CANNEX Industry/Company Update IIROC FAS Conference 2017 September 8,

Transcription

1 CANNEX Industry/Company Update IIROC FAS Conference 2017 September 8,

2 Today s topics About CANNEX What s New Number Time Fixed Term Deposits Canadian Landscape GICs CANNEX Financial Network Questions 2

3 About CANNEX Leading provider of pricing and analytics for savings and retirement products in North America. Sales and Compliance Support Transaction Support Research and Thought Leadership GIC Order Processing Saving and Lending Rates Investment Funds Income Annuities Deferred Annuities with Income Benefits Income Annuities 3

4 What s New? Sales & Compliance Support Variable Annuities Indexed Annuities Fixed Rate Annuities Deferred Annuities with Income Benefit Service (U.S.) Compares the potential performance of structured products with embedded guarantees Account Value Income Benefits Death Benefits Fees Paid Addresses compliance requirements for annuity product selection Department of Labor (DOL) requirements FINRA / SEC requirements 4

5 What s New? Research & Thought Leadership 2017 Guaranteed Lifetime Income Study Consumer study in Canadian and U.S. markets Retirees and pre retirees aged Greater than $100,000 in investable assets Measures attitudes and awareness of guaranteed income products Retirement concerns Income and spending in retirement Value of guaranteed income Familiarity with income products Impact of advisors Conducted jointly by CANNEX and Greenwald & Associates 5

6 Key Findings from Previous Canadian Study STRONG AGREEMENT ABOUT GUARANTEED LIFETIME INCOME BENEFITS (6-7 out of a 7-pt. Agreement Scale) INDEX OF FAMILIARITY WITH PRODUCTS THAT OFFER GUARANTEED LIFETIME INCOME 15% Offer peace of mind 27% High Medium 48% Make easier to manage budget 26% Low 37% Make easier to know how much to spend monthly 24% Give more long-term security 16% PERCENT WHO HAVE HAD ADVISOR MENTION OR RECOMMEND PRODUCTS Allow to get income in retirement more efficiently 14% Income annuities 23% Segregated funds 16% Allow to invest more in equities 11% Segregated funds with GLWB 14% 6

7 What s New? Research & Thought Leadership Industry Research Whitepapers Articles 7

8 Number Time 8

9 Fixed Term Deposits Canadian Landscape December 2015 Deposits $1,212 Savings & Chequing $726 Fixed Term Deposits $435 Market Linked GICs $50 Assets in billions as at December 2015 Source: strategic insight 9

10 Fixed Term Deposits Canadian Landscape December 2016 Deposits $1,291 Savings & Chequing $783 Fixed Term Deposits $453 Market Linked GICs $55 Assets in billions as at December 2016 Source: strategic insight 10

11 Fixed Term Deposits Canadian Landscape Change from December 2015 to December 2016 Deposits by $79b or 6.5% Savings & Chequing by $57 or 7.9% Fixed Term Deposits by $18 or 4.1% Market Linked GICs by $5 or 10% Change in assets in billions or percent Source: strategic insight 11

12 Fixed Term Deposits Canadian Landscape Fixed term Deposits by Product: Growth Rates: Source: strategic insight 12

13 Fixed Term Deposits Canadian Landscape Provincial View (in billions, December 2016): ONTARIO Value Share of Canada GICs $ % Rank by Share of Canada (Value of Deposits) PSAs $ % Reg. C&S $ % Total Deposits $ % QUEBEC Value Share of Canada GICs $ % PSAs $ % Reg. C&S $ % Total Deposits $ % BRITISH COLUMBIA Value Share of Canada GICs $ % PSAs $ % Reg. C&S $ % Total Deposits $ % CANADA Value GICs $508 Premium Savings Accounts $380 Regular Chequing &Savings Accounts $403 Total Deposits $1,291 Source: strategic insight 13

14 Fixed Term Deposits Held Through Intermediaries Advice based Channel: Online/discount Brokers: In billions of dollars Source: strategic insight 14

15 CANNEX Financial Network ( CFN ) Expanding the Network that connects and facilitates GIC transaction processing between 3 rd parties 55+ GIC Issuers CFN ~ 30 Dealers Source: CANNEX 15

16 CFN GIC Transaction Processing 2017 Q1 and Q ,000 GIC applications processed Over $18.5 billion in value Average application value $56,000 Largest single application value $61.4 million 680,000 GIC applications processed Over $40 billion in value Average application value $59,000 Largest single application value $97 million Source: CANNEX 16

17 CFN GIC Transaction Processing Most Popular GIC product by Applications and $ Value Q1 and Q Term 1 Year Non redeemable Non compounding Approximately 120,000 applications processed Approximately $9.8 billion total value Year 2016 Term 1 Year Non redeemable Non compounding Over 187,000 applications processed Approximately $16 billion total value Source: CANNEX 17

18 CFN GIC Transaction Processing Flight to Safety? Industry confidence issues in late spring / summer (Home Capital) Notable change in new GIC purchases less than $100,000 (CDIC limit), as a percent of total GIC purchase value Month Jan 58.4% 57.2% Feb 60.0% 67.0% Mar 60.3% 58.5% Apr 63.0% 56.6% May 67.3% 62.0% Jun 72.1% 61.9% Jul 66.5% 58.0% Aug 71.5% 59.2% Source: CANNEX 18

19 CFN GIC Transaction Processing BoC Overnight Lending Rate Increase Reaction/Anticipation July 12 First increase in 7 years Moved from 0.50% to 0.75% Industry is expecting an additional rate increase on October 25 th Month Term < 1 Year Term 1 Year Jan 2.3% 54.9% Feb 4.5% 53.3% Mar 3.7% 53.5% Apr 4.0% 50.7% May 2.8% 54.6% Jun 4.5% 49.2% Jul 8.8% 49.3% Aug 10.0% 42.3% Source: CANNEX 19

20 For More Information 20

21 Thank you Kelowna Questions? 21