IGM Financial Inc. · TSX:IGM
IGM Financial — Q1 2015 Earnings Presentation
39 slides from IGM Financial's earnings presentation, May 8, 2015
Slide 1: IGM Financial Q1, 2015 Results
IGM FINANCIAL Q1, 2015 Results May 8, 2015
Slide 2: IGM Financial – Conference Call Participants
IGM Financial – Conference Call Participants Jeffrey R. Carney Murray J. Taylor Kevin E. Regan President & CEO, President & CEO, Executive Vice-President Mackenzie Investors Group & CFO, IGM Financial Co - President & CEO, Co - President & CEO, IGM Financial IGM Financial 2
Slide 3: Caution Concerning Forward Looking Statements
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 unde
Slide 4: Non-IFRS Financial Measures and Additional IFRS Measures
Non-IFRS Financial Measures and 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: – Operating earnings available to common shareholders; and – Other items, which inclu
Slide 5: Documents Incorporated by Reference
Documents Incorporated by Reference This summary document and webcast are meant to discuss, not to serve as a substitute for, information included in these documents. The reader is hereby cautioned to refer to the following documents relating to IGM Financial’s results: 1. Documents related to IGM F
Slide 6: Highlights
1. Highlights 2. Mackenzie Investments 3. Investors Group 6
Slide 7: IGM Financial Earnings
IGM Financial Earnings IGM Financial’s Operating Earnings were $200.3 million during Q1, 2015, and Operating Earnings Per Share were 80 cents. Operating Earnings Per Share increased by 3.9% relative to Q1, 2014. Change Q1, Q4, Q1, Last Last 2014 2014 2015 Year Quarter 1 Operating Earnings ($ milli
Slide 8: IGM Financial Sales
IGM Financial Sales IGM Financial had mutual fund gross sales of $4.5 billion and net sales of $537 million during Q1, 2015. IGM Financial Investment Product Sales Three months ended March 31, 2015 ($ Millions) Gross Sales Net Sales Investors 1 Investors 1 Group Mackenzie Counsel IGM Financial Gro
Slide 9: IGM Financial Assets Under Management
IGM Financial Assets Under Management IGM Financial’s mutual fund assets under management increased by 7.4% during the last year to $131.5 billion. IGM Financial Ending Assets Under Management ($ Billions) Record Highs Change Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Last Last 2014 2014 2014 2014 20
Slide 10: Industry Long Term Mutual Fund Assets
Industry Long Term Mutual Fund Assets During Q1, 2015, industry long term mutual fund assets increased by 7.2%. Q2, 2015 Canadian Mutual Fund Industry Q1, 2015 at May 6 Long Term Mutual Fund Assets Under Management Mutual Fund Long Term Assets 7.2% ($ Billions) Equity Markets: 1,300 Canada (S&P /
Slide 11: Industry Sales by Distribution Emphasis
Industry Sales by Distribution Emphasis The advice channel experienced a 6.5% increase in gross sales during the first quarter of 2015. Industry Mutual Fund Sales by Primary Distribution Emphasis Total Funds ($ Billions) Three Months Ended Mar 31 2014 2015 % Change Gross Sales Advice 24.5 26.0 6.5
Slide 12: Industry Net Sales by Asset Class – Advice Channel
Industry Net Sales by Asset Class – Advice Channel The advice channel experienced positive net sales in the balanced and foreign equity categories. Advice Channel Mutual Fund Net Sales ($ Billions) Q1, 2013 Q2, 2013 Q3, 2013 Q4, 2013 Q1, 2014 Q2, 2014 Q3, 2014 Q4, 2014 Q1, 2015 Income-Oriented 2.2
Slide 13: IGM Financial Assets Under Management
IGM Financial Assets Under Management Average mutual fund assets under management were 8.5% higher during Q1, 2015 relative to Q1, 2014 and increased by 4.3% relative to Q4, 2014. IGM Financial Assets Under Management ($ Billions) Average Assets Under Management ($ Billions) 160 Mutual Total Recor
Slide 14: IGM Financial Assets Under Management
IGM Financial Assets Under Management Average mutual fund assets under management were 8.5% higher during Q1, 2015 relative to Q1, 2014, total average AUM increased by 9.1%. Average Assets Under Management ($ Billions) Record 146.5 High 138.9 142.3 140.1 134.2 Sub-advisory, 16.6 institutional & ot
