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HOT LIST Meet 50 leaders who are reshaping Canada’s investment landscape
THE POWER OF DIVIDENDS A new ETF aims to deliver higher income while reducing volatility
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FINANCIAL HEALTH MEETS MENTAL HEALTH What should an advisor’s role be in helping a client who’s struggling with mental illness?
CHASING ABSOLUTE RETURNS How retail investors can access previously off-limits alternative investments
12/06/2018 1:13:00 AM
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ISSUE 6.06
CONNECT WITH US Got a story or suggestion, or just want to find out some more information?
CONTENTS
@WealthProCA facebook.com/WealthProCA
UPFRONT
Winners revealed, p 36
02 Editorial
Another reason to play by the rules
HOT LIST
64
PEOPLE
INDUSTRY ICON
FTSE Russell senior research director Tom Goodwin offers his take on home bias, the benefits of ETFs and the state of the market
18
06 Statistics
Is the current bond yield curve a sign that a recession is around the corner?
COVERING YOUR BASES
BMO rolls its enhanced income strategy into a new ETF, allowing investors to maximize returns while minimizing volatility
08 News analysis
A new initiative aims to help advisors broach mental health concerns with their clients
10 Intelligence
This month’s big movers, shakers and new products
12 ETF update
A new ETF capitalizes on the disruptive trends that are changing the world
SPECIAL REPORT
Wealth Professional Canada presents 50 advisors, portfolio managers, business leaders and entrepreneurs who are heating up Canada’s investment industry
Has tech stock volatility changed advisors’ outlook on the sector?
FEATURES
22
HOT LIST 2018
04 Head to head
FEATURES
66
TIME FOR AN ALTERNATIVE APPROACH
Mackenzie Investments’ latest fund gives retail investors access to an absolute return strategy in the alternative space
14 Alternative investment update
Small-cap private equity can provide an unconventional way to increase returns
16 Life and health insurance update
One industry association outlines the key issues it’s focusing on in Canada’s life and health insurance space
21 Opinion
Robo-advisors aren’t the villain in this story
PEOPLE 71 Career path
68
Media savvy has been key to Wolfgang Klein’s growth as an advisor
72 Other life
How Rob Tetrault turned an offhand suggestion into a successful fundraiser
FEATURES
REACHING FOR THE SUN
Sun Life takes a stand on the issue of universal pharmacare
WEALTHPROFESSIONAL.CA CHECK IT OUT ONLINE www.wealthprofessional.ca
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UPFRONT
EDITORIAL wealthprofessional.ca
A fair hearing
T
he advisory business has been working diligently to improve standards in recent years. The industry’s reputation suffers each time a scandal breaks regarding unethical or illegal behaviour by one of its practitioners, and while such scandals are less frequent nowadays, mud tends to stick. As roboadvisor Questrade’s recent advertising campaign demonstrates, the view that advisors don’t necessarily act in their clients’ best interests is still prevalent. It’s a key goal of the Financial Planning Standards Council to ensure that such negative portrayals of advisors don’t reflect the industry as a whole. The association recently released its 2017 Enforcement and Disciplinary Review Report, which details the complaints it received last year. Tasked with upholding standards are three independent FPSC panels: the Standards Panel, the Conduct Review Panel and the Disciplinary Hearing Panel Roster. These groups are made up of CFP holders and members of the public, who review complaints and then decide on appropriate disciplinary action.
The CFP is the designation of choice for most advisors, so losing that credential could be quite damaging to your career It was a busy year for the panels – 2017 saw a threefold increase in the number of public complaints received compared to 2016. In 2017, 56% of the complaints reviewed required an investigation into the certificant’s conduct. From there, the Conduct Review Panel decides if the infraction should be resolved with a Letter of Guidance and Advice or be passed on to the Disciplinary Hearing Panel Roster. The FPSC’s guidance and advice usually covers areas such as failure to disclose potential conflicts of interest, failure to perform appropriate due diligence, failure to make adequate inquiries of a power of attorney for property, inaccurate and misleading product recommendations or advice, and failure to comply with regulatory rules. More serious breaches are referred to the Disciplinary Hearing Panel Roster. Of the complaints that went before the panel in 2016 and 2017, 54% resulted in suspension of an individual’s FPSC certification, 28% led to FPSC certification being revoked, and 18% resulted in advisors being banned from seeking a renewal or reinstatement of their certification. Wealth Professional Canada’s annual certifications issue indicates that the CFP is the designation of choice for most advisors, so losing that credential could be quite damaging to your career. It’s certainly something to keep in mind if an opportunity to cut corners ever arises. The team at Wealth Professional Canada
ISSUE 6.06 EDITORIAL
SALES & MARKETING
Editor David Keelaghan
National Accounts Manager Dane Taylor
Writers Libby Macdonald Leo Almazora Joe Rosengarten
Associate Publisher Trevor Biggs
Executive Editor Ryan Smith
Project Coordinator Jessica Duce
Copy Editor Clare Alexander
CONTRIBUTORS Rob McClelland
ART & PRODUCTION Designers Marla Morelos Joenel Salvador Production Manager Alicia Chin Traffic Manager Ella Dayandante
General Manager, Sales John Mackenzie
CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global COO George Walmsley Global CEO Mike Shipley
EDITORIAL INQUIRIES
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KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, London, Sydney, Denver, Auckland, Manila, Singapore, Bengaluru
Wealth Professional Canada is part of an international family of B2B publications and websites for the finance and insurance industries LIFE HEALTH PROFESSIONAL david.keelaghan@kmimedia.ca T +1 416 644 874O
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2
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Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss
12/06/2018 1:15:17 AM
S:10.125”
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Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and prospectus, which contains detailed investment information, before investing. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. TD Mutual Funds and the TD Managed Assets Program portfolios (collectively, the “Funds”) are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank and are available through authorized dealers. ® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.
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12/06/2018 1:15:19 AM
UPFRONT
HEAD TO HEAD
Has tech volatility affected your investment strategy? Amidst recent ups and downs for Facebook and other tech companies, are advisors rethinking their devotion to the sector?
Philip Boland
Francis Sabourin
Shawn Boos
Managing partner, financial advisor B & A Financial Group
Director of wealth management and portfolio manager Richardson GMP
Portfolio manager Milestone Asset Management Canaccord Genuity Wealth Management
“The recent volatility in the tech sector has not changed our equity strategy. We tell our clients to expect some volatility when investing in equities. Volatility can provide long-term opportunities when securities or sectors are mispriced. It can be an ideal time to add to or rebalance a diversified portfolio. We set up portfolios and place funds with investment managers that invest in many sectors. Our clients are encouraged to be long-term strategic investors and to focus on buying quality holdings.”
“We’re rolling with the punches. Volatility always invites reflection. Tech has had such a great run since 2009 and particularly since 2016; tech stocks have led the S&P 500 benchmark for the last two years at least, so we were expecting some volatility. It’s just normal in a sector driven by superior fundamentals. This is a sector that is both cyclical and secular in growth – and also the only sector with net cash on the balance sheet, so we could expect dividend increases and share buybacks as return of capital for shareholders.”
“We used the recent volatility as an opportunity to rebalance our portfolios, taking profits off of the winners and adding non-tech-sector stocks that had underperformed lately. This correction was due and allows the overall market – and tech stocks specifically – to get back to a more reasonable valuation going into the next round of earnings. We are still positive on the intermediate and longer term. In our view, the fundamental drivers of the current secular bull market remain intact.”
HOW SOLID ARE TECH STOCKS? While the performance of technology stocks has been a key driver of the post-financial-crisis rally in equities, the sector has been plagued by a slump since early 2018. Trade tensions between the US and China, new privacy legislation in Europe and the Facebook data privacy scandal have put pressure on the sector in recent months, again raising the question of tech stocks’ stability as a long-term investment prospect. While Facebook’s stock bounced back somewhat after fervour over the Cambridge Analytica scandal died down, many pointed to the company’s decline as proof of its overvaluation. Still, BlackRock global chief investment strategist Richard Turnill remained bullish on the sector in a recent analysis for Nasdaq, saying, “Worries that trade tensions and regulatory scrutiny could dent profitability have shaken confidence. We believe recent weakness reflects rising risks but is not a tech wreck in the making.”
4
BM Fun all ma
www.wealthprofessional.ca
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12/06/2018 1:16:16 AM
Better idea to enhance income? More covered call.
Introducing BMO Covered Call Canada High Dividend ETF Fund. BMO’s expanded covered call line-up brings you more ways to enhance investors income. Our covered call strategies add sustainable, tax efficient yield to a portfolio over the long term without additional risk. Learn more about BMO’s Covered Call Fund Suite; visit bmo.com/gam/ca
BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management U.S. and BMO’s specialized investment management firms. BMO Mutual Funds are managed and administered by BMO Invesmtents Inc., an investment fund manager and portfolio manager and separate legal entity from the Bank of Montreal. Commissions, management fees and expenses all may be associated with investments in mutual funds. Please read the Mutual Fund Facts or the prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. ®BMO (M-bar roundel symbol) is a registered trademark of Bank of Montreal.
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12/06/2018 1:16:17 AM
UPFRONT
STATISTICS
Lessons of the past
SEARCHING FOR TREASURIES Advisors and investors alike will undoubtedly be keeping a close eye on the yield curve for signs of inversion in the coming months. A look at the yield curve for Canadian treasuries over the past year reveals that the gap between two-year and 10-year bonds has shrunk from 79 basis points in April 2017 to just 36 basis points this April.
What do current bond yields reveal about the outlook for the wider economy in the coming years? FIXED INCOME is a central part of any asset mix, and as interest rates trend upwards worldwide, bond yields are increasing. Historically, the bond yield curve is also a useful indicator of where the overall economy might be headed. Currently, the Canadian and US yield curves are approaching inversion, which happens when the yield on a 10-year bond is
2.91%
Current yield on a 10-year US government bond
2.47%
Current yield on a two-year US government bond
lower than a two-year bond. When inversion occurs, as it did in 2007, it usually indicates that a recession is in the pipeline. In April, the difference between two-year and 10-year US bonds was 44 basis points; the gap in Canadian bonds is 36 basis points. That’s still some way off 2007 levels, when the US yield curve was inverted for a full year before the financial crisis hit.
$92.2 trillion Total value of the global bond markets
$2.12 trillion
Total value of the Canadian bond markets Source: OANDA, SIFMA 2017 fact book
GOING CORPORATE
HARBINGER OF A CRISIS?
The low-interest-rate environment that has persisted since the financial crisis has led to a steadily increasing preference for corporate bonds.
The two-year bond yield represents current borrowing rates, while the 10-year bond yield indicates future economic growth and inflation. A flat yield curve – when there’s little difference between short- and long-term rates – isn’t viewed favourably by market watchers, as it indicates a poor long-term economic outlook.
CANADIAN-DOLLAR CORPORATE BOND SALES
CANADIAN GOVERNMENT BOND YIELDS
$80bn
$60bn
YIELD (%)
$20bn
April 20, 2018
1.5
1.0
2010
2011
2012 2013
2014
2015
2016
2017
Source: Bloomberg
6
April 20, 2017
2.0
$40bn
$0
KEY
2.5
0.5
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
30-year Source: OANDA
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2.5 2.32% 2.20% 2.05%
2.0
1.91%
1.52%
1.5
1.92%
1.55%
1.29%
1.29%
1.22%
1.24%
1.53%
1.50%
1.41%
1.39%
1.62% 1.49%
1.57%
1.44%
1.42%
0.82% 0.73%
0.87%
0.76%
0.78%
0.70%
0.5
0.64%
0.62%
Apr 2017
May 2017
Jun 2017
Jul 2017
Aug 2017
1.78%
1.81%
1.80%
1.59%
1.60%
1.59%
1.84% 1.64%
1-year Canadian government bonds 2-year Canadian government bonds 3-year Canadian government bonds 10-year Canadian government bonds
1.07%
0.93%
1.91%
1.31%
1.14%
1.0
1.96%
1.94%
1.92% 1.85%
1.50%
2.20%
2.05%
1.88%
1.59% 1.51%
2.19%
Sep 2017
Oct 2017
Nov 2017
Dec 2017
Jan 2018
Feb 2018
Mar 2018
Apr 2018 Source: OANDA
SLOW START GIVES WAY TO STRONG SPRING After dropping in the final quarter of 2017, corporate bond yields have climbed in 2018 and are significantly up year-over-year going into the summer.
YIELD (%)
YIELD ON THE FTSE TMX CANADA ALL CORPORATE BOND INDEX 3.25 3.20 3.15 3.10 3.05 3.00 2.95 2.90 2.85 2.80 2.75 2.70 2.65 2.60 2.55 2.50 2.45 2.40 2.35 2.30
INTEREST RATES AROUND THE WORLD The Bank of Canada’s key rate has trended upwards in recent years, but it remains low by international standards, especially in emerging markets. Canada
1.25% 1.75%
US UK European Union
0.50% 0.00% 4.35%
China Japan India Indonesia Mexico Q2
Q3
2017
Q4
Q1
2018
Q2 Source: FTSE TMX Canada Indices
South Africa
-0.10% 6.0% 6.5% 7.5% 6.5% Source: Global Rates.com
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UPFRONT
NEWS ANALYSIS
Financial therapy What role can a financial advisor play in helping a client suffering from a mental health issue?
MONEY, AND particularly the lack of it, is something sure to cause stress in most people’s lives. If a person struggles to make ends meet over a long period of time, their mental health tends to suffer. In dealing with such matters, advisors are uniquely positioned to offer assistance. But a CFP or CIM designation doesn’t qualify someone to offer professional guidance when it comes to mental health, leaving advisors in somewhat of a bind. Fortunately, the industry is aware of the problem and is making concerted efforts to address it. In April, Bridgehouse Asset Managers, in conjunction with the Canadian Mental Health Association [CMHA], released a series of recommendations on how advisors can address mental health issues with clients. The recommendations came on the heels of a recent Bridgehouse study, which surveyed advisors across Canada on how mental
a mental health or addiction problem. It’s even more of an issue for people over the age of 40, half of whom reported struggling with mental health. Last December, Bridgehouse hosted an investor well-being roundtable where advisors discussed their experiences with wealth management and mental care professionals. One participant was psychiatrist Dr. Anne Ferguson, who highlighted how advisors can make a difference. “Advisors who service long-term clients, multiple family members or multiple generations are in a unique position,” Ferguson said. “They see clients at different life stages, so they can recognize personality changes. They may be able to identify early warning signs of dementia, diminished financial capacity, addictive disorders and substance abuse. The trust they earn over time means they can credibly discuss a sensitive subject.”
“We started hearing stories about … things like diminished capacity, anxiety, depression and addictive disorders” Carol Lynde, Bridgehouse Asset Managers illness affected their client interactions. The research found that 85% of advisors spend more time with clients suffering from a mental health issue. That number isn’t so surprising in light of the fact that each year, one out of every five Canadians experiences
8
According to Bridgehouse president and COO Carol Lynde, this has been an ongoing issue for advisors for some time now, which is why her firm is committed to driving change. “Back in late 2015, we started hearing stories from advisors about concerns they
were having with investors – things like diminished capacity, anxiety, depression and addictive disorders like problem gambling,” Lynde said. “They were feeling uncomfortable about that and not confident in dealing with these kind of challenges.” Although the stigma surrounding mental illness is subsiding, it is still a pretty sensitive topic for most people. For that reason, Bridgehouse approached CMHA to form a partnership, and the two are now developing CE webcasts and other practical tools and checklists to help advisors. In its research, Bridgehouse identified some areas where advisors felt they needed help: 88% requested support in dealing with Alzheimer’s/dementia, as well as continuing education related to mental health. The firm
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ADVISORS AND MENTAL HEALTH Bridgehouse Asset Managers conducted research with advisors across to Canada to gauge how mental health issues were affecting their client relationships.
72%
of advisors reported encountering clients suffering from anxiety
64%
had worked with a client with a diminished financial capacity
54%
of respondents had encountered clients with depression
34%
of advisors had faced the issue of substance abuse with clients
therefore broke its recommendations down into three distinct parts: advisor support, firm/peer support and industry support.
“We are working with the Financial Planning Standards Council, as well as CSI, to incorporate this training into the credentials
“We are in the business of helping people make informed choices, and that’s really the goal of the financial advisor, too” Adam Wiseman, Canadian Mental Health Association Toronto Responsibility for helping clients with mental health issues rests with all three, and Lynde would like to see capability in this area become a vital part of financial advisors’ education. In that respect, she is encouraged by moves happening on the ground right now.
for advisors,” she says. “There is a lot of work we have done that complements the senior strategy [just put out by the OSC], and we know they are also looking at a safe harbour for advisors and firms. It’s great that we have so much happening within the industry on
senior strategy and mental health.” Working alongside Lynde on this initiative is Adam Wiseman, manager of the Forensic ACT Program at CMHA Toronto. For him, the collaboration came naturally, and he believes financial advisors have a part to play in creating greater mental health awareness in Canada. “There’s a lot of comparison between the work we do in community treatment and the work that financial advisors are doing when it comes to mental health and how that impacts planning,” he says. “A lot of the issues financial advisors are supporting people with can be triggers for anxiety and other mental illnesses. Nobody expects financial advisors to become mental health workers. We are not in the business of curing mental illness – we are in the business of helping people make informed choices, and that’s really the goal of the financial advisor, too.”
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UPFRONT
INTELLIGENCE CORPORATE ACQUIRER
TARGET
PRODUCTS COMMENTS
Hub International
The dElta Group
The acquisition of the Quebec-based firm is expected to strengthen Hub’s benefits and retirement offering throughout Canada
Scotiabank
Jarislowsky Fraser
The completed acquisition brings around $40 billion in AUM to Scotiabank’s asset management business in Canada
PARTNER ONE
PARTNER TWO
COMMENTS
Norrep Capital Management
Cumberland Partners
The merger, which also includes Perron & Partners Wealth Management, creates a firm with $4 billion in AUM
Scotiabank
Banco Cencosud
The two companies have signed a 15-year partnership for to manage Cencosud’s Peruvian credit card business
ECN Capital
Kessler Group
The partnership will allow ECN to reposition from an assetbased lender to a scalable business service company
WisdomTree rolls out portfolio analysis tool
Following a successful launch in the US, WisdomTree has brought its Digital Portfolio Developer tool to the Canadian market. Accessible on the WisdomTree website, the tool provides deep data analytics to evaluate the portfolios of clients and prospects. It can analyze more than 40,000 Canadian and US mutual funds and ETFs, as well as 7,000 US equity securities, and includes key features such as stress-testing of different market scenarios, portfolio comparisons and holdings-level analysis, as well as real-time calculations in Canadian and US dollars.
Norrep, Cumberland and Perron & Partners form $4 billion firm
Norrep Capital Management [NCM] has successfully merged with Cumberland Partners and Perron & Partners Wealth Management to create an independently owned investment management firm with an AUM of approximately $4 billion. While Perron & Partners will now operate under the Cumberland umbrella, NCM will continue as a separate company focused on manufacturing, servicing and managing retail mutual fund products to be used by Canadians advisors and their clients. “The larger AUM is anticipated to provide benefits for financial advisors and investors using NCM’s award-winning products through operational efficiencies and increased access to additional investment management talent, as well as supporting future planned growth initiatives,” said NCM CEO Alex Sasso.
