IGM Financial Inc. · TSX:IGM
IGM Financial — Scotia Capital Financials Summit 2007
44 slides from IGM Financial's conference presentation, Sep 11, 2007
Slide 1: IGM Financial – Scotia Capital Financials Summit
IGM FINANCIAL Scotia Capital Financials Summit September 11, 2007
Slide 2: Caution Concerning Forward Looking Statements
Caution Concerning Forward Looking Statements This report 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 upon o
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This report may also contain non-GAAP financial measures. Non-GAAP financial measures are used to provide management and investors with additional measures of performance. However, we caution that non-GAAP financial measures do not have standard meanings prescribed by GAA
Slide 4: IGM Financial Public Disclosures
IGM Financial Public Disclosures Please refer to the following documents relating to IGM Financial for a more comprehensive summary of the corporation’s business and results: • Interim reports for the quarters ended March 31, 2007 and June 30, 2007 • 2006 Annual Report • 2006 Annual Information Form
Slide 5: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 4
Slide 6: Overview
Overview IGM Financial manufactures and distributes financial products and services through its subsidiaries. • Listed on TSX as ticker “IGM” • Market Capitalization of $13.7 billion • Float of $5.6 billion • Dividend yield of 3.55% • Largest mutual fund manager in Canada, with $110 billion in mut
Slide 7: Leading Scale in Mutual Fund Management
Leading Scale in Mutual Fund Management IGM Financial is the largest mutual fund manager in Canada, and is significantly larger than its nearest competitor. Long Term Mutual Fund Assets Under Management at June 30, 2007 ($ Billions) 108.4 66.8 62.0 50.6 44.8 44.8 40.8 35.2 26.9 30.0 FT AGF BMO Fid
Slide 8: Operating Companies
Operating Companies IGM Financial operates through three subsidiaries and has 1 consolidated assets under management of approximately $126 billion. At June 30, 2007 Financial > 4,000 Investors > 30,000 third party > 600 Financial Planners Group Consultants planners and brokers Planners Assets Unde
Slide 9: Diversified Business Structure
Diversified Business Structure IGM Financial enjoys a well diversified operating model. • Three competing operating subsidiaries, each with its own leadership, distribution channels, investment management expertise and brands • Significant and diversified distribution − Investors Group (exclusive
Slide 10: Operating Highlights – Assets by Subsidiary
Operating Highlights – Assets by Subsidiary All of IGM Financial’s operating subsidiaries have experienced solid growth during the last year and year to date. Assets Under Management ($ Billions) Change 4 Year to Last Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, date twelve 2006 2006 2006 2007 2007 200
Slide 11: Operating Highlights – Assets by Product
Operating Highlights – Assets by Product IGM Financial has experienced strong growth in both mutual fund and institutional mandates. IGM Financial Assets Under Management ($ Billions) 130 125 $123.8 billion at Aug 31, 2007 120 115 Total $110.2 billion at Aug 31, 2007 110 105 100 95 90 Mutual funds
Slide 12: Operating Highlights – Gross Sales
Operating Highlights – Gross Sales IGM Financial gross sales of investment products were $17.9 billion during 2006 and $11.0 billion during the first six months of 2007. IGM Financial Gross Sales ($ Millions) Twelve months ended December 31, 2006 Six months ended June 30, 2007 Investors IGM Invest
Slide 13: Operating Highlights – Net Sales
Operating Highlights – Net Sales IGM Financial net sales of investment products were $3.6 billion during 2006 and $2.7 billion during the first six months of 2007. IGM Financial Net Sales ($ Millions) Twelve months ended December 31, 2006 Six months ended June 30, 2007 Investors IGM Investors IGM
Slide 14: Financial Highlights
Financial Highlights IGM Financial’s financial performance continues to strengthen. Twelve months ended December 31 Six months ended June 30 2005 2006 Change 2006 2007 Change 1 Net Income ($ MM) 682 763 11.8% 372 426 14.6% 1 Earnings Per Share ($) 2.56 2.85 11.3% 1.39 1.59 14.4% Dividends Per Shar
