IGM Financial Inc. · TSX:IGM
IGM Financial — Scotia Capital Financials Summit 2006
37 slides from IGM Financial's conference presentation, Sep 12, 2006
Slide 1: IGM Financial – Scotia Capital Financials Summit
IGM FINANCIAL Scotia Capital Financials Summit September 12, 2006
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, 2006 and June 30, 2006 • 2005 Annual Report • 2005 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 $13.4 billion (world’s 4th largest publicly-traded investment management firm) 1 1 • Float of $5.6 billion 1 • Dividend yield of
Slide 7: Leading Scale in Mutual Fund Management
Leading Scale in Mutual Fund Management IGM Financial is the largest mutual fund manager in Canada, and is significantly larger than its nearest competitor. Long Term Mutual Fund Assets Under Management at June 30, 2006 93.4 ($ billions) 53.2 53.3 42.9 36.7 39.2 34.3 29.4 22.3 23.1 FT AGF BMO Fide
Slide 8: Operating Companies
Operating Companies IGM Financial operates through three subsidiaries and has 1 consolidated assets under management of approximately $104 billion. At June 30, 2006 Financial > 3,700 Investors > 30,000 third party > 500 Financial Planners Group Consultants planners and brokers Planners Assets Unde
Slide 9: Advice Channel Strategy
Advice Channel Strategy IGM Financial is part of the Power Financial group of companies, which enjoys broad and diversified distribution capabilities with an emphasis on financial advisors. At June 30, 2006 > 3,700 > 30,000 > 500 1,600 3,000 > 10,000 Investors third party financial financial finan
Slide 10: Operating Highlights
Operating Highlights IGM Financial’s asset growth continues. ($ millions) 2004 2005 Change Long Term Mutual Fund Sales 9,599 11,538 20.2% Long Term Mutual Fund Net Sales 1,029 1,804 75.3% Mutual Fund Assets Under Management 83,273 94,116 13.0% Total Assets Under Management 86,621 100,233 15.7% 9
Slide 11: Financial Highlights
Financial Highlights ($ millions, unless otherwise indicated) 2004 2005 Change EBITDA 1,253 1,366 9.0% Net Income 1 616 682 10.9% 1 Earnings Per Share ($) 2.31 2.56 10.8% Dividends Per Share 1.150 1.335 16.1% 1. 2004 Net Income and Earnings Per Share have been adjusted to exclude unitholder compensa
Slide 12: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 11
Slide 13: 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 − Over 85% of Canadians rely on an advisor for some level of financia
Slide 14: Operating Environment
Operating Environment • Net positive flows into mutual funds, with increasing proportion into equity funds • Solid Canadian equity market performance • Regulatory and compliance developments • Evolving product structures • Continued emphasis on financial advice 13
Slide 15: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 14
Slide 16: Investors Group
Investors Group Investors Group provides comprehensive financial planning through its network of over 3,700 Consultants. Product Offering Support Platform • Investment management • Financial planning centers located • Extensive mutual throughout Canada fund offering • MasterseriesTM • Industry-lea
Slide 17: 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 16
Slide 18: Investors Group Recent Initiatives
Investors Group Recent Initiatives The last four years has been a period of repositioning for growth. Investors Group Consultant Network Growth − 17% increase in number of Consultants during the last two years − Consultant retention strengthened through enhanced compensation and support − Twelve n
Slide 19: Investors Group Consultant Network
Investors Group Consultant Network The size of the Investors Group Consultant Network has increased by 17.4% during the last two years as a result of strong recruiting and retention of Consultants. Number of Investors Group Consultants Up Up17.4% 17.4%since sinceJune June30, 30,2004 2004 3,766 3,8
Slide 20: 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. Redemption Rate on Long Term Mutual Funds (Last Twelve Month Trailing % of Average Assets Under Management) 18% Industry (IFIC) 16.0%
