Canaccord Genuity provides investment banking, advisory, sales and trading, equity research and fixed income services to corporate and institutional clients across the globe.
We have worked hard to improve our competitive position as a leading independent global investment bank with a focus on the mid-market. In recent years, we have made investments to enhance the depth and breadth of our offering, and improve our execution capabilities across our global platform. In all regions, clients of Canaccord Genuity enjoy a consistent service offering that is rooted in deep industry expertise and focused client attention. Additionally, our expansive global resources and entrepreneurial culture promote the sharing of ideas, best practices and value creation opportunities from around the world.
We are dedicated to delivering measurable value for clients focused on growth at every stage of the business cycle.
Looking ahead, we expect strong contributions from our capital markets operations in all regions. We will continue to pursue opportunities for organic growth, while taking a disciplined approach to investing in key areas of our business, with a focus on better serving our clients and creating long term value for our shareholders. We believe the diversification strategy within our long term business plan will continue to deliver strong results for this business.
Our operating results for fiscal 2015 demonstrate the success of our efforts to diversify our business and our revenue streams. During the fiscal year, our global capital markets business generated revenue of $613 million.
A welcome recovery in Canadian capital markets activity, in combination with improved financing levels across all regions, provided a strong start to our fiscal year. However, the heightened volatility that began late in our second quarter prevailed through much of the remainder of the 12-month period.
A global growth slowdown and a phase of swift US dollar appreciation negatively impacted commodity prices during fiscal 2015. During the period, crude oil, copper and gold prices dropped by 53.0%, 8.8% and 7.9%, respectively. Continuing economic and political uncertainty in many of the regions where we operate contributed to a difficult operating environment, which led to a postponement of transaction and advisory activity in many of our key markets.
While this market environment slowed our momentum in certain markets during fiscal 2015, our global teams worked hard to protect our market share and continued to improve our relevance to clients in key growth sectors of the economy. Our expansion efforts in recent years have firmly positioned our capital markets teams to achieve advisory and equity transaction leadership in the global mid-market.
Following the successful integration of our global businesses, we made important changes within the leadership and operating structure of our capital markets business during the latter half of the fiscal year. We believe these changes will improve collaboration between our global teams and accelerate the delivery of innovative thinking and solutions to clients focused on growth.
This refined structure allows us to bring a sharper management focus to our key priorities and maximize value for our clients – and our shareholders.
In February, Dan Daviau was appointed CEO of North American Capital Markets, an appointment that reflects his extensive track record of serving and growing our client base in both our Canada and US operations. At the start of fiscal 2016, Canaccord Genuity will combine its Canadian and US operations into a unified North American business and streamline our reporting businesses into three: North America, UK & Europe and Asia-Pacific.
As an independent global investment bank, we are able to maintain a level of agility in our business that allows us to stay competitive and meet the evolving needs of our clients. Our priorities for our capital markets business centre on increasing profitability in our core areas of strength, while protecting our ability to deliver the value and standard of care our clients have come to expect. With a strong focus on cost containment, we will continue to make disciplined investments in specific sector verticals or service offerings to strengthen our position in areas where we believe we can capture additional market share.
We are confident in our market position and in the opportunities ahead for this business.
Canaccord Genuity’s global team of sales and trading, equity research and investment banking professionals are dedicated to providing clients with actionable ideas and opportunities in the following key sectors of the economy:
- Aerospace & Defense
- Agriculture
- Consumer & Retail
- Energy
- Financials
- Gaming & Leisure
- Healthcare & Life Sciences
- Investment Companies
- Media & Telecommunications
- Metals & Mining
- Private Equity
- Real Estate & Hospitality
- Support Services
- Sustainability
- Technology
- Transportation & Industrial Products
During fiscal 2015, our investment banking teams were active across a diverse range of sectors, reflecting the power of our integrated global platform.
Investment Banking Transactions and Revenue by Sector During Fiscal 2015
| Sector | Investment banking transactions | Investment banking revenue |
| Technology (incl. Gaming & Leisure) | 13.7% | 30.3% |
| Healthcare & Life Sciences | 9.6% | 12.8% |
| Metals & Mining | 13.7% | 9.7% |
| Sustainability | 2.7% | 9.4% |
| Financials | 7.7% | 7.5% |
| Real Estate & Hospitality | 11.8% | 5.2% |
| Consumer & Retail | 1.1% | 4.8% |
| Infrastructure | 3.3% | 4.3% |
| Energy | 7.9% | 4.0% |
| Investment Companies | — | 2.2% |
| Structured Products | 19.2% | 0.6% |
| Support Services | — | 0.5% |
| Media & Telecommunications | 1.4% | 0.2% |
| Agriculture | 0.3% | — |
| Diversified | 7.6% | 8.5% |
| Total | 100.0% | 100.0% |