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AGF to offer management fee rebates
AGF Investments has announced that starting in August, it will introduce an automatic management-fee rebate for existing eligible investors within their current series. The rebate will be automatically implemented across all currently available purchase options of Series MF, F, T and V; AGF will use its current Gold Label (Series Q and W) rules to determine eligibility. While AGF expects the new pricing to result in revenue reduction of around 1 basis point of total AUM, Florence Narine, SVP and head of product, said: “We wanted to provide investors with a simplified solution that addresses their pricing expectations as their assets grow.”
www.wealthprofessional.ca
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PEOPLE BMO introduces new international funds
BMO Investments has introduced new mutual funds designed to provide investors with added international exposure. These include the BMO Concentrated Global Equity Fund, which invests in high-quality global securities; BMO Crossover Bond Fund, which invests in BBB- and BB-rated corporate bonds in developed markets; BMO Global Multi-Sector Bond Fund, targeted at investors who want a high level of interest income; BMO MultiFactor Equity Fund, which invests in US equities through factor exposures; and BMO US Small Cap Fund, which provides exposure to smaller and midsized US companies.
Mackenzie unveils alternative mutual fund
Mackenzie Investments has unveiled the Mackenzie Multi-Strategy Absolute Return Fund, a new product based on regulators’ alternative framework proposal for conventional mutual funds. The fund will allow retail investors to complement their traditional portfolios with several innovative strategies that offer the potential for lower volatility through the use of assets not correlated with the markets. “The new fund has the added benefits of being transparent, highly liquid and closely regulated under National Instrument 81-102,” said Mackenzie’s Michael Schnitman.
iA Clarington announces changes to global fund
iA Clarington Investments has announced it is renaming the IA Clarington Global Growth & Income Fund as the IA Clarington Global MultiAsset Fund and has selected global asset manager PineBridge Investments, which has more than US$85 billion in AUM, as the fund’s subadvisor. Based on a PineBridge strategy that has delivered attractive risk-adjusted performance for more than a decade, the fund taps the knowledge of more than 200 investment professionals in 17 countries, actively investing across a broad range of geographic regions and asset-class opportunities while adjusting to changing market environments.
NAME
LEAVING
JOINING
NEW POSITION
Russell Green
Scotia Capital
Raymond James
Managing director
Emmanuel Jaclot
Schneider Electric
CPDQ
Executive vice-president, infrastructure
Dennis Kavelman
RIM/BlackBerry
iNovia Capital
General partner
Guy Lemoine
N/A
OBSI
Chairman, Consumer and Investor Advisory Council
Rory Ronan
CIBC Asset Management
1832 Asset Management
Vice-president and portfolio manager
Mawer names new president
Mawer Investment Management has announced that Craig Senyk will take over as president on January 1, 2019, succeeding Michael Mezei, who has held the role since 2008. For the remainder of 2018, Senyk and Mezei will work together closely to ensure a smooth transition. Mezei will also continue to serve on the firm’s board through 2019. Senyk has been with Mawer for more than 20 years and has held numerous roles at the company, including leading the institutional and individual client business segments. In addition to being a member of Mawer’s risk management and ownership oversight committees, Senyk is currently vice-chairman of the board, institutional portfolio manager and co-manager of the Mawer Tax Effective Balanced Fund.
Hexavest appoints co-CIO
Montreal-based Hexavest, a boutique investment firm specializing in global equity management for institutional clients, has appointed Vincent Delisle as co-chief investment officer. Delisle will lead the Hexavest strategy team alongside co-CIO Vital Proulx and chief economist Jean-Pierre Couture. Delisle brings more than 20 years of industry experience to Hexavest. He previously served a 14-year stint at Scotiabank, during which he led the portfolio strategy team, provided asset mix recommendations and chaired the investment committee responsible for equity model portfolios. “Vincent will integrate very well with our prudent investment culture, and his differentiated approach represents a compelling performance lever for our portfolios,” said Hexavest president Marc Christopher Lavoie.
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UPFRONT
ETF UPDATE NEWS BRIEFS Canada leads the world in institutional ETF investment A report from US-based research firm Greenwich Associates found that Canadian institutional investors increased their ETF allocations by 3.5% last year. Institutional investors in this country now hold 18.8% of their total assets in ETFs, which Greenwich said is the “largest average allocation of any institutional market in the world.” The firm said this trajectory is likely to continue; for equities, investors planning to increase ETF allocations outnumber those planning reductions by a ratio of 3 to 1. In fixed income, planned increases outpace planned cuts by nearly a 2-to-1 margin.
Expert says factor-based ETFs should stick to the basics The original factor-investing framework, based on academic work by Kenneth French and Eugene Fama, includes only a handful of main factors: value, market cap, momentum, low volatility and quality. But more products are starting to use non-academically defined factors like ESG tilts and share buybacks. IndexIQ Chief Investment Officer Sal Bruno recently spoke out against such strategies, warning that they come with an inherent risk to performance. “The pure factor is important from a research and academic perspective,” he said, “because if you don’t do that, you end up including too much of the market effect, which is its own factor.”
Franklin Templeton unveils three new fixedincome ETFs Franklin Templeton has launched three active, CAD-hedged fixed-income ETFs on the TSX. The Franklin Liberty Global Aggregate Bond ETF (FLGA) will invest
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in investment-grade fixed- or floatingrate debt securities from governments, government-related entities and corporations worldwide. The Franklin Liberty Senior Loan ETF (FLSL) will focus on senior secured income-producing floating-rate corporate loans made to, and corporate debt securities from, US and non-US entities. The Franklin Liberty US Investment Grade Corporate ETF (FLUI) will invest primarily in US dollar-denominated investment-grade corporate debt securities from US and non-US entities.
BMO launches new ETF targeting communications sector BMO Asset Management has introduced the BMO Global Communications Index ETF (COMM) on the TSX, offering access to the recently expanded communications GICS classification, which includes companies in the communications equipment, gaming software, media and publishing services, telecommunications, and web-based data sectors. COMM tracks the Solactive Media and Communications Index; the fund’s holdings include shares in Apple, Netflix, Facebook, Alphabet, Walt Disney and Time Warner.
New ETF from RBC Global Asset Management will target US banks RBC GAM has launched the RBC US Banks Yield Index ETF (RUBY) on the TSX. The fund is based on the Solactive US Banks Yield Index, which follows the performance of 21 of the largest dividend-paying bank stocks in the US. RUBY is also available in USD- (RUBY.u) and CAD-hedged (RUBH) options to let investors select their preferred currency exposure; all three options have a management fee of 0.29%.
Gaining an edge on innovation From genomics to social media, a new ETF offers investors access to ideas with disruptive potential The rise of thematic ETFs in recent years – both in terms of the number of funds and the assets they’ve managed to gather – speaks volumes about Canadians’ desire to invest in game-changing ideas. But the explosion in funds is also creating a problem for investors. “Maybe it was easy when it was just the computer or the internet, but now there are a lot of disruptive themes going around,” says Elliot Johnson, COO at Evolve ETFs. “People want a one-stop solution that gives exposure to different areas of innovation.” In its conversations with investors and advisors, the firm uncovered a desire for access to transformative ideas, as well as protection from theme-specific volatility and downturns. That led to the creation of the Evolve Innovation Index ETF (EDGE), which focuses on six categories: robotics and automation, the future of cars, cybersecurity, Big Data and cloud computing, genomics, and social media. The ETF is based on the Solactive Global Innovation Index, which is structured so that each category is equally weighted. Generally, equity securities also receive equal weight within the categories they belong to; those in cybersecurity and automotive innovation, however, follow slightly more complicated rules based on indices for CYBR and CARS, two pioneering ETFs Evolve launched last year. Particularly exciting to Johnson is the potential of genomics in healthcare, an area where spending is being driven by aging baby boomers who control the majority
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of the world’s wealth. Of the 10 genomics companies held in EDGE, eight have an active focus on cancer research. The ETF also invests in Monsanto, an agricultural company that uses genomics to produce crops with better survival and nutritional properties. “Combine food with healthcare, and you have something that can address the entire planet,” Johnson says.
“People want a onestop solution that gives exposure to different areas of innovation” And while social media is already a mainstream industry, he believes it has the potential to become a critical link in multiple value chains. “Big names like Facebook, Twitter and Google have soaked up a lot of dollars spent on advertising, but that understates their potential,” Johnson says. “In emerging markets, social networks connect users to a lot more than just other people; they connect to services, local government and business relationships of all kinds.” As its index is reviewed and rebalanced quarterly, the fund’s mandate could one day be expanded to include other disruptive sectors, so investors don’t have to worry about missing an emerging trend. However, Johnson says that while “the product will adapt to the changes in the world, it’s not going to be adding today, dropping tomorrow, then adding again the next day. We expect the product will change slowly over time as categories mature.”
Q&A
Greg Taylor Portfolio manager PURPOSE INVESTMENTS
Years in the industry 19 Fast fact Purpose Investments recently launched ETF units of the Purpose Multi-Asset Income Fund, formerly known as the Redwood High Income Fund
Purposeful pursuit of stable income Your firm announced in February that four income strategies under the Redwood brand would be merged into the Purpose Multi-Asset Income Fund (PINC). What was the thinking behind that move? Part of it is just rationalization of different strategies. This is a result of mergers we’ve had, from Frontstreet to Aston Hill to LOGiQ and then to Redwood, which is part of Purpose. Part of it is that we’re doing a few different funds with similar strategies, and we saw an opportunity to get all those funds under one platform, when they’re trying to do the same thing at the end of the day. That’s meant to create some synergies and economies of scale for the benefit of investors.
What kinds of asset classes can investors in PINC expect to get exposure to? We have a lot of good in-house strategies now from both quants and active managers. From internal credit expertise, we have corporate bond funds and energy credit funds, as well as dividend equity funds and US equity funds. We’ve also got more dynamic hedge-type products, including the Purpose Creative Yield Fund, an MLP fund, as well as a strategic yield fund. Within the new unified Purpose/Redwood brand, we have a lot of very interesting funds in-house that can provide some yield and uncorrelated sources of returns, and PINC is a combination of the best strategies we have in the firm.
How do you decide what portion of the fund’s assets will be devoted to each asset class? The idea for this fund moving forward is to have a fairly good payout ratio with a target of around 5% dividend yield. And it’s not going to be a static asset mix like you’d see in just a 60/40 type fund; this is going to be a systematic, dynamic and tactical asset allocation. Once a month – and more often if there’s a bigger macro event – the entire portfolio manager team will sit down to look at the strategy, look at how each asset-class sleeve in the fund is acting, and look at macro conditions to see how we’re able to best meet that 5% payout and have an uncorrelated source of holdings, which should limit the volatility over time.
How will the fund’s active management strategy benefit investors in the current market environment? I think we’re going to see a lot of big changes in the macro function going forward, the biggest one being higher rates. With rates moving up, I think the traditional sources of income are going to come under question, and there’s also going to be added volatility. Since the fund has more managerial leeway to move between asset classes and strategies, it’ll have better defensive prospects than the traditional balanced fund.
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UPFRONT
ALTERNATIVE INVESTMENT UPDATE
Unlocking the potential of global small-caps Strategically diversifying across small-cap funds could be lucrative for private equity investors
global small-cap portfolio stacks up against a more concentrated large-cap portfolio. “The study used data on 1,060 funds globally, covering 1998 until 2011 — the most recent year for which funds were mature enough to analyze — to simulate thousands of portfolios,” de Dardel says. “It found that portfolios of above-median small- and mid-market funds outperformed the larger end of the market by 0.2 to 0.3 times cost. Meanwhile,
“Portfolios of abovemedian small- and mid-market funds outperformed the larger end of the market”
With the launch of the Unigestion Global Choice VII, a new private equity fund available to high-net-worth Canadians, Geneva-based asset management firm Unigestion has its sights on investment opportunities in smalland mid-market firms around the world. “We have an in-house instrument called a ‘nowcaster,’ which tells us that today, there’s a limited risk of a recession, hence most likely further growth in the next four quarters,” says Christophe de Dardel, Unigestion’s head of private equity. “That’s supportive for private equity in general, though less crucial for small
NEWS BRIEFS
and mid-markets, which rely less on GDP growth than larger markets.” According to de Dardel, acquisition prices in the small- and mid-market space are two to three times cheaper by EBITDA compared to the large- and mega-buyout space. Unigestion also sees potential for outperformance in the space due to opportunities for multiple arbitrage, as well as growth and strategic or operational transformation. To support its view, the firm conducted a study in partnership with Professor Oliver Gottschalg of HEC Business School Paris, which looks at how a diversified
Entrepreneur launches womenfocused VC fund
Toronto-based entrepreneur Elaine Kunda has launched Disruption Ventures, a new venture capital fund that will focus exclusively on companies founded and led by women. With a fundraising goal of $30 million, the fund could end up being the largest of its kind in Canada. Kunda said the issue of female representation in venture capital and startups has gotten harder to ignore; she is addressing it by focusing mostly on seed rounds and some Series A funding for pre- or early-stage-revenue tech companies led by women.
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those of third- and fourth-quartile funds did not lose any money.” According to the results, the risks associated with investing in smaller firms were offset by using a diversified portfolio of 25 to 30 funds. That’s easier said than done, however, considering the hundreds of small- and mid-market managers that are mostly limited to a single country or region. “It can be overwhelming, which is why you need a very clear approach,” de Dardel says. “It involves analyzing granular information at the local geographical level, as well as finding the sweet spots in terms of industry sectors or themes. Fortunately, this is something we’ve developed from more than 20 years of small- to mid-market private equity investing.”
Ontario government invests $55 million in cleantech
The Ontario Capital Growth Corporation [OCGC] has invested a total of $55 million in two VC funds to assist cleantech innovation in the province. OCGC invested $20 million in Yaletown Partners’ Innovation Growth Fund, which focuses on emerging technology companies that enhance sustainability and productivity for industry and businesses. The remaining $35 million went to Emerald Technology Ventures, a leader in industrial technology investments that’s raising funds for a first close of its Canadian Cleantech Fund.
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Q&A
Michael Schnitman Senior vice-president, product MACKENZIE INVESTMENTS
Years in the industry 20+ Fast fact The Mackenzie Multi-Strategy Absolute Return Fund is the first mutual fund to give Canadian retail investors access to an absolute return strategy
The timeless wisdom of absolute returns Why did Mackenzie decide it was time to launch an alternative strategies fund for Canadian retail investors? In recent years, the regulators held a comment period on a proposed framework for alternative investments, which they’re still considering. Many people provided comments laying out a rationale for why alternative funds can help retail investors. But it’s not that the timing is unique now. They’ve been investing in US mutual funds for 20 years. And we at Mackenzie believe that timing the market never works; it’s time that matters. Remaining fully invested over time, over market cycles, is what works, and allocating a portion of one’s portfolio to a multi-asset, multi-strategy, absolute return fund like ours would help to combat the market’s directional ups and downs.
What alternative strategies will be included in the new fund? We wanted to provide retail investors with a holistic one-stop solution that includes different equity, fixed income and global macro components. One is an equity alternatives component consisting of a leveraged 130/30 strategy – a portfolio that’s 130% long and 30% short. The second is a market-neutral equity strategy, a pure alpha product that has no correlation to market direction. And our team can also dynamically allocate to other strategies such as opportunistic credit, global macro and commodity alpha.
Manulife completes Canadian green bond offering
Manulife Financial has completed its first green bond issuance in Canada, making it the first insurer to raise capital in this way in the Canadian market. The offering consists of $600 million in principal, composed of 3.317% fixed/ floating subordinated debentures, which are due in May 2028. Manulife plans direct the proceeds toward “renewable energy, green buildings, sustainably managed forests, energy efficiency, clean transport, sustainable water management, and/or pollution prevention and control.”
How challenging was it to develop this fund? For us at Mackenzie, it was fairly straightforward. I have significant experience in the United States; I worked for 17 years at one of the largest mutual fund companies, where I led product development to launch multiple alternative funds. We have in-house talent and expertise from portfolio managers with experience running alternative strategies. And our operations and legal team know how to put those strategies together, which we’ve managed for institutional clients for a while. We also worked closely with regulators to gain exemptive relief to develop and launch this fund.
How can investors expect to benefit from the new fund? I believe that our multi-strategy alternative fund is an ideal solution because it can provide multiple uncorrelated sources of return, as well as multiple levers to pull for effective risk management. It can help investors set up guardrails against sequence-ofreturns risk, which can materialize when markets crash immediately before their retirement. And it has the standard benefits offered by any NI 81-102 fund, which include daily liquidity, transparency and a low investment minimum. Add to that a very modest fee of 115 basis points for Series F, and an admin fee of 15 basis points, and I believe the product features make it very attractive for the average Canadian investor.
Commercial property records strong first quarter
Canadian commercial real estate activity got off to a strong start in 2018, according to a report from Morguard Corporation. Demand continues to outpace supply; the first quarter saw brisk demand across all asset classes, with the office sector in the lead. The multi-suite residential and industrial spaces also saw vigorous sales, although investors have begun looking to smaller markets and second-tier assets as supply gets squeezed. And despite risks of increased vacancies, Morguard said retail property values also remained fairly stable.
REIT investors need not fear ‘retail apocalypse’
According to National Bank Financial analyst Matt Kornack, REIT investors expecting the collapse of retail in Canada are being overly pessimistic. Citing RioCan’s forecast-beating first quarter earnings, Kornack said Canada’s retail market has shown resilience. “After the departure of Sears, we’re really only left with HBC,” he said, “and there aren’t that many large anchors in the Canadian space other than HBC, whereas the US still has a significant number of those where you may see further pressures.”
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UPFRONT
LIFE AND HEALTH INSURANCE UPDATE NEWS BRIEFS Door opens for cannabis coverage in group plans Despite growing demand for medical cannabis coverage in health insurance and benefit plans, the lack of a drug identification number [DIN] has held many insurers back. But MedReleaf, the first and only Canadian cannabis producer to have ISO 9001 and CHGMP certifications, recently assigned product identification numbers to 57 of its medical cannabis products. Similar to traditional DINs, MedReleaf’s PINs are designed to make it easier for pharmaceutical and healthcare products to be incorporated into group health benefits plans.
AI program makes leap toward predicting life expectancy A new algorithm developed by Stanford University could make it easier for seriously ill patients to estimate how long they have left to live. “Analyzing data from hundreds of thousands of anonymized medical records, the model predicts which patients are likely to die in the next three to 12 months,” Lloyd Minor, dean of the Stanford School of Medicine, wrote in the Wall Street Journal. The program was initially tested using medical data of patients who had already passed away. In nine out of 10 test cases, the algorithm correctly predicted their life expectancy.
