Wealth Professional 8.10

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COMMEMORATIVE GUIDE

WWW.WEALTHPROFESSIONAL.CA ISSUE 8.10

2020 YEAR IN REVIEW Experts look back at the biggest investment stories of 2020 – and offer predictions for what 2021 might bring

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SPECIAL REPORT

YEAR IN REVIEW

2020 YEAR IN REVIEW Wealth Professional talks to industry experts about the themes that dominated the investment world in 2020 and what advisors can expect heading into 2021

THIS YEAR will forever be marked by the COVID-19 pandemic, which changed the world as we knew it. The pandemic’s effects have been felt through all areas of life and business, including the financial and wealth management industries. The shift in workfrom-home and consumer spending habits, along with the pandemic’s economic impact and government responses, all played a huge role in shaping the year.

While 2020 began much as 2019 ended, as the threat of the virus arrived in North

America, things quickly shifted. The economy took a hard turn, plunging into recession more rapidly than ever before. In response, central banks slashed interest rates to aid in a potential recovery.

As individuals and businesses adapted to the new normal, things began to recover.

Certain sectors – including technology, gold and housing – started to buoy the overall economy, even as others remained devastated. Investment vehicles like ETFs and alternatives weathered the storm and

demonstrated their value in portfolios in a bear market. Amid all of this, concepts like ESG continued to gain momentum as social issues became another focal point of 2020.

One the following pages, Wealth Professional talks to investment industry experts to find out what issues were top of mind for them in 2020, how they adapted to COVID-19 and what they foresee for the future as the world looks to tame the virus and get back to normal – whatever that might look like.

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SPECIAL REPORT

YEAR IN REVIEW

The Canadian economy begins to rebound COVID-19 dealt a devastating blow to Canada’s economy, but there are some positive signs on the horizon as the year wraps up

IT’S BEEN a wild year for the Canadian economy, which has gone from a normal start to the substantial impact of the pandemic, followed by a quicker-than-expected recovery.

Yet while that recovery is underway, Canada is also currently battling a second wave of the virus, so the full picture is far from clear.

“At the start of the year, the economy was growing. There were late-cycle concerns, but it was an ordinary first few months,” says Eric Lascelles, chief economist at RBC Global Asset Management. “It got highly abnormal, and the pandemic remains the dominant theme, marked by the catastrophic decline in

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activity in March and April, but since then, by a surprisingly robust rebound. The story has played out better than anyone would have forecasted. There are still challenges with the second wave, but one thing that comes to mind is enthusiasm of the economic recovery that took hold earlier than most expected and clawed back a lot of the losses ahead of schedule.”

Lascelles notes that RBC GAM had anticipated this type of recovery by the end of the summer but instead saw it in June. By the fall, he says the economy had recovered two-thirds of its losses, leading RBC GAM

to upgrade its growth forecasts, despite the economy still not being where anyone would have predicted in January.

The shape of the recovery has also been interesting to Lascelles. While many experts rushed to predict its trajectory as V-, U- or K-shaped, Lascelles says there’s not a single letter to describe it.

“It depends on what you focus on – it’s a bit of a U, V, K,” he says. “Some sectors are up, others down; it has been a divergent recovery.

You can’t rule out a W as well. Here we are with a second wave, and there is a debate around if we grow through the fall and might

there be stagnation or a decline as the second wave plays out. There could be a mini W involved – but even if we get a drop, it would be mild compared to last spring.”

While Canada’s economy was originally on an aggressive path to recovery, he says, climbing nine percentage points in two months, it eventually became more gradual.

As for the drivers behind the recovery, Lascelles points to the ingenuity of workers, business and governments, along with the reopening of some sectors.

“Initially, our thought process was you probably need to keep most sectors closed until June; then you would have the virus eradicated and could reopen,” he says.

“Instead, we saw sectors open, with restrictions becoming less restrictive. It was probably premature and in part why a second wave is happening, but for the moment, we are anticipating stagnation through the fall.

We could be in for a slower go the next couple months, but it doesn’t challenge that we are in a multi-year recovery, and it can get going once the second wave is under control.”

Another interesting aspect of the recovery has been employment, Lascelles says. RBC GAM’s data shows that the job market has rebounded quicker than the economy itself, recovering close to 75% of its losses.

“We should be grateful for that,” he says.

“Then I think you can find sectors that are performing notably ahead. Agriculture output is high, and demand for utilities, financial services, public administration, real estate and technology is looking close to normal.”

Lascelles does acknowledge the headwinds that other sectors – including food services, accommodation, arts and entertainment, and recreation – have faced. He says it’s important to look within sectors for more information, pointing to retail as an example – although it looks to be nearly back to normal, there are varying outcomes within the space.

Moving forward, Lascelles says the unprecedented nature of the pandemic means there could be many risks to the economy.

“There were lagged headwinds that we were initially concerned with when fiscal stimulus

THE S&P/TSX COMPOSITE INDEX’S 2020 PERFORMANCE 20,000

15,000

10,000

1/2

1/15 2/3 2/18 3/2 3/16 3/23 4/1 4/15 5/1 5/15 6/1 6/15 7/2

7/15 8/4 8/17 9/1 9/15 10/1 10/15 11/3

Source: TMX Money

“We could be in for a slower go the next couple months, but it doesn’t challenge that we are in a multi-year recovery, and it can get going once the second wave is under control” Eric Lascelles, RBC Global Asset Management would come off,” he says. “There was a risk that could put the economy in trouble. It hasn’t happened – government support remained forceful, which set aside that risk. You could fret about long-term public debt issues, but we aren’t getting a steep fiscal cliff. We are aware problems usually occur with a lag – usually you have a recession, then businesses go bankrupt and households are unable to pay mortgages – but if anything, credit analysts have been reducing the expected losses.

“For the moment, [inflation] is tame, which makes sense. Long term, there are some risks related to the inflation mandate in the US, and that is relevant to the world. Central banks have printed a lot of money; debt levels are high, which can create temptations to

tolerate inflation. We can also say there is some onshoring of supply chains, which is inherently inflationary, so you could say there should be more inflation over the long run.

I think the risks are minimal – we are just talking about transitioning from a decade with unusually low inflation to more normal inflation. Maybe I can see a bit higher, but nothing problematic like the 1970s and ’80s.”

Looking forward, Lascelles says much of the outlook for 2021 depends on how Canada handles the second wave and if it can avoid a third (as was seen during the 1918 Spanish flu pandemic), along with the availability of a vaccine and the timeframe to inoculate enough of the population. Only once the virus is tamed can the rest of the recovery occur.

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SPECIAL REPORT

YEAR IN REVIEW

COVID-19 forces central banks to slash interest rates Like many of its counterparts, the Bank of Canada made rapid changes to monetary policy and introduced fiscal stimulus to help the Canadian economy through the pandemic

OVER THE last few years, both the Bank of Canada and the US Federal Reserve had been on a path of slowly raising interest rates.

In Canada, the incremental moves began in 2017; by October 2018, the BoC’s target rate had reached 1.75%, where it remained until the pandemic hit. The Fed had likewise been steadily raising rates throughout 2017 and 2018 before lowering to 1.75% in October 2019.

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However, those plans changed when COVID-19 barrelled into both economies. The Fed lowered its overnight rate to 1.25% on March 3, and the BoC followed suit the next day. Just nine days later, the BoC dropped to 0.75% before settling on 0.25% on March 27.

The Fed had one less stop, hitting 0.25% on March 15.

“I think interest rates, particularly

monetary policy interest rate decisions, have been more interesting in the last two, three years,” says Kevin Burkett, a portfolio manager at Burkett Asset Management. “In the US, you had a politicization around it when President Trump and Fed Chairman Jerome Powell got into disputes in December.

It was interesting that Powell put the car in reverse and paused on hikes. What will now be interesting, coming through COVID, was if Powell was right to leave room with hikes to put in more meaningful cuts.”

Burkett applauds the actions of both the BoC and the Fed when the pandemic hit. “I think you have to give monetary policymakers credit – you have seen them catch the market by surprise in the past,” he says. “This time, the market thought they would be aggressive, and they were. Could they have been quicker?

I don’t know – it was a quick, steep cut. I think it was a time where they got it right. I think it speaks to both sides of the border, as the dashboards were flashing red at the time of decisions. Their quickness to make the adjustments gave a sense of the gravity of where the world was headed.”

But while Burkett believes those moves were the right ones, he still isn’t ready to give central banks all of the credit for the recovery that has occurred so far.

“It’s still early to tell if it is the fiscal or monetary side,” he says. “The quick action and guidance with action was comforting to the market and is reflected in security prices today. On the fiscal and monetary side, you

NORTH AMERICAN INTEREST RATE MOVES Bank of Canada

US Federal Reserve 2.5%

2.0%

2.5%

2.0%

1.75%

1.5%

2.25% 2.0%

2.0%

1.5%

1.5%

1.25%

1.0%

2.25%

1.25%

1.75%

1.75%

1.5%

1.0%

1.0%

1.25%

0.75%

0.5%

0.5% 0.25%

0.0%

9/6/17

1/17/18

7/11/18

10/24/18

3/4/20

3/13/20

3/27/20

0.0%

0.25% 12/13/17

3/21/18

6/13/18

9/26/18 12/19/18

7/31/19

9/18/19 10/30/19

3/3/20

3/15/20

Source: GlobalRates.com

must give credit that we have seen some recovery in the summer period. I think that’s why you saw markets price in a recovery as things started to normalize, but whether it is fiscal or monetary, it’s hard to say.”

While the interest rate moves have been helpful in the short term, Burkett has his eyes on what the impact could be over the medium and long term.

“We are trying to understand the medium implications of COVID-19, and perhaps they become more inflationary when it comes to how quickly people turn back into consumers,” he says. “In the Fed’s last statement, they changed their definition of inflation targeting from 2% to average 2%, and I wonder if they worry about the same thing. Inflation data increases as people return to work. Using an average rate, as to not raise interest rates too quickly, could be done if we see the inflationary pressures rise.”

Another issue that might have an impact on interest rates is the recent US election result, something Burkett believes could add to inflationary pressures.

“With the US election behind us, we worry that low interest rates aimed at full economic employment have driven financial asset prices to levels that ultimately become unsustainable,” he says. “Allowing inflation to run above

“I think you have to give monetary policymakers credit – you have seen them catch the market by surprise in the past. This time, the market thought they would be aggressive, and they were” Kevin Burkett, Burkett Asset Management target may be the most convenient solution to that problem. We wonder if others are underestimating how quickly that could occur.

