Guardian Directed Equity Path Portfolio (GGEP.F) · TSX:GGEP.F
Guardian Directed Equity Path Portfolio (GGEP.F) — Guardian Capital Group — Shareholder Meeting (May 2013)
25 slides from Guardian Directed Equity Path Portfolio (GGEP.F)'s shareholder meeting presentation, May 23, 2013
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Guardian Capital Group Limited May 23, 2013 James S. Anas George Mavroudis Chairman of the Board President and Chief Executive Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” with respect to Guardian Capital Group Limited and its products and services, including its business operations and strategy and financial performance and condition. These statements, characterized by such words as
Slide 3: Agenda
Agenda • Overview of Guardian’s businesses • 2012 Financial Review • Investment Management • Financial Advisory • Summary • Questions 3
Slide 4: Guardian's Businesses
Guardian’s Businesses Investment Management Financial Advisory AUM of $20.4 billion* AUA of $10.5 billion* Corporate Activities and Investments Management expertise, financing, coordination of business activities and support Securities holdings: $403 million * TSX Listed: GCG ; GCG.A 4 * As at March
Slide 5: Guardian's Fee Generating Assets
Guardian’s Fee Generating Assets Investment Management Financial Advisory Assets Under Management Assets Under Administration As at period end ($ billions) As at period end ($ billions) $10.5 $9.9 $20.4 $18.8 $8.7 $16.3 $7.8 $15.9 $7.1 $14.0 $6.0 $11.8 2008 2009 2010 2011 2012 2013 2008 2009 2010 20
Slide 6: Net Revenue
Net Revenue For the years ended December 31 ($ millions) • 2012 net revenue of $85 $85.0 million, 15% increase over prior $73.7 year $66.9 $42.4 million in net management $64.9 $61.1 fees, 14% higher $18.9 million in net commission revenue, 36% higher largely due to IDC acquisition completed on
Slide 7: Operating Earnings
Operating Earnings For the years ended December 31 ($ millions) $20.1 • Operating earnings increase $17.1 $3.0 million, or 18%, from the $13.5 prior year 25% compound annual growth rate since 2008 $8.3 $8.7 • Q1 2013 operating earnings of $5.1 million, 5% year over year growth • 23% operating marg
Slide 8: Dividends
Dividends Per share For the years ended December 31 and for 2013 Q1 ($s) $0.20 $0.17 • 2013 annual dividend paid in $0.15 $0.15 $0.15 $0.16 March increased 18% compared to 2012 33% increase in annual dividend from 2010 to 2013 • Transition to a quarterly dividend starting in 2013 $0.05 dividend
Slide 9: Share Buybacks
Share Buybacks For the years ended December 31 and for 2013 Q1 ($ millions) $12.4 $12.0 • 17% of outstanding shares $8.7 repurchased since the start of $7.8 2008 $48.8 million in cash returned to shareholders $5.1 6.8 million shares repurchased Average purchase price of $7.22 per $2.8 share 20
Slide 10: Investment Portfolio
Investment Portfolio Securities per share, diluted As at March 31, 2013 ($s) $403 million or $12.74 per share • Provides a stable stream of dividend revenue, including $0.23 $13.5 million from BMO shares $2.49 • Net gains and losses from these investments also can cause fluctuations in Net earnings
Slide 11: Shareholders' Equity
Shareholders’ Equity Per share, diluted As at period end ($s) $11.59 $11.16 • Key long term strategic $9.19 $10.01 $9.90 performance measurement • 18% compound annual growth rate in shareholders’ equity $5.65 per share from 2008 to Q1 2013 • 12.7% increase in 2012 and 3.8% increase in Q1 2013 2008 2
Slide 12: Investment Management
Investment Management $20.4 billion in AUM* Competitive investment products Executing on opportunities Growth across all distribution channels Institutional Investment Private Wealth Management Management $18.7 billion in AUM* $1.7 billion in AUM* 12 * As at March 31, 2013
Slide 13: Institutional Investment Solutions
