MUTUAL INCREASING SALES IN HNW & FUND AUM HELD IN HNW SERIES UNBUNDLED PRICING STRUCTURES ($B) ($B) 45% $38.3 51% $3.71 OF AUM IN HNW $32.3 $17.3B GROSS SALES IN HNW & $2.1B $28.0 SERIES UNBU
Slide 141: Series U Unbundled Fee Structure For All Clients
SERIES U UNBUNDLED FEE STRUCTURE FOR ALL CLIENTS; SIMPLIFY OFFERING AND PROVIDE TRANSPARENT PRICING SIMPLIFY WITH U BUNDLED AND UNBUNDLED PRICING STRUCTURES C CURRENT NEW JNL TJNL TJDSC TNL B TDSC U TC A Series B/C/A Series J Series U Series U JDSC (Bundled) (>$500k HNW (>$500k HNW (<$500k Bundled)
Slide 142: Series U Funds Are Competitively Priced
INVESTORS GROUP SERIES U FUNDS ARE COMPETITIVELY PRICED WITH INDUSTRY SERIES F FUNDS SERIES U VS. SERIES F MERS PRICING GOAL 2.50 (Percentages) MERs priced at 50th Percentile or Better vs. Industry Series F 2.00 1.92 1.94 1.81 1.50 1.45 1.32 1.33 1.15 1.18 1.22 1.12 1.06 1.09 1.00 0.88 0.81 0.86 0.5
Slide 143: Overall Investors Group Fee Rates Are Competitive
OVERALL INVESTORS GROUP FEE RATES ARE COMPETITIVE WITH 2012 FEE CHANGES AND OTHER ADJUSTMENTS INVESTORS GROUP FEE RATES AND FEE CHANGES1 2.35% 2.30% Mix shift to HNW Series U 2.25% expected to be main 2.20% driver for fee rate 2.15% changes 2012/2013 2.10% • Introduced HNW Series J 2.05% (bundled) &
Slide 144: Phased In Approach To Shift To Series U
PHASED IN APPROACH TO SHIFT TO SERIES U UNBUNDLED PRODUCT OFFERING FOR ALL CLIENTS Expand access to Series U to Consolidate existing clients to Close all embedded fee all clients: available to new Series U with transition of purchase options and accounts opened on the new existing client name accoun
Slide 145: Summary
SUMMARY Expanding breadth of product offering; expanding relationships and insurance product types and integrating banking capabilities Ongoing development of investment “building block” strategies that add value to managed solutions and meet needs of HNW clients Emphasis on centralized product and
Slide 146: Mark Kinzel
MARK KINZEL EVP, FINANCIAL SERVICES INVESTORS GROUP 146
Slide 147: Key Messages
KEY MESSAGES Transforming distribution Successfully executing on Driving growth by moving Segmentation supported started with removal of our strategy with away from quantity to by technology and data for Deferred Sales Charge – continued focus on our quality recruiting and Consultant Practices to Op
Slide 148: Diverse National Distribution Network
DIVERSE NATIONAL DISTRIBUTION NETWORK OF ENTREPRENEURIAL CONSULTANTS WITH A FINANCIAL PLANNING FOCUS 4,146 CONSULTANTS ACROSS CANADA 95 172 REGIONAL OFFICES SPECIALISTS1 #1 99% HIGHEST # OF CONSULTANTS CFP/F.PL. INSURANCE PROFESSIONALS2 LICENSED3 Represented in All Major Cities, Yukon, Northwest Ter
Slide 149: Strong Organic Growth Model To Recruit, Train & Develop Consultants
INVESTORS GROUP HAS A STRONG ORGANIC GROWTH MODEL TO RECRUIT, TRAIN & DEVELOP CONSULTANTS CONSULTANT NETWORK COMPOSITION (# of Consultants) 4,146 Regional Directors 95 Lead Region Offices and are licensed professionals New Consultants 995 An industry leading approach to recruit, train & develop new
