Back to the future: An alliance rooted in independence. Chairman s & President s Club Business Session

Transcription

1 Back to the future: An alliance rooted in independence Chairman s & President s Club Business Session

2 Capital Markets Introduction Fred Westra EVP, MD & Head of Capital Markets, ia Securities Capital Markets & Fixed Income Roadshow Sept 2017

3 ia Financial Group Overview Size, Stability & Sponsorship ia Financial Group 4th Largest Life and Health Insurer in Canada $6 billion market capitalization $155 billion in Assets Under Administration including HollisWealth History: 1892 Alliance Nationale was founded; 1905 merged with Industrial Life Insurance Co. + Wealth Management Expansion ia Securities is 100%-owned subsidiary of ia Financial Group For the IIROC advisors, HollisWealth will operate under a business division of ia Securities named HollisWealth 3

4 ia Securities Overview Combined Assets under Administration by Region 19% 11% 46% 20% 4% 4

5 Competitive Environment = Opportunity Bank Owned Dealers Independents Premier Bou5ques Small Bou5ques Widening Gap 5 Trends 1. Compliance costs rising 2. Margins compressing 3. Capital constrained 4. Banks dominate 5. Disintermediation Firm Ranking By Retail AUA 1. RBC $280.0 B 7. ia Securities $ 35.0 B 2. BMO $150.0 B 8. Raymond James $ 35.0 B 3. CIBC $150.0 B 9. Desjardins $ 30.0 B 4. Scotia $145.0 B 10. Richardson GMP $ 28.3 B 5. National Bank $105.0 B 11. Manulife $ 19.0 B 6. TD $ 85.0 B 12. Canaccord $ 9.8 B

6 Conferences and Site Visits Home is where the Heart is Residential Real Estate and Financial Services Conference Hotel Lunch A discussion on Canadian Tourism and the Canadian Hotel Property Sector 6 Royal York Hotel, Toronto 20 th July 2015

7 Investment Bank / Corporate Finance Capital Markets is the relationship manager with corporate clients Capital Markets Group Trading Support Marketing Support Research Financing Advisory 7 Trading Updates to Issuers and Team Members Flow Trades Liaise with Institutional and Retail Clients Non-Deal and Deal Investor Roadshows Conferences Investor Follow-up and Feedback Provide Market Intelligence and Industry Experience to Investors, Bankers and Sales & Traders Regularly Publish Reports on Coverage List of Companies Equity Fixed Income Mezzanine Products Mergers & Acquisitions Divestitures Management Buyouts Restructuring Shareholder Return Advisory Initiations on New Names

8 Investment Bank s Role in Investor and Issuer Dealings Match capital holders (investors) with consumers of capital (issuers) to investment targets and growth needs, respectively Provide buy and sell advice to retail and institutional investors Provide capital structure and strategic advice to issuers Provide access to quality new issue products to investors Intermediary Retail ECM Research INVESTOR ISSUER Institutional Sales & Trading IB New Issue Deal is Dynamic 8

9 Equity Research Sector Specialists Analyst coverage targets of issuers per analyst Provide in-depth market intelligence, sector view and industry expertise Over 55 years experience, CFA Charterholders and top ranked analysts Coverage by Market Cap Mining & Metals Consumer & Industrial Products Technology Financials Power & Utilities Energy E&P Energy Services & Infrastructure Research Coverage 100 names currently covered Sector coverage, More thematic Corporate Access Retail & Institutional Conferences Bi-weekly analyst Retail calls 9 REITs

10 Equity Research Performance Analyst Number of Top 3 Bloomberg Rankings Number of Covered Names Neil Linsdell Consumer and Industrial Products Blair Abernethy Technology Brad Sturges Real Estate and REITs 4 9 Dylan Steuart Financial Services Elias Foscolos Energy, Oil and Gas Services George Topping Metals and Mining Jeremy Rosenfield Power and Utilities Michael Charlton Energy, Exploration and Production N/A N.B. Bloomberg rankings only available for stocks covered over a 12 month period. Last price as of market close 18/04/2017

11 11 Select Recent Transactions (Equity Issuers)

12 12 Select Recent Transactions (Equity Issuers)

13 13 Select Recent Transactions (Equity Issuers)

14 14 Select Recent Transactions (Structured Products)

15 Equity Capital Markets / Syndication Syndicating - Inviting other investment dealers into the transaction to Reduce our capital liability on a firm commitment (Bought deal) Add sales capacity of other dealers and increase distribution Get reciprocal business Executing Discussing the transaction with retail advisors, taking in expressions of interest and allocating shares to institutional accounts and retail advisors Opportunity New issues provide the highest margin in our business 15

16 Equity Capital Markets / Syndication The Hub of Capital Markets The voice of our firm to all syndication desks in Canada A strong syndicate partner; average retail demand is 250x Successful distribution = future syndicate positions Increased retail sales = increased market share = more product for retail The voice of our firm to/from ias retail network Striving to get best fills on orders for ias advisors Get feedback on products of importance to retail More new issues equity/debt More structured product new issues 16

