Wealth Professional Canada 10.01 by Key Media

DEEP DIVE INTO ALTERNATIVES

The hottest uncorrelated investments right now, from Bitcoin to wine

LEADING WOMEN IN WEALTH

Celebrating 50 of wealth management’s biggest trailblazers and change-makers

BUILT FOR TRANSFORMATION

WWW.WEALTHPROFESSIONAL.CA ISSUE 10.01

Jean-Guy Desjardins on bringing new ideas to Canada’s investment industry

THE TOP

Find out who emerged victorious on WP’s annual list of Canada’s best advisors

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ISSUE 10.01

CONNECT WITH US

CONTENTS

Got a story or suggestion, or just want to find out some more information? @WealthProCA facebook.com/WealthProCA

UPFRONT 02 Editorial

Globalization: asset or liability?

10 PEOPLE

A JOURNEY TOWARD MEANING

14 FEATURES

TOP 50 ADVISORS

Discover how Canada’s best advisors turned the challenges of the pandemic into a year of impressive growth

PEOPLE

INDUSTRY ICON

As the founder of Fiera Capital, Jean-Guy Desjardins has been a driving force for change in the Canadian investment world

For Sun Life’s Oricia Smith, the investment industry is about more than just attractive returns

08 Statistics

Key data that should be on your radar

FEATURES 36 Bringing an advisor’s vision to life

Q Wealth has brought in experts from the music, fashion and retail worlds to take advisor marketing to the next level

38 Finding opportunity in a rising rate environment

Three ways to make the most of central banks’ pivot on rates

54 Relationships, responsibilities and results

How The Gryphin Advantage is bolstering its offering for advisors

56 Designed for defence

5-STAR LEADING WOMEN IN WEALTH

PEOPLE

SPECIAL REPORT

WP celebrates 50 women who have made a name for themselves in the wealth management industry

Avenue Living’s focus on workforce housing is generating stable returns in the real estate sector

58 An education in value

Everything advisor Gene Kim does comes down to bringing value to clients

60 FEATURES

SPOTLIGHT ON ALTERNATIVES

A closer look at seven asset classes that go beyond stocks and bonds

WEALTHPROFESSIONAL.CA CHECK IT OUT ONLINE www.wealthprofessional.ca

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UPFRONT

EDITORIAL wealthprofessional.ca ISSUE 10.01

A global balancing act

he world has been off balance for the past two years, and it’s having a hard time regaining its footing. To support economies that were choked off by COVID-19 restrictions, central banks and governments swiftly rolled out bold and aggressive fiscal and monetary stimulus programs. Meanwhile, the financial markets experienced whiplash when a historic downturn quickly morphed into a head-spinning rebound, fuelled by a boom in individual investor participation in the markets and euphoria around pandemic-friendly stocks and SPACs. Markets continued to run hot in 2021. North American stock indexes posted record levels of growth. Retail investors, emboldened by enhanced access to digital investing platforms and social media, chased meme stocks, cryptocurrencies and NFTs. Housing markets were on fire as record-low interest rates and persistent supply issues ignited cutthroat bidding wars. Inflation also reared its ugly head amid new COVID-19 surges and lockdowns, leading to supply chain disruptions.

Today, it looks as if the globalization that has driven the economy over the past few decades has turned into a great vulnerability Several vaccines and variants later, the world is still struggling to move on. Today, it looks as if the globalization that has driven the economy over the past few decades has turned into a great vulnerability. As Bryce Gill, economist at First Trust, told Wealth Professional recently, “A lot of people have been forecasting that inflation will moderate. Eventually supply chain issues will resolve themselves, and hopefully this pandemic doesn’t continue to be disruptive. And academically I understand why they’re saying this, but I’m hearing the same things I was a year ago.” With inflation running at multi-decade highs across the world, the pressure is on for policymakers to tame the monster of rising prices. For many indebted Canadians and businesses, the prospect of higher interest rates might be painful, but it’s a bitter pill that must be swallowed sooner rather than later. The world is watching for central banks to take aggressively hawkish turns. In Canada, some have predicted as many as six rate hikes this year, which opens up the very real possibility of additional market turbulence. As Greg Taylor, CIO at Purpose Investments, put it, “I think we’re entering a stage in the new normal where the central banks are going to be less focused on the stock market and more focused on taming inflation, and that’ll cause more volatility. I think it’ll be a much different experience for investors going forward.”

EDITORIAL Managing Editor James Burton Editor Leo Almazora Writers Noelle Boughton Chris Davies Jonathan Russell

SALES & MARKETING Vice President, Media and Client Strategy Dane Taylor National Account Managers Alan Stewart Catherine Reale Business Development Manager Cori Canuel

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Vice President, Sales John Mackenzie

Copy Editor Clare Alexander

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ART & PRODUCTION Designers Loiza Razon Marla Morelos Production Manager Alicia Chin Production Coordinators Kat Guzman Loiza Razon Client Success Coordinator Michelle San Juan

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160

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PEOPLE

INDUSTRY ICON

FROM REVOLUTION TO EVOLUTION Fiera Capital founder Jean-Guy Desjardins has spent decades driving transformation in Canada’s asset management industry – and he’s far from finished

GIVEN THE simplicity and power of modern portfolio theory, it’s no surprise that the concept has become a fixture in conversations across today’s investment industry. But like most conventional wisdom, it started out as a radical concept – and Jean-Guy Desjardins was there for it. “I was at university doing what would be the equivalent of a master’s degree in the French system,” says the founder of Fiera Capital. “I was taking courses on investment management and learning about modern portfolio theory and the research that was going on at the University of Chicago … I was fascinated by the science, which was at its very beginning in those days.” At that point, Desjardins was already quite interested in the prospect of a career in the investment business. To get his start, he landed a part-time job as a junior analyst at a small mutual fund company in Montreal during his last two years at university. He worked 15 hours a week doing basic stock research, while at school he was learning about new investment management frontiers that were in the initial stages of exploration. “I think that large institutions were just starting to pay attention to the science, but not very seriously,” he says. “I saw an opportunity to move into an industry where the traditional way of doing things would be significantly challenged and there was no

limit to creativity and the flexibility to implement change.”

Blazing new trails In 1972, not long after graduating, Desjardins became a partner in a young company called TAL Global Asset Management. Four years later, he became its president, as well as a shareholder in the company. His ambition for TAL – to create an organization that would make extensive use of quantitative techniques in managing invest-

of basic financial analysis, which I would call the more micro aspect of portfolio management,” Desjardins says. “With a full portfolio management approach, you’re also considering the economic environment, macroeconomic forecasting, and using probabilities and optimization techniques.” Even that early in the game, Desjardins says asset allocation decisions – including the selection of both stocks and bonds – accounted for a large percentage of the rate of return generated by a portfolio. But as clear

“I saw an opportunity to move into an industry where the traditional way of doing things would be significantly challenged and there was no limit to creativity and the flexibility to implement change” ment portfolios – was clearly informed by his immersion in leading-edge academic research. He also wanted to shine a light on the importance of portfolio management in contrast to stock selection, which was the prevalent approach at that time. “You could say selecting securities is the traditional Graham and Dodd type approach

as that may be to today’s investment professionals, very few people in the industry back then were connected to that reality. That gave TAL an opening to combine the right talent, technology and other resources into a valuable edge that would serve it well as the industry became more competitive. “Another revolution that took place in

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PROFILE Name: Jean-Guy Desjardins Title: Founder and executive chairman Company: Fiera Capital Based in: Montreal Years in the industry: 50+ Career highlight: Creating an industryleading, world-class independent asset management firm with a global presence

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PEOPLE

INDUSTRY ICON

the early ’70s was the advent of relative performance measurement,” Desjardins recalls. “Before, investment firms were evaluated based on their performance relative to the market [indices]. But then the industry started evaluating investment companies based on performance management surveys that positioned them relative to all their competitors, and that became a powerful marketing tool for companies like ours. It shook the industry.” TAL maintained its position as an industry leader until 2001, when it was acquired by a Big Six bank. Professionally speaking, Desjardins says, selling wasn’t something the leadership team really wanted to do. But because most of the company’s roughly 100

management business, where the opportunity to invest in and create these new strategies allows us to do a much, much better job for the clients,” he says. Today, Fiera Capital has grown into a global asset manager with a solid record of long-term performance and a shelf of 110 different investment options across its institutional and retail businesses. Even as Desjardins takes a step back from running the company – as part of a multi-year succession plan, his protégé, Jean-Philippe Lemay, was recently named global president and CEO – he sees it playing an even bigger role in the next 10 years. “We want to be the most efficient capital allocator we can possibly be,” says Desjardins,

“We want to be the most efficient capital allocator we can possibly be. That means going beyond generating competitive, riskoptimized rates of return for our clients” shareholders wanted to take the opportunity to become financially independent, TAL’s leaders decided to respect their interests. “The day after we sold the business, I told my wife and my closest friends that if the opportunity came up, I would buy an existing investment management company,” Desjardins says. “That opportunity came up in 2003, and that’s how Fiera Capital got going.”

The next step Continuing what he and his colleagues had started at TAL, Desjardins sought to develop Fiera Capital into a global investment management organization with a disciplined and organized quantitative ethos. He also recognized another chance to get ahead of the curve by investing in private-market strategies, including alternative credit, real estate, infrastructure and more. “It was a significant evolution in the money

who is now the executive chairman of Fiera Capital’s board of directors. “That means going beyond generating competitive, risk-optimized rates of return for our clients – though that’s our number-one objective – but also ensuring that we’re being efficient from an environmental point of view, from a diversity point of view and from a social point of view.” Given the extent of his contributions, no one would blame Desjardins if he were to leave the industry now. But as fertile as his imagination is, he still can’t envision himself walking away from the work he began. “I think when you stop dreaming, you’re dead, so I want to dream as long as I can,” he says. “As long as I’m able to dream about the future of this organization and its place in the industry and the economy, and communicate that dream to people who will buy into it and can make it a reality, I want to keep doing that.”

FIERA CAPITAL BY THE NUMBERS

2003

Year founded

Number of offices worldwide

845+

Number of employees

$180.8 billion

AUM (as of September 30, 2021)

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UPFRONT

STATISTICS CANADA’S ONGOING ESG ADVICE GAP

CONSUMER PRICE INDEX ANNUAL GROWTH RATE

UK 4.8%

December 2020 December 2021

CANADA 4.8%

85%

0.8%

0.7%

of advisors say they’re very or somewhat comfortable starting a conversation about responsible investing

THE SOARING ’20S? Snarled supply chains and pandemic-related factors are fuelling extreme price surges around the world. Between December 2020 and December 2021, inflation across the OECD rose to an average of 6.6%; within the G7 countries, the US, Canada and the UK all set multidecade CPI records.

62%

of advisors described their knowledge of responsible investing as “excellent” or “very good”

of advisors successfully identified all three true statements on a 10-item RI knowledge test

US 7%

1.4%

EXOTIC ETFs PIQUE INVESTORS’ CURIOSITY, DESPITE FEES Canadians’ cost-consciousness remained apparent in 2021: According to National Bank, more than half of ETF assets and flows last year went to funds with MERs of 0.3% or less. But ETFs in the 1% MER range also saw outsized flows as investors embraced alternative ETFs and rushed into newly launched cryptocurrency products.