Slide 150: Actions Over The Past Year Have Accelerated Growth
ACTIONS OVER THE PAST YEAR HAVE ACCELERATED GROWTH IN TARGET HNW SEGMENT GROSS SALES OF HNW SOLUTIONS ($MM) Eliminated DSC (Q4 2016) 1,095 Reduced size of Consultant Network to focus +95%1 977 on quality 892 Placed greater focus on net sales growth 746 Promoted & expanded fee-based offerings 549 (st
Slide 151: Clear Path To Continue Transforming Distribution
CLEAR PATH TO CONTINUE TRANSFORMING DISTRIBUTION TO FOCUS ON CONSISTENT HIGH QUALITY ADVICE AND PLANNING FROM TO Many Single Consultant Practices Fewer, larger Consultant Practices built 01 run by a professional with large number of mass market clients around teams with higher proficiency and more f
Slide 152: Focus On Quality And More Productive Consultant Practices
FOCUS ON QUALITY AND MORE PRODUCTIVE CONSULTANT 01 PRACTICES THROUGH GREATER USE OF ASSOCIATE TEAMS CONSULTANT NETWORK COMPOSITION CONSULTANT PRACTICES WHO HAVE (# of Consultants) ASSOCIATES ARE 2-3x MORE PRODUCTIVE CONSULTANT PRACTICE AVERAGE 2017 YTD 841 854 896 910 (>4 YEARS) AUM GROSS SALES 909
Slide 153: Mandated CFP/PL. Fin Proficiency To Enhance Quality
MANDATED CFP/PL. FIN PROFICIENCY TO ENHANCE 01 QUALITY FINANCIAL PLANNING; #1 RANKING IN NUMBER OF CFP/PL. FIN CFP/ PL. FIN RANKINGS WITHIN INDUSTRY1 CONSULTANTS PRACTICES WITH CFP/PL. FIN NUMBER NUMBER DEC. SEP. RANK OF CFP/PL. FIN OF FPSC LEVEL 1 CFP STATUS 2015 2017 PROFESSIONALS CERTIFICANTS 1 I
Slide 154: Focused On Fewer And Higher Quality Recruits
FOCUSED ON FEWER AND HIGHER QUALITY RECRUITS; 02 NEW CONSULTANTS 4X MORE PRODUCTIVE NEW CONSULTANTS (<4 YEARS) WEEKLY NEW CASH / NEW CONSULTANT (YTD) 2,065 1,679 1,482 1,298 $25,458 995 3Q16 4Q16 1Q17 2Q17 3Q17 135 out of 147 new consultants hired this year Source of New Consultants 2015 2017 YTD
Slide 155: National Service Centre
NATIONAL SERVICE CENTRE: INCREASES CONSULTANT 03 CAPACITY & PROVIDES CONSISTENT SERVICE LEVEL MEASURE BENEFITS CLIENT SERVICE SERVICE & PERFORMANCE PLANNING CONSULTANTS CLIENTS Frees up time to focus Provides consistent service planning offering on higher levels to all households value clients INVES
Slide 156: Additional Initiatives To Drive Our Business Forward
ADDITIONAL INITIATIVES TO DRIVE OUR BUSINESS 04 FORWARD ARE BEING IMPLEMENTED ENHANCED 4-YEAR ENHANCED CONSULTANT ENHANCED CONSULTANT DEVELOPMENT PROGRAM PRODUCTIVITY TOOLS IIROC CAPABILITIES Certifications & Diploma Data & Digital Productivity Tools Grow Number of IIROC New Company Universi
Slide 157: Example Of New Productivity Tool From Investment In Data
EXAMPLE OF NEW PRODUCTIVITY TOOL FROM INVESTMENT IN DATA; DIGITIZATION TO COME Key resource to support future practice growth EASILY IDENTIFY PRACTICE OPPORTUNITIES Comprehensive Planning Client Engagement Enhanced Capacity Accelerate Client Referrals Net Flows (by Segment) Client Base Analysis at a
Slide 158: Partnered With Gallup To Measure Client Engagement
RECENTLY PARTNERED WITH GALLUP TO MEASURE CLIENT ENGAGEMENT AND IDENTIFY FURTHER OPPORTUNITIES TO IMPROVE RELATIONSHIPS NATIONAL SURVEYS LAUNCHED OCT 2017 Key Performance Measurement Focused on “top box” scores excellence Clients who believe Clients who believe their their financial planner is f