Slide 15: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 14
Slide 16: Attractive Industry
Attractive Industry High growth rate − Demographics support continued savings, with increasing number of baby-boomers in prime savings years of 40-65 years old. − Built in growth through investment returns. Investors desire advice − Approximately 85% of Canadians rely on an advisor for some level of
Slide 17: Operating Environment – Sales Mix
Operating Environment – Sales Mix Income-oriented funds continue to represent a less prominent component of industry net flows. Canadian Mutual Fund Industry Long Term Mutual Fund Net Sales ($ Billions) Q1, 2006 Q2, 2006 Q3, 2006 Q4, 2006 Q1, 2007 Q2, 2007 Income-oriented 5.7 1.3 1.4 2.4 3.4 2.0 S
Slide 18: Operating Environment – Sales Mix
Operating Environment – Sales Mix Global and foreign funds continue to represent a majority of the net sales into balanced and equity funds. Canadian Mutual Fund Industry Mutual Fund Net Sales into Balanced & Equity Funds ($ Billions) Q1, 2006 Q2, 2006 Q3, 2006 Q4, 2006 Q1, 2007 Q2, 2007 Domestic
Slide 19: Operating Environment – Financial Markets
Operating Environment – Financial Markets Financial markets have continued to contribute to Canadian mutual fund industry growth during 2007. Canadian Mutual Fund Industry Long Term Mutual Fund Assets Under Management ($ Billions) 700 Year to date at Year to date at June 30, 2007 August 31, 2007 6
Slide 20: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 19
Slide 21: Investors Group
Investors Group Investors Group provides comprehensive financial planning through its network of over 4,000 Consultants. Product Offering Support Platform • Investment management • Financial planning centers located • Extensive mutual throughout Canada fund offering • MasterseriesTM • Industry-lea
Slide 22: Investors Group Emphasis
Investors Group Emphasis Enduring client relationships − Long term Consultant / client relationship − Financial planning heritage Entrepreneurial − Strong culture − Community involvement Solid growth − Strong client & Consultant loyalty − Region office, field management and recruiting expansion 21
Slide 23: Investors Group Consultant Network
Investors Group Consultant Network The Investors Group Consultant Network now exceeds 4,000, having increased over 27% during the last three years as a result of strong recruiting and retention. Number of Investors Group Consultants Since SinceJune June30, 30,2004 2004 • •Consecutive Consecutivequ
Slide 24: Investors Group Asset Retention
Investors Group Asset Retention Driven by strong retention of Consultants, Investors Group’s redemption rate has improved considerably during the last three years to a record low level. Redemption Rate on Long Term Mutual Funds (Last Twelve Month Trailing % of Average Assets Under Management) 18%
Slide 25: Investors Group Mutual Fund Sales
Investors Group Mutual Fund Sales Investors Group’s sales momentum has continued to improve during 2007. Mutual Fund Gross Sales Mutual Fund Net Sales Six Months Ended June 30 ($ Millions) Six Months Ended June 30 ($ Millions) 18.3% 1,402 18.3%Growth Growth 3,999 58.8% 58.8%Growth Growth 3,448 883
Slide 26: Investors Group Investment Management
Investors Group Investment Management Investors Group’s investment management teams are located in North America, Europe and Asia. Montreal Winnipeg Dublin Toronto Hong Kong 25
Slide 27: Investors Group Investment Performance
Investors Group Investment Performance Strong long term risk-adjusted investment performance by the Investors Group investment management team is demonstrated by 78% of our Masterseries funds being rated 3, 4 or 5 star by Morningstar. Morningstar Ratings at June 30, 2007 Proportion of Morningstar-
Slide 28: Investors Group Management Focus
Investors Group Management Focus 1. Growing the Investors Group Consultant Network • 27% growth in number of Consultants during last three years • 12 new region offices in 2005 and 2006, and 7 region offices opening in 2007 • Consultant retention resulting in record low redemption rates 2. Building