Institutional Investment Solutions Canadian Equities Foreign Equities Fixed Income $11.4 billion* $1.2 billion* $6.1 billion* Global / EAFE Core Large Cap Core Global / EAFE Income Credit Quality Growth U.S. Credit Long/Short Income Emerging Markets Liability Driven Small/Mid
Slide 14: Distribution Channels and Target Clients
Distribution Channels and Target Clients Institutional Retail Intermediary Private Wealth $9.3 billion* $1.7 billion* Sub-advisory Wrap Defined Benefit Direct client Pension Plans $5.3 billion* $4.1 billion* relationships Defined Contribution Bank-owned Segregated Funds Independent Advisors Pension
Slide 15: Institutional
Institutional Assets Under Management As at period end ($ billions) $9.3 • AUM increased 4.5% in Q1 $8.9 $8.5 2013, versus a 3.3% rise in the $7.3 $7.3 S&P/TSX $6.4 22% increase in 2012 versus an 8.2% increase in the S&P/TSX • Future growth opportunities remain strong Continued success in develo
Slide 16: Retail Intermediary: Broker-Dealer Wrap Programs
Retail Intermediary Broker-Dealer Wrap Programs Assets Under Management As at period end ($ billions) $4.1 • AUM increased 17% in Q1 2013 54% growth in 2012 $3.5 Over 400% growth in AUM from 2008 to Q1 2013 • Canada’s #1 sub-advisor in $2.3 Managed Wrap Programs* Significant representation, $3
Slide 17: Retail Intermediary: Sub-Advisory
Retail Intermediary Sub-Advisory Assets Under Management As at period end ($ billions) $5.3 $4.9 $5.0 $5.0 $4.5 $3.6 • AUM increased 7% in Q1 2013 47% growth from 2008 to Q1 2013 • Expanding our client base 7 relationships in 2013 compared to 3 in 2008 2008 2009 2010 2011 2012 2013 Q1 17
Slide 18: Private Wealth Management
Private Wealth Management Assets Under Management As at period end ($ billions) • AUM increased 11% in Q1 2013 $1.7 78% growth from 2008 to Q1 2013 $1.5 $1.4 $1.4 • Experienced client-focused $1.2 investment professionals offering customized services in $0.9 the major Canadian markets of Toronto,
Slide 19: Financial Advisory
Financial Advisory $10.5 billion in AUA* National distribution platform The leading platform for Canada’s independent investment advisors Life Insurance MGA Mutual Fund and Securities Dealers $2.3 billion in AUA* $8.2 billion in AUA* 19 * As at March 31, 2013
Slide 20: Life Insurance Managing General Agency
Life Insurance Managing General Agency • IDC Worldsource Insurance Network is one of Canada’s leading MGAs Life insurance Disability and critical care insurance Segregated funds, term deposits and annuities • An attractive value proposition for recruiting new advisors • Strategic acquisitions
Slide 21: Life Insurance Managing General Agency: Premium Sales
Life Insurance Managing General Agency Life Insurance Premium Sales For the years ended December 31 ($ millions) $36.3 • 475% growth in annual premium sales from 2010 to 2012 Immediate sales revenues Recurring annual revenue streams $19.0 Growth in value $6.6 $6.3 $5.6 2008 2009 2010 2011 2012
Slide 22: Life Insurance MGA: Service Fees and Commissions
Life Insurance Managing General Agency Service Fees and First Year Life Commissions Net Insurance Commission Revenue For the years ended December 31 ($ millions) For the years ended December 31 ($ millions) $4.3 $10.4 $3.7 $2.5 $6.1 $2.1 $1.0 $1.1 $2.3 $0.8 $1.7 $1.9 $0.6 $0.6 $0.5 2008 2009 2010 20
Slide 23: Mutual Fund and Securities Dealers
Mutual Fund and Securities Dealers Assets Under Administration As at period end ($ billions) • WFM has 550 advisors and $7.2 $8.2 billion of AUA $7.7 $6.7 $7.1 • WSI has 35 advisors and $1 $5.9 billion of AUA $5.7 • Recruiting pipeline remains strong for both channels • Focus on gaining further scal
Slide 24: Summary
Summary All key financial operating metrics set historical highs in 2012: » AUM & AUA » Net revenue » Operating Earnings » Cash Flow from Operations » Shareholders’ Equity Continued growth in Q1 2013 Solid investment performance Improving sustainable growth in operating earnings provides opp
Slide 25: Questions?
Annual Meeting of Shareholders May 23, 2013 Questions?
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