Slide 159: We Have Made Significant Changes
WE HAVE MADE SIGNIFICANT CHANGES; SUCCESS IS SHOWING AND WE HAVE MUCH MORE TO COME ACTIONS TAKEN FUTURE Build Larger, More Productive Consultant Teams Increase Number of Licensed CFPs Expand IIROC and Productivity Tools Enhance HNW Solutions Digitize Client and Consultant Experience Capture Back-Off
Slide 160: Summary
SUMMARY Successfully transforming distribution to enhance quality and client outcomes Focused on fewer and more productive Consultant practices; National Service Centre a game-changing productivity and client-centric initiative More to come as we implement additional distribution initiatives to soli
Slide 161: Luke Gould
LUKE GOULD SVP, FINANCE AND CHIEF FINANCIAL OFFICER INVESTORS GROUP & MACKENZIE INVESTMENTS 161
Slide 162: Key Messages IGM Financial
KEY MESSAGES IGM FINANCIAL Diversified business with Potential for strong future Focused leadership team Our long-term, disciplined solid performance; AUM growth and focus on to execute on our strategy approach to financial record assets and sales, expense management to and “One IGM Approach” manage
Slide 163: Track Record Of Solid Financial Performance
TRACK RECORD OF SOLID FINANCIAL PERFORMANCE IGM ADJUSTED EARNINGS PER SHARE AND DIVIDENDS PER SHARE ($) 3.48 3.23 3.22 3.27 3.21 Adjusted EPS 3.05 3.12 3.02 2.85 2.89 2.89 2.92 Dividends Per Share EPS growth 2.56 2.31 2.34 2.25 2.25 2.25 2.01 2.05 2.05 2.10 2.15 2.15 2.18 Consistent 2.00 1.85 1.
Slide 164: Record High Assets
RECORD HIGH ASSETS, WITH MOMENTUM FROM BOTH INVESTMENT RETURNS AND NET SALES IGM FINANCIAL ASSETS UNDER MANAGEMENT ($B) 2017 YTD YTD Oct Sep 30 Oct 31 Opening 142.7 150.0 142.7 Net Sales 3.0 0.3 3.3 Investment Returns 4.3 4.1 8.4 Ending 150.0 154.4 154.4 Change 5.1% 2.9% 8.2% $154.4B Average 147.6 1
Slide 165: Maintain Market Share Is Growth In AUM
“MAINTAIN MARKET SHARE” IS GROWTH IN ASSETS UNDER MANAGEMENT OF 8 – 10% PER YEAR Investment Returns of 6% Per Year on Average + Industry Net Sales Rate of 2 – 4% IGM INVESTMENT RETURN INDEX COMPOUND ANNUAL RETURNS INDUSTRY MUTUAL FUND NET SALES Asset-weighted Returns on IGM Mutual Funds At Oct 31, 2
Slide 166: Diversified Business Profile
DIVERSIFIED BUSINESS PROFILE INVESTORS GROUP A LARGE CONTRIBUTOR TO EARNINGS ASSETS UNDER MANAGEMENT & ADMINISTRATION OP. EARNINGS BEFORE INTEREST & TAXES (EBIT) ($B AT SEP 30, 2017) ($MM TTM AT SEP 30, 2017) $150B1 754 $1.07B 88.8 TOTAL AUM TOTAL EBIT EBIT EBIT/AUM 85.8 69.2 0.91% IGM CONSOLIDATED
Slide 167: IGM Revenues Growing In Line With Assets
IGM REVENUES GROWING IN LINE WITH AVERAGE ASSETS AND EARNINGS ARE RELATIVELY STABLE IGM EBIT IGM EBIT ($MM) % OF AVG. AUM 2.01% 2.09% 1.99% 1.99% 2.05% 3,031 3,045 3,167 0.75% 0.80% 2,929 0.70% 0.71% 0.78% 2,679 1,138 Commissions to 993 1,062 1,090 Dealers/Advisors 886 Investment Income & 179 Share
Slide 168: Focus On Driving Operating Leverage