Strong digital presence vital for life insurance advisors The 2018 Insurance Barometer study released by non-profit educational group Life Happens and trade association LIMRA reveals that more than a third of consumers would ask their social media
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connections for recommendations for a life insurance advisor; for millennials, the figure was 54%. The study also found that 73% of consumers (and 81% of millennials) will use an advisor’s website to educate themselves about insurance. “It’s key that agents and advisors are active on social media and doing things that are relevant to what people are looking for,” said Life Happens’ Maggie Leyes.
Work-provided disability coverage on the decline A new survey by RBC Insurance has found that the number of Canadians who receive disability coverage through their workplace has declined from 57% in 2015 to 48% today. Among those without disability coverage from their employer, 84% said they have not bought coverage for themselves. “With the majority of employed Canadians indicating that they do not have disability insurance through their workplace benefits package, workers need to review what coverage they do have and take immediate steps to ensure that they are well protected,” said RBC Insurance’s Maria Winslow.
Platform allows for life insurance policy decisions via selfie The Chronos platform from US firm Lapetus Solutions allows insurers to render decisions on life insurance coverage using a selfie of the applicant. Named after the Greek god of time, Chronos uses facial analytics technology to examine a person’s face and instantly provide the individual’s gender, age and BMI rating. Lapetus Solutions’ experts in biodemography, facial analytics, health, aging and data science can then predict life events in real time, including mortality, morbidity and healthy lifespan.
Advocating for change An industry body is calling for more alternative distribution in group insurance The regulatory demands of life and health insurers have never been higher, so it’s important for the industry to maintain a voice in the corridors of power. Backed by corporate giants like Manulife, Sun Life and Great-West Life, the Canadian Life and Health Insurance Association [CLHIA] is one such voice, representing the interests of providers in this country. It’s a powerful force, but it’s not the only group dedicated to advancing the interests of life and health insurance stakeholders. Formed in 1997, the Canadian Association of Financial Institutions in Insurance [CAFII] is dedicated to driving change in the industry, particularly in the areas of creditor’s group insurance and travel insurance. In April, the group announced Canada Life as its latest member, joining the likes of Manulife and the insurance arms of BMO, CIBC, Desjardins, RBC and Scotiabank. According to Keith Martin, co-executive director of CAFII, the organization is growing at a steady place, and its board of directors has committed to increasing resources to fulfil one of the group’s main objectives, which is enhancing consumer choice in the space through more alternative distribution. “Clearly we are in a period of unprecedented technology change and innovation,” Martin says. “I think the market has sufficient room for all of these innovations with the different products and channels. What CAFII emphasizes is that the consumer has the right to choose. It is up to them what channel they use to
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purchase their insurance.” In Martin’s opinion, Canadian consumers are generally happy with the services being provided right now in the group health and travel insurance space. That doesn’t mean improvements can’t be made, however. “We launched a consumer research study in 2015, and there was a high level of consumer satisfaction with travel and health
“The consumer has the right to choose. It is up to them what channel they use to purchase their insurance” insurance,” Martin says. “The highest levels of satisfaction was with consumers who made a claim.” In focusing specifically on creditor group and travel insurance and alternative distribution, CAFII differs from the CLHIA, which is much larger and broader in scope. The two groups do share members, however, and are in alignment on most issues affecting the life and health insurance space – the new G19 guidelines, for example. “Our members that are members of the CLHIA will have to adhere to those guidelines, which we are a strong supporter of,” Martin says. “They are the lead on that, but we will provide support and emphasize the importance of those guidelines in terms of submissions to regulators and conversations with policymakers.”
Q&A
Edward Gibson
Full steam ahead at Empire Life
Chief financial officer EMPIRE LIFE
Years in the industry 30+ Fast fact In May, Empire Life named Gibson as its new CFO, replacing Ron Friesen
In your new position as chief financial officer, how will your role with Empire Life change? I will have a broader involvement. We have a finance team, a corporate actuarial team, as well as a risk management team. Until [recently], my focus was on the corporate actuarial and risk management teams, and I have maintained that, as I’m still the chief actuary, but I have taken on responsibility for the finance side of things.
Empire Life’s net income in the first quarter was down to $38.7 million from $50.2 million for the same quarter last year. What do you attribute that to? I think we had some unusual gains and losses in the first quarter of last year that increased the run rate. The run rate we saw this year is closer to the run rate we have been seeing for a while. If you look at the last several quarters, you would see that.
The earnings report indicated a loss of $3.6 million due to ‘impact of new business.’ What new business was this? That is the financial impact in the quarter across all business lines: life insurance, group insurance and wealth. If you have a cost of doing business – a commission payment, for example – if that cost exceeds the premiums paid, as well as changes to liabilities, the sum of all of those things is the impact of new business.
What is the dominant business line for Empire Life right now? We don’t really have a dominant business line. It’s not necessarily divided evenly, but generally, in the last couple of years, the life insurance and wealth lines have generated more income than the group insurance line. But if you go back further in time, you will see something different.
Have you set any particular goals for yourself and the company in your new role as CFO? I have been with the company for over 30 years, so clearly I have a long-term commitment. It means continuing to support our businesses with strong financial reporting. We have just implemented a new LICAT capital framework, which is new this quarter, and we are looking forward to IFRS17, which is still a few years out but still very much of the minds of life insurers here.
Is your distribution model still mainly through advisors? It is primarily through independent advisors and also MGAs. Distribution is an important part of our business, and we are always thinking about it, but we are happy with our current distribution channels and will continue to look for ways to optimize those relationships.
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PEOPLE
INDUSTRY ICON
BEATING THE BENCHMARK Tom Goodwin of FTSE Russell discusses the challenge of overcoming home bias and offers his insight on where the market might be headed IT’S A common criticism of Canadian investors that home bias holds back their ability to generate alpha in a portfolio. Economist Tom Goodwin believes that reputation isn’t entirely unfounded, but Canada isn’t alone in this respect. “There’s home bias in every country – it’s comfortable for investors, and it keeps money at home, employing local people,” he says. “It is probably less pronounced in the US, but that’s only because it’s a little bit over half the global equity market. So if you have 80% US, you are only 30% biased, whereas if you have 80% in Canada, you are 77% biased.” As senior research director for Londonbased stock index provider FTSE Russell, Goodwin is an expert in the fields of indexing, asset allocation, factor allocation, forecasting, performance measurement and risk budgeting. As such, he is well placed to comment on the topic of home bias, which was the subject of his recent presentation at the Exchange Traded Forum in Toronto in April. “If you’re investing in your own country’s companies, there isn’t as much currency risk, but a home bias certainly drags on volatility and drawdown measures,” he says. “Depending on the time period, if Canada is outperforming the rest of the world, it might be better to be more in Canada, but generally
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the risk will be higher if you are concentrated in Canadian equities.” Being overweight on Canadian stocks also means being tied to a limited number of sectors. The dividends that go along with the Big Six banks will always be an important part of any portfolio in Canada, but Goodwin believes that over-reliance on the Canadian
investments that fit with clients’ portfolio objectives and risk tolerance. “It is the US, it is developed markets, and if you want to accept a little more risk, you go with emerging markets,” he says. “There’s a huge world out there, and the benefits of diversification are very clear in going from a 60% to 70% concentration in Canada in a
“There’s a huge world out there, and the benefits of diversification are very clear in going from a 60% to 70% concentration in Canada in a portfolio to something like 20% to 30%” economy’s other main sectors is usually asking for trouble. “Besides the fact that [Canada] is a small part of the global market, there’s also the fact that it is concentrated in three industries – energy, materials and financials,” he says. “If you want sectors like healthcare and IT, which are huge elsewhere, they are almost nonexistent in Canada.”
Where to diversify In looking for geographical diversification, Goodwin encourages advisors to choose
portfolio to something like 20% to 30%.” Emerging market exposure could mean looking to China, which traditionally has been a hard nut to crack for investors and the major Western asset managers. That is changing, though, now that Beijing has committed to financial reforms that will open up the world’s most populous country to outside investment. “Indexing and the ETFs tracking indexes are really making strides right now in the Chinese market,” Goodwin says. “I think we will see more and more interesting products
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PROFILE Name: Tom Goodwin Title: Senior research director Company: FTSE Russell Based in: New York City Years in the industry: 22 Fast fact: In a recent paper looking at market cycles, specifically in the small-cap space, Goodwin posited that “the current state of the smallcap cycle is only about halfway through the average historical expansionary period.”
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PEOPLE
INDUSTRY ICON
come out around China.” The emergence of exchange-traded funds in recent years has been a real game-changer for diversification. Aside from the lower fees the investment vehicle is best known for, Goodwin sees a lot of other positives to using ETFs. “With ETFs versus mutual funds on the Russell 2000, we have seen a consistent drawdown in mutual funds tracking the Russell 2000 and an increase in ETFs doing the same,” he says. “The ETF vehicle has become so much more popular, and one of the reasons is that with a lot of ETFs, there is an active securities lending trade that
market trends and the peaks and valleys of various economic cycles, Goodwin is uniquely qualified to discuss the current state of the market. A flattening yield curve in the US is certainly cause for concern, given its documented ability to foreshadow a recession. However, there’s another school of thought that believes the unprecedented fiscal stimulus after the financial crisis makes this current period different from previous economic cycles. In Goodwin’s opinion, there are reasons for caution, but that doesn’t mean a massive correction is inevitable anytime soon. “I recently did some work on the Russell
“I recently did some work on the Russell 2000, comparing this particular cycle to some other cycles going back to the ’70s – this cycle still has room to run. It’s getting late, but it’s not well past its sell-by date, at least not historically speaking” goes on. That means someone who owns an ETF can essentially loan it out and get some income while they are still holding onto it.” It’s not surprising, then, that the industry’s heavy hitters are the ones leading this trend, including the largest of them all: BlackRock. “I recently saw a figure that 60% of ETF issuances are using securities lending to enhance income and pass it onto the end investor,” Goodwin says. “One example is IWM, which is an iShares ETF that tracks the Russell 2000 – they have made enough on sec lending income to actually pay back their basis points to the holders of the ETF over the last year or two.”
Cycle dynamics Having spent the last 22 years analyzing
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2000, comparing this particular cycle to some other cycles going back to the ’70s – this cycle still has room to run,” he says. “It’s getting late, but it’s not well past its sell-by date, at least not historically speaking.” That can all change pretty quickly, however, as the events of 2008 attest. After all, there weren’t many economists predicting a worldwide collapse in 2007. Although Goodwin believes a repeat of the financial crisis remains unlikely, he nonetheless advises a measured approach when it comes to downside risk. “There is a worry about inflation, which may trigger the Federal Reserve to be much more aggressive,” he says. “Every time an inflation statistic is published, it gets a little bit higher than expected, so you can expect a little bump in the market.”
FTSE RUSSELL AT A GLANCE
Based in London’s Canary Wharf, FTSE Russell is a wholly owned subsidiary of the London Stock Exchange
The firm’s most famous indices are the FTSE 100 and the Russell 2000
Close to $15 trillion is currently benchmarked to FTSE Russell indices
Aside from benchmarking, the firm is also a market leader in analytics and data solutions
In April, FTSE Russell announced it was assuming full ownership of FTSE TMX Global Debt Capital Markets, a joint venture it began with TMX in 2013
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email wealthprofessional@kmimedia.ca
Who’s afraid of the roboadvisor? The trepidation surrounding robo-advisors misses the point, writes Rob McClelland, which is that there’s no replacing human connection IF THERE’S one thing you can count on in a fairy tale, it’s consistency. There’s right and wrong, good and evil, wicked and wise. Come what may, justice prevails. Back in the real world, what should financial advisors make of robo-advisors? Are they a big, bad wolf threatening to blow your financial house down? Or are they a fairy godmother, here to enlighten your clients and lighten your load? I would suggest robo-advisors can be neither and both. Either way, they aren’t as ‘new and improved’ as supposed. If you look past the catchy, media-fabricated name, robo-advisors have essentially existed for a while under plainer wrap. It’s called technology. Integrate it with human advice, and you’ve got the same thing most advisors have been leveraging in some form or fashion for as long as computers have been around to remove programmable chores off our plates. Before all the hoopla about robo-advisors, there were already service providers with similar job descriptions. For example, do you remember Altamira Investment Services? In the 1990s, they were offering investors direct access to turnkey, periodically rebalanced portfolios aimed at capturing particular market segments. Fees were low and, at least in theory, no advisor intervention was required. Altamira’s offering wasn’t called a robo-advisor back then, but it sure quacked a lot like one. Where is the firm today? As described in a Globe and Mail piece: “The aggressive fund
firm that shook up the industry in the 1990s now appears to be a pale shadow of its former self, slowly bleeding assets in a quiet corner of National Bank of Canada.” Speaking of bleeding, I believe the rumored demise of the flesh-and-blood advisor is premature. I can point to my own practice to
with a professional to guide their financial journey. I liken it to travel. Say you’re planning a two-week, multi-country trip to Europe. You could map it all out yourself by perusing TripAdvisor instead of using a travel agent. But you’ll certainly spend a lot more of your own time doing so, and heaven help you if anything goes wrong along the way. Similarly, I find that plenty of people value having a real financial advisor to meet with face-to-face. While we can and should automate the tasks that a computer can do faster and better, people still like to talk about their dreams and what’s going on in their life. They want to bounce ideas off of you and hear your advice. They want a relationship. This essential advisor role has not changed, especially when the markets are moving fast and people are tempted to do all the wrong things. Even if some of the latest robo-advisors offer a safety net, if an investor starts peering over the edge anyway, there’s nobody there to provide that critical mix of empathy and tough love that only a seasoned advisor can give. Earlier in my career, I used to think my job was to make my clients happy. It’s not. It’s to
“People still like to talk about their dreams and what’s going on in their life. They want to bounce ideas off of you and hear your advice. They want a relationship” illustrate. I’ve been using passively managed, factor-based investing for the past decade. An investor doesn’t necessarily need me to adopt this same approach. There are robo-advisors out there that offer ‘close enough’ solutions, or an investor could build it themselves using low-cost ETFs or index funds. For some people, this may suffice – as long as they’re good at it and they enjoy spending a lot of their free time sitting at a computer, watching their investments, planning their insurance coverage, revisiting their estate plans and ensuring all the moving parts are synchronized. They may delegate the portfolio management to a robo-advisor, but that still leaves the rest. Many families would just as soon work
make them successful. I have clients who say that visiting me is like going to the dentist; I take that as a compliment. It means that afterward, they can go back and worry about their own careers and families, with their financial responsibilities already completed. So let the robo-advisors come. You may even welcome one into your range of offerings. But if you ask me, real relationships still offer our clients the best odds for living happily ever after in the real world.
Rob McClelland has been a financial advisor for the last 26 years and is founder, vicepresident and senior financial planning advisor at the McClelland Financial Group.
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SPECIAL REPORT
HOT LIST 2018
HOT LIST WPC spotlights 50 of the most influential people in the Canadian investment world CANADA’S MARKETS have long been dominated by three sectors: energy, materials and financials. While things currently look promising in these industries – energy in particular – it’s no secret that many advisors would like to see the dominance of those three sectors challenged in the coming decades. There have been signs of progress: Ottawa-based Shopify is a perfect example of Canadian ingenuity disrupting the status quo, which is why its CEO, Tobi Lutke, is one of the 50 members of Wealth Professional Canada’s 2018 Hot List. He is joined by some of the
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most respected figures in corporate Canada – men and women who have made a major impact in the investment space – along with the top-level advisors and asset managers who have successfully navigated constantly shifting market conditions. This year’s Hot List looks at the Canadian investment landscape as it is today: Banks, insurance companies and energy giants stand alongside the firms of the future – the cannabis producers and e-commerce startups. Together they paint an accurate picture of the Canadian investment space – both its limitations and its massive potential.
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HOT LIST INDEX COMPANY
NAME
Accenture
Iliana Oris Valiente
24
Alibaba
Joseph Tsai
32
Alterna Savings & Credit Union
Rob Paterson
26
Alternative Investment Management Association
Claire Van Wyk-Allan
32
Portfolio manager
Aphria
Vic Neufeld
30
MLD WEALTH MANAGEMENT
Aviso Wealth
Bill Packham
34
Bank of Canada
Stephen Poloz
24
BlackRock
Mark Wiseman
26
BlackRock
Pat Chiefalo
28
BMO
Darryl White
23
BMO Global Asset Management
Richard Wilson
29
BMO Global Asset Management
Rob Bechard
30
Brookfield Asset Management
Bruce Flatt
35
Canada Goose
Dani Reiss
29
Canopy Growth
Bruce Linton
33
CFA Societies Canada
Christopher May
35
Conference Board of Canada
Susan Black
28
Echelon Wealth Partners
Joe Oliver
26
Evolve ETFs
Raj Lala
28
Federal Reserve
Jay Powell
29
Fiera Capital
Jean-Philippe Lemay
26
Financial Planning Standards Board
Cary List
34
Foresters Financial
Jim Boyle
35
Gluskin Sheff + Associates
David Rosenberg
34
Gluskin Sheff + Associates
Jeff Moody
30
iA Financial
Denis Ricard
23
Industrial Alliance Securities
John De Goey
35
Jarislowsky Fraser
Stephen Jarislowsky
29
Kinder Morgan Canada
Steven Kean
26
Manulife
Roy Gori
33
Manulife
Sun Yung Tsu
30
MLD Wealth Management
Chad Larson
23
Ontario Securities Commission
Lawrence Haber
35
Portland Holdings
Michael Lee-Chin
27
Power Corporation of Canada
Paul Desmaris Jr.
34
Purpose Advisor Solutions
Jeff Gans
24
RBC Wealth Management
Doug Guzman
29
Responsible Investment Association
Dustyn Lanz
24
Shopify
Tobi Lutke
32
Starlight Investments
Dennis Mitchell
28
Sun Life Financial
Dean Connor
26
Sun Life Financial Quebec
Robert Dumas
25
Sun Life Global Investments
Jordy Chilcott
28
TD Asset Management
Bruce Cooper
35
Thomson Reuters
David Thomson
32
Toronto Financial Services Alliance
Jennifer Reynolds
27
Vanguard
Atul Tiwari
32
Vanguard
Charles Lin
30
WealthBar
Tea Nicola
31
Women in Capital Markets
Camilla Sutton
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CHAD LARSON
Calgary-based advisor Chad Larson has had an eventful start to 2018. In January, he took the top spot on Wealth Professional Canada’s Top 50 Advisors list, thanks to AUM growth of 24% that brought his total assets under management to $776 million. In March, the team he built alongside partners Curtis Mayert and Sue Derlargo moved from National Bank Financial to Canaccord Genuity. Larson’s services are clearly in high demand, so it’s hardly surprising that Canaccord was keen to bring on MLD Wealth Management as it expands its wealth management platform.
DARRYL WHITE CEO BMO
Canada’s banks occupy a dominant position not only in financial services, but in the economy as a whole. Accordingly, there’s a lot of power and influence that goes with being a CEO at one of these institutions. Last year, BMO welcomed Darryl White to the top job, replacing Bill Downe, who retired after a decade in the role. BMO is currently Canada’s fourth largest bank in terms of assets, so White’s challenge will be to close the gap between his bank and the top three.
