IIROC FAS Conference 2016 September 9,

Transcription

1 IIROC FAS Conference 2016 September 9,

2 CANNEX Who we are In business since 1981 Specializes in: Data/information Point of sale support Automated order processing Quantitative analysis through the QWeMA Group (a division of CANNEX): Analysis and valuation of structured products Methodologies that optimize asset allocation and product allocation Product consulting and independent product allocation services In Canada, CANNEX: Gathers/compiles/distributes rates and calculation values for financial products and services Facilitates term deposit/gic order processing and settlement transactions In the US, CANNEX: Specializes in comparative pricing, illustration, and evaluation tools for Guaranteed Lifetime Income products such as Income Annuities and Deferred Annuities with Income Benefits. 2

3 Point of Sale Support in Canada and the US Support distributor activity in the Canadian and US markets for Single Premium Immediate Annuities and Deferred Income Annuities, running surveys for advisors and the annuity desk of distributors. Number of surveys (table of comparative results across the market) compiled and delivered by CANNEX: Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 US 326, , , , , , , , , ,797 CANADA 66,376 48,595 50,015 41,018 39,894 40,569 44,287 44,358 46,853 40,339 Total/Quarter 392, , , , , , , , , ,136 Total Annual or YTD 778,995 1,306,014 1,151,776 3

4 Point of Sale Support in Canada and the US CANNEX is committed to supporting the retirement market and helping our clients improve their various processes and programs to better serve the public. CANNEX conducts industry research and produces whitepapers and articles on a number of retirement topics. Guaranteed Lifetime Income Study Conducted by CANNEX and Greenwald & Associates Annual study in the US and Canada Retirees and pre retires age with at least $100,000 of investable assets. Retirement concerns Income and spending in retirement Value of guaranteed income Familiarity with guaranteed life income products Impact of advisors 4

5 Canadian Guaranteed Lifetime Income Study Conducted June 2015, Respondents: 1,015 Question: How concerned are you about the following in retirement? Note: Nearly 6 in 10 pre retirees expect to work in retirement, yet only a quarter of retirees actually do. 5

6 Canadian Guaranteed Lifetime Income Study Question: How familiar are you with the following financial products? Note: Canadian consumers are vastly more familiar with GICs, term deposits, GIAs and mutual funds, than they are income annuities or segregated funds. 6

7 Canadian Guaranteed Lifetime Income Study Question: Which of the following, if any, has a financial advisor ever mentioned or recommended to you? Note: Less than a quarter say an advisor mentioned income annuities and even fewer recall hearing about segregated funds. 7

8 Canadian Guaranteed Lifetime Income Study Conducted June 2015 Question: How many professional financial advisors, if any, are you currently working with? One 58% Two 18% Note: Nearly 8 in 10 Canadian in this market segment are currently working with a financial advisor. More than two 3% In the US 2015 survey, only 67% said they were working with an advisor. None 21% 8

9 Canadian Guaranteed Lifetime Income Study Question: When it comes to investing, what sources do you typically rely on for information when you are making an investment decision? Note: Not surprisingly, advisors are the most common information source when investing, although nearly 3 in 10 rely on news or online sources. 9

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11 Deposits Canadian Landscape Deposits $1,212 Savings & Chequing $726 Fixed Term Deposits $435 Market Linked GICs $50 Assets in billions as at December 2015 Source: investor ECONOMiCS 11

12 Fixed term Deposits Landscape Fixed term Deposits by Investment Term $483 $482 $485 3% 2% 2% 29% 32% 33% Greater than 5 year > 3 year to 5 year Absolute Change in Balances In billions 6 month 3 year Greater than 5 year ($0.4) ($3.3) 41% 41% 39% > 1 year to 3 year > 3 year to 5 year $1.4 $16.3 > 1 year to 3 year ($10.7) ($10.5) 1 year or less 1 year or less $12.9 $0.3 27% 24% 27% Dec 2012 Jun 2015 Dec 2015 AT CANNEX The most popular product, based on number of purchases, was a 1 Year term, Non redeemable, Non compounding GIC. 50,464 were purchased in Q ,126 were purchased in Q Source: investor ECONOMiCS 12

13 Fixed term Deposits Distributed through Intermediaries $104.3 billion Advice based 88% Advice based Includes full service brokers and financial advisors Growth rate CAGR $88.6 $91.7 $83.4 $83.7 $83.9 Online/discount brokers 12% $ % 3.9% Dec 2011 Dec 2012 Dec 2013 Dec 2014 Jun 2015 Dec 2015 As a share of total FTD 16.9% 17.3% 17.3% 17.3% 18.4% 18.9% Similar to the overall market, fixed term deposits sold through intermediaries with short term maturities of 1 year or less experienced the highest growth in the second half of 2015, increasing by 7.8%. Source: investor ECONOMiCS 13

14 Fixed term Deposit Transactions via CANNEX Financial Exchange Average Quarterly Number of Transactions (thousands of transactions) Q Q2 CANNEX Fixed term Deposit Transactions In Thousands 2016 # Transactions 2015 # Transactions Q % Q % Change over Same Quarter Prior Year 14

15 Fixed term Deposit Volumes via CANNEX Financial Exchange Average Quarterly Dollar Volume In millions of dollars $11,423 $10,462 $10,131 $9,978 $10,110 $11,603 $8,416 $8, Q Q2 CANNEX Fixed term Deposit $ Volume Processed In Millions 2016 $ Volume 2015 $ Volume Change over Same Quarter Prior Year Q2 $11,603 $9,844 18% Q1 $10,110 $10,430 (3)% 15

16 Average Fixed term Deposit Transactions Size via CANNEX Financial Exchange In Thousands of Dollars $60.8 $61.2 Products Supported $59.8 $56.9 $57.0 $54.9 $55.6 $ Q Q2 For the most popular product transacted via CANNEX in 2016 (1 Yr, Non redeemable, Noncompounding) the average purchase amount was $82,097 in Q1 and $84,004 in Q2. 16

17 Fixed term Deposits Canadian Regional View December 2015 balances in Billions of Dollars Products Supported December 2015 balances in Billions of Dollars Region Value Share of Canada Ontario $ % Quebec $ % B.C. $ % Alberta $48 9.8% Prairies $31 6.5% Atlantic $15 3.1% CANADA $ % Source: investor ECONOMiCS 17

18 THANK YOU QUESTIONS? 18