Refocusing efforts to service clients in major Canadian centres
Initiative should significantly enhance the performance of the division
TORONTO, Sept. 24, 2012 /PRNewswire/ - Canaccord Financial Inc. (TSX: CF, LSE: CF., 'the Company', 'Canaccord') announces that it is accelerating its strategy to improve the performance of its Canadian wealth management division. As a result, Canaccord is closing sixteen underperforming branches and refocusing its operations in major centres across Canada. The consolidation of branches will allow Canaccord to better service its private clients by concentrating its support resources and capital investments in client service activities in its key markets. This initiative will improve the operating results of this business and will ensure our capital investments in the business will be targeted to regions we see the most opportunity to grow our market share. Sixteen Canaccord Wealth Management branches will continue to serve our valued clients in fourteen cities across Canada.
In addition to the branch consolidation, Canaccord reduced the number of Advisors at its sixteen core locations by approximately 35 Advisory Teams as part of its high-grading strategy. Once this initiative is complete, Canaccord will have approximately 180 Investment Advisory teams across Canada.Canaccord Wealth Management will continue to offer a full suite of investment and wealth planning services to clients, through both traditional transactional brokerage activities and more comprehensive wealth management solutions. The business provides a personalized approach to clients' specific wealth management needs, catering largely to the expectations of professionals, business owners, affluent investors and family trusts through focused expertise in wealth, tax, estate and charitable planning. As of June 30, 2012, $13.1 billion of client assets were administered by Canaccord's Canadian wealth management division. Of this, only 16% was accounted for by the sixteen branches scheduled to close. The sixteen branches remaining open accounted for 84%. "This initiative will allow us to make additional investments in markets where we see the most opportunity for future growth," said John Rothwell, President of Canaccord Wealth Management ( Canada). "We can better cater to the needs of our clients through an elite team of Investment Advisors who have demonstrated their abilities to generate meaningful value for our clients, foster long-term client relationships and an enhanced client experience." After these branch reductions, it is expected Canaccord Wealth Management will operate on a near break-even basis in current market conditions. All branches remaining open have the capabilities to be consistently profitable and Canaccord is committed to their continued success and growth.
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