Slide 15: IGM Financial Operating Earnings
IGM Financial Operating Earnings IGM Financial’s Operating Earnings were $200.3 million, an increase of 3.0% relative to Q1, 2014. 1 Operating Earnings ($ Millions) 219.7 203.9 208.1 194.4 200.3 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 1. Please refer to slide 4 for a discussion of adjustments. 15
Slide 16: IGM Financial Operating Earnings Per Share
IGM Financial Operating Earnings Per Share IGM Financial’s Operating Earnings Per Share were 80 cents, an increase of 3.9% relative to Q1, 2014. 1 Operating Earnings per Share ($ Diluted) 0.87 0.81 0.83 0.80 0.77 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 1. Please refer to slide 4 for a discussion of adjustme
Slide 17: Mackenzie Investments
1. Highlights 2. Mackenzie Investments 3. Investors Group 17
Slide 18: Mackenzie Investment Product Sales
Mackenzie Investment Product Sales Mackenzie Investments had mutual fund gross sales of $2.0 billion during Q1, 2015 and total investment product net sales of $569 million. Mutual Fund Gross Sales Total Investment Product Net Sales Three months ended March 31 Three months ended March 31 ($ Million
Slide 19: Mackenzie Mutual Fund Gross Sales by Asset Class
Mackenzie Mutual Fund Gross Sales by Asset Class Continued sales momentum into Mackenzie’s balanced mutual funds. 1,2 Gross Sales Mix of Long Term Mutual Funds by Asset Class 10% 9% 11% 5% Sector / other 27% 31% 35% 39% 40% 32% 36% Equity 39% 37% 44% 29% 43% 33% 39% 42% 36% 16% 26% 29% 44% Balance
Slide 20: Mackenzie Mutual Fund Redemption Rate
Mackenzie Mutual Fund Redemption Rate Mackenzie’s twelve month trailing redemption rate on long term mutual funds was 13.8% at March 31, 2015. 1 Redemption Rate on Long Term Mutual Funds (Last Twelve Month Trailing % of Average Assets Under Management) 24% 20% Industry, peer companies of 16% Macke
Slide 21: Mackenzie LTM Mutual Fund Sales
Mackenzie LTM Mutual Fund Sales Mackenzie’s mutual fund gross sales stabilized during March 2015. 1 Mutual Fund Gross Sales and Redemptions 1 (Last Twelve Month Trailing - $ Billions) Redemption Rate 8.0 20% Gross Sales ($B) Redemptions ($B) 7.0 18% Redemption rate on long-term f unds (%) 6.0 16%
Slide 22: Mackenzie Investment Performance
Mackenzie Investment Performance 62% of mutual funds managed by Mackenzie reside in funds with a 3, 4 or 5 star Morningstar rating. 1 Morningstar Ratings – Proportion of Morningstar-Rated Funds As at March 31, 2015 43% 38% 37% 35% 28% Mackenzie All Morningstar-Rated 19% 1 & 2 Stars 3 Stars 4 & 5 S
Slide 23: Mackenzie Investment Performance
Mackenzie Investment Performance Mackenzie mutual funds have strong, five and ten year performance quartile ratings. 1 Mackenzie Mutual Funds in First or Second Quartile As at March 31, 2015 57% 58% 54% % of assets under 43% management 32% 30% % of funds 25% 26% 1 Year 3 Year 5 Year 10 Year Source
Slide 24: Mackenzie Assets Under Management
Mackenzie Assets Under Management The average balance of mutual fund assets under management was 7.5% higher during Q1, 2015 relative to Q1, 2014. Average Assets Under Management ($ Billions) 73.6 Record 69.4 71.2 69.8 66.7 High Institutional, sub- 23.1 1 advised & other 19.7 Record High 47.0 50.5
Slide 25: Mackenzie Operating Segment – EBIT
Mackenzie Operating Segment – EBIT Mackenzie’s Earnings before Interest and Taxes were $56.9 million during Q1, 2015. Earnings before Interest & Taxes ($ Millions) 69.2 65.9 57.7 56.9 53.0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 25
Slide 26: Mackenzie Operating Segment – EBIT
Mackenzie Operating Segment – EBIT Mackenzie’s Earnings before Interest and Taxes were $56.9 million during Q1, 2015. Three months ended March 31 ($ Millions, unless otherwise indicated) 2014 2015 Change Average assets under management ($ billions) Total 66.7 73.6 10.3% Mutual funds 47.0 50.5 7.5%
Slide 27: Mackenzie Developments