17 17 Equity Capital Markets / Syndication

18 The natural fit between Capital Markets & ias Retail Capital Markets Active research creates awareness & demand in the distribution network Higher CM syndicate positions allow for better retail fills (higher retail commissions) Retail Large & informed distribution network allows for better demand decisions More demand allows for syndicate positioning (higher CM commission) Demand vs. Fills = Needs for integrated ECM + Banking + Research + Retail strategy Better demand for new issue allows CM to market ias to new issuers & Big dealers that lead issues (i.e. banks) Get on syndicates Get bigger syndicate percentages Sector Awareness for Retail Analyst roadshows Weekly analyst calls Research portal & Research distribution Conferences 18 18

19 Why is New Issue Business Important to You? Opportunities for Retail Increase revenue Improve client retention Attract high net worth clients Access to new issues Build wall around clients More reasons Offers all types of clients suitable alternatives (i.e. high and mid-low risk alternatives) Bypasses mutual funds (and fees therein) Your competitors are doing new issue business and attracting your clients Revenues derived from new issues are amongst the highest margin for the firm Most importantly, historical returns have been extremely positive 19 19

20 Why are You Important to New Issue Business? Corporate issuers are attracted to do business with ia Securities Investment banking relationship Research coverage: 8 research analysts covering 96 names Trading their stock Institutional and Retail distribution Our ability to distribute stock is crucial and in many cases, is a key differentiator between ourselves and our competition 20 20

21 Investment Banking / ECM Role in New Issues New Issues Sales Cycle Marketing our Retail Placement Abilities New Issue Offering Institutions Always outperforming means always moving up & getting more access to producers écommission Increased Participation / Allocation Market our performance back to Issuer Participation in Equity Transaction Retail Sales PERFORMANCE Fills Syndicate Retail Selling Group Retail éfills é Syndicate Participations é Outperformance é Demand 21 Increased Retail Demand = Increased Market Share Successful Distribution = Larger Syndicate Positions Failed Distribution = No Syndicate Position

22 How We Can Work Together To Get Started In New Issues Be Informed Participate YOUR JOB Read s/research to start understanding the various products Log-on, listen, participate in conference calls with issuers and call Syndication with questions OUR JOB Continue to focus on tier one corporate clients with long-term successful growth profiles & bring you top quality products Continue to increase our deal flow in order to maximize the variety of product Focus on Top Names Maximize Deal Flow Communicate Talk to clients and participate in the new issuer meetings, Retail Roadshows, ia Conferences Educate & build relationships with retail advisors to understand your needs Strengthen Relationships Act Begin to allocate parts of portfolios towards new issues Make you feel welcome to call Syndication with questions and comments Support You 22

23 Our Journey to Success Number of Syndicates: Buying New Issues à Current βeta Phase 32 WALK RUN Create Enterprise Value for the Firm FLY 2019 Phase I Phase II Phase III Avg. Syndicate Positions: Number of Leads: 1% -- 2% 3-4% 5-8% $9B à $35B Transitory Period 23 23

24 ia Securities Capital Markets Team Montreal Head Office 2200 McGill College Ave, Suite 350 Montreal, Quebec H3A 3P8 Calgary Office 301 8th Ave SW, Suite 600 Calgary, Alberta T2P 1C5 Toronto Office 26 Wellington St E, Suite 900 Toronto, Ontario M5E 1S2 Richard Legault, CFA President Neil Linsdell, CFA MD, Head of Research Blair Abernethy, CFA MD, Technology Analyst Patrick Laperriere, CFA MD, Ins/tu/onal Equity Sales David BeaSy MD, Investment Banking Frederik Westra SVP, MD, Head of Capital Markets Jeremy Rosenfield, CFA Power & U/li/es Analyst Brad Sturges, CFA Real Estate & REIT Analyst Richard Williams MD, Ins/tu/onal Equity Trading Trevor Conway, MBA MD, Investment Banking Vilma Jones MD, Co-Head of ECM Dylan Steuart, CFA Financial Services Analyst Elias Foscolos, M.Sc. Energy Services Analyst Frederic Dulude, CMT Ins/tu/onal Equity Trader Jeret Bode, MBA MD, Investment Banking Pierre-Francois Roy MD, Co-Head of ECM George Topping Mining Analyst Michael Charlton Energy Analyst Stephen Lloyd, MBA, CFA Ins/tu/onal Equity Sales John Rak, M.Sc Investment Banking Richard Kassabian, CFA ECM, Head of Structured Products Louis-Simon Gingras Research Associate Sean McPherson Research Associate Dave Hammond Ins/tu/onal Equity Sales Kevin Thompson, MBA, CMA Investment Banking Laura Cristello Syndica/on Richard Lieu Research Associate Dimitri Troulis Research Associate Valen5n Padure Research Associate John-Paul Grabowski, MBA Investment Banking Associate Dan Hardie 24 Senior Investment Banker CharloSe Elliot Ins/tu/onal Equity Sales Graham Farrell Ins/tu/onal Equity Trader Alex MacIssac, MBA Research Associate 24

25 Panel Q&A

26 Thank you! We are looking forward to being your Capital Markets partner.