FOCUS ON DRIVING OPERATING LEVERAGE THROUGH MANAGEMENT OF EXPENSES IGM EBIT NET REVENUE RATE DRIVERS % OF AVG. AUM Clientele (retail, HNW, institutional) Asset Base Product or asset class (equity, balanced, Composition income, active, passive) Net Fee 1.29% 1.27% 1.26% 1.30% 1.27% Revenue 1 Se
Slide 169: One IGM Approach Focused On Operational Leverage
“ONE IGM APPROACH” FOCUSED ON OPERATIONAL LEVERAGE AND OPERATIONAL EFFICIENCY Operational Business IGM NON-COMMISSION EXPENSES ($MM) Efficiencies Re-Investments • Creating a flatter, leaner • Back-office re- organization across engineering and 982 916 IGM and leveraging digitization to enhance 852 s
Slide 170: Reaffirming 2017/2018 Guidance and Introducing 2020 Targets
REAFFIRMING 2017/2018 GUIDANCE AND INTRODUCING 2020 TARGETS ANNUAL NON-COMMISSION MARKET SHARE 2018 Guidance Assumptions EXPENSE GROWTH GROWTH Previously announced 1. Initiatives to expand 2017 2018 2020 Ongoing shared service model 2. Implementation of single global Mackenzie 8% 5% 3% Net Sales a
Slide 171: Focused On Maintaining Financial Flexibility
FOCUSED ON MAINTAINING FINANCIAL FLEXIBILITY Strong liquidity and Solid investment Access to capital RECENT INVESTMENTS significant tangible grade credit ratings markets assets DBRS: A (High) Part of Power Tradition of retaining S&P: A Financial group earnings in business Rated among B
Slide 172: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES • Drive innovation and new product development REINVEST IN • Execute initiatives to improve efficiency and profitability THE BUSINESS • Back office Capex: ~$100MM; ~50MM run-rate savings, a portion of which will be reinvested to achieve strategic initiatives • Expand di
Slide 173: IGM Financial A Compelling Investment Opportunity
IGM FINANCIAL A COMPELLING INVESTMENT OPPORTUNITY Differentiated strategies, clear objectives & driven management team with deep global and multi-functional experience to successfully execute We have taken bold actions to transform our businesses to align with our client centric focus and address re
Slide 174: Jeff Carney
JEFF CARNEY PRESIDENT AND CEO IGM FINANCIAL 174
Slide 175: Key Messages IGM Financial
KEY MESSAGES IGM FINANCIAL A leading Canadian Bold steps taken to Consistent execution New leadership Unique strategy, financial services position us for has resulted in driving “One IGM clear objectives and company with clear accelerated growth – record sales Approach” vision driven management adva
Slide 176: KPIs To Drive Growth And Manage Costs
KPIs TO DRIVE GROWTH AND MANAGE COSTS MACKENZIE INVESTORS GROUP KPI OBJECTIVE KPI OBJECTIVE ADVISOR CLIENT Receive Gallup Results; PERCEPTION #1 Investment Firm Amongst Peer Group by 2020 ENGAGEMENT Set New Target STUDY EMPLOYEE Consistent Top 1/3 EMPLOYEE ENGAGEMENT Gallup Engagement Score Top Quar
Slide 177: Investor Day
IGM FINANCIAL INVESTOR DAY N O V E M B E R 2 8 2017 177
Slide 178: Appendix
; APPENDIX Financial
Slide 179: Jeffrey R. Carney