ETF FLOWS AND AUM BY MANAGEMENT EXPENSE RATIO Percentage of 2021 Canadian ETF flows

Percentage of 2021 Canadian ETF AUM

25% 20%

1.1% +

0.9 %t o1 % 1% to 1.1%

0.4 %t o0 .5% 0.5 %t o0 .6% 0.6 %t o0 .7% 0.7 %t o0 .8% 0.8 %t o0 .9%

Source: RIA 2021 Advisor Opinion Survey Report

0.1 %t o0 .2% 0.2 %t o0 .3% 0.3 %t o0 .4%

of advisors who said they felt comfortable initiating client discussions about RI did not identify any of the correct statements

10%

0% to 0.1 %

21%

15%

Source: National Bank of Canada ETF Research, Bloomberg

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HOW TFSA-SAVVY ARE CANADIANS?

GERMANY 5.3%

While 73% of Canadians consider themselves knowledgeable about TFSAs, according to a recent BMO Economics survey, only 49% were aware that a TFSA can hold both cash and other investments.

JAPAN -0.3%

73%

of Canadians consider themselves knowledgeable about TFSAs

49%

of Canadians are aware a TFSA can hold both cash and at least one other type of investment

44%

of Canadians use their TFSAs for retirement savings

43%

use their TFSAs as a savings account

15%

are using their TFSAs to achieve financial independence as early as possible

0.8%

-1.2%

ITALY 3.9%

FRANCE 2.8%

-0.02%

-0.2%

Source: BMO Economics

Source: OECD, February 2022

THE LONG ROAD TO ENERGY’S RECOVERY

A MONSTER YEAR FOR MUTUAL FUNDS

Capital spending in Canada’s oil and gas industry rose in 2021, buoyed in part by rising commodity prices. While the sector is still far below its 2014 heyday, investment is predicted to increase again this year to almost $33 billion.

After three years of weak inflows due partly to a shift toward ETFs, Canadian mutual funds rebounded in a big way last year. According to IFIC, net sales in 2021 exceeded $100 billion, the largest annual net sales total on record.

CAPITAL EXPENDITURES IN CANADA’S OIL AND GAS INDUSTRY

MUTUAL FUND NET SALES IN CANADA $112.6 billion

$90bn $80bn $70bn $60bn $50bn

$30.4 billion

$40bn

$41.9 billion

$57.6 billion

$57.9 billion $30.1 billion

$44.2 billion

$30bn $20bn

$100 million 2014

2015

2016

2017

2018

2019

2020

2021

2022

(estimated) (estimated) (forecast)

Source: Canadian Association of Petroleum Producers

2012

2013

2014

2015

2016

2017

2018

$16.9 billion 2019

$30.8 billion

2020

2021

Source: Investment Funds Institute of Canada

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PEOPLE

INDUSTRY ICON

A JOURNEY TOWARD MEANING In many ways, the career of Sun Life’s Oricia Smith has mirrored the trajectory of Canada’s investment industry WITH NEARLY three decades of experience behind her, Oricia Smith has a good view of the overall arc of the Canadian investment business. And from where she sits, the wave of purpose engulfing the space today is like a macrocosm of her own professional path. “We’re seeing the industry move from money to meaning,” Smith says. “I think it parallels my career. We started out focused on the money side, focused on trading and capital markets, and started shifting more toward meaning and the human side.” As a university student in the early ’90s, Smith wasn’t necessarily contemplating a career in financial services. But after seeing her brother go through the Canadian Securities Course, she decided to do it as well. Her completion of that course, along with her understanding of computers, landed her a summer job at the Calgary Stock Exchange. While the exchange was transitioning to become more electronic, it still had a frenzied feel that might have been stressful and overwhelming to many – but not Smith. “There was an energy there,” she says. “The people I met had this drive and strong work ethic, and I loved to be surrounded by that. They were very supportive, too. I

was one of the only females on the trading floor, if not the only one, but I always felt part of the bigger social environment that was there.” Over the next few years, Smith took on various roles in capital markets and investment banking. She relished the challenges she confronted during that time, as they honed both her technical knowledge and her capacity for creative problem-solving.

in Canada,” Smith says. “That was really exciting to get involved in. We also launched a global direct real estate fund for institutional clients in Canada, which was also the first product of its kind.”

A seat at the table As she moved up in her career, Smith started getting involved in women’s leadership groups and mentoring women within the organiza-

“We’re seeing the industry move from money to meaning. We started out focused on the money side, focused on trading and capital markets, and started shifting more toward meaning and the human side” Eventually, Smith joined Invesco Canada, where she played a key strategic role in developing the North American institutional business. She also spent a lot of time in product development, creating funds geared toward both retail and institutional clients. “I was part of the team that led the launch of the PowerShares ETF business

tion. She became part of the Invesco Women’s Network (IWN), a global community of women at Invesco who come together once a year to form professional connections. In addition to leading the Toronto chapter of the IWN Management Committee, Smith became an active leader and member of various organizations focused on helping

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PROFILE Name: Oricia Smith Title: President/senior vice-president, investment solutions Company: SLGI Asset Management/ Sun Life Canada Based in: Toronto Years in the industry: 26 Career highlights: Helping launch Invesco’s PowerShares ETF business in Canada; leading the Toronto chapter of the Invesco Women’s Network Management Committee; supporting manager selection on more than $150 billion of assets on behalf of Sun Life’s businesses globally

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PEOPLE

INDUSTRY ICON

advance female professionals, including the Women’s Bond Club of New York and the Canadian chapter of Women in ETFs. “I’ve learned that with the ability to form strong relationships, we can have a collective voice to really shape the business,” she says. “I think a lot of females don’t ask for help enough. It’s not a sign of weakness. Many people are happy to help, and the outcome you get when you have others’ perspective is better than what you’d get on your own.”

Into the sun After roughly 17 years at Invesco, Smith made the leap to Sun Life. She was attracted by the company’s proud Canadian history, which stretches back more than 150 years,

team. Beyond that, we had products … like annuities, seg funds and GIAs.” With such a wide shelf, Smith says Sun Life can pull together and build more comprehensive financial solutions. That breadth lends itself well to an advice industry that’s increasingly focused on holistic client service and financial security in retirement now that people are living longer. Clients and advisors aren’t the only stakeholders the company is mindful of. Sun Life has repeatedly declared its commitment to creating change by promoting and actively working to build diversity and inclusion within its organization. The company has also demonstrated its strong regard for employees by being among the first organiz-

“I’m thinking about how to help Canadians retire with dignity and build long-term wealth. At the same time, I want to help build a business that supports workers’ mental health, does good in the world today and provides employment for the next generation” and its expansive footprint, which touches millions of individuals and thousands of companies around the world. “I’d always been limited by what asset managers could offer,” she explains. “The focus was primarily on investment returns and income generated. When I came to Sun Life, I felt a bit like a kid in a candy store. The scope of what we could offer was exponentially wider. We had that same suite of investment products, supported by some of the best asset managers globally, but we also had our Canadian multi-asset solutions

ations in the Canadian financial industry to adopt a flexible work model. Just over four years after she joined Sun Life, Smith became interim president of its retail investment management business, Sun Life Global Investments; a few months later, she was appointed to the role permanently. That was in April 2021, a momentous time that marked not just SLGI’s 10-year anniversary, but also just over a year into the global COVID-19 crisis. “I’m really proud of how, through the pandemic, we were able to focus on deliv-

SUN LIFE GLOBAL INVESTMENTS’ FOCUS ON MEANING

Held virtual Advanced Retirement Income Planning Workshops in the third quarter of 2021 that were attended by 1,255 advisors

Hosted the sixth annual Sun Life Global Investments Women’s Investment Symposium

Joined the Net Zero Asset Managers initiative in November 2021

Provided mental health support tools and resources to clients through a partnership with Lumino Health

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ering continued strong risk-adjusted returns as an investment manager,” Smith says. “We also listened to our advisors and pivoted to address priorities they needed help with.” What they heard, Smith says, is that Canadians’ fears have expanded beyond just market volatility. Because of COVID19, people are also experiencing stress from potential loss of employment, isolation from family and friends, burnout after nearly two years of remote work and homeschooling, and other types of uncertainty. To address

this, Sun Life has rolled out a variety of digital tools, run retirement sentiment seminars, created a “COVID hub” for advisors to support their clients with tools and resources related to mental health, and enhanced its partnership with MFS Investment Management to offer more mutual fund solutions to advisors and investors. Sun Life has also played an active leadership role in supporting female advisors in the industry and has established itself as a champion of sustainability, both in its

corporate activities and through its investment and group retirement saving solutions. “When I first started, I was more in the capital markets side of the business,” Smith says. “Now I’m focusing more on the investor and people side of the business. I’m thinking about how to help Canadians retire with dignity and build long-term wealth. At the same time, I want to help build a business that supports workers’ mental health, does good in the world today and provides employment for the next generation.”

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FEATURES

TOP 50 ADVISORS

THE TOP

ADVISORS 2022 Wealth Professional honours 50 advisors whose passion for serving their clients and embodiment of excellence have catapulted them to the top of the wealth management industry WEALTH PROFESSIONAL’S Top 50 Advisors for 2022 managed nearly $30 billion in assets last year – a healthy jump from the $18.5 billion in AUM across the 2021 Top 50. The honourees on the ninth annual list represent seven provinces, although nearly two-fifths hail from BC and 30% work in Ontario. In terms of industry experience, this year’s Top 50 Advisors range from just six years in the business to 38 – but three-fifths of this year’s winners have more than 20 years of experience, which speaks to the value of their dedication to the financial advice profession.

METHODOLOGY To compile the annual Top 50 Advisors list, WP first solicited nominations from advisors, industry professionals and clients; only advisors nominated were eligible for the list. All information on nominees had to be verified by their compliance team before it could be accepted. The final list was determined on the basis of each advisor’s weighted ranking in overall AUM, AUM growth and client growth (both between October 2020 and October 2021), as well as the advisor’s certifications beyond a bachelor’s degree and basic securities licence.