DENIS RICARD Chief operating officer IA FINANCIAL
Last year was a milestone for iA Financial as it celebrated its 125th anniversary. The insurance and wealth management firm has come a long way in 125 years, and its expansion plans have really gathered pace in recent years. Its acquisition of HollisWealth, which closed last year, was one of the more notable deals in the advisor space recently, and there’s every indication there’s plenty more to come. The firm is also active in its recruitment, appointing Denis Ricard as chief operating officer last November. Ricard has been charged with overseeing individual and group insurance operations in both Canada and the US, which currently account for more than three-quarters of iA’s total earnings.
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12/06/2018 1:21:48 AM
SPECIAL REPORT
HOT LIST 2018 CAMILLA SUTTON
JEFF GANS
President and CEO
CEO
WOMEN IN CAPITAL MARKETS
PURPOSE ADVISOR SOLUTIONS
Canada doesn’t score highly when it comes to female representation at the C-Suite level, but financial services is one of the more progressive sectors in this country. Founded in 1995, Women in Capital Markets [WCM] has become an important voice in the push toward greater gender equality. Leading WCM is new president and CEO Camilla Sutton, formerly Scotiabank’s global head of foreign exchange, who outlined what the role meant to her upon her appointment in January. “Women in Capital Markets has played a critical role in advancing the conversation about gender diversity in the financial services industry and within the broader Canadian economy,” she said. “I am honoured to be joining such an important organization, particularly at this pivotal time. The future is an exciting one.”
After six years at TD Wealth, the allure of a new challenge with one of the industry’s emerging forces proved too much for Jeff Gans to ignore. Purpose Investments has developed a reputation as an innovator in the investment space and now manages $4.9 billion in assets. The firm’s recent progress was reflected when it opened the market at the TSX in April with the launch of three new ETFs. Gans’ role at Purpose will be leading Advisor Solutions, a job he is well suited for. In his previous position with TD Wealth Private Investment Advice, he managed close to 1,100 investment advisors; prior to that, he spent eight years leading advisor acquisitions and business development for US financial planning firm Ameriprise Financial Services.
ILIANA ORIS VALIENTE Global blockchain innovation lead ACCENTURE
DUSTYN LANZ CEO RESPONSIBLE INVESTMENT ASSOCIATION
As responsible investing becomes a central pillar of asset management, the purview of the Responsible Investment Association will extend, and leading that charge is CEO is Dustyn Lanz. The world’s largest asset managers are starting to embrace responsible investing, but investors should still be aware of where their money is going, Lanz told Global News recently. “Modern portfolio theory suggests that you need to be invested in all sectors and all industries to spread and manage … risk,” he said. “And so as a result, most conventional [investment] funds will be invested in everything, including weapons, tobacco and other industries that might be morally questionable.”
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Blockchain is the next tech frontier in the wealth management space, but there currently isn’t a great deal of clarity about what it will ultimately mean for asset managers and consumers. One firm that has clearly prioritized blockchain development is global consultancy group Accenture, which hired Iliana Oris Valiente as global blockchain innovation lead for its emerging technology group. Having co-founded Deloitte’s blockchain app development team, Valiente will now oversee blockchain strategy at Accenture and ensure it is at the forefront of innovation in this space.
STEPHEN POLOZ Governor BANK OF CANADA
Like his counterpart at the Federal Reserve, Bank of Canada Governor Stephen Poloz is reluctant to raise rates too quickly right now, despite strong growth in the economy. NAFTA negotiations loom large over Canada’s economic prospects, which has caused the central bank to fall into somewhat of a holding pattern regarding interest rates. Speaking to the Standing Senate Committee on Banking in April, Poloz confirmed that interest rates will continue to rise from their current low levels, but he’s not planning significant hikes anytime soon. “Of course there are risks in moving too quickly – people have a lot of debt,” he said. “The last thing we want to do is to cause a financial stability risk to be more significant by moving too quickly.”
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12/06/2018 1:21:53 AM
ROBERT DUMAS President and CEO SUN LIFE FINANCIAL QUEBEC
Recently named Financial Person of the Year in Quebec by Finance et Investissement, Robert Dumas has been instrumental in leading Sun Life’s growth in the province. As president and CEO, a role he has occupied since 2014, Dumas oversees Sun Life’s various business interests in Quebec. That extends past the firm’s life and health insurance products into its growing wealth management segment, as he explained when receiving his award in February. “I want to accept this on behalf of the entire Sun Life Financial Quebec team, who have worked so hard on making our company shine throughout the province,” he said. “Thanks to them, we are helping our clients achieve lifetime financial security and live healthier lives.”
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12/06/2018 1:21:55 AM
SPECIAL REPORT
HOT LIST 2018 JOE OLIVER
MARK WISEMAN
Chairman
Global head of active equities
ECHELON WEALTH PARTNERS
BLACKROCK
After years in the political arena, Joe Oliver returned to Bay Street last summer as chairman of Echelon Wealth Partners. With more than $4 billion in assets under administration, the Toronto-based firm wants to become one of Canada’s leading independent advisory names, and Oliver’s presence is a sure sign of that ambition. A finance minister under the Harper administration, he brings decades of investment experience in financial services and will help shape regulatory policy at Echelon. More recently, Oliver made headlines after announcing he was joining Israeli-Canadian medical cannabis startup PlantExt.
Mark Wiseman wears many hats for the world’s largest asset manager, including global head of active equities, chairman of BlackRock Alternative Investors and its global investment committee, and a member of BlackRock’s global executive committee. Previously CEO of the CPPIB, Wiseman knows a thing or two about international trade, and the current NAFTA impasse troubles him. “Even if you look at events that shake us to the core like 9-11, ultimately after some degree of correction, markets came back and reverted on the course they had been on for the past couple of decades,” he told BNN. “The trade issue is a geopolitical issue that can actually change the very foundation on the economic deal under which companies operate.”
DEAN CONNOR
STEVEN KEAN Chairman and CEO
President and CEO
KINDER MORGAN CANADA
SUN LIFE FINANCIAL
Last year saw some major IPOs on the TSX, but none were bigger than Kinder Morgan Canada’s. The energy infrastructure firm raised $1.75 billion with its launch. It hasn’t exactly been smooth sailing for CEO and chairman Steven Kean since then: Pipelines are a political hot potato in Canada, as Kinder Morgan is finding out right now with the dispute over the Trans Mountain pipeline that has the governments of BC and Alberta at loggerheads. Currently, Kinder Morgan’s share price has dipped below its price at launch, but if cooler heads can prevail on this issue, the company’s stock price could rally accordingly.
JEAN-PHILIPPE LEMAY
ROB PATERSON
President and CEO, Canadian division
ALTERNA SAVINGS & CREDIT UNION
FIERA CAPITAL
One year ago, Jean-Philippe Lemay was appointed president and COO of Fiera Capital’s Canadian division – and it’s been a busy year as the firm continues to expand its asset management business. In March, Lemay announced the acquisition of CGOV Asset Management, which brings another $5.3 billion in AUM under the Fiera Capital umbrella. “With a solid base in Ontario and Western Canada, the critical mass gained as a result of the transaction allows Fiera Capital to be a competitive force in the highly attractive high-net-worth segment across Canada,” Lemay said at the time.
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Named Outstanding CEO of the Year for 2017, Dean Connor has led Sun Life Financial to extend its reach both in Canada and abroad. The firm’s global business strategy has included continued growth in seven Asian markets, as well as the launch of new wealth and asset management businesses. Most recently, the firm combined its international high-net-worth life insurance business with its Asia business group.
Rob Paterson
The performance of cannabis stocks in 2017 was one of the major investment stories of the past year. But like any business, cannabis companies need financing to survive and then grow. This initially presented a real challenge to the industry, as Canada’s banks uniformly turned up their noses at the prospect of loaning money to a cannabis producer. Alterna CEO Rob Paterson proved to be somewhat of an outlier in that respect, and today he has become the go-to banker for the cannabis industry. With $750 million in cannabis-related business, Alterna has six commercial bankers who specialize in this burgeoning industry, and claims clients in British Columbia, Alberta, New Brunswick, Quebec and Ontario.
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JENNIFER REYNOLDS CEO TORONTO FINANCIAL SERVICES ALLIANCE
Over the last decade, Toronto has emerged as one of the globe’s main financial centres – Global Financial Centres rated the city seventh in its most recent index, making it second in North America behind only New York. As head of the Toronto Financial Services Alliance [TFSA], Jennifer Reynolds has been tasked with ensuring that Toronto maintains that growth in the coming years. Taking on the CEO role last summer after heading the Women in Capital Markets group, Reynolds believes Toronto’s status as a global financial hub rests on its ability to attract the best talent, which will be a priority for the TFSA under her leadership.
MICHAEL LEECHIN Chairman and CEO PORTLAND HOLDINGS
The democratization of investing is an article of faith for Michael Lee-Chin and a central pillar of his firm, Portland Holdings. Most recently, this manifested itself in Portland’s advisory arm, Mandeville Private Client, providing its clients with access to investments on the Jamaica Stock Exchange. Lee-Chin himself has invested significantly in his homeland, including a 65% stake in National Commercial Bank Jamaica, which now makes up the majority of his $1.2 billion net worth. One of Canada’s best known investors, Lee-Chin was appointed the Order of Ontario earlier this year. Recognizing his philanthropic work – specifically his donations to local hospitals, as well as the Royal Ontario Museum – the award is another milestone in what has been one of Canada’s most inspiring immigrant success stories.
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SPECIAL REPORT
HOT LIST 2018 SUSAN BLACK
RAJ LALA
President and CEO
President and CEO
THE CONFERENCE BOARD OF CANADA
EVOLVE ETFS
One of the most highly regarded research organizations in the country, the Conference Board of Canada welcomed Susan Black as its new president and CEO in March. Black has held numerous executive positions throughout her career and was the founder of the non-profit organization Catalyst Canada, which aims to enhance opportunities for women in the workplace. “The need for objective, independent, evidence-based information to make informed choices has never been greater,” Black said upon her appointment. “The Conference Board of Canada already enjoys a strong reputation through its research, conferences and networks. I am delighted to have the opportunity to build on its success and contribute to the dialogue on the important issues facing Canada.”
In Canada’s burgeoning ETF marketplace, Evolve ETFs has emerged as a real innovator. In March, the firm launched Canada’s first actively managed blockchain ETF, LINK. Commenting on the impetus behind the ETF’s launch, Evolve president and CEO Raj Lala said: “Blockchain has the potential to transform business models with endless commercial applications. The benefits can apply to many sectors, from financial services and mining to the global food industry.” Evolve followed this launch with another cutting-edge offering: the Evolve Innovation Index ETF (EDGE). “Investors need better tools to gain exposure to the themes that are shaping the world,” Lala said at the time. “The Evolve Innovation Index ETF combines today’s most transformational themes into a single diversified portfolio of disruptive industries.”
PAT CHIEFALO Head of iShares Canada BLACKROCK
DENNIS MITCHELL CEO and CIO STARLIGHT INVESTMENTS
When launching its real estate securities investment platform in March, Starlight Investments was keen to get former Sprott Asset Management and Sentry Investments executive Dennis Mitchell on board, given his reputation as an expert in the alternative space. “I am excited to be joining one of the premier North American real estate asset management firms,” Mitchell said upon his appointment, “and I look forward to building a highly regarded real estate securities investment platform to complement Starlight Investments’ existing real estate asset management strategy.”
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Canada’s ETF market has experienced major change in recent years, but one thing remains constant – BlackRock’s position at the top of the pile. Despite the host of different providers offering exchange-traded products in 2018, BlackRock still has five of the top 10 Canadian ETFs in terms of assets. Overseeing those assets is Pat Chiefalo, head of iShares Canada, who recently oversaw a collaboration with Dynamic Funds to add another ETF (the Dynamic iShares Active Investment Grade Floating Rate ETF) to BlackRock’s extensive Canadian suite. “We’re seeing significant uptake in actively managed ETFs, particularly for fixed income,” Chiefalo said at the time. “We’re excited to expand our successful partnership with Dynamic Funds to launch an innovative and timely solution for Canadian investors.”
JORDY CHILCOTT Head of distribution SUN LIFE GLOBAL INVESTMENTS
Although life and health insurance remains Sun Life Financial’s bread and butter, wealth management has become a vital part of its business over the last decade. Sun Life Global Investments [SLGI] continues to expand its presence in Canada and around the world, but it’s a competitive market out there, which is why the firm saw fit to bring in Jordy Chilcott as head of investment distribution last December. Formerly of Investors Group, Standard Life Assurance and Dynamic Funds, Chilcott has a wealth of experience in identifying the types of products advisors are looking for.
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12/06/2018 1:22:10 AM
STEPHEN JARISLOWSKY Chairman JARISLOWSKY FRASER
At age 92, Stephen Jarislowsky remains one of Canada’s most revered investors and a powerful force in wealth management. In February, he made the decision to sell the company he founded in 1955 to Scotiabank for $950 million. The deal considerably enhanced Scotia’s presence in the institutional and high-net-worth space, adding more than $40 billion in assets under management. The terms also laid out that Jarislowsky Fraser would retain its name and investment autonomy, allowing its founder to ensure that the investment ethos he built the company on is maintained under new ownership. That likely means there’s no prospect of retirement on the horizon for the 63-year veteran, but the industry is much better off for it.
DANI REISS President and CEO CANADA GOOSE
One of the more notable IPOs last year was Canada Goose Holdings. In going public, the luxury brand raised $340 million, and its share price has more than doubled in value since its launch. That certainly hasn’t been the case for some of Canada’s other high-profile IPOs, so Canada Goose CEO Dani Reiss deserves great credit. Since taking the reins in 2001, he has overseen a complete transformation of the company into its position today as a global powerhouse. Next up for the firm is a move into bricks-and-mortar retail, as well as an enhanced lineup outside of its traditional outerwear products.
DOUG GUZMAN Group head RBC WEALTH MANAGEMENT AND RBC INSURANCE
As group head of RBC Wealth Management and RBC Insurance, Doug Guzman has many different business lines under his remit. In addition, as a member of RBC’s Group Executive, he is responsible for charting strategic direction for Canada’s largest bank. Part of that strategic direction involves ensuring that RBC remains at the forefront of digital innovation in the industry, so Guzman was delighted to see RBC’s Advisor’s Virtual Assistant [AVA] application and Money in Motion initiative recognized at both the Global Private Banking Awards and the Private Banker International Global Wealth Awards last year.
JAY POWELL Chair FEDERAL RESERVE
With media coverage in the US dominated by Donald Trump, the appointment of Jay Powell as Federal Reserve chair last year flew somewhat under the radar. Succeeding Janet Yellen, Powell has stressed a patient approach to raising interest rates, reflecting the headwinds that could still derail the thriving US economy. The Fed raised rates by a quarter-point in March, and further hikes are expected later this year in response to inflation pressure. Discussing the prospect of rate hikes recently, Powell explained that there’s no reason for the central bank to change course right now, saying: “The FOMC’s patient approach has paid dividends and contributed to the strong economy we have today.”
RICHARD WILSON CEO and CIO BMO GLOBAL ASSET MANAGEMENT
Since joining BMO Global Asset Management in 2004, Richard Wilson has seen the firm grow into one of Canada’s most successful asset managers, with $260 billion in AUM. Business of that scale comes with certain expectations, as Wilson discussed recently when questioned about gender pay gaps. “One of my long-term priorities has been to increase the diversity of the organization,” he said. “While we are confident that we have equal pay for equal work in our organization, we now know how much work needs to be done to improve our gender diversity.” To that end, the firm established a global diversity and inclusion committee, and is working with recruiters on diversity and participating in industry initiatives like the 30% Club.
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12/06/2018 1:22:11 AM
SPECIAL REPORT
HOT LIST 2018 CHARLES LIN
ROB BECHARD
Managing director, China
Managing director and head of ETF portfolio management
VANGUARD
BMO GLOBAL ASSET MANAGEMENT
The majority of Canada’s ETF market is dominated by BlackRock and BMO Global Asset Management, and BMO GAM has led the way in recent years in terms of flows, gaining ground on BlackRock as a result. That’s undoubtedly welcome news to Rob Bechard, head of equity and fixed-income portfolio management for BMO GAM’s ETF and global structured investments group. Previously a portfolio manager with Barclays Global Investors, Bechard helped BMO GAM finish 2017 as the best-selling ETF provider in Canada, a trend that continued into this year as it generated three-month net creations of $3.2 billion, or 38.3% of total ETF inflows for the period.
Currently the world’s second largest asset manager with US$5.2 trillion in assets, Vanguard has its sights set firmly on the Chinese market. As Beijing has relaxed controls on foreign asset managers operating in China, Vanguard is putting the foundations in place to capitalize. Charles Lin will oversee the firm’s development there, with a view to obtaining a foreign-owned mutual fund licence when regulators allow it in 2021. Until then, Lin has indicated that Vanguard may pursue a private fund management licence, allowing it to sell products to the high-net-worth segment. This, he believes, will allow the firm the chance to gain familiarity with the Chinese market until reforms allow for greater access.
JEFF MOODY CEO GLUSKIN SHEFF + ASSOCIATES
VIC NEUFELD CEO APHRIA
The best-performing stock on the TSX in 2017 in terms of total returns was medical marijuana producer Aphria. Investors in the firm enjoyed a 271% return last year, and that momentum has carried forward into this year. With recreational legalization of cannabis looming, Aphria CEO Vic Neufeld is thinking expansion: “Looking ahead, our focus remains on exploring strategic opportunities and partnerships globally while continuing our extensive preparations for the coming legalization of the adult-use market in Canada,” he said recently. “Backed by expertly researched consumer insights, we will begin to introduce our diverse portfolio of adult-use brands, while continuing to support our extensive product mix and patient base on the medical side.”
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The past year was a pivotal period in the 34-year history of Gluskin Sheff + Associates. Its dispute with co-founders Ira Gluskin and Gerald Sheff regarding compensation and retirement agreements had dragged on company performance in recent years. But the $13.8 million awarded to the pair by an arbitrator last summer was lower than the company had expected, allowing it to increase its dividend payout to shareholders. The firm also decided to make a change in leadership, appointing Jeff Moody to replace Tom MacMillan as CEO. Part of the company since 2001, Moody previously served as senior executive vice-president of investments and client wealth management, as well as chair of the asset mix committee.
SUN YUNG TSU Insurance agent MANULIFE
As a life insurance provider, Manulife specializes in analyzing life expectancy so it can gauge longevity risk. But the company knows firsthand that occasionally, human durability can be quite remarkable – Manulife sales agent Sun Yung Tsu is a prime example. Last summer, the 91-year-old was awarded the Guinness World Records title for Longest Career as a Corporate Salesperson. Approaching his 63rd year of employment with Manulife Hong Kong, Sun has no plans to retire. “I have enjoyed every moment of my first six decades with the company, and I am not planning for retirement yet,” he said after receiving his award. “In work and in life, it is important to always look forward and be passionate.”
