By James Langton

(November 9 – 16:20 ET) – Altamira Investment Services Inc. may be moving into the advisor channel, but its focus remains investment management. In the firm’s preliminary prospectus filed today, Altamira outlines its strategy for growth.

Earlier today the firm announced an initiative to sell its funds through advisors, with Mackenzie Financial and MRS handling the distribution side. Although that partnership may expand over time, the firm is concentrating its efforts on managing money.

Altamira says that its goal is “to be one of the fastest-growing investment management companies in Canada and to have industry-leading operating margins”. To reach that goal it is looking to capitalize on what it considers its competitive strengths: superior investment performance, strong brand recognition, a direct-to-client sales approach and award-winning client service.

The company describes its primary growth strategies as:

  • sustaining superior fund performance through a global investment management perspective and team-based approach;
  • leveraging its strong brand name and aggressively marketing its investment performance;
  • enhancing its direct distribution channel;
  • developing innovative products and providing investment management style diversity;
  • utilizing the Internet to increase sales and enhance service;
  • further developing alternative distribution channels such as financial planners, banks, and brokers; and
  • aggressively growing the institutional business.

Altamira is proposing to go public at a time when the company is on a roll. It reports that assets under management grew at an annual rate of 33% during the 12 months ended September 30, giving it the second fastest year-over-year growth rate among the top 30 mutual fund companies.

This asset growth has translated to the bottom line, too. Altamira reports that for the fiscal year ended June 30, earnings before interest and taxes were $67 million. Net income came in at $15 million, reflecting growth of 36% and 137% respectively, over the fiscal year.

Altamira attributes these results at least partly to its direct distribution model, which gives it comparatively high operating margins. Itss operating margins based on earnings before interest and taxes, as a percentage of revenue, were 46% for the year ended June 30, and 54% for the three months ended September 30.