While COVID relief is an immediate concern for the president-elect, we’ll learn very quickly if any Republican senators are willing to reach across the aisle on a new package worth more than $1 trillion, or if we’re in for at least two more years of Mitch McConnell stifling Democratic priorities.”

With rates where they are, Burkett also has concerns about housing prices. Low overnight rates mean low mortgage rates, which opens up the possibility of individuals borrowing more than they can afford and ultimately hurting the housing market.

“Overnight is the immediate rate that drives the curve, but I think the curve has

flattened dramatically,” he says. “If we saw hotter inflation, one should expect an upward move on the far end of the curve, and it would implicate real estate and long-dated bonds.”

For now, Burkett believes rates will remain low for some time, and he’s continuing to keep an eye on what happens with inflation over the long term. As Canada deals with a second wave of the virus, it also has Burkett asking another question.

“If you have an overnight rate at 0.25%, where do you go through a second phase of COVID?” he says. “Are central banks prepared to take rates negative? I think that’s where it becomes a monetary versus fiscal policy, and the next stimulus comes on the fiscal side because I think there is an aversion to taking rates negative.”

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SPECIAL REPORT

YEAR IN REVIEW

ESG makes strides during COVID-19 ESG mandates continued to gain momentum in 2020 as awareness of social and governance factors increased WHILE THE COVID-19 pandemic hurt some areas of the investment landscape, environmental, social and governance (ESG) investing took another big another step toward greater adoption in Canada in 2020.

“The space continued to gain traction,” says Jason Landau, EVP and portfolio manager at Waratah Capital. “We are seeing more investment managers get involved, and more importantly, corporates are placing a greater emphasis on ESG than in the past. The wave is coming, so you’d better be ready for it.

There has been really good adoption across the spectrum.”

Waratah is an expert in the ESG space and has taken a unique approach with its Waratah Alternative ESG Fund, a long/short fund that is not exclusionary but instead shorts the companies with poor ESG practices.

“We think it is incredibly unique and the right way to do it from a risk management standpoint,” Landau says. “Shorting bad actors on the ESG side is alpha generative – think of an energy company with no ambitions to change. Their future liabilities may very well be brought forward, so we can get active on the short side of the portfolio as the world’s energy demand transitions. Additionally, we can short companies impacting their cost of capital and lessen their ability to be repeat offenders, driving down their ability to raise new money.”

Waratah also capitalizes on emerging themes on the long side of the portfolio and is willing and able to provide capital to businesses transitioning to more sustain-

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able practices. This approach helps give the company a complete view of the space. This year has been positive for Waratah’s ESG strategy, which Landau feels is reflected more broadly in the space.

“There are certain aspects of ESG that have been amplified because of COVID,” he says. “A lot is on the social side, things like how companies treated their employees – raising salaries, handling sick days and paid leave, and compensating for childcare. I don’t think the environmental side changed all that much – it continues to be at the forefront and most topical, but social and governance have gone through some unique changes this year.

A lot of companies did away with buyback programs; dividends were cut or suspended,

well-governed companies resulting in strong returns. He also thinks the environmental factor continued to make strides in producing returns and that the social factor, which has traditionally been more challenging in terms of returns, will get there.

“There is a high correlation to boards and management teams that make the right decisions for ESG and fundamentals,” he says.

“Governance is not new; it has been topical for decades, and making the right capital allocation decisions within a governance framework creates shareholder value. Environmental, I think people will come around to realize there is a tangible benefit. Think of carbon taxes – it is a tangible cost that impacts businesses.

If you have a company that burns less natural

“The [ESG] wave is coming, so you’d better be ready for it. There has been, and continues to be, really good adoption across the spectrum” Jason Landau, Waratah Capital and how they get reinstated will be interesting from the governance perspective.”

Yet it’s the impact on the social side that looks to be the lasting trend from 2020.

Landau says the pandemic has really showed how certain companies behave, and he believes companies that are making the right decisions are the ones reaping the benefits.

“When companies do the right things for employees, they usually have strong fundamentals as well,” he says. “Those high-quality companies are usually high-quality on the ESG side. Businesses that make the right decisions on ESG tend to make the right decisions corporately, financially and fundamentally.

Socially, incremental pay, treating of sick leave/benefits packages, etc., and how corporates will deal with those issues in the future, all came out of the COVID pandemic.”

When it comes to returns, Landau says 2020 has reinforced Waratah’s views about

gas in their manufacturing process and figures out how to do so through technology advances, they will have a better cost structure and higher margins, earnings and ultimately share prices.”

As for his outlook for the future of ESG, Landau points to a couple of trends; the first is toward the sort of non-exclusionary approach Waratah uses. Landau says funds that do this have a greater ability to impact change.

“For example, I believe in investing in a utility company that historically had coalfired generation plants but is raising money to build a renewable energy project,” he says.

“That company may be on an exclusion list for many other ESG funds, but the best thing to do would be to invest in it, effectively making the bad better. That is more impactful than helping the good remain good. Our approach is to support companies that make the greatest positive change by providing capital

THE ESG OUTLOOK ESG investments appear primed for substantial growth over the next five years, according to a mid-October report from PwC, which looked at ESG-focused funds in Europe.

57% Projected proportion of European mutual fund assets focused on ESG by 2025

15.1% Proportion of European mutual fund assets focused on ESG in 2019

$8.9 trillion Projected AUM for European ESG assets by 2025

26.8% Projected compound annual growth rate for European ESG equity funds by 2025

30.4% Projected growth of European ESG bond rates by 2025 Source: The Growth Opportunity of the Century, PwC, October 2020

to the business, accelerating the transition.”

Overall, Landau believes ESG is here to stay and will only continue to grow in popularity in the coming years.

“It is the right way to think about investing – and your business if you are a corporation,” he says. “Happy employees deliver better performance, lowering costs and emissions drives higher margins, and the right governance decisions prove to be successful. I think we will see a day where a change in ESG ratings will be just as important as a fundamental equity rating change, but it will take time. In the meantime, there is an alpha advantage for those investment managers integrating ESG into fundamental investment analysis.”

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YEAR IN REVIEW

Alternatives pass the 2020 test Advocates of alternative investments say this year addressed many concerns about alts head-on, offering key lessons for advisors moving forward

ADVOCATES OF alternative investing point to a history that stretches to ancient times, but the contemporary universe of accessible, democratized alternative investments is largely a product of the past decade. During that years-long bull market run, experts in the space promoted alts as a diversifying group of uncorrelated asset classes, while critics called them an overpriced, illiquid and opaque set of

at the Alternative Investment Management Association (AIMA), says alternatives have been both a protector and a growth engine for investors this year.

“We learned three big lessons about alts in 2020,” she says. “First, they’ve passed the litmus test. The performance we’ve seen through the March and April volatility and since then has been a testimony to alternative

“This year has been a stark reminder that alternatives are going to be part of the recovery. Alternative investments fund the new economy and parts of the real economy that need capital right now” Claire Van Wyk-Allan, Alternative Investment Management Association products that might not deliver the promised ballast when a real test hit the market.

In 2020, that test came. In the wake of nearly 40% drops in major indexes and chaos in wider economies, alternative investments largely did what they promised they would, offering uncorrelated returns and downside protection for investors. Claire Van Wyk-Allan, director and head of Canada

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products and their active managers, who are reducing risk and managing volatility. Second, investors increasingly see alternatives as an essential part of their portfolios. Since Q1, investors have been positive about alts and are generally adding exposure across the board.

“Finally, I think that this year has been a stark reminder that alternatives are going to be part of the recovery. We’re still in this

pandemic, and alternative investments fund the new economy and parts of the real economy that need capital right now. They also assist with short selling and indicating or flagging the end of an old business or an old economy.”

As an indication of alts’ overall performance, Van Wyk-Allan cites the Scotiabank Alternative Mutual Fund Index, which has outperformed the S&P/TSX 60 by more than 6% this year. She also points to one dealer’s alt-exposed portfolio, which saw an average 25% reduction of volatility and a 40% increase in risk-adjusted returns this year, compared to portfolios with no risk exposure. The numbers point to alternatives as a key tool in reducing volatility and providing downside protection – and therefore wealth preservation.

“A new model for portfolio construction will emerge,” says Belle Kaura, chair of AIMA Canada and CCO at Third Eye Capital. “[We see] a shift from the traditional 60/40 model, with alternatives making up approximately 10% of portfolios. Risk tolerance, liquidity

HOW ALTERNATIVES PERFORMED AT THE HEIGHT OF THE COVID-19 CRISIS CANADIAN HEDGE FUND INDEXES VERSUS BROADER MARKET INDEXES MARCH 2020 Scotia Canadian Hedge Scotia Canadian Hedge Fund Index Asset Fund Index Equal Weighted Weighted

S&P TSX Composite Index

S&P 500 Index (USD)

0%

-5%

-10%

-6.82%

-6.92%

MoM return

YTD return

-9.99% MoM return

-11.59%

-12.51%

YTD return

MoM return

-15%

-17.74%

-20%

MoM return

-20.0% -21.59% YTD return

YTD return

-25% Sources: AIMA Canada, Scotiabank

constraints and time horizon will dictate how much of a portfolio is allocated to alternatives.”

This has also been a year of continued innovation in alternative products as new regulations opened the door to liquid alts, and mutual fund and ETF providers sought to provide much more accessible alternative products to investors. Van Wyk-Allan says AIMA is still working with regulators to ensure alternatives are made even more accessible in safe, responsible investment vehicles. She says one of the key benefits for investors in this process has been access to short-selling strategies, which allow them to benefit like never before from increased volatility and avoid potential portfolio disaster from secular shocks.

However, the rise of alternatives has not come without detractors. Critics have pointed out that the asset class is expensive, especially in a low-fee era of investing, and that many of the best-performing strategies in alts are still inaccessible to retail investors. Other critics

cite unforeseen risks in alternative sectors or decry a lack of liquidity in the investments.

Van Wyk-Allan says 2020 has given alternatives the opportunity to address some of those criticisms head-on. The cost of management, she says, has proved to be a very good value in light of the downside protection offered by alts this year. Meanwhile, innovation on the alternative mutual fund and ETF front has improved accessibility, and AIMA is pushing to make these products more accessible to the MFDA channel. Finally, she believes downside protection in the spring and alpha through the rest of the year should quiet the risk critics.

As for the lack of liquidity – a criticism often levied at alternatives – Van Wyk-Allan says liquid alts have helped address that, but she disagrees with the premise that a whole portfolio has to be liquid. In March and April, investors saw traditionally liquid asset classes become illiquid due to the COVID-19 crisis, and Van Wyk-Allan argues that having

some illiquid assets in a portfolio can have a long-term benefit.