Slide 29: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 28
Slide 30: Mackenzie
Mackenzie Mackenzie is one of Canada’s premier investment managers. Investment Management Service Platform • Retail mutual funds • Experienced wholesaling team −Extensive mutual located across Canada fund offering −Sub-branding Advisor • Client-focused culture approach Relationships • Systems & te
Slide 31: Mackenzie Asset Management
Mackenzie Asset Management Mackenzie continues to experience 1 strong growth in assets under management, with growth of 23% during 2006 and 6% during the first six months of 2007. 1 Mackenzie Assets Under Management ($ Billions) 65.0 Institutional & other 61.5 June, Mutual funds 2003 2004 2005 200
Slide 32: Mackenzie Emphasis
Mackenzie Emphasis Investment Management − Investment performance − Diversification − Capabilities, processes & talent Distribution − Wholesaling capabilities and relationships − Alternative distribution channels − Product innovation Customer Service − Advisor & dealer support − Client / investor su
Slide 33: Mackenzie Investment Performance
Mackenzie Investment Performance 40% of Mackenzie’s mutual fund assets under management have delivered first or second quartile performance in terms of five year returns. Mackenzie Funds in First or Second Quartile at June 30, 2007 49% 44% 38% 40% 37% 34% % of assets 32% 27% under management % of
Slide 34: Mackenzie Sales
Mackenzie Sales Mackenzie gross sales have remained strong during 2007. Gross Sales of Investment Products 1 Net Sales of Investment Products 1 Six months ended June 30 ($ Millions) Six months ended June 30 ($ Millions) 1,625 6,640 6,952 1,314 Institutional, 1,800 2,185 Sub-Advised & Other 981 726
Slide 35: Mackenzie Sales by Sub-Brand
Mackenzie Sales by Sub-Brand Mackenzie’s gross sales of long term mutual funds have become more diversified across sub-brands during the last year. Gross Sales Mix of Long Term Mutual Funds by Mackenzie Sub-Brand 4.6% 7.3% Other 4.5% 8.3% 7.6% Sentinel 9.5% 12.7% Universal 16.3% 12.0% Ivy 23.6% Ma
Slide 36: Product Developments
Product Developments Mackenzie <r = ~~ {o> Mackenzie P Charitable Giving Fund 13M. 35
Slide 37: Award-Winning Investor & Advisor Education
Award-Winning Investor & Advisor Education Mackenzie offers educational programs and training through Mackenzie University. 36
Slide 38: Mackenzie Management Focus
Mackenzie Management Focus • Focused on investment performance • Providing advisors, dealers and clients with industry-leading levels of service and support • Building upon track record of product and service innovation • Continuing to pursue opportunities in new and evolving distribution channels •
Slide 39: Celebrating 40 Years
Celebrating 40 Years 2007 marks the 40th anniversary of Mackenzie and the 25th anniversary of its subsidiary MRS. 38
Slide 40: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 39
Slide 41: Summary
Summary IGM Financial provides an attractive vehicle for participation in a high growth industry. • Advantages of scale from being the largest player in the mutual fund industry • Diversified distribution model, with a focus on advisory segments • Broad investment fund product offering through rec
Slide 42: IGM Financial Adjusted Earnings Per Share ($)
1 IGM Financial Adjusted Earnings Per Share ($) IGM Financial’s earnings continued to strengthen during 2006. 2.85 2.56 10 10year yearCAGR CAGRof of17.8% 17.8% 2.31 2.01 1.85 1.58 1.35 1.12 0.89 0.70 0.56 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1. 2006 Earnings Per Share has been ad
Slide 43: IGM Financial Dividends Per Share (cents)
IGM Financial Dividends Per Share (cents) IGM Financial has consistently increased its dividends. 153.5 10 10year yearCAGR CAGRof of20.1% 20.1% 133.5 115.0 99.0 86.0 73.0 61.0 49.0 38.0 30.0 24.5 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 42
Slide 44: IGM Financial – Scotia Capital Financials Summit
IGM FINANCIAL Scotia Capital Financials Summit September 11, 2007
IGM Financial — Scotia Capital Financials Summit 2007 on 6ix