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12/06/2018 1:22:19 AM
TEA NICOLA Co-founder and CEO WEALTHBAR
While the high-net-worth segment is increasingly becoming a primary focus for advisory firms, Tea Nicola has built her business on the premise of low-cost investing. The WealthBar robo-advice platform offers investors of all levels access to portfolio management and financial planning tools. The firm markets itself as Canada’s first full-service online robo-advisor, and it recently collaborated with insurance marketing firm PPI to launch PPI Valet, which will give PPI’s advisors access to professionally managed investment portfolios. Discussing the new platform, Nicola outlined what it would ultimately mean for clients. “Every [PPI] advisor across the country can leverage the expertise of registered portfolio managers and the assurance of regulatory compliance, without needing to have that expertise in-house,” she said. “We’ll be covering all of that so the advisors can deliver better value for their client.”
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SPECIAL REPORT
HOT LIST 2018 DAVID THOMSON
JOSEPH TSAI
Chairman
Vice-chairman
THOMSON REUTERS
ALIBABA
According to Forbes, David Thomson, the chairman of Thomson Reuters, is Canada’s richest man, with a fortune of US$25.3 billion, and he’s also the 32nd richest person in the world. Aside from his controlling interest in the family business that bears his name, Thomson also holds a considerable stake in both Bell Canada and the Globe and Mail. Recently, Thomson was seen urging his fellow shareholders to push for better terms in the $17 billion sale of the company’s financial and risk division to the Blackstone Group.
As one of the co-founders of e-commerce giant Alibaba, Joseph Tsai’s words on global trade carry some weight. “There are now 300 million Chinese consumers that are demanding and desiring to buy from all over the world,” Tsai recently told CNBC, “so there’s a great opportunity for producers from America, from Europe, to sell to China and access this large consumer base.” A Canadian citizen, Tsai has a personal net worth of US$9.6 billion, according to Forbes – a fortune that not only makes him Canada’s second richest man, but also allowed him to purchase a 49% stake in the NBA’s Brooklyn Nets.
CLAIRE VAN WYK-ALLAN Head of Canada THE ALTERNATIVE INVESTMENT MANAGEMENT ASSOCIATION
TOBI LUTKE CEO SHOPIFY
While Canada’s reputation for ingenuity might occasionally suffer, at least in comparison to the US, there are plenty of innovative minds in this country. Case in point: Shopify founder and CEO Tobi Lutke. After starting the company in 2006 as an online snowboard retailer, Lutke transformed it into an e-commerce giant, eventually going public in 2015. With a market cap of more than $18 billion, Shopify helped Lutke became one of Canada’s youngest billionaires at the age of 37, although it hasn’t all been smooth sailing. Last November, Shopify was targeted by short-seller Citron Research, which questioned the firm’s premium valuation. Stock performance bounced back strongly, although concern remains about whether the company can maintain its spectacular growth in the coming years.
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As alternative investments grow worldwide, so too does the scope of the Alternative Investment Management Association. AIMA has members in more than 60 countries, including Canada, and leading its operation here is Claire Van Wyk-Allan. Replacing the outgoing James Burron, Van Wyk-Allan came into the role after serving as business development manager for advisor channel sales at RBC Global Asset Management, and she’s excited to see AIMA extend its reach in this country. “The organization has made considerable strides in Canada in recent years, in terms of growing its events and membership, and building a highly effective advocacy and educational program,” Van Wyk-Allan said upon her appointment. “I look forward to building on those activities going forward.”
ATUL TIWARI Managing director and head of Canada VANGUARD
Vanguard, the world’s second largest asset manager, made quite the stir earlier this year when it announced it was bringing its low-cost approach to investing to Canada’s mutual fund space. Its four new funds – Vanguard Global Balanced Fund, Vanguard Global Dividend Fund, Vanguard US Value Windsor Fund and Vanguard International Growth Fund – have a maximum management fee of 0.50% for Series F, which is considerably cheaper than its competitors. Overseeing this new direction for Vanguard’s Canadian operation is Atul Tiwari, who joined the firm in 2011 after playing an instrumental role in building BMO’s ETF business. He will undoubtedly have similar ambitions for Vanguard, both in mutual funds and the ETFs the firm has become synonymous with in recent years.
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12/06/2018 1:22:25 AM
ROY GORI President and CEO MANULIFE
Since succeeding Donald Guloien as head of Manulife last October, Roy Gori has been frank about what he wants to see from the firm heading forward. Having built his reputation leading the firm’s Asian operation, Gori believes the insurance industry in Canada is behind the times when it comes to digital capabilities. It’s his goal, therefore, to ensure that Manulife is driving change and leading innovation in the space – so advisors can expect to see more products like its Manulife Mobile offering coming to market in the near future. Given his background, it’s not surprising that Gori is also pushing for further expansion in the Asian market. This will mean bringing Manulife’s other Asian operations up to the scale of its two dominant markets in the region: Japan and Hong Kong.
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SPECIAL REPORT
HOT LIST 2018 BRUCE LINTON CEO CANOPY GROWTH
DAVID ROSENBERG Chief economist GLUSKIN SHEFF + ASSOCIATES
There’s no shortage of advisors, PMs, economists and CEOs in Canada who start their work day with David Rosenberg’s Breakfast with Dave newsletter. As chief economist with Gluskin Sheff + Associates, his daily economic update is required reading for those trying to make sense of both the markets and the wider economy. Recently, Rosenberg sounded the alarm as the yield on the 10-year treasury note moved above 3%. “The rise in inflationary expectations is purely cost-push in nature and, as such, is beginning to crimp lofty profit margins,” he said. “Only the most obtuse cannot see we are in a mild form of stagflation, and this is very rarely beneficial for financial assets writ large.”
Of all the new cannabis companies that have made waves in the investment space in recent years, Canopy Growth stands ahead of the rest. Based out of Smith Falls, Ontario, the firm is thinking global in its growth plans. In April, CEO Bruce Linton announced that Canopy Growth is opening a $16 million production centre in Australia. Its international presence means it is better positioned than many of its competitors, which led investment site Motley Fool to pronounce it “the only cannabis investment that makes sense over the long term.” A potential dark cloud, however, is legislation dictating that cannabis be treated like a commodity without branding, which will limit the potential of companies like Canopy Growth that have already built a strong brand.
CARY LIST Council chairperson FINANCIAL PLANNING STANDARDS BOARD
While increased regulation isn’t always welcomed in the advisory space, there is consensus that professional standards can be improved. That’s certainly the belief of Cary List, who was named chair of the Financial Planning Standards Board [FPSB] last November. “The financial services industry worldwide is facing its most disruptive time in history,” List said shortly after his appointment. “With the advent of fintech and higher regulatory standards for advice, this creates tremendous opportunity for CFP certification and the FPSB network to solidify its place as the global leaders in serving consumers worldwide with ethical, relevant advice to help them enhance their financial health.” List would also like to see uniform standards applied to the title of ‘financial planner,’ which will increase transparency in the industry and benefit consumers.
PAUL DESMARIS JR. Chairman and co-CEO POWER CORPORATION OF CANADA
With 37 years at Power Corporation to his name, Paul Desmaris Jr. remains as involved as ever with the family business. Alongside brother Andre, Desmaris continues to expand the Power brand, which includes Power Financial, Great-West Lifeco, London Life, Canada Life, Putnam Investments, IGM Financial, Investors Group and Mackenzie Investments. It’s an impressive lineup already, but Desmaris is always open to new opportunities, including a move into private credit earlier this year. Power Corp.’s Sagard Credit Partners LP fund aims to raise a total of US$500 million by the end of the year to lend to family companies and smaller public firms, and is further proof of the company’s commitment to pursuing new business lines.
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BILL PACKHAM President and CEO AVISO WEALTH
In April, Canada welcomed a new name to the wealth management industry with the creation of Aviso Wealth. The result of a merger between NEI Investments, QTrade Canada and Credential Financial, Aviso is one of Canada’s largest independent wealth management firms with around 500,000 clients. Under the leadership of Bill Packham, the firm will offer credit union members a variety of insurance and investment options. “Combining the strengths of all three successful firms, Aviso Wealth provides Canadian investors with a differentiated client experience, offering a full suite of wealth products and services for all stages of the wealth life cycle,” Packham said when announcing the deal.
www.wealthprofessional.ca
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12/06/2018 1:22:30 AM
LAWRENCE HABER
BRUCE COOPER
Commissioner
CEO and CIO
ONTARIO SECURITIES COMMISSION
Formerly a securities lawyer and executive with National Bank Financial and DundeeWealth, Lawrence Haber was named one of the OSC’s new commissioners in January. His background will undoubtedly serve him well as he tackles complex issues such as cryptocurrency during his two-year term. In April, the OSC announced it was opening an investigation after receiving a number of complaints about this new asset class. At that time, the regulator stated that any platform or business trading crypto assets in the province would be required to comply with the rules governing exchanges or alternative trading systems.
TD ASSET MANAGEMENT
The fallout of the 2008 financial crisis was particularly painful in Europe, but the continent is finally picking up some economic momentum. Speaking to the Globe and Mail last November, TD Asset Management’s Bruce Cooper confirmed as much. “We like global over Canada, and within global, Europe has been our favourite region, and that continues to be the case,” he said. “The economy is pushing ahead – we’ve experienced slow growth in Europe for most of the decade, but by European standards, the economy is growing quite nicely today.
JOHN DE GOEY
JIM BOYLE
Portfolio manager
President and CEO
INDUSTRIAL ALLIANCE SECURITIES
FORESTERS FINANCIAL
Discussing market trends on BNN recently, portfolio manager John De Goey predicted that “traditional equity investments might do comparatively poorly over the next decade or more, since there is really no way left to stimulate growth. Even with all this stimulus and low inflation, overall large macro trends are ensuring that economic growth will continue to be modest in the developed world.” In response, he urged investors to temper their expectations and asset managers to reduce costs. It’s insight like this that led him to receive the 2017 Donald J. Johnston Lifetime Achievement Award from the FPSC.
BRUCE FLATT CEO BROOKFIELD ASSET MANAGEMENT
Alternative investments are an increasingly important part of wealth management in Canada, but other asset managers have some way to go to match Brookfield Asset Management, which is the largest alternative asset manager in the country. Over the past year, the firm has been increasing its liquidity in preparation for a down market, as CEO Bruce Flatt explained in a letter to shareholders. “While this economic cycle shows no immediate signs of ending,” he said, “it is clearly in its mid- to later stages of an elongated expansion, and so we are ... preparing for less robust times.”
Foresters Financial started the new year with new leadership: Jim Boyle came in as president and CEO in January. Boasting more than three decades of experience in financial services, Boyle is perhaps best known for his time as president and CEO of John Hancock. As such, he is well aware of the challenges of life insurance and asset management in the North American market. After a two-year term as chairman and CEO of Zillion and Restore Health, Boyle laid the ground for stepping into the top job at Foresters after first serving on its board. Now it’s his responsibility to drive business at the firm, which has total of $44 billion in assets under management and operations in Canada, the US and the UK.
CHRISTOPHER MAY Managing director CFA SOCIETIES CANADA
Last December, the newly formed CFA Societies Canada elected Christopher May as its managing director. In doing so, it selected someone with years of leadership experience, including a recent stint as director of government affairs for the Chartered Professional Accountants of Ontario. May’s remit is to ensure that CFA Societies Canada meets its three primary objectives: regulatory outreach and advocating for policies to protect investors, thought leadership through policy research and analysis, and acting as a strong voice in the media for ethics and standards in investment management.
www.wealthprofessional.ca
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12/06/2018 1:22:34 AM
4 ANNUAL WEALTH PROFESSIONAL AWARDS TH
A record number of nominations flooded in for this year’s Wealth Professional Awards. On the following pages, WPC reveals the winners across 22 categories
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www.wealthprofessional.ca
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BROUGHT TO YOU BY
INDUSTRY HEAVYWEIGHTS battled it out on May 31 at the fourth annual Wealth Professional Awards, produced by KMI Publishing and Events – the organization behind Wealth Professional Canada – and sponsored by Invesco. The night’s trophies covered the breadth of the financial industry and honoured wealth management professionals from across Canada. Those recognized included Rebecca Horwood, who received the Invesco Canada Award for Lifetime Achievement in the Wealth Management Industry for her pioneering career, which began when she became the first female investment advisor at Richardson Greenshields back in 1980. Blazing a trail on Bay Street, Horwood was not only ahead of her time in terms of gender equality, but also in portfolio construction. “I got into mutual funds long before anyone else,” she said, “and I started to get people to move from putting money in the bank to dividendproducing stocks ... I saw the future, and I started doing portfolio management, putting together these portfolios using the dividend tax credit at that time for tax advantage.” Women’s role in the industry was a topical theme at this year’s awards. The inaugural Mackenzie Investments Award for Female Trailblazer of the Year went to an emotional Diane Nash, who credited the likes of Horwood for breaking down barriers. Recalling throwing up in meetings while pregnant, Nash said: “The commitment it takes for women through this industry ... has changed, but what the women in this room went through before me was harder than what I did. But it’s going to be easier for the next female, and that’s all we can hope for.” Other highlights included Steve Hawkins of Horizons ETFs Management collecting the WealthBar’s PPI Valet Award for CEO of the Year, Grant White of White Hewson Wealth Advisory Group at National Bank Financial winning the First Trust Award for Young Gun of the Year, and Kevin Hegedus of PWM Private Wealth Counsel at HollisWealth taking home the flagship Mandeville Private Client Inc. Award for Advisor of the Year. “It’s pretty wild,” Hegedus said when accepting his award. “Coming from Saskatoon, you know you’re not on Bay Street, so to win something like this coming from a small centre like that, it’s pretty cool. I’m always trying to do the right thing for a client. I’ve been doing this for 27 years, and honesty and integrity really does come back tenfold. You treat people properly, do a good job for them and you get rewarded.” A record number of attendees packed the ballroom at the Liberty Grand for this year’s black-tie gala. “The night’s been fantastic,” said Andrew Cowan, national sales manager of events and conferences at KMI. “We’ve had more than 500 people at the fourth annual Wealth Professional Awards. I think, to date, this is the biggest one, and I think it will still grow.”
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12/06/2018 5:45:23 AM
THE NEI INVESTMENTS AWARD FOR
EXCELLENCE IN RESPONSIBLE INVESTMENT WINNER Patti Dolan
SAGE Connected Investing
FINALISTS Aaron Ruston
Purposed Financial Corp.
Carol Smith
Desjardins Financial Security Investments
Laurie Stephenson
Starboard Wealth Planners
Michael Silicz
The Silicz Birdsall Advisory Group (National Bank Financial)
Stephen Whipp
Leede Jones Gable
Sterling Rempel
Future Values Estate & Financial Planning PROUDLY SPONSORED BY
NEI Investments is a national investment firm with more than $6 billion in assets under management. It offers Canadian retail investors unique access to top independent money managers through high-quality investment solutions in two fund families, Northwest Funds and Ethical Funds. Its products provide investors with a full range of investment management styles, as well as conventional and socially responsible investment choices.
RESPONSIBLE INVESTING is increasingly governing clients’ decisions as they seek to align their portfolios with their beliefs and values. Calgary-based advisor Patti Dolan has been at the forefront of responsible investing since it was in its infancy in the 1990s. “Your money can make a difference,” she said. “We do a lot of engagement around the investment, so [it’s about] knowing your
“I do a lot of volunteering around responsible investing ... I don’t just sell mutual funds; I actually believe in the whole process” PATTI DOLAN SAGE Connected Investing
money isn’t just making money, but it’s actually influencing companies on doing better. It been statistically proven that RI actually outperforms, so it’s a better return, less volatility, and your money is doing good.” “There’s been a growing trend and presence with responsible investing in Canada and around the world,” said Luis Spadini, vice-president of sales at award sponsor NEI Investments, “and what we’re seeing is a real adoption by a number of advisors, so it’s a great opportunity for us to thank people who are representing their business through this means.”
Patti Dolan SAGE Connected Investing
Louis Spadacini NEI Investments
For more information, visit neiinvestments.com
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12/06/2018 5:45:18 AM
BROUGHT TO YOU BY
THE AGF AWARD FOR
ENGAGEMENT, LOYALTY & CLIENT CARE WINNER Kaspardlov & Associates (Manulife Securities)
FINALISTS Capitalium Advisors DFS Private Wealth
(Mandeville Private Client)
WEALTH MANAGEMENT is a business built on trust, and
Kaspardlov & Associates was delighted to be rewarded for its approach to engendering client loyalty. Rather than assigning one client to one person, the firm takes a team approach to customer care – and it’s paid off. “What’s really different about our firm is that we truly have a teambased approach to things,” said financial planner Joshua Lane when
PWM Private Wealth Counsel
“When you’re a client, you get the whole team, with people with different skill sets working on that file, and everyone is working towards a common goal”
The McClelland Financial Group
Kaspardlov & Associates
White Hewson Wealth Advisory Group
accepting the award. “He doesn’t have a client; I don’t have an individual client; you’re a client of the firm.” John Christofilos, SVP and chief trading officer at award sponsor AGF Investments, acknowledged the importance of providing excellent client care. “It’s very difficult out there – there are lots of machines and things happening on the electronic side, but it’s still a people business,” he said. “So we have to take time with our clients and prospects to show that human side.”
Kalamaras Wealth Management (Mandeville Private Client)
Little Wealth Management Group (HollisWealth)
Masterpiece Financial Nour Private Wealth (HollisWealth)
JOSHUA LANE
(Assante Capital Management) (National Bank Financial)
Woodgate Financial
(IPC Securities Corporation) PROUDLY SPONSORED BY
Founded in 1957, AGF Investments Inc. is a diversified global asset management firm with retail, institutional, alternative and high-net-worth businesses. As an independent firm, we strive to help investors succeed by delivering excellence in investment management and providing an exceptional client experience. For more information, visit agf.com
Pat McHugh Kaspardlov & Associates
John Christofilos AGF Investments Inc.
Joshua Lane Kaspardlov & Associates
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12/06/2018 5:45:22 AM
THE AWARD FOR
BDM/WHOLESALER OF THE YEAR WINNER David R. Clarke BMO Global Asset Management
FINALISTS Aleks Sui
Invesco Canada
Charles Bendaly Manulife Investments
Christopher Matugas CI Investments
David Bear Natixis Investment Managers
Jeff McDaid NEI Investments
Jennifer Boros Natixis Investment Managers
Nancy Bacon Chase Alternatives
Philip Douglas Horizons ETFs Management
Raffi Missakian First Asset (CI Financial)
Warren Miles-Pickup Sun Life Global Investments
Zachary A. Sikorski Sun Life Financial
HELPING ADVISORS connect with clients and giving them the knowledge and tools to succeed are at the heart of being a good wholesaler. BMO Global Asset Management’s David Clarke has taken this ethos and run with it over the past year, culminating in him being named BDM/Wholesaler of the Year. “It’s terrific; it truly is an honour,” Clarke said upon receiving his award. “It’s great company to be in – there are hundreds of folks doing
“There are hundreds of folks doing what I do across the country, so to be included on a list of eight or 10 is already an honour, but to be chosen as a winner is a highlight” DAVID R. CLARKE BMO Global Asset Management
what I do across the country, so to be included on a list of eight or 10 is already an honour, but to be chosen as a winner is a highlight.” Clarke added that his role is ultimately about making life easier for advisors. “So much about being a wholesaler is talking about products and markets,” he said. “It’s about compliance, it’s about operations, and it’s about helping advisors explain their value proposition to clients and build their practices. This award is testament to the work we do in those areas.”