Mackenzie Developments Mackenzie’s website ranked # 1 by kasina for the best overall quality, best features and top content. Mackenzie recently launched a CRM2 blog to generate a dialogue with financial advisors and share insights from our CRM2 experts. This complements our existing efforts to suppo
Slide 28: Investors Group
1. Highlights 2. Mackenzie Investments 3. Investors Group 28
Slide 29: Investors Group Consultant Network
Investors Group Consultant Network Investors Group had a Consultant network of 5,156 at March 31, 2015. This represents the highest level in the history of the company. Number of Investors Group Consultants As at December 31 (unless otherwise indicated) Record High 5,145 5,156 5,011 4,871 4,633 4,
Slide 30: Investors Group Mutual Fund Sales
Investors Group Mutual Fund Sales Investors Group had gross sales of $2.4 billion during Q1, 2015 and net sales of $588 million. Mutual Fund Gross Sales Mutual Fund Net Sales Three months ended March 31 Three months ended March 31 ($ Millions) ($ Millions) Up 6.1% Record High Up $178 million 2,365
Slide 31: Investors Group Mutual Fund Redemption Rate
Investors Group Mutual Fund Redemption Rate Investors Group’s twelve month trailing redemption rate on long term mutual funds was 8.5% at March 31, 2015, well below the industry average. 1 Quarterly Annualized Redemption Rate on Redemption Rate on Long Term Mutual Funds Long Term Mutual Funds (Las
Slide 32: Investors Group LTM Mutual Fund Sales
Investors Group LTM Mutual Fund Sales Investors Group has experienced continuing sales momentum. Mutual Fund Gross Sales and Redemptions (Last Twelve Month Trailing - $ Billions) Redemption Rate 8.0 14% Record Gross Sales ($B) 7.5 High 13% Redemptions ($B) 7.0 12% Redemption rate on long-term f un
Slide 33: Investors Group Client Experience
Investors Group Client Experience The median Investors Group client return was approximately 3.0% during the first quarter of 2015. Investors Group will add performance reporting to most client statements for June 30, 2015, two full years ahead of the CRM2 deadline. Investors Group Client Accoun
Slide 34: Investors Group Client Experience Survey
Investors Group Client Experience Survey During 2014, Investors Group introduced an ongoing program to measure client experience for new and existing clients. Ongoing surveys of our clients indicate a strong appreciation of the value of advice and service provided by our Consultants. New Clients
Slide 35: Investors Group Insurance and Mortgage Distribution
Investors Group Insurance and Mortgage Distribution Investors Group mortgage fundings increased by 20.3% in Q1, 2015 relative to Q1, 2014. New Annualized Insurance Premiums Mortgage Fundings Three months ended March 31 Three months ended March 31 ($ Millions) ($ Millions) 394 389 18.1 16.4 16.6 32
Slide 36: Investors Group Mutual Fund Assets Under Management
Investors Group Mutual Fund Assets Under Management The average balance of mutual fund assets under management was 8.9% higher during Q1, 2015 relative to Q1, 2014. Average Assets Under Management ($ Billions) Record 75.5 High 71.5 73.1 72.5 69.3 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 36
Slide 37: Investors Group Operating Segment – EBIT
Investors Group Operating Segment – EBIT Investors Group’s Earnings before Interest & Taxes increased by 1.4% during Q1, 2015 relative to Q1, 2014. Earnings before Interest & Taxes ($ Millions) 207.1 196.9 188.0 185.1 190.7 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 37
Slide 38: Investors Group Operating Segment – EBIT
Investors Group Operating Segment – EBIT Investors Group’s Earnings before Interest & Taxes were $190.7 million during Q1, 2015, up 1.4% relative to 2014. Three months ended March 31 ($ Millions, unless otherwise indicated) 2014 2015 Change Average mutual fund assets under management ($ billions)
Slide 39: Investors Group Highlights
Investors Group Highlights 1. Consultant Network and Sales Growth • Continued strong growth in the Consultant Network during the quarter, reaching a new record high of 5,156. • Q1, 2015 gross sales represented the highest level of first quarter sales in company history. 2. CRM2 – Rate of Return Repo