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Top 50 Advisors RANK

NAME

PRACTICE

FIRM

LOCATION

YEARS IN THE INDUSTRY

AUM

AUM GROWTH*

TOTAL NUMBER OF CLIENTS

932

David Poliquin

BGY, Services financiers intégrés

iA Private Wealth

Quebec City, QC

$1,242,819,000

55%

Gord Love

Rosedale Family Office

Wellington-Altus Private Wealth

Toronto, ON

$873,000,000

76%

250

David LePoidevin

LePoidevin Group

Canaccord Genuity Wealth Management

Vancouver, BC

$1,733,542,139

34%

2,042

Peter Kirby

Kirby Private Wealth

Canaccord Genuity Wealth Management

Toronto, ON

$1,389,860,590

37%

1,821

Karen Ikeda

Nicola Wealth

Vancouver, BC

$1,378,895,204

15%

202

Thane Stenner

Stenner Wealth Partners+

Canaccord Genuity Wealth Management

Vancouver, BC

$720,000,000

71%

Jamie Switzer

The Switzer Group

Canaccord Genuity Wealth Management

Vancouver, BC

$500,000,000

117%

480

Marvin J. Schmidt

The Schmidt Investment Group

CIBC Private Wealth

Edmonton, AB

$885,000,000

43%

226

Sean Gercsak

Gercsak Private Wealth

Canaccord Genuity Wealth Management

Vancouver, BC

$642,493,589

170%

638

Andrew McQuiston

West Oak Family Office

Wellington-Altus Private Wealth

Calgary, AB

$850,000,000

48%

Gerald Goertsen

De Thomas Wealth Management

Kelowna, BC

$611,843,768

60%

3,189

Kyle Richie

Richie Feindel Wealth Management

Richardson Wealth

Toronto, ON

$640,000,000

55%

350

Michael Mountford

The Mountford Group

Scotia Wealth Management

Toronto, ON

20+

$950,000,000

300

Dwight Mann

Mann Team Wealth Management

Canaccord Genuity Wealth Management

Vancouver, BC

$705,579,043

35%

1,482

Brad Jardine

CIC Financial Group

Aligned Capital Partners

Ancaster, ON

$427,046,834

53%

663

Rob Tétrault

Tétrault Wealth Advisory Group

Canaccord Genuity Wealth Management

Winnipeg, MB

$751,884,990

54%

543

Brad Gross

Brad Gross Wealth Advisory Group

Wellington-Altus Private Wealth

Swift Current, SK

$245,381,000

227%

285

Todd Degelman

Degelman Pruden Group

Wellington-Altus Private Wealth

Saskatoon, SK

$702,000,000

37%

500

Reg Jackson

JMRD Watson Wealth Management Team

National Bank Financial

London, ON

$775,000,000

23%

270

Craig Baun

Baun Investment Group

Wellington-Altus Private Wealth

Calgary, AB

$900,000,000

440

Faisal Karmali

Popowich Karmali Advisory Group

CIBC Wood Gundy

Calgary, AB

$776,000,000

21%

586

Ludovic Siouffi

The Ludo Group

Canaccord Genuity Wealth Management

Vancouver, BC

$298,510,198

109%

319

Sophia Ito

Nicola Wealth

Vancouver, BC

$770,300,824

33%

139

Alexandra Horwood

Alexandra Horwood & Partners

Richardson Wealth

Toronto, ON

$465,834,367

43%

229

Andrew Feindel

Richie Feindel Wealth Management

Richardson Wealth

Toronto, ON

$320,000,000

55%

200

Rob McClelland

The McClelland Financial Group

CI Assante Capital Management

Thornhill, ON

$616,168,897

27%

788

Chad Larson

MLD Wealth Management Group

Canaccord Genuity Wealth Management

Calgary, AB

$860,000,000

300

Elie Nour

Nour Private Wealth

Oakville, ON

$600,000,000

20%

450

Mark Therriault

Nicola Wealth

Vancouver, BC

$305,143,549

47%

122

Wes Ashton

Oakwater Wealth Counsel

Harbourfront Wealth Management

Vancouver, BC

$475,000,000

27%

369

Wolfgang Klein

The Wolf on Bay Street

Canaccord Genuity Wealth Management

Toronto, ON

$358,000,000

40%

768

Colin Andrews

The CM Group

CIBC Wood Gundy

Calgary, AB

$565,000,000

13%

525

Tim Esplen

Nicola Wealth

Vancouver, BC

$439,805,984

21%

137

David Rutledge

Key Wealth Management

TD Wealth

Vancouver, BC

$236,000,000

72%

163

Adam Watson

JMRD Watson Wealth Management Team

National Bank Financial

Chatham, ON

$420,000,000

22%

525

Ethan Astaneh

Nicola Wealth

Vancouver, BC

$216,876,682

50%

113

Nader Hamid

Total Wealth Management Group

iA Private Wealth

Pointe-Claire, QC

$396,000,000

20%

250

Kevin Hegedus

PWM Private Wealth Counsel

iA Private Wealth

Saskatoon, SK

$531,535,839

909

Robert Luft

Luft Financial

iA Private Wealth

Vancouver, BC

$316,000,000

34%

420

William Frenn

William Frenn Wealth Management

Manulife Securities

Dorval, QC

$271,000,000

43%

305

Russell Feenstra

Nicola Wealth

Vancouver, BC

$353,888,682

20%

147

Jim Durnin

Jim Durnin – Assante Wealth Management

CI Assante Financial Management

Calgary, AB

$343,282,035

27%

451

Brent Thomson

Nicola Wealth

Kelowna, BC

$316,692,264

26%

121

Thierry Jabbour

Thierry Jabbour Financial Group

Manulife Securities

Laval, QC

$278,117,801

28%

246

Neil McIver

McIver Capital Management

Canaccord Genuity Wealth Management

Vancouver, BC

$344,865,606

10%

397

Frederick W. McCutcheon

McCutcheon Private Wealth

Canaccord Genuity Wealth Management

Toronto, ON

$202,687,674

58%

229

Luke Kratz

The Kratz Group

CIBC Private Wealth

Victoria, BC

$292,752,000

24%

132

Brent Vandermeer

Crosspoint Financial

iA Private Wealth

Ottawa, ON

20+

$395,000,000

1,664

Joseph Bakish

Bakish Wealth

Richardson Wealth

Pointe-Claire, QC

$250,000,000

25%

500

David Christianson

Christianson Wealth Advisors

National Bank Financial

Winnipeg, MB

$260,852,000

20%

120

*Between October 31, 2020 and October 31, 2021

www.wealthprofessional.ca

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24/02/2022 3:37:31 am

FEATURES

TOP 50 ADVISORS 50 DAVID CHRISTIANSON Practice: Christianson Wealth Advisors Firm: National Bank Financial Location: Winnipeg, MB

With 38 years of experience as a financial advisor, David Christianson is the most seasoned veteran among this year’s Top 50 Advisors. “I had a degree in psychology with counselling experience, but also a mind for numbers, analysis and strategy,” Christianson says. “A friend had become a CFP and introduced me to the profession and the way a true planner could really change people’s lives, and I was hooked.” His practice, Christianson Wealth Advisors at National Bank Financial, is 100% fee-based and offers comprehensive financial planning that includes tax strategy, risk management, and goals and life counselling. This year, Christianson is aiming to continue his practice’s rapid growth even as he prepares his two colleagues to take over as owners of the business.

JOSEPH BAKISH Practice: Bakish Wealth Firm: Richardson Wealth Location: Pointe-Claire, QC

A repeat honouree on the Top 50 Advisors list, Joseph Bakish has spent the past 16 years working with a client base that includes many doctors, scientists and professors – which was only natural, as he comes from a family of doctors and scientists. Bakish has devoted his career to helping ensure his clients’ financial futures are aligned with their interests and that their wealth is protected and growing. “The ongoing uncertainty and strain of the COVID-19 pandemic could have shaken our team and weakened our focus, but instead we pulled together and thrived,” he says, noting the challenges that come with many members of the team raising young children. “Webex has become deeply integrated in our daily lives, and we have routine virtual team meetings to brainstorm solutions and maintain our strong team connections.” The recipient of the coveted IIAC Top Under 40 Award in 2020, Bakish has been a strong promoter of financial literacy, speaking to large audiences of senior physicians at the apex of their careers, as well as to groups of young doctors and professionals.

BRENT VANDERMEER Practice: CrossPoint Financial Firm: iA Private Wealth Location: Ottawa, ON

Brent Vandermeer is no stranger to the Wealth Professional honour roll; he was named ETF Champion of the Year at the Wealth Professional Awards in 2016. But this year marks his first appearance on the prestigious Top 50 Advisors list. A portfolio manager and executive director at Ottawa-based CrossPoint Financial at iA Private Wealth, Vandermeer has a record of industry experience that stretches back more than 20 years. His journey into wealth management began with an interest in finance and a love for trading stocks in college. Today, he personally manages $395 million in assets. Because everything was digitized at his practice prior to COVID-19, Vandermeer and the rest of his team were able to transition quickly to remote work. From there, they actively reached out to all clients and have managed to do well in terms of referral and growth, which is an area where Vandermeer aims to maintain momentum.

www.wealthprofessional.ca

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24/02/2022 3:59:34 am

FREDERICK W. MCCUTCHEON Practice: McCutcheon Private Wealth Firm: Canaccord Genuity Wealth Management Location: Toronto, ON

Frederick McCutcheon spent the early years of his professional career as a corporate and securities lawyer at a national law firm in Toronto, which enabled him to understand Canada’s securities industry on a deep level. “At the same time, I was investing in the market personally. In addition, many of my close friends were advisors,” McCutcheon recalls. “It was a combination of those experiences and my interest in the industry that led me to decide to make the career change into wealth management. I could not be happier with that decision.” When he’s not helping clients preserve and grow their investable assets with proprietary strategies, McCutcheon spends much of his time with his family, as well as participating in charitable initiatives.

NEIL MCIVER Practice: McIver Capital Management Firm: Canaccord Genuity Wealth Management Location: Vancouver, BC

LUKE KRATZ Practice: The Kratz Group Firm: CIBC Private Wealth Location: Victoria, BC

During his three decades of industry experience, Luke Kratz has developed and refined a process to help clients put the pieces of their financial puzzle together as their lives change and their needs evolve. Over the past seven years, he has grown revenue at a 15%-per-year clip. “My team and I were able to stay well while physically coming into the office during COVID-19 without interruption,” Kratz says. “Although we were not able to see clients face-to-face, we were able to conduct virtual meetings, which we had been doing since 2016.” Because of their familiarity with the technology, Kratz’s team didn’t skip a beat in conducting client reviews. They also continued to engage clients through informational webinars and virtual events, which were well received and instrumental in solidifying clients’ trust over the course of the pandemic.

A 25-year veteran of the business, Neil McIver credits his ability to help individuals grow and protect capital to his natural business and sales acumen, along with his interest in financial markets. “My goals for the upcoming year include streamlining our marketing efforts, improving outgoing content and increasing AUM to $500 million,” he says. “While we began to increase our marketing and outgoing content this past year, we are aiming to strengthen our connections with clients and reach a wider audience of potential new clients.” An active triathlete, McIver identifies his proudest achievement as raising more than $50,000 for the Make-a-Wish Foundation by completing the Ironman Canada challenge in 2007.

THIERRY JABBOUR Practice: Thierry Jabbour Financial Group Firm: Manulife Securities Location: Dorval, QC

Thierry Jabbour has spent 15 years in the wealth management industry, and he has no intentions of leaving soon. “I am not planning to take my retirement before age 70 at the least,” he says. “It’s my passion for the constantly changing financial world and the thirst for challenges, as well as more and more knowledge and skills, that keeps me going.” Aside from continuing to provide competitive returns to clients, Jabbour plans to expand his team by adding another CIM, a financial analyst and potentially other staff members. He’s also looking at opening an additional office in 2022.

www.wealthprofessional.ca

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24/02/2022 3:39:44 am

FEATURES

TOP 50 ADVISORS 43

BRENT THOMSON

Practice: Nicola Wealth Firm: Nicola Wealth Location: Kelowna, BC

One of several advisors representing Nicola Wealth on this year’s Top 50 Advisors list, Brent Thomson has been in the industry for 25 years. Before that, he was working at an insurance company that offered just a few seg funds when he received an earnest request. “A very close friend walked into my office one day and asked that I manage his and his wife’s retirement investment portfolio,” he recalls. “I didn’t have the knowledge nor sufficient investment offerings to accept him as a client, so I said no. He replied, ’Well, whenever you’re ready to manage my portfolio, just call and it will be here waiting for you.’” A quarter-century later, Thomson now manages more than $310 million in assets. He continues to proactively meet with clients and work with them and their other trusted advisors to find creative solutions through all phases of their financial life cycle.