Slide 21: Investors Group Mutual Fund Sales
Investors Group Mutual Fund Sales Investors Group’s sales momentum has continued to improve during 2006. Mutual Fund Gross Sales Mutual Fund Net Sales Six Months Ended June 30 ($ Millions) Six Months Ended June 30 ($ Millions) 18.7% 18.7%Growth Growth 3,448 883 88.7% 88.7%Growth Growth 2,906 468 2
Slide 22: Investors Group Management Focus
Investors Group Management Focus • Growing the Investors Group Consultant Network • Building upon Investors Group’s strong culture and heritage • Enhancing Investors Group’s product and service offering to clients • Responding to evolving regulatory environment • Continuing to pursue product and exp
Slide 23: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 22
Slide 24: 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 25: Mackenzie Asset Management
Mackenzie Asset Management Mackenzie has experienced continued growth in assets under management during the last year. Mackenzie Assets Under Management ($ billions at June 30) 52.2 45.9 2005 2006 Change Mutual Funds 38.9 42.4 8.9% Private & Institutional 6.9 9.8 41.4% Total 45.9 52.2 13.8% 2005 2
Slide 26: Mackenzie Emphasis
Mackenzie Emphasis Investment Management − Superior long-term investment performance − Diversification − Capabilities, processes & talent Distribution − Wholesaling capabilities and relationships − Sub-branding strategy − Product innovation Customer Service − Advisor & dealer support − Client / inve
Slide 27: Mackenzie Investment Performance
Mackenzie Investment Performance 62% 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, 2006 62% % of assets 40% 39% 39% under 35% management 30% % of funds 1
Slide 28: Mackenzie Mutual Fund Sales
Mackenzie Mutual Fund Sales Mackenzie long term fund net sales have remained strong during 2006. 1 Gross Sales of Long Term Mutual Funds Net Sales of Long Term Mutual Funds 1 Six months ended June 30 ($ Millions) Six months ended June 30 ($ Millions) 16.0% 16.0%Growth Growth 7.2% 7.2%Growth Growth
Slide 29: Mackenzie Distribution Strength
Mackenzie Distribution Strength Mackenzie consistently ranks as one of the top-selling fund managers among financial planners and full service brokers. Canadian Mutual Fund Industry Third Party Financial Advisor Distribution Channel ($ millions) Assets Gross Sales 2006 30-Jun-06 2002 2003 2004 200
Slide 30: Mackenzie Product Shelf
Mackenzie Product Shelf Mackenzie’s product shelf is organized under a sub-branding strategy which organizes funds by mandate and investment approach. 1. Focus Funds are currently branded “Select Managers Funds”. 29
Slide 31: Mackenzie Investor & Advisor Education
Mackenzie Investor & Advisor Education Mackenzie offers educational programs and training through Mackenzie University. 30
Slide 32: Mackenzie Management Focus
Mackenzie Management Focus • Delivering superior long-term 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 evolving distribution
Slide 33: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 32
Slide 34: 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 industry • Diversified distribution, with a focus on advisory segments • Broad product offering through recognized brands • Extensive domesti
Slide 35: Adjusted Earnings Per Share
1 Adjusted Earnings Per Share ($) IGM Financial’s earnings have grown consistently. 2.56 2.31 10 10year yearCAGR CAGRof of18.7% 18.7% 2.01 1.85 1.58 1.35 1.12 0.89 0.70 0.46 0.56 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1. 2004 Earnings Per Share has been adjusted to exclude unithold
Slide 36: Dividends Per Share
Dividends Per Share (cents) IGM Financial has consistently increased its dividends. The current annualized dividend is $1.59 per share (3.20% yield). 133.5 115.0 10 10year yearCAGR CAGRof of21.9% 21.9% 99.0 86.0 73.0 61.0 49.0 38.0 30.0 24.5 18.5 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Slide 37: IGM Financial – Scotia Capital Financials Summit
IGM FINANCIAL Scotia Capital Financials Summit September 12, 2006
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