For AIMA, 2020 has been a year of outreach and education. The organization has added a suite of CE credit presentations, as well as an investor education video series designed to help advisors and investors easily navigate the complexities of the alternative space. This tool will allow advisors to continue the conversation about alternatives with their clients into 2021 and through the volatile times that lie ahead, Van Wyk-Allan says.

“March should be the test for clients,” she says. “Advisors should talk about how their portfolio performed – were they comfortable or stressed? If they were stressed in March, maybe they should be considering more portfolio insurance for the volatility that will lie ahead. Advisors should be speaking to investors, gauging that level of comfort and risk, and thinking about the right percentage of alts to include on an evergreen basis to achieve downside protection.”

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YEAR IN REVIEW

ETF industry keeps growing — slowly The pandemic caused the ETF industry’s growth to slow, but it continues to post positive numbers year-over-year

AT THE END of 2019, the Canadian ETF industry had $204.8 billion in assets, 746 total funds and 36 providers. By the end of September 2020, assets had grown to $234.7 billion, total funds were at 833, and two more providers entered the space. The pace of growth isn’t quite as impressive as in previous years, but the fact remains that the ETF industry did continue to grow in 2020, despite the pandemic.

“As much as we have had slowdowns, we have also seen positive flows,” says Pat

is still going into equity, even though in the first three or four months of the pandemic, people were rushing to fixed income for safety and security.”

Even with the drop in March, Dunwoody notes that ETFs were not hit harder than any other product or element of the market. Just as in the broader market, some sectors were hammered harder than others, while some niche products saw stronger performance.

“There were some positive flows into some of the unique ETFs because they were such

“As much as we have had slowdowns, we have also seen positive flows. We still have year-over-year growth at 25%” Pat Dunwoody, Canadian ETF Association Dunwoody, executive director of the Canadian ETF Association. “We still have year-over-year growth at 25%, so even though things slowed down, I think it was a slight pause and we will continue to see strong flows.”

For Dunwoody, one of the surprising elements of the growth in 2020 has been where it came from. In 2019, fixed income led ETF flows, but that has changed in 2020.

“I thought that much of the flows were going into fixed income, but when I looked at the numbers, year-to-date, it is almost $19 billion into equity,” she says. “The money

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niche markets,” she says. “Things like cybersecurity, e-gaming, AI, robotics and medical did well during COVID because of what they invest in. The flows still aren’t huge because they are niches and play only a specific part in a portfolio, but by performance numbers, they have done well.”

As for what led to ETFs regaining momentum in flows after some initial turbulence, Dunwoody believes it comes back to one of the benefits the industry has been touting for years: cost.

“I think during the pandemic, people were

looking at their portfolios or advisors were taking a harder look at their clients’ portfolios,” she says. “The option of fee-based accounts is becoming more palatable. In the conversations I have had, people are paying more attention to the amount of money they want and need for retirement. Therefore, the security of their portfolio is more important, and the impacts of fees and other aspects are taking centre stage.”

ETF product launches slowed down in 2020 as well, but new ETFs still hit the market this year. Dunwoody says much of that could be attributed to the fact that some product launches were already in the pipeline before the pandemic hit, but she thinks there will continue to be product development moving forward – just not as much.

“There is always product development going on, but I don’t see the number of providers jumping as much as it has over the last three years,” she says. “The providers want to make sure they have what advisors want to build portfolios, so they will launch what needs to be launched. It is expensive to launch a product, so you want to do the

research to make sure it will be successful.

That might be why it is slowing down.

Everyone is looking for niche or unique products that fits the bill for certain clients.”

Heading into 2021, Dunwoody has her eye on a few things that could impact the industry on a positive note. “The MFDA firms that were going to launch earlier this year, COVID had a negative impact on,” she says. “The firms I have been talking to are trying to launch with some advisors by the end of the year, so that will be thousands of advisors we can use to sell the product, which will have a positive impact. Certainly, the longer COVID lasts, the more the story about fees, costs and the impacts on retirement will resonate with investors.

“In addition, there are the potential impacts of the regulatory changes. We had three papers that came out over the summer, and now the regulators and government are digesting them. I think it will be positive for investors because everything is about burden reduction, transparency and making things easier to understand. Regardless of product, if it is better for the investor, we will cheer it on.”

THE ETF INDUSTRY THEN AND NOW December 2019

September 2020

$204.8 billion

$234.7 billion

AUM

746

Total funds

36

Total providers

11.0%

Percentage of all investment funds

$15.3 billion

YTD net creations, fixed Income

$12.4 billion

YTD net creations, equity

AUM

833

Total funds

38

Total providers

12.4%

Percentage of all investment funds

$9.4 billion

YTD net creations, fixed Income

$19.2 billion

YTD net creations, equity Source: Canadian ETF Association

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YEAR IN REVIEW

Energy opportunities shift Despite a year of tumult for fossil fuels, one portfolio manager remains constructive on the oil and gas sector, predicting a supply shock and resilient demand

EVEN AFTER a gut-wrenching year for oil and gas in which demand temporarily cratered, global oil prices slipped into the negative and investor preferences shifted away from fossil fuels, Rafi Tahmazian, director and senior portfolio manager at Canoe Financial, is still constructive on the oil and gas sector.

Tahmazian says that underneath the headlines, the sector has become a “quiet little killer.” He’s already made a short-term play in natural gas, which has seen its price shoot up as oil prices declined and exploration ceased this year. He says oil demand over the whole year has been remarkably resilient, even as huge sectors of the global economy have shut down, meaning the commodity isn’t going anywhere. He also sees a supply

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shock ahead, which will catapult oil prices and make a fortune for investors who’ve kept their capital in North American producers.

“People might point to the COVID shutdown and oil price correction as a lesson, but that’s not a lesson, that’s a shock,” Tahmazian says. “What we learned is that demand bounced back with resilience. Even when we stopped driving and flying, the world was still consuming 75 million barrels a day. We also saw a rapid collapse in US production as a truly high-cost operation, and we’re not likely to see that production come back soon.

We also saw that a focus on oil was hindering natural gas – the collapse in oil production has strengthened the price of gas and left Canada in a good position as a result.”

Tahmazian says it’s flawed thinking to look at the oil price collapse in spring as an indication of the sector’s long-term health.

He says the bounceback in demand, the ongoing necessity of fossil fuels in the developing world and government support for struggling high-consuming industries like airlines have far more impact on the sector’s outlook than a one-off shock. And, he says, while he’s constructive on renewable energy storage innovations, as of now, renewables can’t replace oil and gas.

The spring shock did, however, “cut US production off at the knees,” Tahmazian says, setting up a world where OPEC is back in control of oil prices. At the same time, he sees a looming supply shock as capital leaves the

OIL’S PERFORMANCE IN 2020 BRENT CRUDE PRICE PER BARREL (USD) $80

$70

$60

$50

$40

$30

$20

Jan 2

Jan 15

Feb 3

Feb 14

Mar 2 Mar 16

Apr 1

Apr 14 Apr 22 May 1

May 15

Jun 1

Jun 15

Jul 1

Jul 16

Aug 1

Aug 14

Sep 1

Sep 14

Oct 1

Oct 15

Nov 2

Source: Oilprice.com

oil and gas industries. Maintaining production at 100 million barrels a day is extremely expensive, especially when high-cost shale production was key to that supply. Now, with that production in crisis as shale oil producers either declare bankruptcy or enter mergers, and with demand growing as the effects of the pandemic eventually subside, he expects demand to far outpace supply.

In the short term, Tahmazian’s focus remains on natural gas. For the first time in years, he predicts that the winter will materially impact the price of natural gas. In addition, he points out that five companies now represent more than 65% of Canadian gas production, creating an investable oligopoly.

At the same time, he sees gas as a mid-cycle trade that investors and advisors should be aware of; he mentions Tourmaline and Canadian Natural as solid investments for a natural gas play.

This year has also seen the rise of ESG investing as a mainstream priority

“Demand bounced back with resilience.

Even when we stopped driving and flying, the world was still consuming 75 million barrels a day” Rafi Tahmazian, Canoe Financial for Canadian investors; public perception often assumes that an ESG mandate must exclude sectors like oil and gas. However, Tahmazian says oil and gas companies can fit in an ESG portfolio, noting that ESG is becoming defined as work toward actionable goals on environmental, social and governance fronts. Oil companies, he says, are more than capable of improving gender diversity on their boards, taking more steps towards social responsibility and even improving their environmental records.

In the year ahead, Tahmazian says advisors

should consider the potential booms in the oil sector’s future, noting that the potential for profit alone, on the back of huge capital shifts away from oil and a looming supply shock, demands serious consideration.

He also suggests that any conversation around ethics should take into account the human rights abuses in many oil-producing economies around the world. Advisors need to be asking their clients if, in a world where oil consumption is still set to accelerate, they want their capital tied to a more ethical set of producers.

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SPECIAL REPORT

YEAR IN REVIEW

Gold hits an all-time high The uncertainty of the pandemic caused investors to flock to the traditional safe haven for security – but can gold climb even higher in 2021?

AS COVID-19 wreaked havoc on the market, investors turned to an old security blanket: gold. Despite a few dips, the price of gold climbed steadily during 2020 and reached a new all-time high of US$2,070.50 per ounce in early August. While the price has retreated a bit since then, gold’s performance this year has been impressive, and David MacNicol, president and portfolio manager at MacNicol & Associates Asset Management, is bullish on its outlook for 2021.

“If we were talking back in January, I probably wouldn’t have talked at all about the virus – we were more concerned about overvaluations in both the stock and bond markets,” MacNicol says. “In January, we prepared for overvalued markets by owning

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precious metals, alternative assets and allocations to cash. Then the virus hit North America in March, everything got shut down, and that’s when gold and other precious metals got a stronger bid.”

MacNicol describes his firm as “big believers” in precious metals. He’s been a strong proponent of gold for years and notes that investors tend to turn to hard assets during turbulent times.

“Gold typically only does well in an inflationary environment, and you can argue there has been little to no inflation for decades,” he says. “We would argue gold has worked through this period because interest rates are low, even negative in parts of the world. Gold used to be chastised as some-

thing that didn’t produce income, but with low/negative rates, suddenly it makes more sense to hold it again.”

MacNicol adds that there are instances where gold can provide income, such as by holding mining companies that pay a dividend. That was the case in 2020, when mining companies’ cost of capital was well below what they could sell the commodity for – a disparity that expands when the price of gold rises.