JIM DURNIN Practice: Jim Durnin – Assante Wealth Management Firm: CI Assante Financial Management Location: Calgary, AB

After working in the computer industry for 14 years, Jim Durnin made the leap into wealth management in 1994. Today, he heads up a holistic financial planning and investment practice where he and his team help clients accumulate wealth and move forward financially. Aside from continuing to improve his practice and fight against what he sees as a broad industry push toward commoditization, Durnin is addressing the continuing challenges of COVID-19 through a three-pronged approach that includes team safety, client safety and business continuation. “My team and I have significantly reduced in-person client meetings and utilized technology tools like Microsoft Teams or Zoom to provide solid contact with our clients,” Durnin says. “My technology background helps me to embrace these newer technologies relatively quickly.”

RUSSELL FEENSTRA Practice: Nicola Wealth Firm: Nicola Wealth Location: Vancouver, BC

Russell Feenstra’s journey into wealth management sprang from his passion to help people, as well as his interest in financial services and markets. With nine years in the industry under his belt, Feenstra now manages just over $350 million in assets – and he still has a long road ahead of him. He hopes to continue to grow his business in a sustainable manner, provide high-level integrated financial planning to his clients, actively engage in learning and development opportunities, and provide mentorship to his team. “Building long-term client relationships is the main focus of my practice, and it all starts with planning,” Feenstra says.

www.wealthprofessional.ca

WILLIAM FRENN Practice: William Frenn Wealth Management Firm: Manulife Securities Location: Dorval, QC

William Frenn has long had a fascination with the financial markets, and he also enjoyed advising people on subjects like business strategy and wealth accumulation. The trouble was, he wasn’t sure how to get formally involved in wealth management. “I eventually met a gentleman who became my mentor and happened to be the founder of the Manulife Securities branch in Dorval,” Frenn says. “He introduced me to this industry, and I knew right away that this was what I was looking for.” Nine years later, Frenn continues to pursue growth as an advisor by striving for excellence in customer service, planning advice and portfolio management. He also continues to support others’ business growth by mentoring new advisors, and he takes pride in watching them grow their practices.

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24/02/2022 3:39:46 am

FEATURES

TOP 50 ADVISORS 39

38 KEVIN HEGEDUS Practice: PWM Private Wealth Counsel Firm: iA Private Wealth Location: Saskatoon, SK

ROBERT LUFT Practice: Luft Financial Firm: iA Private Wealth Location: Vancouver, BC

With 22 years of industry experience and more than $300 million in assets under management, Robert Luft is back on the Top 50 Advisors list after a one-year hiatus. Throughout his journey of success, Luft has been driven by a singular passion. “My passion was, and still is, meeting with people, understanding their needs and helping them navigate the world of financial planning and investment management,” Luft says, adding that he derives the greatest satisfaction from hearing clients share the impact his team has had on their lives. Now, Luft has his sights on expanding his team with other like-minded advisors who want to do the right thing for clients. He also envisions his role in the practice evolving over the next 10 years to encompass not just working with clients, but also mentoring the next generation of team members.

A 31-year veteran of the industry, Kevin Hegedus now has more than $530 million in AUM – a testament to his passion, strong work ethic and commitment to professional service. “From a young age, I have had a passion for working with numbers and a talent for building relationships,” Hegedus says. “Helping people solve problems has always been important to me, so this industry was a natural fit.” Hegedus also cites his primarily fee-based model of compensation, which he transitioned to in 2011, as a key element to his practice’s success, though he continues to offer traditional commission-based accounts on a limited basis. In addition to the ongoing enhancement of overall client service levels, Hegedus aims to deepen his practice’s bench with portfolio management expertise – which he views as prudent given the all-time highs in the markets – as well as expertise in accounting and tax.

37 NADER HAMID Practice: Total Wealth Management Group Firm: iA Private Wealth Location: Pointe-Claire, QC

In his fee-based portfolio management practice, Nader Hamid takes a scientific approach to finance. “I wanted to create a practice based on a foundation of research and a robust process, where the focus was never on sales but on bringing the best results for our clients,” he says. “The goal was to simplify their wealth management experience to help them achieve peace of mind.” Staying true to the practice’s mantra of continuous improvement, Hamid and his team are carrying on with the digital improvement initiatives they’ve taken on over the past two years and scrutinizing portfolios with an eye toward building resilience through alternative investments. Inflation and a post-COVID-19 shift in consumer preferences are also turning into points of focus, though Hamid says he’s sticking to his conviction in favouring highquality businesses as an anchor for his practice’s investment style.

www.wealthprofessional.ca

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24/02/2022 3:39:47 am

ETHAN ASTANEH

Practice: Nicola Wealth Firm: Nicola Wealth Location: Vancouver, BC

Over the past year, Ethan Astaneh has grown his client base by 35% and expanded his AUM by 50%. That progress has pushed him up two spots on this year’s Top 50 Advisor list. “Whereas in the past two years I have been focused on busi ness development, my focus for foreseeable future is to serve

my clients and their families well, specifically with a renewed lens of intergenerational wealth management,” Astaneh says, highlighting plans to have discussions with both clients and their adult children, who are often in need of financial literacy support. The challenges of the past two years have also prompted an expansion of Astaneh’s business plan to include intentional self-care. Spending a healthy amount of time with his family each week and adopting a regimented routine of diet, exercise and sleep, he says, has laid the foundation for heightened productivity in his career.

www.wealthprofessional.ca

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24/02/2022 3:47:08 am

FEATURES

TOP 50 ADVISORS

35 ADAM WATSON Practice: JMRD Watson Wealth Management Team Firm: National Bank Financial Location: Chatham, ON

Adam Watson is making his debut on the Top 50 Advisors list this year, but his practice, the JMRD Watson Wealth Management Team, is no stranger to Wealth Professional, ranking among last year’s 5-Star Top Teams for Eastern Canada. “I was exposed to the financial services industry from a very young age, as both my parents were investment advisors,” Watson says. “As I grew older, I witnessed how my parents assisted others in our small town on various financial topics. The experience led me to business school at Wilfrid Laurier University, where I specialized in finance. Right after graduation, I joined the team full-time.” With a strong team-oriented ethic, Watson’s immediate goals are defined by the practice’s recently completed 2022 business plan, which includes increasing discretionary business, rightsizing the number of client households and moving from a ‘red carpet’ to a ‘white glove’ client service offering.

www.wealthprofessional.ca

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24/02/2022 3:39:49 am

DAVID RUTLEDGE

Practice: Key Wealth Management Firm: TD Wealth Location: Vancouver, BC

After a one-year hiatus, David Rutledge has made a solid comeback to WP’s Top 50 Advisors list in 2022, thanks to a 72% jump in AUM. With 13 years of industry experience, Rutledge takes pride in his ability to work with clients to build their wealth and accomplish their goals. Faced with the challenges of COVID-19, he spent the initial months of the pandemic working from home. He was eventually able to receive an exemption to return to the office, which he says has allowed him to continue to manage and grow his practice. In the coming year, Rutledge plans to elevate his business by merging with another senior advisor, with the ultimate objective of creating a wealth management practice with fully developed investing, planning and client service levels.

TIM ESPLEN Practice: Nicola Wealth Firm: Nicola Wealth Location: Vancouver, BC

With six years of experience as an advisor and almost $440 million in assets under management, Tim Esplen is making his inaugural appearance on WP’s Top 50 Advisors list at number 33. “After completing university and moving across the country in 1999, I found myself considering various career options,” Esplen says. “My dad was a stockbroker for many years, so the financial services industry had always been a consideration for me, and when I got the opportunity to get my foot in the door, I took it.” Transitioning to remote work during the pandemic wasn’t difficult, Esplen says, because his firm was already set up for occasional work-from-home situations. As a result, he was able to devote more time and attention to client conversations, providing them with muchneeded reassurance that their portfolios were designed to withstand volatility.

COLIN ANDREWS Practice: The CM Group Firm: CIBC Wood Gundy Location: Calgary, AB

Currently in his 21st year in the industry, Colin Andrews rejoins WP’s Top 50 Advisors list with $565 million in AUM. Andrews first got acquainted with the business as a child when his father introduced him to his financial advisors. “My dad is not a wealthy person,” Andrews says. “He was a professor and social worker who showed me how he trusted the person he was dealing with.” Maintaining clients’ trust has been priority number one for Andrews and his team during the pandemic. They increased client contact, focused on listening to clients’ concerns and helped educate them on the behaviour of markets during previous crises. Looking ahead, Andrews and his team are reviewing their internal processes to find new ways to add value for each client.

WOLFGANG KLEIN Practice: The Wolf on Bay Street Firm: Canaccord Genuity Wealth Management Location: Toronto, ON

A mainstay on the Top 50 Advisors list, Wolfgang Klein has distinguished himself as one of Canada’s leading advisors for the ninth time. A firm believer in holistic wealth management, Klein pivoted into the industry in his mid-30s, drawn by a desire to help others. “Back when I was working in the media industry, I saw a lot of people who needed financial help,” he says. “Many of my friends and colleagues were all making nice incomes but were not saving and planning for the future.” As a portfolio manager running a discretionary business, Klein takes pride in his investment process and portfolios, which have exhibited some of their best relative performance years throughout the pandemic. His main objective, however, is to keep clients on track, minimize their taxes and ensure that they’re setting money aside each year until their retirement – and sometimes beyond.

www.wealthprofessional.ca

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24/02/2022 3:46:57 am

FEATURES

TOP 50 ADVISORS 30

29 MARK THERRIAULT Practice: Nicola Wealth Firm: Nicola Wealth Location: Vancouver, BC

Mark Therriault is making his debut on the Top 50 Advisors list this year. Therriault was drawn to the profession 15 years ago by the opportunity to work with interesting clients and their families; today, as a director at Nicola Wealth, he is responsible for creating wealth transition and succession plans for those clients. Providing peace of mind has been crucial to Therriault during COVID-19 – he ensured clients were being contacted as often as possible so they knew their investment strategies could withstand the crisis. Beyond that, his team shifted portfolios and adapted strategies as needed to capitalize on opportunities created by the pandemic. “My focus this year is to build out a model that all advisors at our firm can use to ensure our clients have all their tax and estate planning covered, along with strong portfolios positioned well for the upcoming market fluctuations and inflation,” Therriault says.

WES ASHTON Practice: Oakwater Wealth Counsel Firm: Harbourfront Wealth Management Location: Vancouver, BC

Wes Ashton had a memorable year in 2021 – his practice outpaced its record year in 2020 by more than 50%. He was also recognized on both WP’s Top 50 Advisors and 5-Star Advisors lists for the year. But Ashton isn’t resting on his laurels. To keep pace with the rapidly changing investment landscape, he’s in the process of collaborating with two other principals to create a family wealth office that can provide clients with value beyond the tax, retirement, investment and other planning services they already enjoy. “In years past, portfolio management and returns were the key metrics to measure success,” Ashton says. “Now, advisors are seen as confidants who provide counsel on a variety of matters and help navigate life events: declining health, passing of loved ones, divorce, family challenges such as mental health, etc. Being in a position to provide confidence and direction has been both rewarding and humbling and a responsibility I’d like to continue for years to come.”