David R. Clarke BMO Global Asset Management
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12/06/2018 5:45:27 AM
BROUGHT TO YOU BY
THE FIRST TRUST AWARD FOR
YOUNG GUN OF THE YEAR WINNER
GRANT WHITE might be only 33, but he already has big ambitions
Grant White
White Hewson Wealth Advisory Group (National Bank Financial)
FINALISTS Adam Schacter
Mandeville Private Client
Andrew Feindel
Richie Group (Investors Group)
Andrew Kirkland
Justwealth Financial
Andrew Lorriman
Turner Lorriman Sturgeon Wealth Management Group (National Bank Financial)
Colin Reid
to bring through the next wave of ambitious, dynamic advisors. “I’m really interested in mentoring up new advisors, younger than me, so I’ve been talking to a couple of guys tonight,” White said. “My whole mission is to bring on a new class of advisors to mentor up. “I go back to our value system as a team and the work we are doing and the clients that we bring in and the good work we do,” White
“To be able to distinguish myself in this group of great people who are much older than me – that’s awesome. We’re looking to make waves in the industry”
Aligned Capital Partners
GRANT WHITE
Eric Bennett
White Hewson Wealth Advisory Group
ScotiaMcLeod
Jason Melo
Kruzel Wealth Counsel (Richardson GMP)
Sean Moir
Mandeville Private Client
Thomas Cook
Affinity Securities (Worldsource Securities)/Affinity Financial Group
Victor Kuntzevitsky
added. “We don’t do it for the trophies, but it’s nice to get recognized.” Karl Cheong, head of distribution at First Trust Portfolios Canada, explained why his company was so keen to sponsor this award. “We help manage people’s money and help protect people’s money through estate planning, and what we’re seeing is a shortage of new advisors coming into the industry,” Cheong said. “We’re happy to support this award because these are the advisors of the future that we will be working with as an independent.”
Northland Wealth Management
Grant White White Hewson Wealth Advisory Group
PROUDLY SPONSORED BY
Karl Cheong First Trust Portfolios Canada
First Trust
Portfolios Canada
®
First Trust companies are a well-respected global enterprise, established in 1991 in the Chicago area, with a mission to offer investors a better way to invest. First Trust has US$99.6 billion of total global assets under management or supervision as of August 31, 2016. For more information, visit firsttrust.ca
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12/06/2018 5:45:30 AM
BROUGHT TO YOU BY
THE NINEPOINT PARTNERS AWARD FOR
BEST ADVISOR (ALTERNATIVE INVESTMENTS) WINNER Arthur Salzer Northland Wealth Management
FINALISTS George Halkidis Richardson GMP
Jamie Suprun Suprun Wealth Management (HollisWealth)
Kevin Haakensen PWM Private Wealth Counsel (HollisWealth)
Klint Rodgers Pinnacle Wealth Brokers
Mark Samborski Pinnacle Wealth Brokers
Mark Winson Wise Riddell Financial Group
Nick Bakish Richardson GMP
Paul Tyers Wealth Stewards Inc.
PROUDLY SPONSORED BY
Ninepoint Partners is an independent investment manager committed to adding unique value to your clients’ portfolios while helping you to differentiate your business. For more information, visit ninepoint.com
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AS THE SEARCH for returns has become more challenging, the alternative space has emerged as an area of opportunity for advisors who know their stuff. An established leader in this field, Arthur Salzer picked up this award for the second consecutive year. “Northland is completely independent,” he said. “We are not owned or operated by a bank or an IIROC firm, and it’s that independence
“We do a lot of things for [our families]. One of my staff is actually down in Mexico right now doing a condo purchase for a client. You wouldn’t hear that from many others” ARTHUR SALZER Northland Wealth Management
and acting as a fiduciary to the families that we serve that makes all the difference.” For award sponsor Ninepoint Partners, this trophy was a natural extension of the firm’s ethos. “We pride ourselves on identifying themes that are different and unique, and a big part of who we are as a company is alternative products,” said VP and product specialist Brad Macaulay. “[A good advisor] is someone who thinks outside the box. We live in a world where everybody is doing the same, so I think the ability to stand out and be different is important.”
Brad MacAulay Ninepoint Partners
Arthur Salzer Northland Wealth Management
www.wealthprofessional.ca
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12/06/2018 5:45:35 AM
NP_WP
CANADA
MAGAZINE The leading business magazine for financial planning professionals
WEBSITE Breaking news, in-depth profiles, features, online forum and opinion and analysis
ENEWSLETTER Daily news service delivered straight to your inbox every morning
Find out more and subscribe at wealthprofessional.ca WP all subs ad 2018.indd 1
14/03/2018 11:06:04 PM
THE CI INVESTMENTS AWARD FOR
TOP ADVISOR OFFICE FEWER THAN 10 STAFF WINNER The Latremoille Group (Richardson GMP)
FINALISTS Caring For Clients CWP Financial Services (Sun Life Financial)
Popowich Karmali Advisory Group (CIBC Wood Gundy)
Racine-Marcotte Advisory Group (RBC Dominion Securities)
Summit Private Wealth (Mandeville Private Client)
Tina Tehranchian Team (Assante Capital Management)
WCBG Wealth Management and Planning Consultants White LeBlanc Wealth Planners (HollisWealth)
PROUDLY SPONSORED BY
CI Investments is one of Canada’s largest investment management companies. CI provides one of the industry’s widest selections of investment funds and leading portfolio managers. Our investment management expertise is available through several different platforms, including mutual funds, managed solutions, guaranteed solutions and alternative investments.
THE CHALLENGES that come with running a small office have been met head-on by the tight-knit team at the Latremoille Group, and they celebrated in style after their awards success. Many of the team’s members have worked together for years, and the bond between colleagues is clearly a strong one. “I was hopeful we would win – I’m so proud of my team because it’s a real team effort,” said director and wealth advisor Susan
“We work really closely together, and everyone has a really important role and just pulls together” SUSAN LATREMOILLE The Latremoille Group
Latremoille. “We work really closely together, and everyone has a really important role and just pulls together. They have worked with me for the last 25 years!” “In this business, the work is really a team effort, and if a team is pulling together, we really want to recognize that,” said Jodi deMunnik, regional sales manager and senior vice-president at award sponsor CI Investments. “In this day and age, the administration and regulatory requirements for our business are probably quite heavy for a small office, so spreading that workload and still doing what’s right for the client, and taking care of their financial well-being in an environment where there’s a lot of administration, I think that’s a challenge.”
Susan Latremoille and the team at The Latremoille Group
For more information, visit ci.com
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12/06/2018 5:45:42 AM
BROUGHT TO YOU BY
THE iSHARES BY BLACKROCK AWARD FOR
PORTFOLIO/DISCRETIONARY MANAGER OF THE YEAR WINNER Francis Sabourin Sabourin Deraspe Wealth Management (Richardson GMP)
FINALISTS Arthur Salzer
Northland Wealth Management
THE THIRD time was a charm for Francis Sabourin, who proved that the combination of perseverance, passion and skill eventually pays off. A finalist in this category for three years in a row, Sabourin said it’s going the extra mile for clients that keeps him at the top of his game. “I’ve been working quite hard for this one,” he said upon receiving his award. “It’s my third try, and I won it! It’s all about passion, and when you have a lot of that, you will do whatever it takes, rain or shine,
Nash Family Wealth Management (National Bank Financial)
“It’s all about passion, and when you have that, you will do whatever it takes, rain or shine, night or day”
John Duke
FRANCIS SABOURIN
François Têtu
RBC Dominion Securities
Jay Nash
RBC Dominion Securities
Sabourin Deraspe Wealth Management
Michael Anderssen
TD Wealth Private Investment Advice
Susyn Wagner
CIBC Wood Gundy
William Vastis
RBC Dominion Securities
Francis Sabourin Sabourin Deraspe Wealth Management
night or day. You have got to work for it to give a good experience to your clients for what they pay you and what you deliver. For almost the last 10 years, all my portfolios did better than the benchmark, so I always said to myself, ‘If I can deliver that for the last 10 years, I will be happy,’ and that’s what I built.” Aubrey Basdeo, head of Canadian fixed income at BlackRock, explained why sponsoring this award was so important. “We are an ETF provider, and we wanted to broadcast the message about ETFs, so this is an award that celebrates using ETFs as part of the solution to meet clients’ objectives,” he said. “We’ve seen the adoption of ETFs continue to accelerate, and we’ve seen that velocity continue. Maybe year to year it will change a bit, but the trend is still up.”
PROUDLY SPONSORED BY
iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm. iShares is a global leader in ETFs, with more than a decade of expertise and commitment to individual and institutional investors of all sizes.
Aubrey Basdeo BlackRock
For more information, visit blackrock.com
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12/06/2018 5:45:44 AM
THE EXCEL FUNDS AWARD FOR
OUTSTANDING GLOBAL ADVISOR OF THE YEAR WINNER François Têtu RBC Dominion Securities
FINALISTS David Esch National Bank Financial
Francis Sabourin Sabourin Deraspe Wealth Management (Richardson GMP)
Himalaya Jain The Rosedale Group (Scotia Wealth Management)
Leslie G. Cliff Genus Capital Management
Michael Kuzik RBC Dominion Securities
PROUDLY SPONSORED BY
FRANÇOIS TÊTU admitted to being surprised by his win as Outstanding Global Advisor of the Year because he had written off his chances of winning for a second straight year. Unprepared, he opted for a much shorter speech, but was nevertheless thrilled to be called up to the podium once again. “You really have to read and look at the macroeconomic picture and geopolitical picture of the world,” Têtu told his fellow advisors.
“You really have to read and look at the macroeconomic picture and geopolitical picture in the world” FRANÇOIS TÊTU RBC Dominion Securities
“So that means Canada, we are a peaceful country, but on the investment side, we are a micro country, unfortunately. That’s life.” Darren Gazdag, SVP of business development at award sponsor Excel Funds Management, believes Canadian investors will soon wake up to the benefits of maintaining a global portfolio. “The average Canadian retailer has 1% to 1.5% in emerging markets,” he said. “On a go-forward basis, since roughly about 75% of growth is coming from emerging markets, there is a tremendous opportunity for Canadian investors to embrace.”
Excel Funds Management Inc. is a multiple Lipper Award winner specializing in emerging markets. Founded in 1998 with the launch of the Excel India Fund, the largest and longest running India-focused mutual fund in Canada, Excel Funds has become a true leader in the emerging markets investment space by offering a wide-range of innovative investment products that capture new growth opportunities. For more information, visit excelfunds.com
François Têtu RBC Dominion Securities
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Darren Gazdag Excel Funds Management
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12/06/2018 5:45:49 AM
BROUGHT TO YOU BY
THE RBC GLOBAL ASSET MANAGEMENT AWARD FOR
ETF CHAMPION OF THE YEAR WINNER
THE FUTURE of investing will look a lot different than the past, and
Ken MacNeal Richardson GMP
FINALISTS Chad Larson MLD Wealth Management (Canaccord Genuity Wealth Management)
Ray Dragunas Ray Dragunas Investment Consulting
Shafik Hirani Aligned Capital Partners
Wolfgang Klein Canaccord Genuity Wealth Management
ETF Champion of the Year Ken MacNeal believes ETFs are the perfect vehicle to negotiate this tricky terrain. “When you are doing something that is unfamiliar to you in certain industries or countries other than Canada, you can use ETFs as a vehicle for doing that,” MacNeal said. “It gives you a way of buying an industry instead of an individual company, especially in those areas that you’re not familiar with.”
“I really, really wanted to win because I want to really promote the use of ETFs, and this will give me a little bit of a soapbox to do that” KEN MACNEAL Richardson GMP
Ken MacNeal Richardson GMP Trevor Cummings RBC Global Asset Management
Trevor Cummings, head of business development for ETFs at award sponsor RBC Global Asset Management, outlined how his firm is facilitating these opportunities. “RBC is a relatively new player in the exchange-traded fund space,” Cummings said. “But we continue to add value by launching a number of rules-based and active solutions for investors, and they’ve proven to be very popular, so we wanted to make this award a benefit to our ETF users – the portfolio managers and advisors out there who have decided to use ETFs in their practices.” PROUDLY SPONSORED BY
RBC Global Asset Management is one of Canada’s fastest-growing ETF providers with over $5 billion in ETF assets under management as of March 31, 2018. Backed by the strength and experience of its global investment management team, RBC ETFs are designed to meet clients’ income, diversification and risk-management needs. For more information, visit rbcgam.com
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12/06/2018 5:45:56 AM
THE RADIUS FINANCIAL EDUCATION AWARD FOR
BEST INDUSTRY SERVICE PROVIDER WINNER Croesus
FINALISTS Advicent Aequitas NEO Exchange Equisoft Foran Financial Institute Sticky Advisor
CONSTANT INNOVATION has been the key to Croesus’ rise as a
leading financial industry service provider. Croesus president Sylvain Simpson, outlined how it has been able to push standards higher. “I think the technology we offer compared to our competitors makes the difference,” he said. “And it’s the service, the whole team. Croesus is not just the platform by itself, but the service we give to our clients.”
“It’s the service, the whole team. Croesus is not just the platform by itself, but the service we give to our clients” SYLVAIN SIMPSON Croesus
Sylvain Simpson Croesus
Tony Sanfelice Radius Financial Education
Croesus sales director Eva Verreault put the company’s win down to “a lot of teamwork – acting as a partner to our clients, being a team with our clients and with our employees ... I think that is the main differentiator.” Tony Sanfelice, president of award sponsor Radius Financial Education, said: “Education has always been continuous in the financial services. The industry in Canada in evolving, and clients are more and more demanding, so it’s very important and critical for the financial industry to be very service-oriented. “We find that this is the best recognition award event in Canada,” Sanfelice added. “It’s just a great event and great evening, rewarding the whole industry in Canada.” PROUDLY SPONSORED BY
Eva Verreault Croesus
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Radius Financial Education understands the importance of learning from the best. Each conference offers a well balanced speaker composition consisting of insight from authors, educators, economists, regulatory bodies and industry leaders from around the globe. For more information, visit radiusfinancialeducation.com
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12/06/2018 9:38:28 PM
BROUGHT TO YOU BY
THE INVESCO CANADA AWARD FOR
LIFETIME ACHIEVEMENT IN THE INDUSTRY WINNER
THE BIGGEST applause of the night was reserved for industry
Rebecca Horwood The Horwood Team (Richardson GMP) PROUDLY SPONSORED BY
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. For more information, visit invesco.ca
Rebecca Horwood The Horwood Team
Greg Cerra Invesco Canada
pioneer Rebecca Horwood, who was recognized for her extraordinary career with the Lifetime Achievement Award. Ahead of her time, Horwood’s journey began when she became the first female investment advisor at Richardson Greenshields at the age of 24. She went on to become the first portfolio manager for The Horwood Team and was one of the founding members of Richardson GMP in 2003.
“It’s beyond imagination how this feels ... at 24, in 1980, starting as the first woman in our company, and all these years later to get this award – [it’s] phenomenal” REBECCA HORWOOD The Horwood Team
“I’m a really hard worker, really very trend-minded; I see the future, and I am very visionary,” Horwood said when accepting her award. “So when I started, it was all about transactions, and the guys would say, ‘She doesn’t know how to pick stocks.’ Well guess what? I really didn’t. But I saw the future, and I started doing portfolio management, putting together these portfolios using the dividend tax credit at that time for tax advantage.” Greg Cherra, regional vice president at Invesco, which sponsored this award and also served as the platinum sponsor of the event, said Horwood’s achievement is a great example of why the firm wanted to be a part of the ceremony. “There’s a lot of hard work that goes into the day-to-day of the investment industry and wealth management, and we’re side-by-side every day trying to help the industry, so it’s very important to be here to support and honour people who put a lot of hard work into what they’re doing.”
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12/06/2018 5:45:59 AM
THE AWARD FOR
DIGITAL INNOVATOR OF THE YEAR WINNER Broadridge Financial Solutions
FINALISTS Great-West Life Monarch Wealth Corporation RBC MyAdvisor Viviplan WealthBar Financial Services/ PPI Valet
IT’S VITAL for advisors to stay one step ahead, and nowhere is this more important than in embracing new technology. According to Valerie Jones, VP of marketing at Broadridge, the most important and exciting developments at the company are AI and its digital information onboarding service, for which it won Digital Innovator of the Year.
“AI and robo-advising open up the capability for advisors to have less of a transactional relationship with clients and more of an advisor relationship” VALERIE JONES Broadridge Financial Solutions
Kendra Thompson Accenture
“This is recognition that technology is a driver of change and that technology helps advisors transform what they do on a day-to-day basis,” Jones said. “A digital information onboarding platform enables advisors to become more digital in a seamless way, and it helps them present themselves as advanced innovators.” Jones added that her own personal experience with onboarding drove home the need for advisors to make the process digital. “They gave me a contract, and it was about 50 pages with sticky notes saying, sign here, sign here,” she said. “It felt like I was signing my life away – it wasn’t a very happy experience. Digital information onboarding means it’s all online, all integrated with the back end and compliance. It lets the advisor worry about the relationship instead of worrying about all this stuff.”
Valerie Jones Broadridge Financial Solutions
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12/06/2018 5:46:19 AM
BROUGHTTO TO BROUGHT YOUBY BY YOU
THE EQUISOFT AWARD FOR
FUND PROVIDER OF THE YEAR WINNER RBC Global Asset Management
FINALISTS BlackRock BMO Global Asset Management Canoe Financial CI Investments Dynamic Funds Franklin Templeton Investments Invesco Canada Mackenzie Investments NCM-Norrep Capital Management
PROUDLY SPONSORED BY
Equisoft offers advanced digital business solutions to its clients in the insurance and wealth management industries. The firm develops and markets innovative front-end applications (InsuranceElements and WealthElements) featuring industry-leading user interfaces and state-of-theart technology. In addition, Equisoft is an Oracle Insurance Policy Administration integration partner for some 20 carriers globally. To complete this unique offering, Equisoft brings extensive experience in data migration through its subsidiary, Universal Conversion Technologies. Equisoft has a growing team of nearly 300 specialized resources based in the US, Canada, Latin America, South Africa and India.
RBC GLOBAL Asset Management works hard to maintain its standing as one of the country’s leading asset managers. According to Leah Commisso, senior manager of corporate communications, the firm’s long track record of success, “exceptional history,” and its core principles of value, transparency and choice keep standards high.