“Gold is backed up by 4,000 years of mankind believing in having a hard asset for an exchange of value,” MacNicol says. “Yearto-date, the spot price is up 26%, and futures are up around the same. The Gold BUGS Index [HUI], an index of companies involved

GOLD’S PERFORMANCE IN 2020 GOLD PRICE PER OUNCE (USD) $2,500

$2,000

$1,500

$1,000 Jan 2

Jan 15

Feb 3

Feb 17

Mar 2

Mar 20

Apr 1

Apr 15

May 1

May 15

Jun 1

Jun 15

Jul 1

Jul 23

Aug 4

Aug 17

Sep 1

Sep 14

Oct 1

Oct 15

Nov 2 Source: Goldprice.org

in gold mining, is up over 32%, and that’s because miners and public companies tend to be more highly levered to the price of gold.”

MacNicol says he wasn’t surprised by the sharp increase in gold prices this year. “I did an article earlier this year and said my target was $2,000, which many would have scoffed at in January,” he says. “We forecasted that and higher prices going forward. I think we are in the early stages of a bull market for precious metals – I’d rather it not be, and that the general economy was stronger and there wasn’t a pandemic. Then there wouldn’t be the same interest in gold, and we’d be happier investing in commercial companies. Until we get back to standards like that and governments find a way to manage their debt and deficit levels, we will be talking about gold.”

MacNicol says it’s still too early to tell how much of the rise in gold prices can be attributed to the pandemic versus other factors like the overvaluations witnessed at the beginning of the year. Yet he does believe that

“I think we are in the early stages of a bull market for precious metals” David MacNicol, MacNicol & Associates Asset Management people have approached the precious metal much as they have during previous crises.

“People always come back to gold being a store of value,” he says. “It is inflation-proof – we are seeing evidence of inflation on the horizon, and that will further fuel gold.”

One trend that’s new to this crisis, however, is a move toward cryptocurrencies.

While they might not be taking the cut out of the gold market that some crypto advocates would like, MacNicol sees both assets playing similar roles for investors.

“You have different users and types of investors for each asset class,” he says.

“Institutions can readily invest in gold, both the commodity and miners through publicly traded companies. Crypto is a little more challenging, but it is a different market. In

five to 10 years, I think it might become more homogenized, where cryptos will be more accepted [and] more exchangeable, but gold will still be there, and it will probably be easier to invest in the physical commodity.”

Heading into 2021, MacNicol is still bullish on gold and believes the highs reached in 2020 are only the beginning.

“While gold has taken a momentary setback here in October, I see $2,000 again on the horizon,” he says. “The timing I can never answer, but I think in the future, it will surpass $2,000 and the previous highs. After that, I think it’s on to the next level, which would be $2,500. That’s probably as high as I’ll say right now. How long this bull market goes on is anyone’s guess, but you are probably looking at a long run for gold.”

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SPECIAL REPORT

YEAR IN REVIEW

Consolidation reshapes wealth management The industry has seen a flurry of acquisitions in 2020. Could it be a sign of things to come?

ALTHOUGH IT was a bit overshadowed by the pandemic and its attendant market turmoil, one of the major stories in the wealth management industry in 2020 was the consolidation that has taken place. From fund providers expanding their services to advisory firms growing by acquiring teams and robo-advisors transitioning away from certain areas, 2020 had a bit of everything, begging the question of whether more consolidation is in store for the industry in 2021.

“This transaction is a major step forward in executing on our strategic priority of expanding CI’s wealth management platform,” CI Financial CEO Kurt MacAlpine said at the time. “For the year to date, we have onboarded $27 billion in new advisor assets, versus $1 billion in each of 2019, 2018 and 2017. Our growing scale in wealth management will allow us to realize important synergies while supporting continued investment in enhanced services for clients and advisors.”

“Our growing scale in wealth management will allow us to realize important synergies while supporting continued investment in enhanced services for clients and advisors” Kurt McAlpine, CI Financial Perhaps the biggest newsmaker in terms of acquisitions and growth was CI Financial, which made a slew of acquisitions throughout the year. In October, CI’s total assets surpassed $200 billion after it acquired a majority stake in Burlington, Ontario-based Aligned Capital Partners, which boasts more than 200 financial advisors with approximately $10 billion in AUM.

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In addition to Aligned, CI also added to its stable of US firms, making a total of 10 acquisitions in the US registered investment advisor space to date. On the fund side, CI completed its acquisition of WisdomTree Investments’ Canadian ETF business and extended its ownership of robo-advisor WealthBar, rebranding it to CI Direct Investing.

That wasn’t the only merger news in the

robo-advisor space in 2020: In September, Purpose Advisor Solutions completed its merger with Wealthsimple for Advisors, bringing the robo’s arm for advisors under the Purpose umbrella.

“When I started Purpose, I had a vision for how we can help support the advisor industry and how the industry would change,” Purpose founder and CEO Som Seif told WP. “I co-founded Wealthsimple with Michael Katchen in 2014, and one of the core ambitions was how we could bring it to the advisor community. That business has been unbelievable – we recruited some awesome people, but it struggled inside what Wealthsimple wanted to do.

“Separately, we launched Purpose Advisor Solutions, a platform for full-service advisors in mass-affluent, high-net-worth and ultrahigh-net-worth advisories. It made logical sense when we looked at the two businesses to bring them together. It is quite amazing – we are now the only true tech-driven plat-

A TIMELINE OF 2020’S MAJOR PARTNERSHIPS AND ACQUISITIONS

January 2020

Wellington-Altus Private Wealth acquires TriVest Wealth Counsel and partners with INFOR Financial

February 2020

CI Financial establishes subadvisory relationship with DoubleLine Capital

April 2020

BMO Financial acquires Clearpool Group Raymond James acquires Oak Trust Company

May 2020

Canaccord Genuity partners with Evestnet

form to enable full-service advice and enable advisors who want to go independent to do that. We see a future for that.”

Advisory firms also saw plenty of expansion and acquisitions in 2020, notably led

by Wellington-Altus Private Wealth. After expanding into the US with the launch of a registered investment advisor in 2019 and closing out the year with the acquisition of TriVest Wealth Counsel, Wellington-Altus continued its expansion in 2020, adding numerous advisors and teams and surpassing $10 billion in AUM. The firm also inked a partnership deal with INFOR Financial, giving its clients preferred access to all of INFOR’s newly issued securities offerings.

“Our arrangement with INFOR Financial now turns a previous gap in our model into a present strength,” Wellington-Altus founder and chairman Charlie Spiring said at the time. “Access to new issues from INFOR Financial expands the options we can provide to both our customers and advisors.”

Not to be outdone, Canaccord Genuity has also been adding to its stable of advisors.

Following acquisitions in the US and Australia in 2019, Canaccord forged a partnership with Envestnet in 2020 that will allow its advisors to provide holistic, bespoke, data-driven solutions to clients.

“Our partnership with Envestnet puts Canaccord Genuity at the forefront of wealth management in Canada, where high-tech and high-touch intersect,” Stuart Raftus, president of Canaccord Genuity Wealth Management in Canada, said at the time.

“The Envestnet platform represents a significant step forward in our ability to provide integrated, customized client solutions and moves us to the forefront of what is currently offered in the Canadian market.”

These are just some of the moves that made headlines in 2020, but they’re an indication that the major players in the industry – whether on the fund, advisory or technology side – have plans to continue to grow.

July 2020

Sun Life Financial acquires InfraRed Capital Partners Franklin Templeton acquires Legg Mason

August 2020

Mackenzie Investments acquires GLC Asset Management Group

September 2020 Purpose Advisor Solutions merges with Wealthsimple for Advisors

October 2020

CI Financial acquires Aligned Capital Partners

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SPECIAL REPORT

YEAR IN REVIEW

The real estate market picks up The impact of COVID-19 has created monumental shifts in nearly every corner of real estate investing ONE OF THE most interesting areas affected by the COVID-19 pandemic has been real estate. Rock-bottom mortgage rates and the shift toward working from home have led to a massive surge in demand in the residential market. The industrial space has likewise seen a spike in demand as e-commerce has accelerated, while the office and retail spaces have both been devastated by widespread shutdowns.

“There have been significant shifts,” says Dave Kirzinger, principal at Rise Properties

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Trust. “We are clearly seeing big demand on the homeownership side. Sales were way down early in the pandemic and, more recently, have picked up tremendously. I think that is being driven by low mortgage rates. With them, it is very affordable to own these days – that is one trend impacting the housing market.”

But the pandemic has also had a devastating impact on urban areas, Kirzinger says.

“Unfortunately, with people not going into the offices and with restaurants and busi-

nesses operating at half to three-quarter capacity, the downtown areas of major centres are being negatively impacted,” he says. “Businesses are closing; there isn’t the vibrancy in the streets; the homeless situation has gotten difficult – as a result, you are seeing more crime, and people are leaving the urban centres.”

The pandemic has also had an impact on student housing, Kirzinger says. With many universities operating at full or partial capacity online, fewer students are living on

THE REBOUND IN RESIDENTIAL SALES RESIDENTIAL PROPERTIES SOLD IN CANADA

700,000 650,000 600,000 550,000 500,000 450,000 400,000 350,000

Q3 2020

Q2 2020

Q4 2019

Q1 2020

Q3 2019

Q1 2019

Q2 2019

Q3 2018

Q4 2018

Q1 2018

Q2 2018

Q4 2017

Q2 2017

Q3 2017

Q1 2017

Q3 2016

Q4 2016

Q1 2016

Q2 2016

Q3 2015

Q4 2015

Q1 2015

300,000 Q2 2015

campus. The issue has been exacerbated by the fact that international students haven’t been able to enter the country.

However, rental real estate in suburban areas is generally looking good, he says.

“People can typically afford more space; they may have a home office, etc. That part of the rental market has remained strong. There is surprisingly strong demand by investors to buy apartment buildings – even though yields aren’t as good as they used to be, the cost of debt has gone down so much that they are still good investments.”

That’s why this is an area Kirzinger has his eye on even after the pandemic. From an investment standpoint, he believes the demand will always outweigh the supply, making it perennially desirable.

“It has become more difficult to get projects through the approval process and built,” he explains. “Then you also factor in that building codes have strengthened over time, so the cost of building has gone up.

You have two factors from a macro, longterm perspective having a negative impact on supply. I do think once we are through the pandemic, we will see the market settle out, and unfortunately, housing will continue to be an expensive commodity for people because of those supply constraints.”

While the residential side of the market has been strong, the same can’t be said about certain areas of commercial real estate, particularly for buildings in downtown cores.