ELIE NOUR Practice: Nour Private Wealth Firm: Nour Private Wealth Location: Oakville, ON

A consistent Top 50 Advisors honouree, Elie Nour currently manages around $600 million in assets, which is a testament to both his dedication and his disciplined approach. “Good advisors know their limitations when it comes to investing clients’ money,” he told WP in a 2021 interview. “They need to be well diversified and always need to have a plan B and C in case things do not turn out as planned. After all, investing requires patience.” Nour’s professional history as a financial advisor stretches back 16 years, and he’s come a long way since taking his practice independent just over three years ago. Today, Nour Private Wealth’s footprint extends to both Ontario and Quebec, with offices in the GTA and Montreal.

www.wealthprofessional.ca

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24/02/2022 3:39:51 am

CHAD LARSON

Practice: MLD Wealth Management Group Firm: Canaccord Genuity Wealth Management Location: Calgary, AB

Chad Larson continues on his path of excellence with another appearance on the Top 50 Advisors list. With approximately $860 million in AUM, Larson’s goal for 2022 is the same as it’s always been: to grow his business and help more families achieve their goals. And with only 18 years in the industry, he has plenty of opportunity ahead to continue doing just that. To weather the COVID-19 pandemic, Larson has been working hard to keep staff motivated, healthy and inspired to accept the challenge as an opportunity. He applies that same philosophy with prudence during periods of market volatility like he witnessed last fall. “No one’s hitting the seatbelt sign on the plane to come over the mountains yet, but I think prudency would dictate that liquidity is available within the portfolio,” Larson told WP in an interview last August. “If the market has periods of violence or turbulence, you can then use that liquidity to take advantage of mispricings when people become irrational.”

26 ROB MCCLELLAND Practice: The McClelland Financial Group Firm: CI Assante Capital Management Location: Thornhill, ON

A regular feature on Wealth Professional’s Top 50 Advisors list since its inception, Rob McClelland has made a tremendous jump in the standings, moving up from number 42 in 2021 to number 26 this year. That’s largely due to a 27% boost in AUM, which elevated him past the $600 million mark. Now in his 30th year in the industry, McClelland still envisions himself as an advisor in 10 years’ time, though in a less hands-on capacity. He foresees moving out of all client relationships by that point but continuing to provide inspiration to his team. In the nearer term, his primary objectives are to grow the tax service in his practice, continue to build on social media efforts, expand his rollout of nextgeneration family meetings to his entire client base and develop a permanent hybrid work strategy.

ANDREW FEINDEL Practice: Richie Feindel Wealth Management Firm: Richardson Wealth Location: Toronto, ON

With 18 years of industry experience, Andrew Feindel is making his inaugural appearance among this year’s Top 50 Advisors, thanks to a year of substantial growth in which his individual AUM leapt by 55%. A published author, Feindel says his proudest moment was seeing Kickstart Your Corporation, the book he co-authored with business partner Kyle Richie, take the number-one spot on Amazon in three different categories. And while the COVID-19 pandemic was and continues to be a challenge, it’s had some benefits for Feindel. “It made me a much better financial planner, and I believe clients would validate that statement,” he says. “I have never been more efficient using Webex in servicing clients.” But he’s not coasting on his victories by any means. Feindel aims to be the best financial planner in the country by maintaining best-in-class service, and he’s eyeing an ambitious target of bringing in $1 million in assets per week, which would allow his practice to hit $800 million in AUM by the end of December 2022.

www.wealthprofessional.ca

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24/02/2022 3:39:52 am

FEATURES

TOP 50 ADVISORS

24 ALEXANDRA HORWOOD Practice: Alexandra Horwood & Partners Firm: Richardson Wealth Location: Toronto, ON

Among the select group of female financial advisors on this year’s Top 50 list is Alexandra Horwood, who worked hard to grow her AUM by 43% during the past year. With just over $465 million in assets under management, her stated goal of hitting the half-billion-dollar mark within the next year is well within reach. Horwood got her start in the industry not long after she graduated from the University of Waterloo. Coming from a renowned family of financial advisors gave her the opportunity to learn about the business. “Within three years, I was hooked,” Horwood says. “I studied and was mentored by great accountants, financial planners and wealth managers and started building my business.” During the tumult of the COVID-19 downturn, Horwood and her tech-savvy team called clients constantly to listen to their fears and keep them calm and invested. They also helped many clients deploy more cash into the market, which ultimately added to their wealth.

www.wealthprofessional.ca

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24/02/2022 3:41:31 am

SOPHIA ITO

Practice: Nicola Wealth Firm: Nicola Wealth Location: Toronto, ON

Sophia Ito has made significant strides over the past year. Not only has she grown her AUM by 30%, but she improved her standing on the Top 50 Advisors list by advancing from number 37 in 2021 to number 23 this year. She’s not one to take all the credit, though. “Sharing the pie is important,” she says. “A collaborative and team-based approach ensures we are able to provide the best outcomes for our clients, and in the end, we all win.” Throughout her years in the industry, Ito has relished the technical and creative challenges that come with wealth management. She says the ability to apply analytical skills, critical thinking and emotional intelligence to a client’s situation is important to assist them through critical life milestones and decisions.

LUDOVIC SIOUFFI Practice: The Ludo Group Firm: Canaccord Genuity Wealth Management Location: Vancouver, BC

Ludovic Siouffi is making a strong and decisive entrance on the Top 50 Advisors list, thanks to a 109% jump in AUM. That stands a testament to his determination and grit, as well as his commitment to the impact investing strategy he offers in his practice. “During my MBA, I wrote my thesis on the impact of small loans in the Philippines,” Siouffi says. “With three others, we set up the first microfinance company that facilitated loans between charity groups and families living in extreme poverty, below $1 a day. Witnessing firsthand the impact that these seemingly small loans had on low-income families is what motivated me to start my Impact Portfolio.” Siouffi is a certificate holder of the Responsible Investment Association, which makes him one of the few advisors in Canada certified to identify and manage ESG risk and implement ESG factors in investment decision-making.

FAISAL KARMALI Practice: Popowich Karmali Advisory Group Firm: CIBC Wood Gundy Location: Calgary, AB

During the past year, Faisal Karmali grew his individual AUM by 21%, taking his total to $776 million. With 24 years of experience in the industry, Karmali says he’s driven by the opportunity to make a positive impact in people’s lives by helping them improve their financial security. For Karmali and his team, the all-consuming challenge of the COVID-19 pandemic was the perfect chance to make a difference. “Our paramount strategy was to maintain communication with clients,” Karmali says. “We became educators not only about the markets, but also about the healthcare system. We helped clients and family members complete CERB, CPP and OAS applications where necessary, and tried to reach out and engage with clients on a regular basis about more than just their money, to give them the emotional support that they may have needed.”

CRAIG BAUN Practice: Baun Investment Group Firm: Wellington-Altus Private Wealth Location: Calgary, AB

Growing up in a family of small-business owners, Craig Baun has always understood the concept of treating clients the way you’d want to be treated. It’s a skill that paid off during the pandemic, as he not only maintained a $900 million AUM book of business but also deepened relationships with his clients. Being part of the success of “remarkable people” is what drives him and keeps him humble, Baun says, and one bittersweet memory from 2021 stands out. Baun was asked to give the eulogy at the funeral of a client, Mel Benson, who was the longest-standing board member at Suncor. “I was deeply honoured,” Baun says. Baun, whose practice is more than 90% fee-based, believes his career as a portfolio manager and investment advisor is the perfect marriage of his strengths: understanding numbers, finance, and markets, and building relationships with people by adding value to their lives. A regular on Money Matters on Global TV Calgary, Baun places huge value on his committed and skilled co-workers, and he’s looking to raise standards even higher in 2022. “[We aim to] continue to consistently build wealth for our clients, deepen relationships even further and do the little things that can make a difference for the people who have put their trust in us,” he says.

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FEATURES

TOP 50 ADVISORS 19

REG JACKSON Practice: JMRD Watson Wealth Management Team Firm: National Bank Financial Location: London, ON

Reg Jackson has maintained his place in the top 20 after another excellent year in which he grew his AUM to $775 million. His practice’s focus on technology has paid off through the pandemic, and his team has also increased communication with clients, sending out an additional weekly email that proved to be a great success. Internally, the team also added a daily strategy call to share research and client contact stories. “We essentially went from 18 team members working from four offices to 18 people working from 18 different locations,” Jackson says, “and I would argue that our communication has never been better.” The cornerstone of JMRD’s business plan for 2022 and beyond includes a ‘white glove’ offering, as well as an ongoing focus on technology, which Jackson believes will continue to transform the wealth space.

17 BRAD GROSS Practice: Brad Gross Wealth Advisory Group Firm: Wellington-Altus Private Wealth Location: Swift Current, SK

When Brad Gross isn’t managing his clients’ money, he can often be found on stage with his band, RibRash. Gross certainly hit all the right notes in 2021, something he puts down to his dedication to servicing, advising and educating his clients, as well as managing portfolios in a disciplined way. Gross is in growth mode: His AUM swelled an impressive 227% in 2021 – the highest AUM increase among this year’s Top 50 – and he added about 200 clients last year. “I got into the business to assist and educate people to keep and grow their wealth,” Gross says. “I also wanted an entrepreneurial business.”

TODD DEGELMAN Practice: Degelman Pruden Group Firm: Wellington-Altus Private Wealth Location: Saskatoon, SK

Todd Degelman treasures the bond he shares with his clients – and these relationships are at the heart of his response to the ongoing pandemic. In 2021, he worked harder than ever to take care of clients and their investment needs, showing that he was not only on top of the situation, but utterly immersed in what needed to be done. His team called as many clients as possible to explain how to take advantage of the downturn and the best time to add money to the market. “The result was a lot of money added,” he says. Degelman, who has been a staple at the top end of WP’s Top 50 Advisors list for the past four years, first learned about the industry in the hockey rink. His team had about five advisors on it, which piqued his interest. Now he can’t imagine doing anything else, and he has some clear targets for 2022. “Our team’s primary goal is to educate our clients on quality of return versus rate of return,” he says. “We want our clients to have a better understanding of how we can analyze return for every unit of risk taken. We also want to have deeper conversations with clients regarding their relationship with their tax accountants and review any tax strategies.”

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BRAD JARDINE Practice: CIC Financial Group Firm: Aligned Capital Partners Location: Ancaster, ON

Brad Jardine retains the number 15 spot from 2021 – but don’t let that fool you. The past year has been a busy one for Jardine, who increased his AUM by more than 50% and added new clients to his book. Within his referral-based business, Jardine focuses on nurturing his client base, which in turn propels his organic growth. An experienced advisor with more than 36 years in the industry, Jardine still has plenty of energy and passion for wealth management and loves the fact that no two days are the same. “I believe I was naturally primed for a career in the industry,” he says. “As my career evolved, there was a great opportunity to provide a full-service advisory model to prospects and clients alike, regardless of net worth. There is nothing more rewarding than serving objectively and delivering client-focused advice that helps others accomplish their goals.”

