As a regulated financial services company that
operates globally, Canaccord Genuity employs a disciplined capital
allocation strategy, complemented by ongoing business continuity
planning, both of which are integral to the Company's firm wide and
continuous risk management practices.
TORONTO, March 25, 2020 /CNW/ - In light of the recent
volatility driven by the current global healthcare and economic
crisis, Canaccord Genuity Group Inc. (TSX: CF, the "Company",
"Canaccord Genuity") provides the following business and
operational update for its shareholders.
"Our collective priority is supporting our wealth management and
capital markets clients through this rapidly changing market
backdrop, while doing our part to protect our employees and clients
and stop the spread of COVID-19 in our communities," said
Dan Daviau, President & CEO of
Canaccord Genuity Group Inc. "Whether we are finding financing
solutions for growth companies, advising issuers on prospective
transactions or helping our wealth management clients navigate new
market realities, we remain guided by our long-term priorities of
limiting our exposure to risk, and ensuring disciplined capital
management in any market backdrop."
Canaccord Genuity's firmwide business continuity plan is
designed to ensure that businesses in all our geographies can
continue to provide uninterrupted service for clients.
- The Company has made significant investments in recent years to
advance its infrastructure, trading and technology platforms; all
protocols, capacity and capabilities are tested regularly.
- All business units are equipped to operate remotely and
collaborate seamlessly in a secure environment.
- With our remote technology fully deployed and operational, the
full complement of CG resources will be available to clients
through off-site capabilities, as well as on-site where and if,
safely available.
The Company's financial position provides the flexibility to
operate effectively within all market environments, including the
unprecedented market activity of recent weeks.
- For the first nine months of fiscal 2020, which ended
December 31, 2019, the Company's
combined global wealth management operations contributed 59% of
total adjusted1 net income.
- To date, the reduction in the value of our assets under
administration (client assets) has been in-line with the broader
market with the equities component impacted the greatest; we
continue to prudently monitor and manage all client activity,
including margin and trading activity, to ensure compliance with
best practices and regulatory requirements.
- There have been no material losses incurred in the Company's
capital markets trading operations.
- Although we expect that investment banking and advisory revenue
will naturally be subdued in the upcoming fiscal quarter, the
activity in the current fiscal quarter has been at reasonable
levels and we continue to actively engage with our clients and have
been successful in closing several transactions.
While we are not immune to the setbacks created by the
current market environment, we remain focused on our strategic
priorities and we are committed to operating our business for
long-term value.
- We have a dedicated COVID-19 Global Response Team in place that
meets regularly and ensures that we are sharing resources and best
practices globally.
- We operate our business efficiently and we continue to move
forward with our previously disclosed strategy to remove
$20 million from our fixed cost base,
in connection with our objective of sustainably improving our
margins once markets stabilize.
During the first nine months of fiscal 2020, we returned over
$77 million to our shareholders
through dividends and share buybacks and reduced our outstanding
share count by more than 7%. Our commitment to enhancing value for
our shareholders has not changed.
As the current environment is dynamic, we will continue to
monitor changes within all our businesses and geographies and
adjust our plans, strategies and communications appropriately. The
Company is scheduled to release its financial results for the
fourth quarter and full 2020 fiscal year on June 2, 2020.
ABOUT CANACCORD GENUITY GROUP INC.
Through its principal subsidiaries, Canaccord Genuity Group Inc.
(the "Company") is a leading independent, full-service financial
services firm, with operations in two principal segments of the
securities industry: wealth management and capital markets. Since
its establishment in 1950, the Company has been driven by an
unwavering commitment to building lasting client relationships. We
achieve this by generating value for our individual, institutional
and corporate clients through comprehensive investment solutions,
brokerage services and investment banking services. The Company has
wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of
Man and Australia. Canaccord
Genuity, the international capital markets division, operates in
North America, UK &
Europe, Asia, Australia and the Middle East.
Canaccord Genuity Group Inc. is publicly traded under the symbol
CF on the TSX.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
This press release may contain "forward-looking information" as
defined under applicable securities laws ("forward-looking
statements"). These statements relate to future events or future
performance and reflect management's expectations, beliefs, plans,
estimates, intentions and similar statements concerning anticipated
future events, results, circumstances, performance or expectations
that are not historical facts, including business and economic
conditions and Canaccord Genuity Group's growth, results of
operations, performance and business prospects and opportunities.
Such forward-looking statements reflect management's current
beliefs and are based on information currently available to
management. In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "estimate", "predict",
"potential", "continue", "target", "intend", "could" or the
negative of these terms or other comparable terminology. By their
very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and a number of factors
could cause actual events or results to differ materially from the
results discussed in the forward-looking statements. In evaluating
these statements, readers should specifically consider various
factors that may cause actual results to differ materially from any
forward-looking statement. These factors include, but are not
limited `to, market and general economic conditions, the nature of
the financial services industry and the risks and uncertainties
discussed from time to time in the Company's interim condensed and
annual consolidated financial statements, its annual report and its
annual information form ("AIF") filed on www.sedar.com as well as
the factors discussed in the sections entitled "Risk Management"
and "Risk Factors" in the AIF, which include market, liquidity,
credit, operational, legal and regulatory risks. Material factors
or assumptions that were used by the Company to develop the
forward-looking statements contained in this press release include,
but are not limited to, those set out in the Fiscal 2020 Outlook
section in the annual MD&A and those discussed from time to
time in the Company's interim condensed and annual consolidated
financial statements, its annual report and the AIF filed on
www.sedar.com. The preceding list is not exhaustive of all possible
risk factors that may influence actual results. Readers are
cautioned that the preceding list of material factors or
assumptions is not exhaustive.
Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. The
forward-looking statements contained in this press release are made
as of the date of this press release and should not be relied upon
as representing the Company's views as of any date subsequent to
the date of this press release. Except as may be required by
applicable law, the Company does not undertake, and specifically
disclaims, any obligation to update or revise any forward-looking
statements, whether as a result of new information, further
developments or otherwise.
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Figures excluding
significant items are non-IFRS measures. See Non-IFRS measures on
page 6 of the Q3/20 MD&A. Net income attributable to common
shareholders is calculated as the net income adjusted for
non-controlling interests and preferred share dividends
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Investor and media relations inquiries: Christina Marinoff,
Vice President, Investor Relations & Communications, Phone:
416-687-5507, Email: cmarinoff@cgf.com,
www.cgf.com/investor-relations