“I think [office space] will recover, but I also believe almost all employers are taking a hard look at how and where their employees will work,” Kirzinger says. “I don’t think that every company will continue to have everyone work from home, but I believe most will allow people to work from home at least for part of their workweek. At a high level, it is a good thing – it reduces traffic, congestion and pollution. However, if you take all of the office space in an urban centre and only need 75% compared to what is there, it will have a negative impact on the value of those buildings. In certain places, we have seen office buildings converted to condominiums

Source: Canadian Real Estate Association, October 2020; seasonally adjusted data at annualized rates

“I am very biased towards housing, in particular multi-family housing. Whether you are going through a pandemic, economic surge or slowdown, people always need a roof over their head” Dave Kirzinger, Rise Properties Trust or rental housing. You could see some of that, but not a ton. I think there will be a softness in the office market.”

One area of commercial real estate that continues to see interest is the industrial space, albeit at the expense of traditional retail.

“E-commerce is here to stay,” Kirzinger says. “Many people don’t shop the way they used to, and there is a lot of retail space that is seeking a tenant. I think that is going to continue – it is a very difficult segment as opposed to industrial space, which is in strong demand because it is tied in with e-commerce and the need for warehouses, transportation and distribution centres. It has been interesting because some major e-commerce

companies are looking at these retail malls to repurpose to distribution centres.”

Amid so much transformation in real estate, Kirzinger comes back to housing, especially during these uncertain times.

“I am very biased towards housing, in particular multi-family housing,” he says.

“Whether you are going through a pandemic, economic surge or slowdown, people always need a roof over their head. Studies have shown that over time, housing delivers some of the best long-term returns with the lowest volatility. I think housing remains a very good choice for people in terms of investing, whether in their own home, a rental property themselves or investing a REIT.”

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SPECIAL REPORT

YEAR IN REVIEW

The tech sector leads the recovery As the economy started to rebuild after the initial shock of COVID-19, the usual suspects in the tech industry were the ones pulling it along

INVESTORS HAVE been obsessed with technology companies – particularly the oft-mentioned FAANG group of Facebook, Apple, Amazon, Netflix and Google – for years now. But the events of 2020 put those names in the spotlight like never before.

Investors began the year wary of high valuations for companies like Apple, Microsoft and Amazon, but once the pandemic hit, those companies’ foundations and innovation became the focal point of the work-fromhome lifestyle and economic recovery.

“For a number of years, some of the most dominant companies in the world have been technology companies,” says Grant White, a

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portfolio manager with Endeavour Wealth Management at IA Securities. “I think the pandemic has done nothing but accelerate some of the things that are becoming important. It has been interesting because of things like videoconferencing – I think that became the poster child of the pandemic through businesses like Zoom and Teams from Microsoft. That is only the beginning of the story – there is so much more coming, and these companies are well positioned for it.”

White says one of those up-and-coming areas is cloud computing, something the major tech players have already been building, which could allow them to continue the

momentum they generated in 2020.

“These companies were ahead of the game, and now they are well positioned to take advantage,” he says. “I think we will see other aspects that become important, too, with the work-from-home culture being adopted. Cybersecurity becomes important as companies that previously centred their people in an office, where security was easier, now must pivot. That will be a big investment for many companies. Valuations are high right now in the tech world, but there is a long runway ahead.”

One of the main drivers behind the surge of technology companies has been the change

in consumer trends, something White has also noticed in the wealth management industry.

“People who would normally meet faceto-face are seeing the upward trend in virtual meetings,” he says. “People are becoming more comfortable and demanding that, and it becomes a better service offering.”

Along those same lines, marketing is another area of interest for White. “Traditional methods have changed, and highly adaptable companies are taking advantage, but less adaptable companies are turtling to protect their market share,” he says. “For our industry, I feel it is getting into a time where technology is functional, but we have to convert it to a better experience for clients. There are other industries out there in the same boat.”

That notion falls in line with consumers’ digital spending habits, which have given rise to companies like Amazon while impacting traditional outlets like malls. Yet even White says he’s been a bit surprised at how seamlessly tech companies were able to extend their momentum.

“Some were so well positioned for a stayat-home event,” he says. “What is becoming interesting with companies like Amazon and Apple is how much further they and their valuations have gone. It shows the dominance they have, the ecosystem they have created for their customers and how important that is.

They are highly adaptable.”

That adaptability is something White points to as a justification for how expensive it is to own stock in these companies. Unlike with the tech bubble in the late ’90s and early 2000s, he says, these companies have built much more solid foundations and are more durable. However, he notes that the pandemic did create an opportunity – albeit a brief one – for advisors to get in at a discount.

“I think there were companies we really liked but weren’t comfortable with what we needed to pay to own them,” he says.

“Microsoft was a good example – some of the valuations were getting pretty frothy, but we were able to buy in during the drop. Microsoft and Apple – these are really good companies, and it speaks to the difference between now

THE TECH GIANTS’ HIGHS AND LOWS Lowest share price in 2020

Highest share price in 2020*

Amazon $1,676.61 (March 12) $3,531.45 (September 2) Apple $56.09 (March 23) $134.18 (September 1) Microsoft $137.35 (March 16) $228.91 (August 24) Google (Alphabet) $1,054.13 (March 23) $1,717.39 (September 2) Alibaba $176.34 (March 23) $317.14 (October 27) Source: Businessinsider.com; *As of October 29, 2020

“For a number of years, some of the most dominant companies in the world have been technology companies. I think the pandemic has done nothing but accelerate [that]” Grant White, Endeavour Wealth Management and the tech bubble. Where we made a lot of hay was overseas in Alibaba and Tencent. We pumped a lot of money into those companies – we felt it was like buying into Amazon, but at a better valuation.”

While technology will be remembered as the hot sector for 2020, White points out that its popularity isn’t likely to fade.

“There are still opportunities – you just need to be choosy in valuations,” he says.

“Investors need to look outside of North

American companies. Alibaba isn’t a small company, but because it is in China, some people are nervous about it. If you want good opportunities and good valuations, you need to go outside of North America.

“I think what will happen is people will start using technology to benefit more customer and client experiences. Companies that can bring that service to other businesses will be great companies – that is the next wave of opportunity.”

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COMMEMOR ATIVE GUIDE

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ORGANIZER

A NEW WAY TO CELEBRATE This year, the Wealth Professional Awards shifted to a digital format to continue the tradition during the pandemic

THE 2020 Wealth Professional Awards celebrated the best in the wealth management industry on September 30 during a virtual extravaganza of panel discussions and acceptance speeches. WP handed out 23 awards, saluting some of the industry’s brightest stars during what has been turbulent a year, featuring an ongoing pandemic and a sharp market downturn in March. This year, in addition to the primary (gold) winner in each category, the WP Awards also recognized silver winners.

It was quite a day for Darcie Crowe of Canaccord Genuity Wealth Management, who picked up two awards: the ICM Asset Management Award for Advisor of the Year – Alternative Investments and the Mackenzie Investments Award for Female Trailblazer of the Year. “Alternative investments are an area of the business I’m incredibly passionate about, so I’m very honoured to receive this award,” Crowe said when accepting the former. “Alternative investments are a hugely valuable tool for investors to make use of, and there’s so much information to be shared with the investing public. I look forward to continuing that conversation.”

One of the most anticipated awards each year is the Mandeville Private Client Inc. Award for Canadian Advisor of the Year, which went to Marvin Schmidt of The Schmidt Investment Group at CIBC Wood Gundy, which was also recognized with the AGF Award for Engagement, Loyalty and Client Care. “To be a finalist among so many great fellow industry colleagues is a real honour, as I know they too are very deserving,” Schmidt said when accepting the award for Advisor of the Year. “I want to thank all my colleagues for nominating me for this award and to everyone at The Schmidt Investment Group. To be recognized as an industry leader in the category of Advisor of the Year is humbling. Thank you to everyone on the Wealth Professional Awards team for hosting this event, but more importantly, for pushing us as an industry to be and do better every day.”

Another keenly awaited prize is the BlackRock Award for Portfolio/Discretionary Manager of the Year. A delighted Kevin Haakensen of PWM Private Wealth Counsel at HollisWealth, a division of iA Securities, was thrilled to be named the winner. “It’s a real honour to win the Portfolio/Discretionary Manager of the Year Award,” he said. “Congratulations to all the other finalists, who are more than worthy of also winning. I want to thank BlackRock for sponsoring this award and Wealth Professional magazine and the [judging] committee for selecting [me]. But most of all, I want to thank my awesome colleagues that I work with every day at PWM Private Wealth Counsel. This award is a testament to all their hard work.”

The Wealth Professional Awards are judged by third-party industry experts, and PwC served as the official ballot accountants. Wealth Professional would like to thank all of this year’s sponsors for their support and to congratulate all of the award winners and finalists. Read on to find out more about them.

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WEALTH PROFESSIONAL AWARDS 2020 THE MANDEVILLE PRIVATE CLIENT INC. AWARD FOR CANADIAN ADVISOR OF THE YEAR ABOUT THE AWARD This award is one of the highest accolades offered to an individual in the wealth management and financial planning industry. This award recognizes the most outstanding advisor in Canada from an advisory firm or team, regardless of business size and model.

GOLD WINNER Marvin J. Schmidt The Schmidt Investment Group (CIBC Wood Gundy)

SILVER WINNERS Kyle Richie, Richardson GMP Tina Tehranchian, Assante Capital Management

FINALISTS Alexandra Horwood, Richardson GMP Elie Nour, Nour Private Wealth Faisal Karmali, Popowich Karmali Advisory Group (CIBC Wood Gundy) Jamie Suprun, Suprun Wealth Management (HollisWealth, a division of iA Securities) Jason Pereira, Woodgate Financial Kelly Hemmett, Hemmett Anseeuw & Associates (Harbourfront Wealth Management) Larry Short, Short Financial (HollisWealth, a division of iA Securities) Nader Hamid, Total Wealth Management Group (HollisWealth, a division of iA Securities) Rob McClelland, The McClelland Financial Group (Assante Capital Management) Todd Degelman, Wellington-Altus Private Wealth

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MARVIN J. SCHMIDT AT A GLANCE Practice: The Schmidt Investment Group Firm: CIBC Wood Gundy Location: Edmonton, AB Age: 47 Years in the Industry: 28 Fast fact: Schmidt developed the Now I Can Live Challenge (NICLC), an innovative wealth management assessment and education tool that measures the effectiveness of potential clients’ current wealth management position.

The NICLC is available to the entire industry and represents an extraordinary investment into assessing clients’ and the public’s financial health.

MARVIN SCHMIDT’S AWARD-WINNING APPROACH ONE OF THE most prestigious honours at the Wealth Professional Awards is the Mandeville Private Client Inc. Award for Canadian Advisor of the Year. This year, the honour went to Marvin J. Schmidt of The Schmidt Investment Group, which he says reaffirmed his approach.

