Igm Financial Inc. · TSX:IGM
Igm Financial — Scotia Capital Financials Summit 2008
46 slides from Igm Financial's conference presentation, Sep 9, 2008
Slide 1: IGM Financial – Scotia Capital Financials Summit
IGM FINANCIAL Scotia Capital Financials Summit September 9, 2008
Slide 2: Caution Concerning Forward Looking Statements
Caution Concerning Forward Looking Statements This presentation may contain forward-looking statements about IGM Financial, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depen
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation 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
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, 2008 and June 30, 2008 • 2007 Annual Report • 2007 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 with ticker symbol “IGM” 1 • Market Capitalization of $11.7 billion • Float of $4.8 billion 1 1,2 • Dividend yield of 4.6% 1 • $105 billion of mutual fund AUM and $118 bill
Slide 7: Leading Scale in Mutual Fund Management
Leading Scale in Mutual Fund Management IGM Financial is the largest long term mutual fund manager in Canada. Long Term Mutual Fund Assets Under Management at June 30, 2008 ($ Billions) 100.4 85.5 60.2 41.5 43.2 44.0 37.5 34.1 23.7 26.7 FT AGF BMO AIM CIBC Fidelity TD CI RBC IGM Source – IFIC BMO
Slide 8: Operating Companies
Operating Companies IGM Financial operates through three subsidiaries and has 1 consolidated assets under management of approximately $120 billion. At June 30, 2008 Financial > 4,300 Investors > 30,000 third party > 700 Financial Planners Group Consultants planners and brokers Planners Assets Unde
Slide 9: Diversified Business Structure
Diversified Business Structure IGM Financial enjoys broad and diversified distribution and investment management capabilities. • Distribution: − Investors Group (exclusive financial planners) − Mackenzie (third party financial planners, brokers, insurers, banks, institutional) − Investment Plannin
Slide 10: Operating Highlights – Assets by Subsidiary
Operating Highlights – Assets by Subsidiary IGM Financial’s operating subsidiaries have experienced declines in AUM during the last year due to equity market downturns. Assets Under Management ($ Billions) Year-over- Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Year 2007 2007 2007 2008 2008 Change IGM
Slide 11: IGM Financial Assets Under Management
IGM Financial Assets Under Management IGM Financial has experienced growth in both mutual fund and institutional mandates. IGM Financial Assets Under Management ($ Billions) 130 Total 125 120 $ 118.2 billion at August 31, 2008 115 110 105 $104.7 billion at August 31, 2008 100 95 Mutual Funds Annua
Slide 12: Operating Highlights – Gross Sales
Operating Highlights – Gross Sales IGM Financial gross sales of investment products were $20 billion during 2007 and are $10 billion through the first six months of 2008. IGM Financial Gross Sales ($ Millions) Twelve Months Ended December 31, 2007 Six Months Ended June 30, 2008 Investors IGM Inves
Slide 13: Operating Highlights – Net Sales
Operating Highlights – Net Sales IGM Financial net sales of investment products were $3.2 billion during 2007 and are $547 million through the first six months of 2008. IGM Financial Net Sales ($ Millions) Twelve Months Ended December 31, 2007 Six Months Ended June 30, 2008 Investors IGM Investors
Slide 14: Financial Highlights
Financial Highlights The financial performance of IGM Financial continues to strengthen. Twelve months ended December 31 Six months ended June 30 2006 2007 Change 2007 2008 Change 1,2 Adjusted Net Income ($ MM) 763 864 13.2% 426 427 0.2% 1,2 Adjusted Earnings Per Share ($) 2.85 3.23 13.3% 1.59 1.6
Slide 15: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 14
Slide 16: Attractive Industry
Attractive Industry High growth rate − Demographics support continued savings, with increasing number of baby- boomers in prime savings years of 40-65 years old. − Built in growth through investment returns. − Institutional and retail growth. Investors desire advice − Approximately 85% of Canadians
Slide 17: Operating Environment – Sales Mix
Operating Environment – Sales Mix Balanced funds continue to represent a prominent component of industry net flows. Income-oriented funds had positive net flows during Q2, 2008. Canadian Mutual Fund Industry Long Term Mutual Fund Net Sales ($ Billions) Q1, 2006 Q2, 2006 Q3, 2006 Q4, 2006 Q1, 2007
Slide 18: Operating Environment – Sales Mix
Operating Environment – Sales Mix Global and foreign funds continue to represent the majority of 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 Q3, 2007 Q4
Slide 19: Operating Environment – Financial Markets
Operating Environment – Financial Markets Asset values on global markets have declined to an even greater degree than the Canadian S&P TSX Index. Canadian Mutual Fund Industry Long Term Mutual Fund Assets Under Management ($ Billions) Year to date at August 31, 700 2008 IFIC Long Term Assets (2.0%
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 4,300 Consultants. Product Offering Support Platform • Investment management • Regional offices located throughout • Extensive mutual Canada fund offering • MasterseriesTM • Industry-leading brand
Slide 22: Investors Group Emphasis
Investors Group Emphasis Enduring client relationships − Financial planning heritage − Long term Consultant / client relationship Entrepreneurial − Strong culture − Community involvement / people who care Solid growth − Strong client & Consultant loyalty − Regional office, field management and recru
Slide 23: Investors Group Consultant Network
Investors Group Consultant Network The Investors Group Consultant Network is at a record high of 4,360 at June 30, 2008, having had growth for 16 consecutive quarters. Number of Investors Group Consultants 4,360 4,331 4,342 Since SinceJune June30, 30,2004 2004 4,225 • •Consecutive Consecutivegrowt
Slide 24: Investors Group Asset Retention
Investors Group Asset Retention Driven by strong retention of Consultants and Clients, Investors Group’s industry-leading long term mutual fund redemption rate continues to be near its all-time record low of 7.3% at December 31, 2007. Redemption Rate on Long Term Mutual Funds (Last Twelve Month Tr
Slide 25: Investors Group Mutual Fund Sales
Investors Group Mutual Fund Sales Mutual Fund Gross Sales Mutual Fund Net Sales Six Months Ended June 30 ($ Millions) Six Months Ended June 30 ($ Millions) 3,999 1,402 3,410 504 2007 2008 2007 2008 24
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 75% of our Masterseries funds being rated 3, 4 or 5 star by Morningstar. Morningstar Ratings at June 30, 2008 Proportion of Morningstar-
Slide 28: Investors Group Management Focus
Investors Group Management Focus 1. Growing the Investors Group Consultant Network • 16 consecutive quarters of growth since June 30, 2004 • 24 new regional offices have been added in the last 4 years, up 35% to a total of 91 regional offices across Canada • Consultant and client retention remains s
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 • Client-focused culture Advisor approach • Systems & technology Relat
Slide 31: Mackenzie Asset Management
Mackenzie Asset Management Mackenzie continues to experience strong growth in assets under management. Mackenzie Assets Under Management ($ Billions) 73.2 At December 31, unless otherwise noted 3 63.3 Institutional - Saxon 61.5 11.3 49.9 16.7 14.9 16.3 Institutional, sub- 42.3 advised & other 1 8.
