Igm Financial Inc. · TSX:IGM
Igm Financial — Q1 2011 Earnings Presentation
34 slides from Igm Financial's earnings presentation, May 6, 2011
Slide 1: IGM Financial Q1, 2011 Results
IGM FINANCIAL Q1, 2011 Results May 6, 2011
Slide 2: IGM Financial – Conference Call Participants
IGM Financial – Conference Call Participants Charles R. Sims Murray J. Taylor Gregory D. Tretiak 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 for the purposes of assistin
Slide 4: IFRS Adoption
IFRS Adoption 1. IGM Financial Inc. commenced reporting in accordance with International Financial Reporting Standards (“IFRS”) for the quarter ended March 31, 2011. Unaudited Interim Condensed Consolidated Financial Statements, for the three months ended March 31, 2011, were prepared in accordanc
Slide 5: Non-IFRS Financial Measures
Non-IFRS Financial Measures • Net earnings available to common shareholders, which is a financial measure in accordance with IFRS, may be divided into two components consisting of: – Operating earnings available to common shareholders; and – Other items, which include the after-tax impact of any ite
Slide 6: 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. IGM Financial Q1, 2011 fin
Slide 7: Highlights
1. Highlights 2. Mackenzie 3. Investors Group 7
Slide 8: IGM Financial Highlights – Earnings
IGM Financial Highlights – Earnings IGM Financial’s Net Earnings increased by 10.5% during the first quarter of 2011 relative to the first quarter of 2010 and EPS increased by 11.0%. Three month periods ended March 31 2010 2011 Change Net earnings available to common shareholders $ 191.8 $ 211.8 1
Slide 9: IGM Financial Highlights – Sales
IGM Financial Highlights – Sales IGM Financial had gross sales of $5.6 billion and net sales of $619 million during Q1, 2011. IGM Financial Investment Product Sales Three Months Ended March 31, 2011 ($ Millions) Gross Sales Net Sales Investors IGM Investors IGM Group Mackenzie Counsel Financial Gr
Slide 10: IGM Financial Highlights – Assets Under Management
IGM Financial Highlights – Assets Under Management IGM Financial’s assets under management increased by 3.6% during the quarter ended March 31, 2011 and average assets were up 4.7% during the quarter. Change ($ Billions) Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Last Last 2010 2010 2010 2010 2011 Qu
Slide 11: Operating Environment – Industry Sales Mix
Operating Environment – Industry Sales Mix The industry experienced net sales of long term funds during Q1, 2011. Industry Mutual Fund Net Sales by Primary Distribution Emphasis ($ Billions) Three months ended March 31 Long Term Funds Total Funds 2010 2011 Change 2010 2011 Change Gross Sales Advic
Slide 12: Operating Environment – Industry Sales Mix
Operating Environment – Industry Sales Mix The prevailing trend of net sales into balanced and income-oriented funds continued during Q1, 2011. Equity funds experienced net sales during the quarter. Industry Mutual Fund Net Sales ($ Billions) Q1, 2009 Q2, 2009 Q3, 2009 Q4, 2009 Q1, 2010 Q2, 2010 Q
Slide 13: Operating Environment – Financial Markets
Operating Environment – Financial Markets During Q1, 2011, industry long term mutual fund assets under management increased by 4.6% as a result of appreciation in global equity markets. Canadian Mutual Fund Industry Long Term Mutual Fund Assets Under Management ($ Billions) Q2, 2011 at 750 Q1, 201
Slide 14: IGM Financial Highlights – Assets Under Management
IGM Financial Highlights – Assets Under Management Average total assets under management increased by 4.7% during Q1, 2011 relative to Q4, 2010 and by 9.3% relative to Q1, 2010. Average mutual fund assets under management increased by 4.8% during Q1, 2011 relative to Q4, 2010 and by 9.5% relativ
Slide 15: IGM Financial Highlights – Earnings
IGM Financial Highlights – Earnings IGM Financial’s Net Earnings increased by 10.5% during Q1, 2011 relative to Q1, 2010 and EPS increased by 11.0% Net Earnings Net Earnings Per Share (Diluted) Three Months ended March 31 Three Months ended March 31 ($ Millions) ($) 211.8 0.81 191.8 0.73 2010 2011
Slide 16: Mackenzie
1. Highlights 2. Mackenzie 3. Investors Group 16
Slide 17: Mackenzie Sales
Mackenzie Sales Mackenzie’s gross sales of mutual funds increased by 23.7% during Q1, 2011 relative to Q1, 2010 and mutual fund net sales improved by $305 million. Total investment product net sales were $121 million during Q1, 2011. Mackenzie Gross Sales of Investment Products Mackenzie Net Sales
Slide 18: Mackenzie Mutual Fund Gross Sales
Mackenzie Mutual Fund Gross Sales Mackenzie’s Sentinel sub-brand continued to experience strong flows during Q1, 2011 and sales momentum in the Saxon sub-brand continued. 1 Gross Sales Mix of Long Term Mutual Funds by Mackenzie Sub-Brand Three month periods ended March 31 2 6% 9% 6% Symmetry & oth
Slide 19: Mackenzie Mutual Fund Redemption Rate
