Canaccord cost reduction and Private Client strategy

 
TIDMCCI 
 
Canaccord announces significant cost reduction and implementation of Private 
Client Services strategy 
 
    VANCOUVER, March 31 /CNW/ - Today, Canaccord Capital announces a broad 
program of initiatives, activities and investments designed to lower its 
breakeven, modernize its compensation structure and ensure the efficiency of 
its corporate operations. This program is expected to reduce annual costs by 
an estimated $15 million while ensuring that Canaccord remains both focused on 
client service and well positioned for future growth. These cost reductions 
are in addition to the cost reductions discussed in the Q3/09 earnings release 
on February 12, 2009, which were expected to be $20 million on an annualized 
basis. 
    "Canaccord is a resilient and resourceful organization, with a solid plan 
in place for the future," said Paul Reynolds, President and CEO of Canaccord 
Capital Inc. "We believe our goals of lowering our breakeven, modernizing our 
compensation structure and ensuring the efficiency of our operations are 
critical to our continued success." 
    Some details of this program include: further consolidation of back 
office support in a number of geographies; changes to securities processing; 
the deferral of certain reward programs and events; controlling the costs of 
underutilized professional licenses; and, additional cost reductions in the 
global research group. Canaccord has also begun the process of reengineering 
its compensation structure, including adjusting its product payouts, deploying 
a long-term retention program in the Private Client Services division and 
orienting Canaccord Adams compensation toward global profitability. 
    In addition, Canaccord is announcing a significant strategic initiative 
in its Private Client Services group. The group has been reduced by 
approximately 75 Investment Advisors, largely through the Canaccord Advisor 
Transition (CAT) Program, which also provides bridge financing for the 
Investment Advisors acquiring the departing brokers' client relationships. 
    "This difficult decision was taken in order to support our commitments to 
prioritizing our clients, to recruiting Investment Advisors with larger books 
of business and to continuing to grow our asset base," explained John 
Rothwell, Head of Private Client Services. "It is by no means a permanent 
staff reduction, but a demonstration of our diligence, responsiveness to 
market opportunity and commitment to client service." 
    While some of these benefits will be realized immediately, others will be 
realized over the next 90-120 days. Additional details will be available in 
conjunction with our year end results scheduled for release on Wednesday, May 
20, 2009. 
 
    Caution regarding forward-looking statements 
 
    This document may contain certain forward-looking statements. These 
statements relate to future events or future performance and reflect 
management's expectations or beliefs regarding future events including 
business and economic conditions and Canaccord's growth, results of 
operations, performance and business prospects and opportunities. Such 
forward-looking statements reflect management's current beliefs and are based 
on information currently available to management. In some cases, 
forward-looking statements can be identified by terminology such as "may", 
"will", "should", "expect", "plan", "anticipate", "believe", "estimate", 
"predict", "potential", "continue", "target", "intend" or the negative of 
these terms or other comparable terminology. By their very nature, 
forward-looking statements involve inherent risks and uncertainties, both 
general and specific, and a number of factors could cause actual events or 
results to differ materially from the results discussed in the forward-looking 
statements. In evaluating these statements, readers should specifically 
consider various factors that may cause actual results to differ materially 
from any forward-looking statement. These factors include, but are not limited 
to, market and general economic conditions, the nature of the financial 
services industry and the risks and uncertainties detailed from time to time 
in Canaccord's interim and annual consolidated financial statements and its 
Annual Report and Annual Information Form filed on sedar.com. These 
forward-looking statements are made as of the date of this document, and 
Canaccord assumes no obligation to update or revise them to reflect new events 
or circumstances. 
 
    ABOUT CANACCORD CAPITAL INC.: 
 
    Through its principal subsidiaries, Canaccord Capital Inc. (TSX & AIM: 
CCI) is a leading independent, full-service investment dealer in Canada with 
capital markets operations in the United Kingdom and the United States. 
Canaccord is publicly traded on both the Toronto Stock Exchange and AIM, a 
market operated by the London Stock Exchange. Canaccord has operations in two 
of the principal segments of the securities industry: capital markets and 
private client services. Together, these operations offer a wide range of 
complementary investment products, brokerage services and investment banking 
services to Canaccord's private, institutional and corporate clients. 
Canaccord has 31 offices worldwide, including 24 Private Client Services 
offices located across Canada. Canaccord Adams, the international capital 
markets division, has operations in Toronto, London, Boston, Vancouver, New 
York, Calgary, Montreal, San Francisco, Houston, and Barbados. 
 
 
For further information: North America Media: Scott Davidson, Managing 
Director, Global Head of Marketing & Communications, Phone: [phone], 
email: scott_davidson(at)canaccord.com; For investor relations inquiries 
contact: Katherine Young, Vice President, Investor Relations, Phone: (416) 
869-7292, email: katherine_young(at)canaccord.com; London Media: Bobby Morse 
or Ben Willey, Buchanan Communications (London), Phone: [phone], 
email: bobbym(at)buchanan.uk.com; Nominated Adviser and Broker: Marc Milmo or 
Dugald J. Carlean, Fox-Pitt, Kelton Limited, Phone: [phone], 
email: marc.milmo(at)fpk.com 
(CCI) 
 
 
 
 
 
 
 
END