“I am incredibly honoured, as I know this is a very big deal in our industry,” he says. “I have never looked for or expected recognition because I have always done work I feel my clients expect. To be recognized affirms that industry leaders also believe that we are doing the right thing for our clients.”

Schmidt developed an interest in the stock market and investing at an early age.

He began in the financial industry in 1992, organizing economic workshops. In 1993, he moved to Toronto to work on Midland Walwyn’s FAST (Financial Advisor Support Team) Desk, helping advisors with portfolio construction, research and analytics. That inspired him to create his own business plan.

“It was a full wealth management approach, and I looked to create a family office structure, which was unheard of back then in Canada,” Schmidt says. “I presented it to senior executives at Midland, and they hired me. That plan became a part of the training manual for new recruits.”

Midland was purchased by Merrill Lynch and later CIBC, but Schmidt and his approach have remained. “I have been consistent through it all,” he says. “I have been a big believer of managed money and alternatives. We have a significant alternatives practice and a separately managed account practice. We have been in that space for over 20 years.”

Schmidt believes that investment management is becoming much more commoditized, which is why he offers his clients all-encompassing service that includes investment management, tax planning,

insurance and estate planning, and a full family office suite of services. His approach has helped him achieve compounded annual double-digit growth over the past 25 years and a 99% client retention rate that now spans multiple generations.

“Our mission is to simplify our clients’ wealth,” he says. “A lot of people talk about it, but it’s another thing to do it. Making sure it is done properly has been a competitive advantage for us. Being surrounded by extraordinary professionals each and every day at The Schmidt Investment Group who are equally as passionate as I am truly reflects that this award is more about my overall team and practice than it is about only me.”

Schmidt also has deep expertise in philanthropic and legacy planning. He matches his personal desire to create a lasting impact with his clients’ strong desire to give back and instill those values in their children.

He notes that many clients like to share their impact with family and friends, which is one reason why his practice has created a national public foundation called Expand Hope.

“For every new client we bring on, we donate 100% of all our investment management revenue for the first 18 months in honour of each new client and whoever referred them to us, and then we will build a school in their honour. As we grow, by direct correlation, so does social impact. This has been a compelling story with our clients. They are happy for us to do well because they know when we do well together, we transform lives.”

The foundation officially launched in 2018 and is already on its 10th school in Guatemala; Schmidt’s goal is to reach 500.

He says he’s more excited than ever to create an exceptional, industry-leading wealth management experience for high-net-worth families in Canada while simultaneously furthering progress for humanity through his practice’s social impact platform.

AWARD SPONSOR At Mandeville, we are committed to the preservation of wealth for our clients. We understand that significant wealth is traditionally lost by future generations. Our advisors are devoted to working with families to ensure successful intergenerational wealth preservation via due diligence and principled investing.

The wealthy invest differently. At Mandeville, we understand this and have made it our mission to provide access to investment opportunities within both the public and private realm that are typically reserved for the affluent and institutional investor.

For more information, visit mandevilleinc.com

“[The WP Awards are] an opportunity for the advisor community to come together and share ideas, best practices and, most importantly, celebrate the outstanding achievements of the advisor community” DIANA ODDI Mandeville Private Client Inc.

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WEALTH PROFESSIONAL AWARDS 2020 ADVISOR OF THE YEAR – RESPONSIBLE INVESTMENTS

THE ICM ASSET MANAGEMENT AWARD FOR ADVISOR OF THE YEAR – ALTERNATIVE INVESTMENTS

ABOUT THE AWARD

ABOUT THE AWARD

This award recognizes an advisor who has displayed excellence over the past 12 months in socially responsible investments.

This award recognizes the advisor who has displayed excellence over the past 12 months in alternative solutions, namely investments in asset classes other than stocks, bonds and cash, which feature low correlations to traditional asset classes.

Alternative solutions may include equity or fixed income mutual funds using alternative strategies, real estate, infrastructure, commodities, hedge funds, private equity and structured products.

GOLD WINNER Ryan Colwell C&C Planning Group (Aligned Capital Partners)

GOLD WINNER Darcie Crowe Canaccord Genuity Wealth Management SILVER WINNER Sonia LeRoy, LeRoy Wealth Management Group (IPC Securities)

FINALISTS Carrie Lavack, Scotia Wealth Management/ ScotiaMcLeod Francine Dick, Carte Wealth Management

SILVER WINNERS

Hussain Ahmad, Zagari, Simpson & Associates (Mandeville Private Client)

Carolyn Seaforth, Pinnacle Wealth Brokers

Matteo Tino, RBC PH&N Investment Counsel Ryan Fraser, Quiet Legacy Planning Group

“We were able to get a pretty amazing panel assembled [from the finalists] of some individuals who would be considered thought and market leaders” MICHAEL BAKER ICM Asset Management

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Francis Sabourin, Richardson GMP

FINALISTS Arthur Salzer, Northland Wealth Management Bart Hunter, Scotia Wealth Management/ ScotiaMcLeod Dan Wynnyk, Wellington-Altus Private Wealth George Halkidis, Richardson GMP Michael Hayhoe, Mandeville Private Client Paul Tyers, Portfolio Stewards Rob Tetrault, Tetrault Wealth Advisory Group (Canaccord Genuity Wealth Management) Travis Forman, Harbourfront Wealth Management

AWARD SPONSOR ICM is a registered alternative investment fund manager and portfolio manager focused on owning, operating and investing in real assets. We offer retail, private client and institutional investors an array of private investment opportunities focused on real estate, private equity, private debt and infrastructure strategies. Our goals are simple: We strive to preserve wealth and generate attractive risk-adjusted returns while providing the highest level of client service. Our success hinges on our unwavering commitment to three principles that underpin our investment philosophy: value, discipline and results. Our adherence to these principles has allowed ICM to generate exceptional investment returns for our clients and a strong track record of achieving our goals.

Today, we manage more than $1 billion of assets across numerous investment vehicles and advisory relationships and have considerable experience in originating, structuring, and financing investment transactions and managing risk in alternative assets. Our team has grown substantially and is made up of investment and operating professionals with extensive experience, who have collectively acquired and/or managed more than $7 billion of assets globally.

For more information, visit icmassetmanagement.com

THE NOUR PRIVATE WEALTH AWARD FOR RISING STAR ADVISOR OF THE YEAR ABOUT THE AWARD This award recognizes an individual who has displayed excellence in their first three years as an advisor. To be eligible, nominees must have been accredited as an advisor on or after January 1, 2017.

GOLD WINNER Gloria Malek The Malek Group (TD Wealth Private Investment Advice)

SILVER WINNER

AWARD SPONSOR Nour Private Wealth (NPW) is an independent wealth management firm that specializes in meeting the needs of a growing number of high-net-worth private clients, as well as select corporate investors.

At NPW, we realize that all clients are different and their investment and financial planning needs evolve over time. Our advisors are equipped to provide the expertise needed across all facets of the wealth management spectrum, ranging from portfolio construction, retirement, and tax and estate planning right up to insurance and private capital.

FINALISTS

NPW advisors manage portfolios using a diverse mix of asset classes, delivering strong risk-adjusted returns while providing the highest level of personalized client service.

Brandt Butt, Endeavour Wealth Management (iA Securities)

For more information, visit npw.ca

Kate Murdoch, Ridd & Associates Wealth Advisory Group (BMO Nesbitt Burns)

Cal Kang, Edward Jones Nicole Brookes, Edward Jones

“It is my first time being involved in something like this, and I have been so impressed by how it has played out. It has been a fantastic event – Key Media has done a tremendous job”

“Our mission is to simplify our clients’ wealth. A lot of people talk about it, but it’s another thing to do it. Making sure it is done properly has been a competitive advantage for us” MARVIN J. SCHMIDT, THE SCHMIDT INVESTMENT GROUP Gold winner, Canadian Advisor of the Year

PATRICK MILLS Nour Private Wealth

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WEALTH PROFESSIONAL AWARDS 2020 THE ADVOCIS AWARD FOR YOUNG ACHIEVER OF THE YEAR ABOUT THE AWARD This award recognizes a young advisor who has displayed excellence in three years or fewer in the industry. To be eligible, nominees must have been accredited as an advisor on or before January 1, 2017 and must be under 40 years old.

GOLD WINNER Kalee Boisvert Kalee Boisvert Financial Services (Raymond James)

SILVER WINNER Adam Pukalo, PI Financial Corp.

AWARD SPONSOR Advocis, the Financial Advisors Association of Canada, is the largest voluntary professional membership association of financial advisors in Canada, representing more than 13,000 advisors in 40 chapters across the country. Advocis provides a platform of knowledge, advocacy, community and protection, advancing the value and professionalism of financial advisors and planners in the best interest of the consumer. We offer professional designations, continuing education, industry-leading publications, and membership in a chapter network with mentorship programs, study groups, and practice development resources.

THE IFSE INSTITUTE AWARD FOR FINANCIAL LITERACY CHAMPION ABOUT THE AWARD This award recognizes an exceptional financial professional who has demonstrated leadership and commitment to bettering the lives of individuals and families by promoting financial literacy and actively working to educate members of their community. Nominees should be involved in a financial literacy initiative that engages their audience and inspires them to take positive action toward their own financial well-being.

GOLD WINNER Alphil Guilaran Financial Literacy Counsel

For more information, visit myadvocis.ca

FINALISTS Adam Schacter, Mandeville Private Client

SILVER WINNER

Darius Muica, Nour Private Wealth

Tracey Bissett, Bissett Financial Fitness

Grant Dawes, Northland Wealth Management

FINALISTS

John Iaconetti, The McClelland Financial Group (Assante Capital Management) Kaif Lalani, National Bank Financial Ladan Shokrgozar, Harbourfront Wealth Management Steven Furtado, Zagari, Simpson & Associates (Mandeville Private Client)

“Our industry would have no future without young advisors like these. Canadians need advice and support from advisors. This is a critical profession” GREG POLLOCK Advocis

Heather Holjevac, Holjevac Financial Group Jackie Porter, Carte Wealth Management Joseph Bakish, Richardson GMP Krista Kardash, LCU Financial (Credential Asset Management) Matthew Ablakan, MC University Pauline Shum Nolan, Wealthscope Richard Infantino, RBC Dominion Securities Stephanie Vincec, Ten Toonies Financial Literacy for Kids Tuula Jalasjaa, The Women’s Collection Wolfgang Klein, Canaccord Genuity Wealth Management

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THE BLACKROCK AWARD FOR PORTFOLIO/DISCRETIONARY MANAGER OF THE YEAR AWARD SPONSOR IFSE is the educational arm of the Investment Funds Institute of Canada (IFIC) and a leader in online learning delivery. We are dedicated to helping Canadians improve their financial literacy through best-in-class financial education and support. As a not-forprofit organization, we make our training affordable to ensure that financial education is widely accessible.

