building financial services companies philip armstrong, ceo shareholder meeting march 5, 2009

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Building Financial Services Companies Philip Armstrong, CEO • Shareholder Meeting • March 5, 2009

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Page 1: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Building Financial Services CompaniesPhilip Armstrong, CEO • Shareholder Meeting • March 5, 2009

Page 2: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Disclaimer

The information contained herein, while obtained from sources which are believed to be reliable, is not guaranteed as to its accuracy or completeness and confers no right to purchasers. Information contained herein may be amended. This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein.

Certain statements in this presentation may constitute “forward-looking statements” within the meaning of applicable Canadian securities laws. These forward-looking statements include statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words “may”, “will”, “could”, “should”, “would”, “believe”, “expect”, and “continue” (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Such forward-looking statements are based on current expectations and involve certain risks and uncertainties. Actual results might differ materially from those projecting in the forward-looking statements. In some cases, information regarding certain important factors that could cause actual results to differ materially from those in the forward-looking statements is contained in Jovian’s filings with the Canadian securities regulators. Such factors include: general economic and market conditions; our ability to execute our strategic plans and meet financial obligations; the performance of the principal subsidiaries of Jovian Capital Corporation (“Jovian”); Jovian’s ability to raise additional capital, if needed; our ability to create, attract and retain assets under management and assets under administration; risks relating to trading activities and investments; competition faced by Jovian; regulation of Jovian’s business; successful integration of Jovian with any acquired businesses and the realization of any anticipated synergies; maintenance of minimum regulatory capital requirements for certain of Jovian’s subsidiaries; potential liability of Jovian and its subsidiaries under securities laws and for violations of investor suitability requirements; the ability of Jovian and its subsidiaries to attract and retain key personnel and financial advisors; administrative vulnerability and error; and the availability and adequacy of insurance coverage for Jovian and its subsidiaries. The preceding list is not exhaustive of all possible risk factors that may influence actual results and are identified based upon information available as of the date hereof. Many of the factors that will determine our future performance are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statements. Except as required by applicable securities laws, we do not have any intention or obligation to update forward-looking statements after this presentation, even if new information, future events or other circumstances have made them incorrect or misleading.

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Page 3: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Agenda

3

• Share consolidation

• Business update

Page 4: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Reasons for share consolidation

4

• Perception of being a “penny stock” a negative for financial service company

• Brings share price in line with comparable financial services companies

• Opportunity to raise the investment community’s awareness of Jovian and its portfolio companies

• Leads to a more manageable share count

Page 5: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

5

Relative Share Price Performance

(1) (2)

(46%)

(60%)

(62%)

0%

40%

80%

120%

16-Jul-08 30-Aug-08 14-Oct-08 28-Nov-08 12-Jan-09 26-Feb-09

Large Cap Asset Managers Small Cap Asset Managers Jovian(1) (2)

(1) Including: IGM, CI, AGF, Dundee, Sprott, Brookfield, Dundee, ONEX and Gluskin.(2) Including: Guardian, Sceptre, Seamark, Integrated Asset Management, C.A. Bancorp, Aston Hill, Middlefield, Augen, Greenfield Financial and Mavrix.

Page 6: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Building Financial Services CompaniesBusiness Update

Page 7: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Grow

Acquire Create

Strategic Advice Capital Networks Scale Distribution Compliance Legal

Jovian: Building Financial Services Companies

The Jovian Advantage

Grow

7

Page 8: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Track Record of Growth

Client Assets

Acquire (12)

$0.2 billion

March 31,

2001

Create (8)

Grow

$8.1 billion

March 31, 2005

$12.7

billion

December 31,

20088

Page 9: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

our portfolio companies

Page 10: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

• 2nd largest provider of Exchange Traded Funds (ETFs) in Canada

• One of the fastest-growing ETF providers in North America

• Recently launched the AlphaPro family of ETFs, the first actively managed ETFs offered in Canada

Created: 2007*

Invested Capital: $11.4 million

Client assets:

$0 million

$1.9 billion

2007

10* 60% owned by Jovian

December 31,

2008

Page 11: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Exchange Traded Funds (ETFs)

Top 3 players in Canada

BetaPro

9.31 billion

$ . billion1

+61% 2008 vs 2007

$

+223% 2008 vs 2007

9

9

29 funds11

Page 12: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Acquired: November 2003*

Client assets:

• Retail focused investment firm with offices across Canada

• Professional private wealth management solutions

$0.15 billion

$1.0 billion

2001

12

December 31,

2008

* 85% owned by Jovian

Page 13: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

•Re-branded under MGI Wealth umbrella (formerly Rice Financial)

•Provider of unique financial solutions for retail clients

•85,000 clients across Canada

•Growing in Ontario

Established: 1968

Acquired: 2003*

Purchase price: $6.0 million

Client assets:

$3.5 billion

$3.9 billion

2003

13

December 31,

2008

* 100% owned by Jovian

Page 14: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

• Oldest independent investment organization in Ontario (70 years)

• Offices in Toronto and Vancouver

Established: 1939

Acquired: 2004*

Purchase price: $12.1 million (84%)

Client assets:

$0.7 billion

$1.3 billion

Client base: primarily HNW individuals, estates and trusts; also serve institutions, charitable foundations and pension plans

2004

14

December 31,

2008

* 83% owned by Jovian

Page 15: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

• One of the largest private wealth advisors in Canada

• Offers financial planning and investment advice on a fee-only basis

Established: 1972

Acquired: 2003*

Purchase price: $8.8 million

Client assets:

$0.8billion

$2.0 billion

Client base: HNW individuals and institutions

2003

15

December 31,

2008

* 100% owned by Jovian

Page 16: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

• Asset management company that creates, manages and distributes innovative, high-quality investment products

Created: 2007*

Invested capital: $20.6 million

Client assets:

$1.7 billion

$2.5 billion

Client base: individual investors and advisors

2007

16* 100% owned by Jovian

December 31,

2008

Page 17: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

•Provides back-office and middle-office services, as well as professional administrative services

•Third-party service provided within a control environment complete with Section 5970 Report by KPMG

Established: 2001

Acquired: 2003*

Purchase price: $1 million

Supports more than 20+ customers and services, more than 175 different fund products with a combined asset value of $2.0+ billion

17* 100% owned by Jovian

Page 18: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

FYQ3/09 Financial Summary

18

in C$ millions except per share amounts

Three months ended December 31, 2008

Three months ended December 31, 2007

Client assets 12,733 14,509

Revenue 22.2 25.9

Operating expenses 25.0 26.2

Adjusted EBITDA1 (2.8) (0.3)

Net loss2 (12.9) (1.9)

Loss per share2 (0.08) (0.02)

1 Adjusted EBITDA, a non-GAAP performance measure utilized by Jovian, consists of EBITDA adjusted for non-cash stock-based compensation.

2 Net loss and loss per share for the 3 months ended December 31, 2008 include a non-cash impairment charge of $9.4 million largely related to the anticipated termination by JovInvestment Management Inc. of related management contracts with the Canadian Medical Discoveries Fund Inc.

Page 19: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Investment Highlights

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• Track record of acquiring, creating and growing financial services companies in Canada

• One of the few public companies in North America with exposure to the fast-growing ETF market through BetaPro and AlphaPro

• Opportunity to leverage strong brand names such as MGI, Leon Frazer and T.E. Wealth

• Experienced management team

Page 20: Building Financial Services Companies Philip Armstrong, CEO Shareholder Meeting March 5, 2009

Building Financial Services CompaniesPhilip Armstrong, CEO • Shareholder Meeting • March 5, 2009