Despite the many headwinds that impacted our industry throughout our 2023 fiscal year, we did not waver from our commitment to supporting the best interests of our employees, clients, and fellow shareholders.
Our business is focused on serving the unique needs of small and mid-cap companies and investors throughout market cycles. We are acutely aware that prolonged market downturns can have a more profound impact on activity levels for many of these smaller market participants, so we have carefully structured our business for long-term stability. Our strategy to grow our wealth management business has helped to raise the floor of our returns in challenging markets, and, as we have seen in recent years, our capital markets business can provide significant upside when markets are accommodative. These businesses work incredibly well together, leveraging resources and expertise from across CG disciplines and geographies to help our clients achieve their strategic and financial objectives.
Throughout the fiscal year, we continued to develop our talent and leadership across the organization, while fostering a strong culture of partnership and inclusion. We expanded our Global Operating Committee to encompass a broader set of focus areas, and more diverse representation from across our global operations. We also took steps to evaluate and improve employee engagement. Through employee feedback surveys, we learned that our firm-wide engagement levels are well above the average for our peer group. Many employees highlighted that CG excels in offering tools for success and a strong collective vision for our future.
We have also taken steps to ensure strong corporate governance to represent the best interests of our Company and our fellow shareholders. It has been a long-standing priority to identify a pipeline of experienced and capable candidates who are well-suited to serve as independent directors as our business evolves. When several directors made the decision to step down in connection with our privatization efforts, our preparedness enabled us to reconstitute our Board in a timely manner while ensuring majority independence, diverse representation, and a strong complement to our existing skills matrix.
In March, we announced that Terry Lyons has rejoined our Board of Directors and will serve as Lead Director and Chair of the Audit and Risk Committee. Terry has an exemplary governance track record and previously served on our Board for 18 years. We also welcomed two additional independent directors. Amy Freedman is a Partner at a Canadian boutique investment firm and brings extensive experience in both capital markets and shareholder advisory matters, and Rod Phillips brings a wealth of knowledge in both the public and private sector, having previously served as the Ontario Minister of Finance and as Chairman of one of Canada’s largest news media companies. I’d like to thank Charles Bralver, Gillian Denham, Dipesh Shah, Francesca Shaw and Sally Tennant for their contributions during their respective months and years of service.
With support from our Board of Directors, a robust risk management program has been at the core of our strategy for many years. We have a diversified business with minimal concentration risk and ample liquidity coverage. This ensures that we maintain flexibility to operate effectively within a range of market environments. Our business is in good financial health and we undertake due diligence to ensure that the clients and counterparties that we choose to work with meet financial strength requirements. We prudently monitor and manage all client activity to ensure compliance with best practices and regulatory requirements.
Despite the challenges in our operating environment, we continue to incorporate our Principles of Corporate Social Responsibility and Sustainability into all aspects of our business activities. The impacts of slowing economic growth, rapid interest rate increases and higher inflation were felt across our industry, but also had profound implications for households and charities in the communities where we operate. Throughout the fiscal year, our employees undertook initiatives to support several important causes, including food banks across North America, children’s cardiac and cancer care in Australia, and mental health awareness efforts in the UK. As an organization, we have also committed resources and expertise in all regions to foster leadership development for women and diverse youth.
The market outlook for the year ahead remains uncertain, and we know there will be challenges along the way. Having said that, I have every confidence that Dan and our Global Operating Committee will effectively guide our Company through any new obstacles while continuing to deliver outstanding experiences for our clients and employees in an increasingly complex world.
Thank you for your continued support.
David Kassie
Chairman
Canaccord Genuity Group Inc.