ROB TÉTRAULT Practice: Tétrault Wealth Advisory Group Firm: Canaccord Genuity Wealth Management Location: Winnipeg, MB

Business “exploded” for Rob Tétrault in 2021. He added almost $300 million in AUM last year, and he’s targeting another $200 million of net new assets in the next 12 months, which would mean hitting the $1 billion goal he set for himself as a rookie advisor 12 years ago. Tétrault and his 20-strong team, which includes his dad and his sister, boast a successful social media strategy; this year, he hopes to add another 5,000 followers across his YouTube, Facebook and LinkedIn channels. “I love this business and consider myself the luckiest guy on the planet to go to work every day and spend time with the awesome people I work with, doing something that I truly love, all the while getting paid for it,” Tétrault says. “It brings me great joy to be able to advise a client that we can save them a ton of taxes with an improved portfolio or an efficient financial plan, or we’re able to leave money to their favourite charity, or we’ve protected their capital during a huge downturn. Giving wealth advice is a privilege, and I’m blessed to be able to do it every day.”

DWIGHT MANN Practice: Mann Team Wealth Management Firm: Canaccord Genuity Wealth Management Location: Vancouver, BC

While the pandemic continued to present challenges to advisors in 2021, most of them were manageable for portfolio manager Dwight Mann. He was able to mitigate volatility through active risk management and incorporate videoconferencing to service clients. He also allocated additional time to client communication. “This helped provide peace of mind to clientele through an unnerving period,” he says. Mann’s primary goal for 2022 is to continue to adopt innovative methods of business development and to enhance his team’s client interaction and available resources. “We want to ensure that we are connecting with all prospective investors using various platforms and means of communication,” he says. “As a result of the COVID-19 pandemic, clients have spent an increasing amount of time online viewing accounts and holdings. We want to provide a more informative experience, helping better educate our clients on understanding their financial position and the perpetually changing economic landscape.”

13 MICHAEL MOUNTFORD Practice: The Mountford Group Firm: Scotia Wealth Management Location: Toronto, ON

A fee-based advisor, Michael Mountford grew his book to $950 million last year, spurred on by his goal to be his clients’ financial health coach. Engaging with his clients is at the heart of what Mountford, an industry veteran of close to 30 years, brings to the table. The Mountford Group describes itself as “true believers in wealth planning” who combine innovation with a focus on excellent service. The practice promises clients they will work with “original thinkers – where a passion for doing the right thing runs deep and where a balance of creativity and attentiveness drives uniquely practical solutions.”

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FEATURES

TOP 50 ADVISORS 12 KYLE RICHIE

Practice: Richie Feindel Wealth Management Firm: Richardson Wealth Location: Toronto, ON

After being named number one on WP’s Top 50 Advisors list in 2019, Kyle Richie continues to go from strength to strength, having recently transitioned from IG to Richardson Wealth. Having grown his practice with business partner Andrew Feindel from nothing to $650 million in just over a decade, Richie is now targeting $800 million by the end of 2022 and $1 billion by the following year. “We are especially proud that this is 100% organic growth – no inherited or purchased book, no previous family members in the business, all fee-based and no large concentrated transaction accounts,” he says. Richie’s love of the markets was sparked when he was just 12 years old. When he rolled the dice to buy and sell commodities in Stock Ticker, something clicked, and he instinctively knew what he wanted to do for the rest of his life. As well as growing his practice, he co-authored a book with Feindel, Kickstart Your Corporation, that became an Amazon bestseller. During the pandemic, Richie quickly moved to “COVID-proof” clients’ portfolios, adding tech, healthcare and Canadian banks, and reducing traditional fixed income vehicles. “Nothing replaces seeing clients make money, save taxes and have a stress-free retirement,” he says.

SEAN GERCSAK Practice: Gercsak Private Wealth Firm: Canaccord Genuity Wealth Management Location: Vancouver, BC

Sean Gercsak was on a hot streak in 2021, growing his practice’s AUM by 170% – the third highest rate among this year’s Top 50 Advisors. He credits this rapid progress to a strong market and already established remote operating expertise. The success also enabled him to add to his team. Gercsak’s passion for numbers and teaching, along with his natural curiosity for the next trend, has been a great combination during his 13-plus years in the business. Communicating with clients, and making them feel comfortable and part of the process, comes naturally to him. Despite his stellar 2021, some of Gercsak’s proudest career moments happened the previous year. “Most of my clients had two positions in 2020 which produced 10x to 20x returns,” he says. “In both situations, I played a very active role as a shareholder advocate. Both companies are pursuing very noble business models. The returns were life-changing for many clients, and it was a very proud and satisfying moment for me.” And his goals for 2022? “Exceptional returns for my clients,” he says. “Full stop.”

GERALD GOERTSEN Practice: De Thomas Wealth Management Firm: De Thomas Wealth Management Location: Kelowna, BC

With more than 3,000 clients, Gerald Goertsen has a lot of responsibility on his shoulders. But it’s a weight he carries with aplomb, driven by his desire to “help people achieve the goals they never thought they could achieve. I am passionate about helping educate people to improve financial literacy. People need to be given the information so they can make informed decisions to improve their lives.” The pandemic brought its own challenges, of course, but Goertsen and his staff responded, putting up Plexiglas barriers to protect clients and staff, mandating vaccinations for employees and becoming experts on Zoom presentations. “We are constantly improving our service by adding staff to get the job done,” Goertsen says. “This is my passion – I see myself in the industry until I am no longer able to do it.”

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10 ANDREW MCQUISTON Practice: West Oak Family Office Firm: Wellington-Altus Private Wealth Location: Calgary, AB

Andrew McQuiston and his team took the West Oak Family Office’s AUM to $850 million in 2021 – an impressive 48% year-over-year increase. Founding the practice remains the proudest accomplishment in McQuiston’s career, which spans almost 20 years. West Oak Family Office works exclusively with a small number of wealthy executives, business owners and their families. As head of the bespoke multi-family office in downtown Calgary, McQuiston specializes in helping high-net-worth families understand all parts of their wealth and ensuring all the moving pieces work together. His targets for 2022 include growing client assets and continuing to develop his team.

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FEATURES

TOP 50 ADVISORS 8

MARVIN J. SCHMIDT

Practice: The Schmidt Investment Group Firm: CIBC Private Wealth Location: Edmonton, AB

In high school, Marvin Schmidt was often teased by basketball teammates on road trips for studying the business pages, investment research reports and tips from the world’s best investors. It’s fair to say he’s having the last laugh. With a mission to simplify wealth for clients, Schmidt has built his 30-plus-year career around a fierce desire to positively impact the lives of his clients, his team and some of the most vulnerable people in the world. Named Canadian Advisor of the Year at the 2020 Wealth Professional Awards, Schmidt also dedicates himself to Expand Hope, a charity he co-founded with his wife, Leah, which works to eradicate poverty in vulnerable communities. The Schmidt Investment Group serves Canada’s affluent families, and the practice’s aim for 2022 is to continue to build out its family office division. With current AUM of $885 million, the team is also looking to hit the $1 billion milestone. The pandemic certainly hasn’t derailed these plans. “When it comes to challenges that our clients have, we have always viewed them as opportunities that allow us to add more value to their lives,” Schmidt says, “and we navigated the COVID-19 pandemic in a similar way, choosing to focus on the opportunities that this unprecedented challenge presented.”

JAMIE SWITZER Practice: The Switzer Group Firm: Canaccord Genuity Wealth Management Location: Vancouver, BC

Jamie Switzer more than doubled his AUM in 2021 – and he credits this success in part to not deviating too much from his method, despite the impact of the pandemic. As soon as it was safe to return to the office, he made in-office work a priority. Zoom meetings were introduced, of course, but lines of communication with clients remained strong. Switzer is drawn to the entrepreneurial spirit of the wealth business and loves the fact that each day is different. “I find the numerous factors at play at any given time fascinating and love doing my best to adapt to challenges in the markets and the economy,” he says. Switzer’s aim now is to continue to grow organically and build on the “amazing group of clients I’ve assembled to date.” Outside the office, he gives back to charity and is the youngest honorary director at Lions Gate Hospital. “I love coming to work, have terrific clients, and I am so proud of the team I’ve assembled around me,” he says.

THANE STENNER Practice: Stenner Wealth Partners+ Firm: Canaccord Genuity Wealth Management Location: Vancouver, BC

A wealth management veteran of 33 years, Thane Stenner grew up immersed in the investment business. His father was an advisor for almost half a century, and that enabled him to meet industry icons like Sir John Templeton, Peter Lynch and Warren Buffett. “They inspired me to join and stay committed to this amazing industry in which we can have such a positive impact on people’s lives,” Stenner says. “I find it intellectually challenging to both make clients money and protect client capital during bull and bear markets, while also building deep relationships to endure for the longer term.” Stenner works solely with $10 millionplus households across Canada and only takes on a few new relationships a year. His AUM stands at $720 million, but with the addition of the right clients and portfolio performance, he’s aiming to cross the $1 billion threshold by the end of 2022. Ranked number two on WP’s Top 50 Advisors list in 2017, Stenner and his colleagues were also named the top-ranked California-based team on the Barron’s Top 50 Institutional Consultants List in early 2020 before moving their practice back to Vancouver. He has also served on the advisory boards and committees of more than 15 organizations, which he describes as “very rewarding.”

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5 KAREN IKEDA Practice: Nicola Wealth Firm: Nicola Wealth Location: Vancouver, BC

Since becoming the first woman to rank at number one on WP’s Top 50 Advisors list last year, Karen Ikeda has enjoyed another exceptional year by adding new clients and taking her AUM to almost $1.4 billion – the third largest total on this year’s list. Ikeda credits the “incredible mentorship and encouragement” from Nicola Wealth founder and CEO John Nicola as one of the main factors behind her success. She has continued to navigate the pandemic with aplomb and maintained open lines of communication with her purposely small number of clients to ensure they “don’t feel any financial stress on top of the underlying pressure we’re all feeling.” “I’m looking forward to reconnecting face-toface with each of my clients,” she says. “I also hope to play a key role in building the next generation of top advisors.” Ikeda’s proudest career moment? “Being named among the Top 50 Advisors year after year,” she says. “If you had told me in 1994 that I’d be on this list, I wouldn’t have believed you.”

PETER KIRBY Practice: Kirby Private Wealth Firm: Canaccord Genuity Wealth Management Location: Toronto, ON

Kirby Private Wealth’s website describes its leader as “naturally energetic and goal-focused,” which has undoubtedly contributed to the massive growth of his business. Boasting the second largest book among this year’s Top 50 Advisors, Peter Kirby and his team increased their AUM by 37% in 2021 to almost $1.4 billion. With more than 1,800 clients, it’s a busy practice, but one that centres on ensuring people are being looked after. “My goals [every year] are usually the same and revolve around existing client satisfaction,” Kirby says. “Luckily, at this point, I have enough assets.” Kirby has built a loyal client base by helping his corporate and private wealth clients achieve their financial and life goals, but the team he’s built remains his proudest accomplishment. “The culture in our group is great, and that makes coming to work very enjoyable,” he says.