JEFFREY R. CARNEY PRESIDENT AND CHIEF EXECUTIVE OFFICER IGM FINANCIAL INC. PRESIDENT AND CHIEF EXECUTIVE OFFICER INVESTORS GROUP INC. Jeffrey Carney is President and Chief Executive Officer of Investors Group, and President and Chief Executive Officer of IGM Financial Inc., positions he has held sin
Slide 180: Barry McInerney
BARRY McINERNEY PRESIDENT AND CHIEF EXECUTIVE OFFICER MACKENZIE INVESTMENTS Barry McInerney was appointed President and Chief Executive Officer of Mackenzie Investments on May 6, 2016. Barry was raised and educated in Canada and has more than 25 years of experience in the investment management busin
Slide 181: Michael Dibden
MICHAEL DIBDEN CHIEF OPERATING OFFICER IGM FINANCIAL INC. Michael Dibden joined IGM Financial as COO in June 2017. He is responsible for leading the following key shared services operations of Investors Group and Mackenzie Investments: Client Services, Fund Services, Information Services and Legal a
Slide 182: Luke Gould
LUKE GOULD SENIOR VICE-PRESIDENT, FINANCE AND CHIEF FINANCIAL OFFICER INVESTORS GROUP INC. MACKENZIE INVESTMENTS Luke Gould is responsible for all aspects of the finances of Investors Group and Mackenzie Investments. Luke also oversees the financial reporting, risk management and corporate taxation
Slide 183: Doug Milne
DOUG MILNE EXECUTIVE VICE-PRESIDENT, CHIEF MARKETING AND STRATEGY OFFICER IGM FINANCIAL INC. Doug Milne is Executive Vice-President, Chief Marketing and Strategy Officer for the IGM group of companies, which includes Mackenzie Investments. He joined IGM in 2017 and is responsible for leading a compr
Slide 184: Rhonda Goldberg
RHONDA GOLDBERG SENIOR VICE-PRESIDENT, CLIENT AND REGULATORY AFFAIRS IGM FINANCIAL INC. Rhonda Goldberg champions a client-first approach across all business functions at IGM Financial. She advises on new and significant regulatory initiatives and trends for all IGM companies, and supports IGM’s pro
Slide 185: Tony Elavia
TONY ELAVIA EXECUTIVE VICE-PRESIDENT, CHIEF INVESTMENT OFFICER MACKENZIE INVESTMENTS Tony Elavia is responsible for overseeing IGM Financial’s global investment management organization, which supports both Investors Group and Mackenzie Investments. Tony has 30 years of industry experience working wi
Slide 186: Damon Murchison
DAMON MURCHISON SENIOR VICE-PRESIDENT, HEAD OF RETAIL MACKENZIE INVESTMENTS Damon Murchison leads the retail sales organization at Mackenzie and has been with the company since 2014. He is responsible for the retail sales, alliance and group sales businesses, including planning and sales effectivene
Slide 187: Mark Kinzel
MARK KINZEL EXECUTIVE VICE-PRESIDENT, FINANCIAL SERVICES INVESTORS GROUP INC. Mark Kinzel oversees Investors Group’s network of 95 region offices and approximately 4,200 Consultants across Canada. Mark joined Investors Group as a Consultant in 1983 and over the next 16 years took on roles of increas
Slide 188: Todd Asman
TODD ASMAN EXECUTIVE VICE-PRESIDENT, PRODUCTS AND FINANCIAL PLANNING INVESTORS GROUP INC. Todd Asman is responsible for the Investors Group’s diverse product shelf and planning services including investment funds, banking and mortgages, insurance services, IIROC support, advanced financial planning