“Our clients are at the core of everything we do, and I think day in and day out, the team keeps that in mind. We take that very seriously” LEAH COMMISSO RBC Global Asset Management
“Any sort of recognition like this is a tremendous honour,” Commisso said when accepting the award for Fund Provider of the Year. “There’s stiff competition and lots of great firms out there. The team has put in a lot of work, so it’s nice to receive this kind of honour.” “It’s really important to recognize the contribution of the fund companies to the industry,” said Jonathan Georges, VP of wealth management solutions at award sponsor Equisoft. “In an environment where there are so many pressures on them with fee compression and that type of thing, it’s important to take a break and recognize the distinctive fund companies that offer excellent service and products.”
Leah Commisso RBC Global Asset Management
Jonathan Georges Equisoft
For more information, visit equisoft.com
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12/06/2018 5:46:26 AM
THE FRANKLIN TEMPLETON INVESTMENTS AWARD FOR
TOP ADVISOR OFFICE 10 STAFF OR MORE WINNER PWM Private Wealth Counsel (HollisWealth)
FINALISTS Harbourfront Wealth Management Lawton Partners Nicola Wealth Management Northland Wealth Management Polson Bourbonierre Derby (HollisWealth)
RGF Integrated Wealth Management T.E. Wealth
IT’S BEEN quite a year for PWM Private Wealth Counsel. Not only did the firm surpass $600 million in AUM, but it also took home the coveted award for Top Advisor Office (More Than 10 Staff). Portfolio manager Kevin Hegedus attributed PWM’s success to its approach to wealth management and the quality of its 16-member team.
“It takes a long time to build a successful team and get people to gel and connect really well. It took years to do it, but we are finally there” KEVIN HEGEDUS PWM Private Wealth Counsel
(iA Financial Group)
Wise Riddell Financial Group
PROUDLY SPONSORED BY
Franklin Templeton Investments is a global leader in investment management with clients in over 170 countries. Here in Canada and abroad, we are dedicated to one goal: delivering exceptional asset management for our clients. At the core of our success is our multiple independent investment teams – each with a focused area of expertise, from traditional to alternative strategies and multi-asset solutions. This expertise in Canada, combined with extensive global resources and a focus on excellence, has made us a trusted partner to generations of advisors and investors.
“More than anything, it’s the holistic approach we take,” Hegedus said. “We have two chartered accountants on board and insurance specialists, so we really do the full gamut of financial planning, not just specializing in one area. It takes a long time to build a successful team and get people to gel and connect. It took years to do it, but we are finally there.” Jim Vlahos, senior vice-president of sales at award sponsor Franklin Templeton Investments, said: “We are a big believer in the value of advice – not just giving updates and market insights, but helping advisors grow their business, and this team has done that and put clients first.”
Kevin Hegedus PWM Private Wealth Counsel
Jim Vlahos Franklin Templeton Investments
For more information, visit franklintempleton.com
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12/06/2018 5:46:32 AM
BROUGHT TO YOU BY
THE FUNDSERV AWARD FOR
ADVISOR NETWORK/BROKERAGE OF THE YEAR WINNER Mandeville Private Client
FINALISTS Canaccord Genuity Wealth Management HollisWealth/Industrial Alliance Securities Investment Planning Counsel Investors Group TD Wealth
FRANK LAFERRIERE called his company’s back-to-back awards
triumph a “stupendous honour.” The senior vice-president and COO of Mandeville Private Client praised his team for helping to grow the firm by almost 40% year-over-year and for its efforts to make the client experience relevant for all generations.
“There’s nothing like being recognized by your peers and people in the industry who understand the day-to-day toils that we and our advisors go through” FRANK LAFERRIERE Mandeville Private Client
PROUDLY SPONSORED BY
Fundserv Inc. is a business-to-business electronic network with world-class transactions processing applications, servicing the Canadian investment industry. Established in 1993, we are an online hub that electronically connects fund companies, distributors and intermediaries, enabling them to buy, sell and transfer investment funds amongst each other. For more information, visit fundserv.com
on
“I’m very honoured and humbled to be part of this whole process,” Laferriere said, “and we really want to congratulate Wealth Professional, because in difficult times you need to take a moment to celebrate. Even though the markets have been going good and even though things are going well, our industry is under tumultuous change.” “It’s important for us to acknowledge that this industry, this community, is so connected and supportive of one another,” said Karen Adams, CEO of award sponsor Fundserv. “There is so much collaboration in the funds industry across Canada, and Fundserv is really pleased to be the connector at the hub of it.”
Karen Adams Fundserv Frank Laferriere Mandeville Private Client
www.australasianlawyer.com.au
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12/06/2018 5:46:39 AM
THE CI INVESTMENTS AWARD FOR
MULTI-SERVICE ADVISOR OF THE YEAR WINNER Jason Pereira Woodgate Financial (IPC Securities Corporation)
FINALISTS Brad Jardine CIC Financial Group
Catherine Hurlburt Integrated Planning Group (Assante Financial Management)
Christopher Rawles RT Mosaic Wealth Management
Duane Francis Mandeville Private Client
Guido Camaiani Skyview Private Wealth (Mandeville Private Client)
Jennifer Black DFS Private Wealth (Mandeville Private Client)
Joseph Nguyen CIBC Imperial Service
P.J. Brooks
ALTHOUGH ADVISORS are renowned for their work ethic, it’s hard to find anyone in the industry with the same energy level as Jason Pereira. Passionate about his business, financial services and technology, the partner and senior financial consultant at Woodgate Financial is as adept
“The secret? Hustle … lots of hustle. You ask anyone I know, and they’ll be like, ‘I don’t know how he does that’” JASON PEREIRA Woodgate Financial
at diversifying his career as he is portfolios. In addition to his daily responsibilities as an advisor, Pereira lectures at York University’s Schulich School of Business, hosts his own technology podcast and has started two fintech companies – but he also recognizes that sometimes, less is more.
“We are actually cutting back yet again,” he said, “so we’ll have a 60-to-1 household ratio to advisor pretty soon. The service keeps going up while the household level keeps going down. Everything’s great.” Jodi deMunnik, regional sales manager and senior vice-president at award sponsor CI Investments, acknowledged that “our business would not succeed without [advisors]. They are the most integral part of our business.” PROUDLY SPONSORED BY
Jodie deMunnik CI Investments
Investors Group
Paul Manders JMRD Wealth Management Team (National Bank Financial)
CI Investments is one of Canada’s largest investment management companies. CI provides one of the industry’s widest selections of investment funds and leading portfolio managers. Our investment management expertise is available through several different platforms, including mutual funds, managed solutions, guaranteed solutions and alternative investments. For more information, visit ci.com.
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12/06/2018 5:46:50 AM
BROUGHT TO YOU BY
THE MACKENZIE INVESTMENTS AWARD FOR
FEMALE TRAILBLAZER OF THE YEAR WINNER Diane Nash
Nash Family Wealth Management (National Bank Financial)
FINALISTS Barbara Stewart Cumberland Private Wealth Management
Carolyn Seaforth Pinnacle Wealth Brokers
Laurie Bonten Wellington-Altus Private Wealth
Leony deGraaf deGraaf Financial Strategies
Nathalie Racine
IN ACCEPTING her award for Female Trailblazer of the Year, Diane Nash paid a heartfelt tribute to the other finalists for paving the way for women in Canada’s wealth management industry. However, she acknowledges that even though women have made great strides, substantial challenges remain. “The job is very demanding of your
“What this industry was 20 years ago when I started is not what it is today, and it’s because of the other women in the room who changed it” DIANE NASH Nash Family Wealth Management
HollisWealth
time, your emotions and your family, and if you don’t have the people in place who are going to help you rise up, then it doesn’t matter – you are not going to do it.” “Women are hugely under-represented in our industry,” said Jim Wortley, AVP and creative director of award sponsor Mackenzie Investments. “We need to do some work – and it’s going to take a while to change it, and this is one of the ways we can do that.”
Susan Andrighetti
PROUDLY SPONSORED BY
Racine-Marcotte Advisory Group (RBC Dominion Securities)
Rona Birenbaum Caring for Clients; Viviplan
Shannon Straathof
CIBC Wood Gundy
Susan Latremoille The Latremoille Group (Richardson GMP)
Tina Tehranchian The Tina Tehranchian Team (Assante Capital Management)
Yasmin Gordon The Gordon Group (Canaccord Genuity Wealth Management)
Mackenzie Investments has been helping Canadians since 1967, when we started with one person managing investments for one investor in Toronto. Now we’re a holistic assetmanagement partner for thousands of Canadian financial advisors and the investors they support across the country. Our commitment to them is to help investors achieve financial success and feel confident about the future. For more information, visit mackenzieinvestments.com
Diane Nash Nash Family Wealth Management
Jim Wortley Mackenzie Investments
www.wealthprofessional.ca
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12/06/2018 5:47:03 AM
WEALTHBAR’S PPI VALET AWARD FOR
CEO OF THE YEAR WINNER Steve Hawkins
Horizons ETFs Management
FINALISTS Angela Pecoraro Advicent
Blake Goldring AGF Management Limited
Daniel Daviau Canaccord Genuity Group
Darcy Hulston Canoe Financial
Duane Green Franklin Templeton Investments
Greg Romundt Centurion Asset Management
Karen Adams Fundserv
Peter Intraligi Invesco Canada
Tea Nicola WealthBar Financial Services
STEVE HAWKINS of Horizons ETFs Management took home the CEO of the Year Award after a headline-grabbing 12 months that saw his firm launch the world’s first marijuana ETF, raising almost a billion dollars in the process. In accepting his award, Hawkins gave some insight into his style of management.
“I am so humbled and excited for what this means for us, and so happy for the acceptance of us in the industry” STEVE HAWKINS Horizons ETFs Management
“I let everybody do it for themselves, make mistakes and then I’ll correct them after the fact,” he said. “By me becoming CEO, that was way out of my comfort zone, and I want everybody to feel like they are pushing the limits of what they do. That’s important to me – it’s what I do every day, and I really hope they do that as well.” Tea Nicola, CEO and co-founder of award sponsor WealthBar, said: “It’s important for us to recognize the leadership at the very top, and I am very glad that Steve was the winner because he embodies what a leader in the ETF space should be. He is one of the household names in Canada, and it’s important we have more leaders like him.” PROUDLY SPONSORED BY
Steve Hawkins Horizons ETFs Management
A platform developed in partnership between PPI and WealthBar, PPI Valet is a robust robo-advisory investment platform. The platform offers independent advisors the ability to deliver added value through an enhanced level of service and improved insight into their client’s overall financial outlook. For more information, visit wealthbar.com
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12/06/2018 5:47:10 AM
BROUGHT TO YOU BY
THE NATIONAL BANK FINANCIAL AWARD FOR
OUTSTANDING PHILANTHROPHY & COMMUNITY SERVICE WINNER
FOR NICOLA Wealth Management, sending a donation cheque isn’t
Nicola Wealth Management
enough. A number of the firm’s employees are planning to travel to Ethiopia to help with drought relief efforts, and financial advisor Kyle Westhaver said this award embodies what the company is all about.
FINALISTS Aaron Ruston Purposed Financial Corp.
Brian Jones TD Wealth
Chad Larson MLD Wealth Management (Canaccord Genuity Wealth Management)
“Not only are our clients passionate about philanthropy, but so is the company and the employees who work for the company” KYLE WESTHAVER
Mark Winson
Nicola Wealth Management
Wise Riddell Financial Group
PWM Private Wealth Counsel (HollisWealth)
Renee Rebelo Life Coach Financial Strategies
Sean Baylis RBC Dominion Securities
Stephen Booker Milestone Asset Management (Canaccord Genuity Wealth Management)
Tina Tehranchian The Tina Tehranchian Team (Assante Capital Management)
“This is core to our culture at the firm,” he said. “Not only are our clients passionate about philanthropy, but so is the company and the employees who work for the company. Originally, we gave away a few thousand dollars to charity, but this year we are actually giving away more than a million dollars from profits to philanthropy, and we are actually sending some of most passionate employees and volunteers overseas to Ethiopia.” Brian Mills, VP and regional manager at award sponsor National Bank Financial, said the bank has a similar outlook on giving back. “[This award] is something we believe in,” he said. “If we didn’t give back to our communities, we wouldn’t be in it for the right reasons ... We have our community services award we give to our own, so we realize this is something important within our own DNA.” PROUDLY SPONSORED BY
Brian Mills National Bank Financial Kyle Westhaver Nicola Wealth Management
National Bank Financial is a leading purveyor of financial services to individuals, corporations and governments since 1859, making it one of Canada’s oldest financial institutions. With a workforce of 20,000 highly motivated employees totally committed to delivering the bank’s promise, “We are the bank that truly takes care of its clients,” it is also the leading bank in Quebec and is steadily expanding its footprint across the rest of Canada. For more information, visit nbfwm.ca
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12/06/2018 5:47:26 AM
BROUGHT TO YOU BY
THE MANDEVILLE PRIVATE CLIENT INC. AWARD FOR
ADVISOR OF THE YEAR WINNER Kevin Hegedus PWM Private Wealth Counsel (HollisWealth)
FINALISTS Alexandra Horwood Richardson GMP
Chad Larson MLD Wealth Management (Canaccord Genuity Wealth Management)
AFTER 27 YEARS in the business, it’s the personal relationships
with clients that newly crowned Advisor of the Year Kevin Hegedus values most. The Saskatoon-based portfolio manager said he’s learned that being an advisor isn’t always about the bottom line.
“It’s not always about the money. It’s about the relationships we build with clients and the trust they instill in you” KEVIN HEGEDUS
Elie Nour
PWM Private Wealth Counsel
Nour Private Wealth
“It’s about the relationships we build with clients and the trust they instill in you.” Frank Laferriere, senior vice-president and COO at award sponsor Mandeville Private Client, echoed the importance of building relationships. “We believe that it’s the client-advisor relationship that is so important to the wealth creation process,” he said. “All this talk about digitization and robo – we actually believe it will force us to be more human.”
Joseph Balsamo The Balsamo Financial Group (CIBC Wood Gundy)
Kyle Richie Richie Group (Investors Group)
Michael Prittie Capital Wealth Architects (Mandeville Private Client)
Robert McClelland The McClelland Financial Group
PROUDLY SPONSORED BY
Kevin Hegedus PWM Private Wealth Counsel
Robert Roby Family Tree Wealth Management (IPC Securities Corporation)
Wes Ashton Harbourfront Wealth Management
Wolfgang Klein Canaccord Genuity Wealth Management
At Mandeville, your interests always come first when we suggest solutions or investment approaches. We are dedicated to conducting business with the utmost transparency, professionalism and integrity. We are committed to creating and preserving your wealth. For more information, visit mandevilleinc.com
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Frank Laferriere Mandeville Private Client
M C T r
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12/06/2018 5:47:38 AM
WHY... ...FOR THE SECOND CONSECUTIVE YEAR, HAS MANDEVILLE WON THE ADVISOR NETWORK/ BROKERAGE OF THE YEAR?
FOR THE ANSWERS CONTACT FRANK LAFERRIERE ADVISOROPPORTUNITY@MANDEVILLEPC.COM
905-319-4900
WWW.MANDEVILLEINC.COM
CANADA’S TOP BROKERAGE Mandeville Private Client Inc. is a Member of the Investment Industry Regulatory Organization of Canada and a Member of the Canadian Investor Protection Fund. Mandeville Private Client Inc. is a registered trademark of Portland Holdings Inc. and used under license by Mandeville Private Client Inc. PORTLAND, PORTLAND INVESTMENT COUNSEL and the Clock Tower design are registered trademarks of Portland Holdings Inc. Used under licence by Portland Investment Counsel Inc. For further information please contact your Advisor. Consent is required for any reproduction, in whole or in part, of this piece and/or of its images and concepts.
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12/06/2018 5:47:44 AM
BROUGHT TO YOU BY
THE WPC MAGAZINE READERS’ CHOICE AWARD FOR
BEST ADVERTISING CAMPAIGN WINNER AGF Investments Inc. “Invested in Discipline”
FINALISTS Franklin Templeton Investments
KARRIE VAN BELLE drew immense professional satisfaction from bringing the AGF story to life for the company’s hugely successful Invested in Discipline rebrand. Van Belle, AGF’s senior vicepresident of marketing and communications, said that after extensive research and interviews with clients and prospects, the campaign came together easily.
Horizons ETFs
“The story was there – it’s incredible. I just got to put the colour around it”
"ETF Educational Campaign"
KARRIE VAN BELLE
Mackenzie Investments
AGF Investments Inc.
"Confidence in a changing world"/ 50th Anniversary campaign
“It feels good [to win] after this project, which was a year-long journey,” she said. “I was brought on to think about a brand refresh for AGF, and so it really did start there. As I started to learn about AGF and do the research, the story was there – it’s an incredible story. I just got to put the colour around it.” Dane Taylor, sales manager at Wealth Professional Canada, said: “Wealth Professional is about the advisors on the front line, and we thank everybody in the industry for their support. We are also proud to recognize and support the advertising award, and we congratulate AGF, who have been strong supporters of WPC, on coming out on top this year.”
"Franklin LibertyShares/ The Human Factor"
RBC Global Asset Management "Personally Invested"
PROUDLY SPONSORED BY
CANADA
Wealth Professional Canada is a free online information resource for all Canadian advice and planning professionals. It focuses on providing the latest industry news, opinion and analysis, in print and multimedia formats. The site generates newsletters reaching more than 25,000 industry professionals each week. The site’s comment and forum arenas actively engage advisors in topical discussion about what matters most to them. Wealth Professional Canada is the perfect online support vehicle for any company looking to market its products to the planning and advice channel.
Karrie Van Belle AGF Investments Inc. Dane Taylor Wealth Professional Canada
For more information, visit wealthprofessional.ca
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12/06/2018 5:48:08 AM
BROUGHT TO YOU BY
THE AWARD FOR
RISING STAR ADVISOR OF THE YEAR WINNER Chelsey Chartren The McClelland Financial Group (Assante Capital Management)
FINALISTS Danielle Spierenburg Kruzich Leonard Wealth Management Group (Richardson GMP)
Dian Chaaban RBC Dominion Securities
Farialle Pacha Kaufman Wealth Group (Richardson GMP)
Jeff Letchford Skyview Private Wealth (Mandeville Private Client)
McKenzie Esposito Esposito Advisory Team (National Bank Financial)
Ravi Nagraj RBC Wealth Management
CHELSEY CHARTREN knows her market because she’s part of it.
To engage with the young professionals who make up 50% of her client base, the McClelland Financial Group advisor relies on methods she know will appeal to her fellow millennials, such as videos on topics like taxes and RRSPs.