For more information, visit ifse.ca

“[The finalists] are all very passionate about financial education and financial literacy.

They all have lots of great ideas – they’re interested in making the industry better and supporting their clients” CHRISTINA ASHMORE IFSE

ABOUT THE AWARD This award recognizes the most outstanding portfolio manager in Canada over the past 12 months. Eligible nominees are portfolio/discretionary managers in the advisor channel or the private discretionary division and must be compensated by clients, not a fund.

GOLD WINNER Kevin Haakensen PWM Private Wealth Counsel (HollisWealth, a division of iA Securities)

SILVER WINNERS Colin Ryan, Wellington-Altus Private Wealth Susyn Wagner, CIBC Wood Gundy

FINALISTS Chad Larson, MLD Wealth Management Group (Canaccord Genuity Wealth Management) Francis Sabourin, Richardson GMP James Gauthier, Justwealth Jason Del Vicario, Hillside Wealth Management (HollisWealth, a division of iA Securities)

AWARD SPONSOR BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of June 30, 2020, BlackRock managed approximately US$7.32 trillion in assets on behalf of investors worldwide.

For more information, visit blackrock.com

“The team at Key Media did an incredibly amazing job of assembling a diverse panel with such a wealth of industry experience and different perspectives” PAWAN VATVANI BlackRock

John (Jay) D. Nash, Nash Family Wealth Management (National Bank Financial) Martin Gendron, Desjardins Gestion de Patrimoine Martin Pelletier, Wellington-Altus Private Counsel Sean Mackenzie, Mackenzie Wealth Management Group (National Bank Financial) Wolfgang Klein, Canaccord Genuity Wealth Management

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WEALTH PROFESSIONAL AWARDS 2020 THE TMX GROUP AWARD FOR BEST ACTIVE MANAGER – EXCHANGE-TRADED DERIVATIVES ABOUT THE AWARD This award recognizes the advisor who has displayed excellence by actively implementing Canadian exchange-traded derivatives in their book of business over the past 12 months.

GOLD WINNER Martin Gendron Desjardins Gestion de Patrimoine

SILVER WINNERS Avin Mehra, CIBC Wood Gundy Jillian Bryan, TD Wealth Private Investment Advice

FINALISTS Greg Flower, Red Barn Investment Counsel Ian Po, RBC Dominion Securities Idrees Baksh, Larente Baksh & Associates (TD Wealth Private Investment Advice) Walter Harmidarow, RBC Dominion Securities

AWARD SPONSOR TMX Group operates global markets and builds digital communities and analytic solutions that facilitate the funding, growth, and success of businesses, traders, and investors.

TMX Group’s key operations include the Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, the Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, and Trayport, which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products, and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across North America (Montreal, Calgary, Vancouver and New York), as well as in key international markets, including London and Singapore.

For more information, visit tmx.com

“The finalists are all doing a great job at showing the power of options. There is an importance to having that awareness and to break the barrier down to show advisors that options are relevant and compelling to investors” RICHARD HO TMX Montreal Exchange

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THE MACKENZIE INVESTMENTS AWARD FOR FEMALE TRAILBLAZER OF THE YEAR AWARD SPONSOR

ABOUT THE AWARD This award recognizes an outstanding female trailblazer in the wealth management and financial planning industry whose astounding personal and professional achievements have earned her a place among the industry’s best.

FEATURED FINALIST GOLD WINNER Darcie Crowe Canaccord Genuity Wealth Management SILVER WINNER Julia Chung, Spring Planning

FINALISTS Elizabeth Naumovski, Caldwell Securities Laurie Bonten, Wellington-Altus Private Wealth Nicole Deters, Gilman Deters Private Wealth Tara Kelly, BMO Nesbitt Burns Tina Tehranchian, Assante Capital Management

Nicole Deters has been working to provide holistic service since she became an advisor more than 28 years ago. Deters, an investment advisor at Gilman Deters Private Wealth, began her career in accounting before shifting to tax planning for high-networth clients. As an advisor, she offers planning services that cover every aspect of a client’s life. Her place among the finalists for Female Trailblazer of the Year reflects a career spent ahead of the pack.

“I learned early on that you need to be very disciplined and dedicated, you need to be seen working hard, and you need to be mindful of others,” Deters says. “I was raised to bring the highest standards to the table and never accept anything lower.”

In the face of challenges, Deters has turned to her strong work ethic, always giving 110% to achieve for her clients.

She says she’s humbled to be named a finalist among such a dynamic group of women and that it’s important for awards to recognize the work of women as dynamic and innovative advisors.

Two years ago, realizing that the industry was becoming more corporate and consolidated, Deters struck out on a new path with Harbourfront Wealth Management – a step that took bravery and serious effort. It’s that new push, she says, that might have led to her being named a finalist for Female Trailblazer of the Year in 2020.

“I’ve always had to dig deep to create what I have,” Deters says. “Being recognized heightens my desire to continue to evolve and be impactful in all aspects of my life.”

We’ve been helping Canadians since 1967, when Mackenzie Investments started with one person managing investments for one investor in Toronto. Now we’re a holistic asset management 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/en

“We have very talented female advisors in this country. To hear from them on a panel on how they have built their business, their challenges, achievements and what work they do with clients and what sets them apart – it is always great to hear those stories” PRERNA CHANDAK Mackenzie Investments

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WEALTH PROFESSIONAL AWARDS 2020 BDM/WHOLESALER OF THE YEAR

THE EDWARD JONES AWARD FOR EXCELLENCE IN PHILANTHROPY AND COMMUNITY SERVICE

ABOUT THE AWARD

ABOUT THE AWARD

BDMs are essential in the fund/advisor relationship. This award recognizes the BDM/wholesaler who has displayed excellence over the past 12 to 18 months by offering superior service to advisors.

This award recognizes the advisor or team whose outstanding contribution of time, leadership and financial support has made significant impacts in the receiving causes or communities.

GOLD WINNER

GOLD WINNERS

Alain Desbiens BMO Global Asset Management

Ainsley Mackie White LeBlanc Wealth Planners (HollisWealth, a division of iA Securities)

AWARD SPONSOR Edward Jones is a full-service investment dealer with more than 850 financial advisors in Canadian communities from coast to coast. A member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, the firm is also a participating organization in the Toronto Stock Exchange. Edward Jones has been ranked number one for seven consecutive years in J.D. Power’s Full-Service Investor Satisfaction Study.

For more information, visit edwardjones.ca

SILVER WINNER Nathan Amor, Sun Life Financial

Michael Dehal Dehal Investment Partners (Raymond James)

FINALISTS Alain Samson, National Bank Investments Allan MacDonald, TD Asset Management David Clarke, BMO Global Asset Management David Wysocki, Harvest ETFs Elizabeth Dykes, Bridgehouse Asset Managers Greg Rank, Mackenzie Investments

SILVER WINNER Eric F. Bennett, Scotia Wealth Management/ScotiaMcLeod

Philip Douglas, Evolve ETFs Randy Beaudoin, Invico Capital Corporation

FINALISTS

Raphael Chow, Gentai Asset Management

Aaron Ruston, Purposed Financial

Ryan Cipolla, Sun Life Global Investments

Laurie Bonten, The Bonten Wealth Management Group (Wellington-Altus Private Wealth)

Tommy Kotsopoulos, Dynamic Funds

Marvin Schmidt, The Schmidt Investment Group (CIBC Wood Gundy) Nicholas Shinder, Shinder Tremblay Group (Echelon Wealth Partners) Sonia LeRoy, LeRoy Wealth Management Group (IPC Securities)

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“The stories [of the finalists] were so different, and yet they all resonated with the individual. I think that is what philanthropy and community service is about – finding something that you’re passionate about and putting your passion into it” KATRINE CLARK Edward Jones

LIFETIME ACHIEVEMENT IN THE FINANCIAL PLANNING INDUSTRY

CEO OF THE YEAR

ETF CHAMPION OF THE YEAR

ABOUT THE AWARD

ABOUT THE AWARD

ABOUT THE AWARD

This is the highest honour and most coveted award at the Wealth Professional Awards. This award recognizes and celebrates a leading figure who has contributed much to the advancement of the wealth management and financial planning industry in Canada. Though there are no defined parameters, this award will acknowledge someone with an established history and reputation of distinguished service to the wealth management and financial planning profession, who has exhibited leadership and provided inspiration to others in the industry and their own workplace, while putting the interests of the industry at the top of their priorities throughout their career.

This award is given to a CEO who has demonstrated exceptional leadership over the past 12 months, bringing their organization to a new level of growth and success and stimulating the wealth management industry.

This award recognizes a wealth professional whose efforts have gone beyond the requirements of their position to advance the ETF industry in Canada over the past 12 months.

RECIPIENT Helen Kearns President and CEO Bell Kearns & Associates

GOLD WINNER Barry McInerney Mackenzie Investments

GOLD WINNER Tammy Cash Horizons ETFs

SILVER WINNERS SILVER WINNERS

Alfred Lee, BMO Global Asset Management

Duane Green, Franklin Templeton Investments

Pat Dunwoody, Canadian ETF Association

John Nicola, Nicola Wealth Management

FINALISTS Florence S. Narine, AGF Management

FINALISTS David Cusson, Echelon Wealth Partners David A. Gunn, Edward Jones Greg Romundt, Centurion Asset Management Jeff Carney, IG Wealth Management

Mark Noble, Horizons ETFs Michael Cooke, Mackenzie Investments Som Seif, Purpose Financial Tanya Rowntree, TMX Group Tyler Mordy, Forstrong Global Asset Management

Kathy Bock, The Vanguard Group Kevin McCreadie, AGF Management Steve Hawkins, Horizons ETFs Tea Nicola, CI Direct Investing

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WEALTH PROFESSIONAL AWARDS 2020 ADVISORY TEAM OF THE YEAR (FEWER THAN 10 STAFF)

THE FRANKLIN TEMPLETON AWARD FOR ADVISORY TEAM OF THE YEAR (10 STAFF OR MORE)

ABOUT THE AWARD

ABOUT THE AWARD

This award recognizes an outstanding advisory team or office with fewer than 10 staff (including full-time equivalents, advisors and support staff ) that has displayed excellence over the past 12 months.