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FEATURES

TOP 50 ADVISORS 3

DAVID LEPOIDEVIN Practice: LePoidevin Group Firm: Canaccord Genuity Wealth Management Location: Vancouver, BC

David LePoidevin’s numbers are eye-catching: $1.7 billion in AUM (the highest among this year’s Top 50 Advisors) and more than 2,000 clients. While his success is certainly no flash in the pan – LePoidevin began his career as an investment advisor the day after his last economics exam at university – he says the 2008 financial crisis was a turning point in his career. “In 2007, I wrote a client letter titled ‘Credit Crunch,’ where I outlined the cracks in the US mortgage market,” he explains. “I positioned the clients in a very defensive position with a high weighting to bonds and cash. In March, I wrote ‘Stock Downright Cheap’. My clients were in a position to buy. I had so many referrals in 2009 because of the client experience.” LePoidevin’s hands-on portfolio management has delivered strong risk-adjusted returns through many market cycles, and 2022 poses new investment challenges such as high stock valuations and an inflation rate not seen in decades. “This could challenge conventional wisdom and may require some contrarian positions,” he says. “The goal for the coming year remains the same – strong risk-adjusted returns.” When the market crashed at the beginning of the COVID-19 pandemic, LePoidevin sent a letter to all clients that outlined six previous pandemics and how the market had rebounded five times – and every time within 18 months. He advised clients not to panic and did a lot of hand-holding over the subsequent months. “The result was solid high single-digit returns for clients in 2020,” he says, “and 2021 was a stellar year for my clients as we manage through this ongoing pandemic.”

GORD LOVE

Practice: Rosedale Family Office Firm: Wellington-Altus Private Wealth Location: Toronto, ON

Nearly two years ago, Gord Love moved Rosedale Family Office from ScotiaMcLeod to growing independent firm Wellington-Altus – and the practice has gone from strength to strength ever since. Originally drawn to the profession by what he saw as a gap between investments and tax planning, Love is now committed to improving his team’s service offering to clients by leveraging the technology on offer at Wellington-Altus. With 27 years of experience in the business, Love has capitalized on his ability to identify the complexities involved in managing the needs of highnet-worth families, creating a one- stop, full-service, curated investment and wealth management service. In 2021, his team increased its AUM by 76% to more than $870 million. When he’s not attending to clients’ needs and proudly enjoying the success of his team, Love volunteers with Sunnybrook Hospital.

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DAVID POLIQUIN

Practice: BGY, Services financiers intégrés Firm: iA Private Wealth Location: Quebec City, Quebec

There’s a fresh face atop Wealth Professional’s Top 50 Advisors list this year – at just 36, David Poliquin is a young advisor making waves. Last year was an undisputed success for Poliquin, who added close to $450 million in AUM to his book in 2021, taking it to $1.24 billion. The pandemic has allowed Poliquin to not only flex his investment muscles, but also forge deeper connections with his clients. “On the market side, it was a fantastic financial opportunity,” he says. “It was also a great time to connect with our investors and be there when it was important. For the team, we were already set up to work from home for most of the staff. It was more about adjustments and adaptation over the months. We also have our own software and IT people, so even with a

60-people team, we remain highly flexible.” Poliquin says he’s driven by a desire to help people and families with their finances. He does this via a holistic approach, adding value through tax optimization and best investment strategies so clients can reach their goals. He adds that his team has created an “innovative tax solution for high-earner taxpayers. We want to deploy it in the province while we continue our growth and manage our portfolios to maintain our position as a leader in tax-efficient solutions.” Poliquin’s proudest career moment came at the beginning of the pandemic; in March 2020, he and his team created a structured note, designed in conjunction with RBC, which gives “675% of the return of the equal-weighted Canadian banks index.” He adds that all of the practice’s clients benefited. “The strike price, on the 24th of March 2020, was only one day from the low of the market.” BGY also offers conferences and support to charitable organizations, as well as financial education for the employees of some of its business clients.

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SPECIAL PROMOTIONAL FEATURE

MARKETING

Bringing an advisor’s vision to life Q Wealth’s unconventional marketing team brings big-brand experience from music, fashion and retail – and it’s a difference-maker for Canada’s elite advisors WHEN AN advisor makes the decision to leave their bank or dealer, they want to ensure their vision for offering a great client experience, and how they will use their unique skill set to add value, is in alignment with their new firm’s values and platform. It’s why Q Wealth’s in-house boutique marketing team has no financial legacy employees. Instead, it boasts a mix of dynamism and

experience unique to the wealth space. From overseeing the Canadian marketing of global music stars like Justin Timberlake and Calvin Harris to developing social strategy for fashion brands and designing experiential campaigns for video game designer Ubisoft, Q Wealth’s marketing team and its network of branding experts bring a vibrant, contemporary feel to the stale world

of advisor marketing. In a previous life, Stephen Gasparek, head of marketing and executive partner at Q Wealth, worked in artist marketing for Sony Music Entertainment, managing a roster of international acts in the Canadian market. The roster of global artists included Pharrell Williams, Depeche Mode and Pink. He tells WP that advisors love working with

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his team of marketing professionals, which also includes former professional musicians, social media strategists and a corporate partnerships executive from Live Nation, who are in touch with globally competitive brands. “The goal of the firm was to compete with brands outside of financial, which is a key differentiator,” Gasparek says. “Our big objective was to bring contemporary brands’ philosophies to this drab world.” For those elite advisors who have previously felt shackled by a large dealer or bank, and who have a strong sense of what sets them apart, the Q Wealth Partners marketing team is a breath of fresh air in the Canadian private wealth space. While Q Wealth Partners are owners in the portfolio management firm, their team and brands are positioned as multi-family offices so their unique value proposition can really shine. With that in mind, the team provides each new partner with a brand book after a two- to three-week discovery and research period. It’s symbolic of Q Wealth’s fast-paced, agency-style marketing mentality. Jared Rabinowitz, executive and founding partner, says that, like in music artist marketing, Q Wealth looks at the potential of each partner it brings to the firm. “We need to see something that makes them special – a facet or two we can polish and use to help differentiate them and carry their message,” he says. “At the end of the day, ‘I invest your money in the stock market,’ even if you think you do it better than the person in the identical office to your left and right, is not a value proposition. “Q Wealth elevates the portfolio management, and our partners, with the requisite education and experience, can certainly be a part of that within the registrant, but the partners we’re attracting add so much value beyond the investments, they want to shout about it. They want clients to realize they should expect so much more than just a portfolio of investments.”

Q Wealth’s marketing capabilities are designed to tell a partner’s story around the client journey. It’s an area Gasparek has always identified as an opportunity. Despite extremely modest marketing budgets, the music business is quite adept at engaging people’s attention, while the wealth space

and social media marketing, the Q Wealth marketing team employs leading tech platforms to remain ahead of the pack. For example, Q Wealth’s cutting-edge marketing automation works seamlessly in the background of a partner’s website, tracking prospect behaviour and areas of

“The goal of the firm was to compete with brands outside of financial, which is a key differentiator” Stephen Gasparek, Q Wealth has the big marketing dollars but comparatively dull campaigns. At its heart, Q Wealth Partners, as the ring of partner ownership around Quintessence Wealth (the registered PM firm), does not position itself as a financial company, but as a technology and support platform for advisors, bringing holistic planning and wealth management together with portfolio management using modern technologies. In addition to his team, Gasparek leans on an extensive network of freelancers who have worked on brands like American Express, GoDaddy, BMW and Samsung. While many financial organizations have marketing teams akin to glorified compliance departments, Q Wealth feels like a true marketing agency: responsive and fast-acting. “It’s inspiring,” Gasparek says. “There’s a real opportunity for advisors leaving their dealer or bank [to partner with Q Wealth and] to significantly outperform these legacy institutions in the private wealth space.” Ambitious advisors don’t have the time to be marketing experts, so Q Wealth Partners boosts their capabilities so they can focus on their core competency – serving their clients. Rather than relying on stock templates, everything is personalized at Q Wealth. From customized websites to unique video content

interest, ultimately enabling advisors to see which prospects are most likely to convert to real clients based on lead-scoring analytics. For prospects, Q Wealth partners are again able to go beyond clicks to generate leads. They can see what people are interested in, enabling them to refine content and use AI tools to analyze prospects’ personalities and communication styles. “Eventually, we know our prospects as if they were our longtime clients,” Rabinowitz says. “We can then cultivate that by providing a call to action, like attending an event or even just an invitation for coffee and a chat about what has meaning for them. That could be a specific financial need or a shared hobby or passion.” In addition to social media marketing, Google Analytics reporting, webinar and podcast production, and monthly tutorials for partners and staff, the marketing team can use LinkedIn Sales Navigator, which helps them filter leads even more precisely to the region and profession they are targeting as clients. Leaving your dealer or bank means having an independent voice, brand identity and value proposition. Q Wealth’s eclectic but carefully curated team of marketing experts has the skills, urgency and imagination to bring that to life.

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SPECIAL PROMOTIONAL FEATURE

ACTIVE ETFs

Finding opportunity in a rising rate environment Dynamic Funds’ Peter Tomiuk and Alan Green outline three ways investors can capitalize as central banks move to tame inflation by raising interest rates

FOR THE past several months, North American investors have been keenly focused on rising inflation and its impact on everything from interest rates and company earnings to consumer spending and much more. While central banks, like the US Federal Reserve, initially viewed rising prices as a short-term effect due to pandemic-induced shortages, various inflation gauges indicate that high inflation could be an issue for quite some time. In January, US inflation reached 7.5%, its highest reading in nearly four decades, while Canadian inflation climbed to 5.1% in January, its quickest pace in 30 years. Central banks have typically raised interest rates in an effort to stave off inflation. Rising interest rates can create a number of attractive investment opportunities in a wide range of other assets and investment strategies – including fixed income strategies with floating rate characteristics, rate-reset preferred shares, and even equities in certain sectors that benefit from rising interest rates, like financials, where banks and insurance companies tend to see their profit margins increase as rates rise. In the current environment, we believe that active management provides a real advantage over passive investment approaches. Unlike passive ETFs, which are designed to track an index, active ETFs are actively managed by

a portfolio manager who can adjust a fund’s holdings and make tactical shifts in response to market conditions – especially anticipated changes in interest rates.

THREE KEY ACTIVE INVESTMENT OPPORTUNITIES Fixed income

Floating-rate funds: Unlike traditional bonds, which pay a fixed rate of interest, floating-rate funds have a variable rate that resets periodically. When interest rates rise, the fund’s holdings adjust to the new rate. Therefore, exposure in a floating-rate fund

A WORD ABOUT DURATION A bond’s duration is a measure of the sensitivity of the price of a bond to a change in interest rates. As a general rule, for every 1% increase or decrease in interest rates, a bond’s price will change approximately 1% in the opposite direction for every year of duration. For example, if rates were to rise 1%, a bond or bond fund with a five-year average duration would stand to lose roughly 5% of its value. It’s therefore critical to limit a fund’s duration when rates are rising.

can enhance returns when rates trend higher. Floating-rate funds are also an attractive option for investors who want to maintain a portfolio return that keeps up with the rate of inflation. The best time to buy floating-rate funds is when rates are low (or have fallen rapidly) and are expected to rise. Tactical bond funds: Traditional bond prices have an inverse relationship with bond yields (i.e. bond prices fall as rates rise). Consequently, in a rising rate environment, an active manager can help minimize interest rate risk by keeping a fund’s duration short (see the box on the left for more). It is therefore ideal to have duration flexibility in your core fixed income portfolio. An active tactical bond fund offers a wide range of investment flexibility. A portfolio manager has the ability to manage not only interest rate risk but also credit risk by reaching for higher yields during expanding markets while opting for higher-quality bonds (with a lower risk of default) when markets are volatile. This is in marked contrast to passive bond funds, which may be exposed to substantial interest rate risk in an inflationary environment.