Mackenzie Mutual Fund Redemption Rate Mackenzie’s twelve month trailing redemption rate on long term mutual funds was 16.5% at March 31, 2011. 1 Redemption Rate on Long Term Mutual Funds (Last Twelve Month Trailing % of Average Assets Under Management) 20% 18% 3 Industry, peer companies 17.5% of M
Slide 20: Mackenzie Investment Performance
Mackenzie Investment Performance 71% of Mackenzie’s assets reside within funds which have had first or second quartile performance over the last five years. Mackenzie Mutual Funds in First or Second Quartile As at March 31, 2011 71% 69% 65% 61% % of assets 57% 57% 55% under management 42% % of fun
Slide 21: Mackenzie Assets Under Management
Mackenzie Assets Under Management Mackenzie’s total average assets under management increased by 9.3% during Q1, 2011 relative to Q1, 2010. Mackenzie’s average mutual fund assets increased by 9.1% during Q1, 2011 relative to Q1, 2010. Mackenzie Average Assets Under Management Three months ended
Slide 22: Mackenzie Earnings before Interest & Taxes
Mackenzie Earnings before Interest & Taxes Mackenzie’s Earnings before Interest and Taxes increased by 16.8% during Q1, 2011 relative to Q1, 2010. Three months ended March 31 ($ Millions) 79.8 68.3 2010 2011 Mackenzie 22
Slide 23: Mackenzie Earnings before Interest & Taxes
Mackenzie Earnings before Interest & Taxes Mackenzie’s Earnings before Interest and Taxes were $79.8 million during Q1, 2011, a 16.8% increase from Q1, 2010. Three months ended March 31 $ Millions, unless otherwise indicated 2010 2011 Change Average assets under management ($ billions) Total 63.6
Slide 24: Mackenzie Developments
Mackenzie Developments 1. Investment Management • 65% of mutual funds and 71% of mutual fund assets relate to funds in first or second quartile in terms of five year performance. • Resources added to the Maxxum, Cundill, Ivy, Sentinel and Universal investment management teams during the quarter. 2.
Slide 25: Investors Group
1. Highlights 2. Mackenzie 3. Investors Group 25
Slide 26: Investors Group Consultant Network
Investors Group Consultant Network The number of Consultants with more than four years experience increased to 2,655 at March 31, 2011 compared to 2,641 at December 31, 2010. Number of Investors Group Consultants As at December 31 (unless otherwise indicated) 5,000 4,633 4,686 4,586 4,800 4,479 4,
Slide 27: Investors Group Mutual Fund Sales
Investors Group Mutual Fund Sales Investors Group had gross sales of $2.0 billion during the first quarter of 2011 and net sales of $504 million. Mutual Fund Gross Sales Mutual Fund Net Sales Three months ended March 31 Three months ended March 31 ($ Millions) ($ Millions) 2,046 1,880 560 504 2010
Slide 28: 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 8.4% at March 31, 2011, approximately half of the industry average. Redemption Rate on Long Term Mutual Funds 1 Quarterly Annualized Redemption Rate on Long (Last Twelv
Slide 29: Insurance and Mortgage Distribution
Insurance and Mortgage Distribution Investors Group insurance product sales increased by 14.0% during Q1, 2011 relative to Q1, 2010 and mortgage originations increased by 15.8%. New Annualized Insurance Premiums Mortgages Originations Three months ended March 31 ($ Millions) Three months ended Mar
Slide 30: Investors Group Investment Performance
Investors Group Investment Performance 64% of mutual funds managed by Investors Group (Masterseries, partner and portfolio funds) were rated 3, 4 or 5 star by Morningstar at March 31, 2011, compared to 65% for all Morningstar-rated funds. Morningstar Ratings as at March 31, 2011 Proportion of Morn
Slide 31: Investors Group Mutual Fund Assets Under Management
Investors Group Mutual Fund Assets Under Management The average balance of mutual fund assets under management increased by 9.1% relative to Q1, 2010. Average Mutual Fund Assets Under Management Three months ended March 31 ($ Billions) 63.0 57.7 2010 2011 Investors Group 31
Slide 32: Investors Group Earnings before Interest & Taxes
Investors Group Earnings before Interest & Taxes Investors Group’s Earnings before Interest & Taxes increased by 9.7% during Q1, 2011 relative to Q1, 2010. Three months ended March 31 ($ Millions) 214.8 195.8 2010 2011 Investors Group 32
Slide 33: Investors Group Earnings before Interest & Taxes
Investors Group Earnings before Interest & Taxes Investors Group’s Earnings before Interest & Taxes were $214.8 million during Q1, 2011, an increase of 9.7% relative to Q1, 2010. Three months ended March 31 2010 2011 Change ($ Millions, unless otherwise indicated) Average mutual fund assets under
Slide 34: Investors Group Developments
Investors Group Developments 1. New record high level of assets under management during Q1, 2011 • $62.6 billion at January 31, 2011 relative to previous month end record high level of $61.9 million at May 31, 2007. Assets were $63.7 billion at April 30, 2011. 2. Consultant Network • Investors Group