By James Langton
(April 3 – 17:15 ET) – Investors Group Inc. has released its 2000 annual report. In the report, the fund company looks back at 75 years of history, and grapples with its future strategy.
IG maintains that its four-part strategy includes:
- focusing on its captive sales force;
- broadening its product line;
- controlling costs, limiting non-distribution costs to 20 basis points of assets under management, and increasing the proportion of expenses dedicated to distribution; and
- expanding into other distribution channels.
The firm notes that it has scaled back its recruiting initiatives, while seeking out higher-quality reps. IG’s sales force fell from 3,626 to 3,483 in 2000. However, the proportion of those with better than four years’ experience rose to 58.5% from 57% in 1999. IG notes that its training has started to focus more on team building and it is expanding the use of assistants in an effort to increase rep productivity and retention.
The obvious big challenge for IG in 2001 will be in walking the tightrope between its captive sales force and the independent distributors that are largely responsible for the success of its pending acquisition, Mackenzie Financial Corp. In the report, IG notes, “This will provide us with access to a wide variety of distribution channels and industry-leading scale, both of which will strengthen our position in a very competitive market.”
Most of its new product initiatives are well-known, leaning toward more sophisticated asset allocation programs. The firm says that it expects to see growth in its insurance business. It also says that it believes that developing its securities business will help it retain advisors and deepen client relationships.