“I see a lot of millennial clients, and they are able to trust me a lot more because they can relate to me” CHELSEY CHARTREN The McClelland Financial Group
Chartren explained how working with younger clients is part of a larger strategy to lay the foundation for Canada’s much-vaunted generational wealth transfer. “A lot of [my clients] are children of current clients,” she said, “so the plan is to eventually keep the money in the business when they eventually pass away.” Chartren added that after moving to Assante from TD Bank, her new role took some getting used to. “Being part of Assante was a huge learning curve, with all the different tools that are available for our clients. I was lucky I eased into it slowly.”
Trevor Theobald CWP Financial Services Inc. (Sun Life Financial)
Zena Amundsen Astra Financial Services
Chelsey Chartren The McClelland Financial Group
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12/06/2018 5:48:20 AM
SPECIAL PROMOTIONAL FEATURE
ETFs
Covering your bases with enhanced income BMO GAM’s latest enhanced income fund, BMO Covered Call Canada High Dividend ETF Fund, provides a convenient way to access substantial portfolio yield, tax efficiency and risk protections not typically found in traditional dividend funds – all at low a cost
THIS
MONTH, BMO Global Asset Management adds another option to its comprehensive enhanced income mutual fund lineup. The BMO Covered Call Canada High Dividend ETF Fund is a mutual fund that provides access to some of the country’s top dividend-paying companies, while offering consistent income through its covered call strategy. The product has already proven popular in an ETF format – BMO Canadian High Dividend Covered Call ETF (ZWC), which launched in February 2017 – and now those who prefer to invest through a mutual fund can avail of the same strategy. “It is the exact same price point as ZWC, and it is really about making the offering available to as many investors as possible,” says Chris Heakes, the fund’s portfolio manager. “Typically, they have a need for income and can take equity risk, although the risk profile of this fund tends to be less than broad market equities.” BMO GAM introduced its high-dividend covered call mutual funds with a US offering in 2014, followed by a European exposure the next year. In 2016, BMO offered the covered call strategy on a basket of Canadian bank stocks with the BMO Covered Call Canadian
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Banks ETF Fund. The latest fund allows Canadian investors to gain access to a diversified set of 30 blue-chip, dividend-growing companies, alongside a proven option strategy that provides enhanced yield while still participating in the market upside.
sustainability of those dividends.” He adds: “We are trying to avoid yield traps, so we have a metric where we look at four historical years of dividend payout ratios and one forward-looking year to come up with a measure of the sustainability of the
“The dividend construction is straightforward, but the covered call overlay is what really differentiates this fund. We are able to generate, on average, between 3% and 4% in additional income, taxed as capital gains, so it is generating a new revenue stream tax-efficiently and adding that to the dividend yield of the portfolio” Chris Heakes, BMO Global Asset Management “It’s a Canadian large-cap equity universe where we leverage our dividend methodology,” Heakes says. “We look for stocks that have positive – or at worst flat – three-year dividend growth. That’s the first screen, and then we look at the payout ratio to see the
dividends. That will potentially eliminate a company for consideration or penalize the weight of that company.” This process will identify approximately 30 of the highest-yielding candidates, whose yield then determines their weight in the
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HAVING A DIVIDEND MATTERS A better return profile at lower volatility is a winning proposition.
Total returns, 1990–2018
Annualized volatility, 1990–2018
14%
25%
12%
20.4%
10.1%
10%
20% 8.0%
8%
15%
5.7%
6%
15.3% 13.4%
13.2%
Dividend growers
Dividend payers
10%
4% 2%
5%
0% -2%
22.2%
11.4%
-0.4% Dividend growers
Dividend payers
S&P/TSX Index
Dividend cutters
Non-dividend payers
0%
S&P/TSX Index
Dividend cutters
Non-dividend payers
Source: BMO Investment Strategy Group, unweighted. Charts plot returns and annualized volatility of S&P/TSX Composite Index constituents, segmented by dividend characteristics. All data as of January 31st 2018. Analysis began in January 1990.
fund. Companies selected are also subject to a 40% sector cap, so the fund is balanced in such a way as to accurately represent corporate Canada. Financials lead the way with a 38% weighting, and energy is next at 23%.* “I characterize the portfolio as having a quality bias with large-cap, blue-chip stocks,” Heakes says. “There tends to be a positive size bias where we invest in the larger companies, as they tend to be more liquid from the options point of view.” But while the top two sectors in Canada’s economy feature heavily, that isn’t the case for materials – and for good reason, Heakes explains. “It’s a good way to get exposure to Canada, with less materials weights and less of the more volatile names in the Canadian index,” he says. “We do have a healthy weight in energy; it is a sector where we are noticing a nice upward trend. What you don’t tend to see in this fund is materials, where we just don’t see the dividends and it doesn’t fit our risk profile.”
With a high yield, efficient taxation and a lower risk profile than many traditional dividend funds, all at a low cost, the fund differs from a host of other dividend offerings out there. With volatility returning to the marketplace this year, a covered call strategy can really prove its worth. “The dividend construction is straightforward, but the covered call overlay is what really differentiates this fund,” Heakes says. “We are able to generate, on average, between 3% and 4% in additional income, taxed as capital gains, so it is generating a new revenue stream tax-efficiently and adding that to the dividend yield of the portfolio.” This fund is therefore suited to an income-oriented investor who is searching for a steady stream of income over the long term. Such consistency means sacrificing blockbuster returns to a certain extent, but given the length of the current market cycle, it’s a strategy sure to prove popular with many Canadian investors. “Covered calls are a trade-off, so you can generate a lot of yield, but then you are
potentially giving up on upside return,” Heakes says. “We are not greedy for yield, so we only cover half of the portfolio, and if equities rally, half of the portfolio will rally, and we can generate 3% to 4% in yield in the covered half of the portfolio.” *Source: BMO Asset Management Inc. All data as of April 30, 2018
The viewpoints expressed by the portfolio manager represent their assessment of the markets at the time of publication. Those views are subject to change without notice as markets change over time. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus. This article is for information purposes. The information contained herein is not, and should not be construed as, investment advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp. and BMO’s specialized investment management firms. BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and portfolio manager and separate legal entity from Bank of Montreal. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the fund facts or prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. “BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.
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SPECIAL PROMOTIONAL FEATURE
ALTERNATIVES
Why it’s time for an alternative approach Michael Schnitman of Mackenzie Investments talks to WPC about the importance of alternative solutions in the current investment environment
AS INCREASING numbers of Canadian investors recognize the value of alternative investments, advisors are under pressure to provide their clients with the most suitable solutions. Fortunately for advisors, one Canadian asset manager is taking a stand and leading the evolution of the Canadian alternative investment space. With the launch of its new mutual fund in May, Mackenzie Investments is providing retail investors in Canada access to the first absolute return fund that is consistent with the alternative funds framework proposed by Canadian securities regulators. The Mackenzie Multi-Strategy Absolute Return Fund will deliver strategies that seek a positive total return over a market cycle, regardless of the ups and downs. Traditionally, many alternative investment strategies in Canada have only been available through an offering memorandum and were limited to accredited and institutional investors. As a result, the portfolios of retail investors have been severely limited in their scope – until now.
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Michael Schnitman, SVP of product at Mackenzie Investments, is excited that Canadian retail investors now have the chance to access such strategies. The new mutual fund is composed of a number of different strategies under three principal umbrellas: equity alternative strategies, fixed-income alternative strategies and core diversifiers. “Under equity alternative strategies, there is a 130/30 equity alpha strategy, and then there is a market neutral alpha strategy,” Schnitman says. “Under fixed income, there is a credit absolute return strategy, which is composed of two main components – credit momentum and short credit.” Added to that is the third principal area, core diversifiers, which is where the fund really distinguishes itself, Schnitman explains. “This is a global macro strategy, and that consists of a number of sub-strategies that derive value from trading markets driven by global macroeconomic data – for example, a commodity alpha strategy, a currency alpha strategy, a managed futures strategy, a global tactical allocations strategy and then a risk
parity strategy,” he says. It’s a complex offering, but one with easily defined goals – managing risk and volatility while providing diversification and a positive total investment return over a full market cycle, regardless of market conditions or the general market direction. Given that diversification is paramount in any investment portfolio, an absolute return fund can serve as a core holding for any investor. As a mutual fund, it also offers a transparent approach, simplicity of subscription and redemption, low minimum investments, as well as daily liquidity, which is sure to prove popular with investors, Schnitman believes. “This fund is for advisors who have clients who are seeking a better risk-return profile with their overall portfolio and looking for a smoother ride,” he says. “It is for any investor looking for an additional source of diversification and downside protection.” This type of strategy is suited to investors who are eager to respond to the changing investment environment. Managing risk is
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“This fund is for advisors who have clients who are seeking a better riskreturn profile with their overall portfolio and looking for a smoother ride. It is for any investor looking for an additional source of diversification and downside protection” Michael Schnitman, Mackenzie Investments crucial when it comes to safeguarding your nest egg, and an absolute return strategy will achieve just that, Schnitman explains. “Sequence-of-returns risk is when you are getting close to retirement and a market crash occurs,” he says. “You want to have some strategies in your overall portfolio that will be able to sustain market corrections. Sequenceof-returns risk is the risk a portfolio takes of a
huge hit in those critical years. An absolute return strategy can help combat that risk.” To provide the kind of alternative strategy that was once only available to institutional clients, Mackenzie has chosen a team perfectly suited to the task. Led by Alain Bergeron, head of the Mackenzie Asset Allocation Team and formally of the CPPIB, the fund’s equity strategy will be overseen by Rick
Weed. Steve Locke, head of the Fixed Income Team, brings his expertise to the fixedincome segment. Combined, they offer decades of experience that runs the full gamut of the alternative investment space, so investors can be confident that the Mackenzie Multi-Strategy Absolute Return Fund is in safe hands. “This is a daily priced, liquid mutual fund that helps investors gain access to multistrategy absolute returns, which can complement or replace an equity-balanced allocation, depending on their personal investment objectives,” Schnitman says. “This portfolio’s benchmark and objective is to beat cash over a market cycle. Our aim for this fund is to have a similar return profile to a balanced fund, with significantly lower risk over a market cycle. A relative return approach can be challenged by market conditions such as volatility and directional movement. This portfolio aims for an absolute return, regardless of market direction.”
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FEATURES
PHARMACARE
Reaching for the sun Sun Life Financial CEO Dean Connor outlines his position on universal pharmacare in Canada
PHARMACARE IS the number-one issue in the Canadian life and health insurance space right now as providers make the case for a mixed public-private system. In April, the Federal Standing Committee on Health released the report “Pharmacare Now: Prescription Medicine Coverage for all Canadians,” which recommended a universal prescription drug program. The insurance industry was quick to respond; CLHIA head Stephen Frank questioned how such a program would be financed. As Canada’s largest group benefits provider, Sun Life Financial certainly has skin in the game, so it wasn’t surprising that president and CEO Dean Connor also broached the subject in his shareholder address in May. “Today, 25 million Canadians are covered for prescription medicines through their employers or through insurance they’ve taken out on their own, and those plans generally work quite well,” Connor said. “They cover a wide range of medicines, claims payments work well, and insurance companies are increasingly proactive, providing feedback and information on pharma usage that improves the health of Canadians.” That doesn’t mean Connor is deaf to some of the criticisms made by pharmacare advocates. But rather than introducing a singlepayer system across Canada, he is confident the current methods of providing healthcare can be improved.
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“More than 4 million Canadians are not enrolled in a plan or don’t have access to coverage, and we need to fix that,” he said. “We have two-tier medicine prices in Canada: lower prices negotiated by governments who’ve banded together for bulk price negotiations, and higher prices charged by pharma companies to the remaining buyers. We need to bring all buyers into the same tent to negotiate equally low prices for Canadians.” And while support for universal coverage appears to be growing among the general public, Connor believes it might be a different story if the limitations of single-payer system were fully laid out. “We don’t think the solution is to abandon the plans that 25 million Canadians are happy with today,” he said. “For one thing, they would not be happy to find out that the typical provincial drug formulary covers only 4,400 medicines, versus the 14,000 that a typical health plan covers today.” For that reason, Connor is aligned with the CLHIA in calling for increased collaboration between the private and public sector. “We can leverage the best of what works in the public and private system today, expand it to increase access to coverage, and combine our purchasing power to achieve equally low medicine prices for all Canadians,” he said. “And that would be far more affordable than the cost of having governments take over all of pharmacare. We are keen to help solve
what is a solvable problem.” Having expressed his thoughts on pharmacare, Connor then took a moment to reflect on another year of impressive growth for Sun Life, both in Canada and abroad. “Many companies say they are clientfocused or client-centric – we aim to take this to a new level, and that is client-obsessed,” he said. “This means introducing new ways to make it easier to do business with us, to increase proactive and personal contact, and to ensure better problem resolution. It means new language, new reflexes, and new ways to measure and reward performance. Above all, it requires a new and absolutely higher intensity of client focus right across the firm.” This approach to client interaction has paid dividends, both literally and figuratively. In 2017, Sun Life’s underlying net income grew 9% to more than $2.5 billion, which
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“We don’t think the solution is to abandon the plans that 25 million Canadians are happy with today” Dean Connor, Sun Life Financial allowed the firm to increase its dividend by 8%. Shareholders saw another increase in the first quarter of 2018, with a 4% bump in the dividend payout as the company reported underlying net income of $770 million – a 34% jump over the same period last year. Connor pointed out that over the past five years, total shareholder return has averaged 19% per year, which is the best among Canadian banks and insurance companies. This has been facilitated by growth across all of Sun Life’s main business lines, particularly
the Asian market, which has become a real driver of performance in recent years. “Asia is our fastest-growing pillar – underlying net income more than tripled over the past five years, from $106 million to $330 million,” Connor said. “Starting this quarter, we are now including our international high-net-worth life insurance business as part of Asia, given that most of the clients are in Asia. And so as a $460 million business, Asia is now 18% of our underlying net income, and this percentage will grow in the future.”
In its new ultra-modern global headquarters at One York Street in Toronto, Sun Life has positioned itself as an innovator in the space. Products like the online platform Sun Life GO, as well as Ella, its interactive digital coach for benefits and pension plans, are a real point of pride for the firm and a key way it distinguishes itself from its competitors. But regardless of its commitment to digital platforms, advisors remain a crucial part of Sun Life’s distribution network, and that isn’t going to change, Connor said. “In many cases, clients still want to meet with an advisor to discuss broader financial planning needs,” he said. “We strongly believe in the value of financial advice from a trusted advisor and continue to invest in our advisors around the world, including more digital tools to help them be more productive and proactive.”
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PEOPLE
CAREER PATH
HUNGRY LIKE A WOLF
An entrepreneurial streak and media savvy have propelled the career of Wolfgang Klein, the self-proclaimed Wolf on Bay Street Klein got an early introduction to investing: After he saved $500 from his paper route, his father encouraged him to use the money to buy his first GIC “He told me that due to compound interest, my money would double in 10 years; I probably invested for a few years and then spent it on playing pinball, but the lesson was received”
1975
LEARNS A LASTING LESSON
1984
STUDIES BUSINESS Reaching the end of his high school career, Klein stumbled into business school, only to find it thoroughly engaging “A friend said she was going to study business at Ryerson, and I thought, ‘That sounds good’ – I didn’t really think about it. Business school was the best educational experience; I enjoyed it immensely. I just got it: I liked numbers, money, marketing, and I very much enjoyed sales. It resonated with me”
1998 SIGNS UP FOR CSC Having spent a decade working in radio, and heavily invested in the stock market himself, Klein was inspired by an epiphany on a trip to Banff to start studying for the Canadian Securities Course “I had more than a couple hundred grand in my account by the time I was 34 – I was watching stockbrokers take care of my money and thought there was an opportunity to take care of the money of people in the media”
2008 LEAVES THE BANK BEHIND In the wake of the global financial crisis, RBC put the kibosh on Klein’s media appearances, which prompted him to seek a new professional home “I moved across the street to Canaccord, and my media career exploded. I was on CPTV up to 24 times a week; it got me a lot of exposure. Our five-year return has beaten the TSX by 500 basis points, and I’ve been a member of the Chairman’s Club every year since 2013”
1980
EXPANDS INTO A SIDELINE BUSINESS Klein expanded his earning potential by cutting the grass of his newspaper delivery customers in the summer and shovelling their snow in the winter. He bartered the use of his parents’ lawn mower by promising to cut their grass for free “I learned to sell. I had no trouble communicating with people, and the rejection didn’t bother me – I was a type-A, outgoing entrepreneur”
1988
BREAKS INTO RADIO Having been devoted to music since childhood, Klein seized an opportunity to get into that industry after university “A friend saw an ad for an account executive at alternative rock radio station CFNY – I applied, and of 50 candidates, they hired three, and I was one. It was a very tough business, especially as a 23-year-old who knew nothing, but I survived that business for 13 years”
2001
MAKES A CAREER CHANGE Klein took the plunge and joined RBC, branding himself as the Wolf on Bay Street. He went on to become a member of the President’s Club each of his first three years at RBC and was invited to be a financial commentator on radio and TV
“As soon as I was licensed, 9/11 happened. The stock market started puking, and my wife told me she was having our first baby. That motivated me”
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PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email wealthprofessional@kmimedia.ca
The most recent iteration of La Classique drew 60 tea ms, who play on six rinks
$400,000 Total amount the tournament has raised for CMV research
2,000
Estimated number of participants over the event’s six years
6
Age of the youngest player to participate in La Classique
GAME CHANGER In founding the La Classique ball hockey tournament, Rob Tetrault combined a classic Canadian pastime with a desire to do some good THE CHARITY ball hockey tournament La Classique owes its existence to a promise Rob Tetrault made to his wife when the couple was in the hospital with their young son, who had just been diagnosed with congenital cytomegalovirus [CMV], a condition that can lead to long-term health problems such as hearing loss or seizures. “It had been burning in my heart that I wanted to do something, I just didn’t know what,” Tetrault recalls.
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Later, over Friday-night beers with friends, a flippant suggestion of a ball hockey tournament took root in the Winnipeg portfolio manager’s mind. “It was 100% a joke, but I didn’t sleep that night for thinking about it,” he says. The result of that lighthearted conversation was La Classique, a massive tournament that wrapped up its sixth annual event in February, drawing around 3,000 participants and spectators and raising
nearly $100,000 for CMV research. Tetrault’s next goal is to take the event nationwide, holding multiple tournaments across Canada. Ironically, the success of the tournament has resulted in Tetrault himself being unable to participate in the games since the event’s first year, but he has a blast nonetheless. “It’s my favourite weekend of the year by far,” he says. “I’m on a natural high all weekend.”
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THE FIRST OF ITS KIND IN CANADA
ALTERNATIVE STRATEGIES. FOR BETTER OUTCOMES. Introducing the Mackenzie Multi-Strategy Absolute Return Fund – the first mutual fund in Canada to use alternative investment strategies based on the proposed alternative funds framework by Canadian regulators. Now you have more alternatives: • More sources of investment returns • More ways to improve diversification • More tools to manage risk Regulatory relief was given for the Mackenzie Multi-Strategy Absolute Return Fund from certain investment restrictions. The Fund is only available for sale through IIROC advisors.
Talk to your Mackenzie Sales Representative today.
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