Mr. Dan Daviau reports
CANACCORD GENUITY GROUP INC. PROVIDES SHAREHOLDER UPDATE IN RELATION TO COVID-19
In light of the recent volatility driven by the current global health care and economic crisis, Canaccord Genuity Group Inc. has provided 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 and chief executive officer of Canaccord. "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 firm-wide business continuity plan is designed to ensure that businesses in all its 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 the company's remote technology fully deployed and operational, the full complement of Canaccord 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 Dec. 31, 2019, the company's combined global wealth management operations contributed 59 per cent of total adjusted net income.
- To date, the reduction in the value of the company's assets under administration (client assets) has been in line with the broader market with the equities component impacted the greatest; the company continues 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 the company expects 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 the company continues to actively engage with its clients and has been successful in closing several transactions.
While the company is not immune to the setbacks created by the current market environment, the company remains focused on its strategic priorities and it is committed to operating its business for long-term value:
The company has a dedicated COVID-19 global response team in place that meets regularly and ensures that the company is sharing resources and best practices globally.
- The company operate its business efficiently and it continues to move forward with its previously disclosed strategy to remove $20-million from its fixed cost base, in connection with its objective of sustainably improving its margins once markets stabilize.
During the first nine months of fiscal 2020, the company returned over $77-million to its shareholders through dividends and share buybacks, and reduced its outstanding share count by more than 7 per cent. The company's commitment to enhancing value for its shareholders has not changed.
As the current environment is dynamic, the company will continue to monitor changes within all its businesses and geographies, and adjust its 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 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. The company achieves this by generating value for its individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services.
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