This award recognizes an outstanding advisory team or office with 10 staff or more (including full-time equivalents, advisors and support staff ) that has displayed excellence over the past 12 months.

GOLD WINNER

GOLD WINNER

Kingsford and Associates (BMO Nesbitt Burns)

Northland Wealth Management

SILVER WINNERS Endeavour Wealth Management (iA Securities) Tetrault Wealth Advisory Group (Canaccord Genuity Wealth Management)

FINALISTS Bechtel McIntyre Lewis Wealth Management (TD Wealth) Britton Wealth Management and Planning Consultants Caring for Clients CIC Financial Group Shinder Tremblay Group (Echelon Wealth Partners) Orser Neuhaus & Associates (Echelon Wealth Partners) The Popescu Ashton Group (Harbourfront Wealth Management) Kaspardlov & Associates (Manulife Securities) The Everest Group (TD Wealth Private Investment Advice)

SILVER WINNER The McClelland Financial Group (Assante Capital Management)

FINALISTS

AWARD SPONSOR Franklin Templeton is a global leader in investment management with clients in more than 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. All of these investment teams share a common commitment to excellence, grounded in rigorous, fundamental research and robust, disciplined risk management.

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.

For more information, visit franklintempleton.com

Cresco Wealth Management (Wellington-Altus Private Wealth) Hemmett Anseeuw & Associates (Harbourfront Wealth Management) Nour Private Wealth Popowich Karmali Advisory Group (CIBC Wood Gundy) White LeBlanc Wealth Planners (HollisWealth, a division of iA Securities) Zagari, Simpson & Associates (Mandeville Private Client)

“These are some of the biggest groups in the industry. They did a great job of articulating what it is that they’re committed to in terms of delivering the best client experience” LIZ BOUTHILLIER Franklin Templeton Investments

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MULTI-SERVICE ADVISORY TEAM OF THE YEAR

THE AGF AWARD FOR ENGAGEMENT, LOYALTY AND CLIENT CARE

ABOUT THE AWARD

ABOUT THE AWARD

This award recognizes the advisory team that has displayed excellence over the past 12 months by offering a full suite of services, including but not limited to insurance, succession consulting, investments, tax and estate planning, mortgages, and retirement.

Client care and service are an important measure of any advisory team’s long-term sustainability and success. This award recognizes the team or office that has displayed excellence over the past 12 months in maintaining consistent and sustainable customer service standards.

GOLD WINNER

GOLD WINNER

Woodgate Financial

The Schmidt Investment Group (CIBC Wood Gundy)

FINALISTS Luft Financial MLD Wealth Management Group (Canaccord Genuity Wealth Management) Summit Private Wealth (Mandeville Private Client) Zagari, Simpson & Associates (Mandeville Private Client)

Founded in 1957, AGF Management 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.

Being an independent firm has allowed us to make strategic acquisitions that improve our client service experience and enable us to offer new and innovative products while enhancing our research capabilities.

FINALISTS

Our suite of diverse investment solutions extends globally to a wide range of clients, from individual investors and financial advisors to institutions, including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Allen Private Wealth (HollisWealth, a division of iA Securities)

For more information, visit agf.com

SILVER WINNER Allen Private Wealth (HollisWealth, a division of iA Securities)

AWARD SPONSOR

SILVER WINNER Northland Wealth Management

Britton Wealth Management and Planning Consultants CIC Financial Group Little Wealth Management Group (HollisWealth, a division of iA Securities) Ortencio & Associates Wealth Management Group (Raymond James) Salina Edgren & Associates Private Wealth (Echelon Wealth Partners) Salus Wealth (Manulife Securities) The Bonten Wealth Management Group (Wellington-Altus Private Wealth)

“[These finalists] are the cream of the crop, and I was so impressed by the level of technology that each are deploying” FREDERIC POITRAS AGF

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WEALTH PROFESSIONAL AWARDS 2020 THE EQUITABLE BANK AWARD FOR MULTI-OFFICE ADVISOR NETWORK/ BROKERAGE OF THE YEAR ABOUT THE AWARD This award recognizes an outstanding advisory network or brokerage that has displayed excellence over the past 12 months.

GOLD WINNER Edward Jones

SILVER WINNER Assante Wealth Management

FINALISTS BMO Nesbitt Burns Canaccord Genuity Wealth Management iA Securities (iA Financial Group) Mandeville Private Client RBC Dominion Securities

“We will see a lot of exciting things happening to investment dealer platforms going into 2021, and that is good for Canadian investors. For us, it is exciting to further help Canadian investors achieve greatness” TIM HOLLEY Equitable Bank

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AWARD SPONSOR Equitable Group is a growing Canadian financial services business that operates through its wholly owned subsidiary, Equitable Bank. Equitable Bank, Canada’s Challenger Bank™ , has grown to become the country’s ninth largest independent Schedule I bank through its proven branchless approach and customer service focus in providing residential lending, commercial lending and investment solutions to Canadians.

EQ Bank, the digital banking platform offered by Equitable Bank, provides state-of-the-art digital banking services. The EQ Bank Savings Plus Account reimagines banking for Canadians by offering the functionality of a chequing account to perform daily banking with ease, as well as a great everyday interest rate to help transactional balances grow into bigger savings. From unlimited Interac© e-transfers and bill payments to payroll deposits and no monthly fees, everyday banking is now a richer prospect for Canadians.

Equitable Bank employs more than 900 dedicated professionals across the country and manages over $33 billion in assets.

For more information, visit equitablebank.ca

THE SIACHARTS AWARD FOR DIGITAL INNOVATOR OF THE YEAR ABOUT THE AWARD This award is given to the advisory team, firm, office or network that has best harnessed technology and digital solutions to improve their business, aid their advisors and leverage overall client experience over the past 12 to 18 months.

This category looks at the organization’s use of wealth technology and digital resources, including but not limited to CRM, digital marketing, mobile technology, electronic document management, connectivity platforms and collaboration tools.

GOLD WINNER Cidel Bank Canada

SILVER WINNERS The McClelland Financial Group (Assante Capital Management) Total Wealth Management Group (HollisWealth, a division of iA Securities)

FINALISTS Harbourfront Wealth Management iA Securities (iA Financial Group) RBC Dominion Securities

THE EQUISOFT AWARD FOR FUND PROVIDER OF THE YEAR AWARD SPONSOR SIACharts has spent the last 20 years perfecting relative strength analysis for advisors and their practices, developing a powerful process that has universal application, whether you use stocks, ETFs or mutual funds. Used independently or as an objective overlay to fundamental analysis and behavioural finance strategies, SIACharts’ AI-powered technology computes over 10 billion calculations every night by analyzing tens of thousands of investments, looking for the best opportunities. Utilizing advanced relative strength technology, SIA has the ability to create objective and actionable rankings to assist with your portfolio management decisions.

For more information, visit siacharts.com

ABOUT THE AWARD This award recognizes an outstanding fund company that has consistently delivered superior service to advisors while pushing the boundaries of innovation and industry best practices over the past 12 months.

GOLD WINNER Dynamic Funds

SILVER WINNER Horizons ETFs

FINALISTS AGF Management BMO Global Asset Management CI Investments Fidelity Investments First Trust

“Our award aims to have people innovating, and we hope this spurs conversation around how to potentially take it to the next level and shows advisors how they can improve their practice” PAUL KORNFELD SIACharts

Mackenzie Investments Purpose Investments Sun Life Global Investments TD Asset Management

“Given us working with a lot of the institutions that are up for an award this year, this was a chance for us to be a part of something in the industry”

AWARD SPONSOR Founded in 1994, Equisoft is a global provider of advanced digital solutions in life insurance and wealth management. Recognized as a valued partner by more than 50 of the world’s leading financial institutions in 15 countries, Equisoft offers innovative front-end applications, extensive back-office services and unique data migration expertise. The firm’s industry-leading products include a comprehensive SaaS policy administration solution, CRM, financial needs analysis, asset allocation, quotes and illustrations, electronic application, and agency management systems, as well as customer, agent, and broker portals.

Equisoft is also Oracle’s largest and most experienced reseller and integration partner for the Oracle Insurance Policy Administration platform. With its business-driven approach, deep industry knowledge, state-of-the-art technology and over 450 specialized resources based in the US, Canada, Chile, Colombia, South Africa, India and Australia, Equisoft helps its clients tackle any challenge in this era of digital disruption.

For more information, visit equisoft.com/en

ANTHONY STOCKLEY Equisoft

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WEALTH PROFESSIONAL AWARDS 2020 EMPLOYER OF CHOICE

THE WP READERS’ CHOICE AWARD FOR SERVICE PROVIDER OF THE YEAR

ABOUT THE AWARD

ABOUT THE AWARD

This award recognizes a multi-office advisor network, brokerage or fund provider’s commitment to building a workplace that recognizes excellence and supports career growth for all. This award recognizes a company that has earned a reputation as an employer of choice within the wealth management and financial planning industry.

This award acknowledges the contributions of a company or individual with a proven track record of providing financial advisors and offices with the superior service and assistance needed to perform their duties.

GOLD WINNER Croesus Finansoft

GOLD WINNER National Bank Financial

SILVER WINNERS Asset Vantage NaviPlan by Advicent

SILVER WINNERS AGF Management

FINALISTS

Echelon Wealth Partners

Broadridge Financial Solutions

FINALISTS Centurion Asset Management Edward Jones Harvest ETFs IG Wealth Management Nicola Wealth Management

Equisoft Fundserv LTI Canada NEO Exchange Portfolio Aid Univeris

“WP puts on such a great show each time – they’ve been so innovative and run such a seamless, highly professional event” DIANA ODDI Mandeville Private Client Inc.

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2020 JUDGING PANEL Thank you to our esteemed judges for lending their time and expertise to help recognise and celebrate excellence

Greg Pollock

Paulette Filion

Sangeeta Chopra-Charron

President and CEO Advocis

Partner StrategyMarketing.ca

Management consultant, strategic marketing and operations Jennings Consulting

Daniel Collison

Judy Paradi

Katie Walmsley

Managing partner, Advice2Advisors Instructor, Schulich School of Business

Partner StrategyMarketing.ca

President Portfolio Management Association of Canada

Claire Van Wyk-Allan

Grant Hicks

Pat Dunwoody

Director, head of Canada Alternative Investment Management Association (AIMA)

President Advisor Practice Management

Executive director Canadian ETF Association

Caroline Chow Vice-president and co-founder Canadian Association of Alternative Strategies & Assets (CAASA)

Rod Burylo Business development manager RN Croft Financial Group Director, Foundation for the Advancement of Entrepreneurship Author, speaker and instructor

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