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 Sales
Mackenzie Sales 1,2 1,2 Gross Sales of Investment Products Net Sales of Investment Products Six months ended June 30 ($ Millions) Six months ended June 30 ($ Millions) 1,314 6,952 6,464 2,185 2,063 943 1,169 917 168 97 469 203 3,598 3,484 (365) (7) 2007 2008 2007 2008 1. Institutional, sub-advised &
Slide 34: Mackenzie Mutual Fund Redemption Rate
Mackenzie Mutual Fund Redemption Rate Mackenzie’s redemption rate on long-term mutual fund assets continues to be below the average of its peers. Redemption Rate on Long Term Mutual Funds 4 (Last Twelve Month Trailing % of Average Assets Under Management) 20% 1, 3 18% Industry (IFIC), peer compani
Slide 35: Mackenzie Investment Performance
Mackenzie Investment Performance 55% of Mackenzie’s mutual funds achieved first or second quartile investment performance during the last year. Mackenzie Mutual Funds in First or Second Quartile At June 30, 2008 55% 45% 38% % of assets 34% 35% under 30% management % of funds 1 Year 3 Year 5 Year S
Slide 36: 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. 35
Slide 37: 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 two years. 1,2 Gross Sales Mix of Long Term Mutual Funds by Mackenzie Sub-Brand 5% 5% 13% Other 3 9% 6% Sentinel 8% 6% Ivy 16% 18% Universal 18% Maxxum 56%
Slide 38: Mackenzie Product Innovation
Mackenzie Product Innovation Mackenzie has a proven track record of product innovation. • Destination+ • Launched • Destination+ • Launched Funds Symmetry Funds • RRSP • Winfund • T-Series high Symmetry • RRSP • Winfund • T-Series high Asset Clone Purchase monthly Asset Clone Purchase monthly Allo
Slide 39: Mackenzie Recent Product Developments
Mackenzie Recent Product Developments 1. Launch of Mackenzie Destination+ Funds during 2008 − Four target date fund-of-funds with guaranteed principal protection − $164 million of net sales into these four funds through June, 2008 2. Launch of Mackenzie Founders fund-of-funds to commemorate Mackenzi
Slide 40: Acquisition of Saxon Financial
Acquisition of Saxon Financial • Enhances Mackenzie’s internal investment management capabilities in the multi-cap value and fixed income areas. • Establishes long-term sub-advisory and distribution relationships with CMA Holdings. • Expands Mackenzie’s institutional and high net worth presence and
Slide 41: Mackenzie Management Focus
Mackenzie Management Focus 1. Business Growth • Growing investment product sales • Generating superior investment performance • Continuing to pursue acquisition opportunities 2. Innovation and Effectiveness • Providing advisors, dealers and clients with industry-leading levels of service and support
Slide 42: Agenda
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 41
Slide 43: Summary
Summary IGM Financial provides an attractive vehicle for participation in a high growth industry. • Advantages of scale from being one of the largest players in the Canadian asset management and financial planning industry • Diversified distribution model, with a focus on advisory segments • Broad
Slide 44: IGM Financial Adjusted Earnings Per Share ($)
1 IGM Financial Adjusted Earnings Per Share ($) IGM Financial’s earnings have grown consistently. 3.23 10 2.85 10year yearCAGR CAGRof of16.5% 16.5% 2.56 2.31 2.01 1.85 1.58 1.35 1.12 0.89 0.70 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1. 2007 and 2006 Earnings Per Share have each been
Slide 45: IGM Financial Dividends Per Share (cents)
IGM Financial Dividends Per Share (cents) IGM Financial has consistently increased its dividends. 177.5 10 153.5 10year yearCAGR CAGRof of19.5% 19.5% 133.5 115.0 99.0 86.0 73.0 61.0 49.0 38.0 30.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 44
Slide 46: IGM Financial – Scotia Capital Financials Summit
IGM FINANCIAL Scotia Capital Financials Summit September 9, 2008
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