Preferred shares

An asset class that should continue to benefit from rising rates is preferred shares.

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A WORD ABOUT ACTIVE ETFs As more investors turn to ETFs to form part of their investment plan, the demand for active management within the structure has increased. Dynamic Funds offers a wide array of active ETF solutions, including:

DXV DXB DXP DXF

Dynamic Active Investment Grade Floating Rate ETF Dynamic Active Tactical Bond ETF Dynamic Active Preferred Shares ETF Dynamic Active Global Financial Services ETF

CELEBRATING FIVE YEARS OF ACTIVE ETF PERFORMANCE Dynamic Funds is proud to recognize the five-year anniversary of the following actively managed ETFs. Among the first of their kind in Canada, they bring an active strategy to the flexible, competitive ETF structure.

DXC DXO DXG DXP DXU

Preferred shares are often described as a hybrid security that combines the stable and consistent income payments of bonds with the equity ownership advantages of common stock. In Canada, where the preferred share market is primarily composed of discounted rate-reset preferred shares, higher rates may mean higher interest returns, hence higher share prices. Another appeal is that income from preferred stock gets preferential tax treatment since qualified dividends may be taxed at a lower rate than bond interest.

Equities: financial services

Financial services companies (i.e. banks and insurance companies) tend to see their profit margins increase in a rising rate environment – and also their share price. As interest rates increase, banks can earn more from the spread between the interest rate they pay to deposit holders (in savings accounts

Dynamic Active Canadian Dividend ETF Dynamic Active Crossover Bond ETF Dynamic Active Global Dividend ETF Dynamic Active Preferred Shares ETF Dynamic Active U.S. Dividend ETF

and certificates of deposit) and what they can earn from debt like Treasuries. Rising rates often point to an expanding economy, which usually means fewer loan defaults weighing on their bottom line. That’s good news for shareholders, who may even receive increased dividend payments as a result. While not many of us like rising prices, higher inflation can also be seen as an opportunity to enhance your portfolio by adding exposure to certain asset classes that can benefit from inflation. We believe the best way to do this is by utilizing actively managed solutions. Peter Tomiuk is vice-president of ETF distribution at Dynamic Funds. Alan Green is Dynamic Funds’ vice-president of ETF capital markets. For more information, or to view the entire roster of Dynamic Active ETFs, visit dynamic.ca/ETF.

Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments, including ETFs. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Views expressed regarding a particular investment, economy, industry or market sector should not be considered an indication of trading intent of any of the mutual funds managed by 1832 Asset Management L.P. These views are not to be relied upon as investment advice nor should they be considered a recommendation to buy or sell. These views are subject to change at any time based upon markets and other conditions, and we disclaim any responsibility to update such views. To the extent this document contains information or data obtained from third party sources, it is believed to be accurate and reliable as of the date of publication, but 1832 Asset Management L.P. does not guarantee its accuracy or reliability. Nothing in this document is or should be relied upon as a promise or representation as to the future. Dynamic Funds® is a registered trademark of its owner, used under license and a division of 1832 Asset Management L.P.

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SPECIAL REPORT

LEADING WOMEN IN WEALTH Wealth Professional spotlights 50 women who have tackled the turbulent climate of the wealth industry – and really made their mark

CONTENTS

PAGE

Feature article ............................................................ 42 Methodology .............................................................. 43 5-Star Leading Women in Wealth ............................ 45 Profiles ........................................................................ 47

www.wealthprofessional.ca

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SPECIAL REPORT

5-STAR AWARDS: LEADING WOMEN IN WEALTH

RISING TO THE CHALLENGE THE LAST couple of years have been an unpredictable ride for everyone. While the phrase ‘unprecedented times’ might have grown a little wearisome, it’s one of those clichés that exists for a reason. The pandemic impacted every single industry, and the world of wealth management was no different. It also proved to be a greater setback for women in the industry than men. A recent Accenture survey showed that 59% of women

“I’ve focused energies these past number of months on fostering strong relationships with my female peers and circles of influence” Nicole Deters, Gilman Deters Private Wealth

HOW THE PANDEMIC AFFECTED WOMEN IN WEALTH

29%

of women in financial services left their job either permanently or temporarily during the pandemic

59%

of women in senior wealth roles felt their careers were adversely affected by COVID-19

53%

of women in capital markets reported feeling disconnected from or forgotten by their employer

62%

of executives and senior managers in the financial services industry said they would be willing to give up some compensation in favour of additional flexibility

Source: Accenture/Institutional Investor

in senior wealth roles felt their careers had been adversely affected, and 29% of women working in financial services said they had left their job either permanently or temporarily during the pandemic. There’s never been a better moment, then, to put women back in the spotlight – and celebrate their invaluable contributions to Canada’s wealth management industry.

Adapt and thrive “The challenges [we faced in 2021] have been largely operational,” says Robyn K. Thompson, president of Castlemark Wealth Management. “The inability to meet with clients and prospects and their families personally has been one of the biggest challenges for all advisors.” The switch to remote work was a massive paradigm shift for many – particularly those women who were also juggling childcare and other personal responsibilities. Yet this year’s 5-Star Leading Women in Wealth don’t shirk from a challenge. “[Transitioning to remote work] hasn’t been

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easy, but it did allow us to maintain those all-important channels of client communication,” Thompson says. “Castlemark’s investment in robust technological infrastructure paid dividends immediately.” Using technology to adapt to the ‘new normal’ seems to be a challenge shared by all the winners. While many see it as a temporary stand-in for face-to-face business (“There are such great benefits to in-person meetings and the opportunity to build those personal connections,” says Darcie Crowe, SVP and portfolio manager at Canaccord Genuity Wealth Management), the remote revolution has also opened new doors for many women in the industry. “I feel I’ve been very innovative in my creation of communication channels for clients and prospects,” says Nicole Deters, principal

and Worldsource Financial Management. “We have taken the time to listen to our clients and help them filter out all the noise and focus on what’s most important to them.” That focus on clients – listening, learning and tailoring services toward their unique and evolving needs – has also helped the 5-Star Leading Women in Wealth deliver the goods over the past year. “The year brought unexpected changes for many, and increased uncertainty amplified a desire for concrete financial and estate plans,” Crowe says. “Clients were looking for reassurance that they would be OK. Given that this is a critical component of our approach, we really saw firsthand how having those plans in place can be hugely valuable. Our focus on the full financial picture has been incredibly important in working with clients over the past year.”

“Resilience and the ability to adapt have been key to thriving during this period” Jacqueline Johnson, Coast Capital Wealth Management and Worldsource Financial Management and investment advisor at Gilman Deters Private Wealth at Harbourfront Wealth Management. “By embracing technology, I’ve secured more opportunities to be a financial educator, using social media platforms to broadcast webinars and live financial topic chatrooms and client events. These new service enhancements have allowed me to continue to raise the bar for client accommodations and ensure I’m staying relevant in my clients’ lives.” A more tech-centric landscape was just one of many changes the 5-Star Leading Women in Wealth had to adapt to last year. In fact, adaptability in all its forms was the main ingredient in many of their success stories. “I believe that resilience and the ability to adapt have been key to thriving during this period,” says Jacqueline Johnson, a financial planner at Coast Capital Wealth Management

The appeal of advocacy While advocating for the needs of clients is critical, advocacy for the industry in general was also a common thread among this year’s winners. Whether it’s striving for gender equity or other forms of inclusion, the drive to make an impact has seen an inspiring boost over the past year. “With my understanding and appreciation of the benefits of a more diverse and inclusive workplace environment, I’ve focused energies these past number of months on fostering strong relationships with my female peers and circles of influence,” Deters says. This desire to make things better stretches far beyond the workplace, too. Deters adds that it’s important for women in wealth to use their influence to make a positive impact in their community or the world in general.

METHODOLOGY Starting in September 2021, WP invited wealth professionals from across the country to nominate their most exceptional female leaders for the 5-Star Leading Women in Wealth list. Nominees had to be working in a role that related to, interacted with or in some way impacted the financial services industry and have demonstrated a clear passion for financial services. Nominators were asked to describe their nominee’s standout professional achievements over the past 12 months, along with their contributions to diversity and inclusion in the industry and how they’ve given back through volunteer roles and charity work. Recommendations from managers and senior industry professionals were also taken into account. The Wealth Professional team reviewed all nominations, examining how each individual had made a meaningful contribution to the industry, to narrow down the list to the final 50 women. The 5-Star Leading Women in Wealth report was initially published on wealthprofessional.ca in November 2021.

18% Percentage of 5-Star Leading Women in Wealth who are in the C suite

62% Percentage who are advisors or portfolio managers

20 Average number of years in the wealth management industry

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SPECIAL REPORT

5-STAR AWARDS: LEADING WOMEN IN WEALTH

THE 5-STAR LEADING WOMEN IN WEALTH BY LOCATION

British Columbia

Alberta

Saskatchewan

Manitoba

Ontario

Quebec

New Brunswick

“We should have strategies in place for improving leadership opportunities for women” Darlene Hart-Wolstenholme, Edward Jones

“Another measure of success that I feel is evident [this past year] is my exposure and impact within the non-profit sector within my community,” she says. “Recognizing that the traditional fundraising landscape for NPOs had changed, I introduced and assisted in the creation of legacy gifting programs for a number of local charitable organizations to ensure their societies’ sustainability into the future.” It makes sense that, in what is still a male-dominated industry, women highly value the prospect of supporting other women in their careers. “As a woman in real estate private equity, I had to stand tall and strong, shoulder to shoulder with my male counterparts,” says Ava Benesocky, CEO of CPI Capital. “Being the only woman on Zoom calls with property managers, asset managers, acquisition directors and other executives has not been an easy task. However, it is a challenge I welcomed.” To rise to that challenge, many of the 5-Star Leading Women in Wealth keep mentorship, leadership and old-fashioned encouragement front of mind. “When I started off in my career, I had strong female role models,” Johnson says. “They were confident, passionate and caring individuals. If we can model anything for other women in their professional careers, it would be to support each other and to believe in the power of encouragement. Encouraging each other, we can accomplish so much more than we can alone.” As for how the industry can keep encouraging women to thrive and restore the progress toward equity after such a trying time, Darlene Hart-Wolstenholme, a financial advisor at Edward Jones, has some thoughts. “We should have strategies in place for improving leadership opportunities for women,” she says. “[We should also] embrace the development of peer groups for the women in the wealth industry [and] highlight veteran females who can serve as mentors for the next generation of younger females who are entering or wish to enter the wealth industry.”

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LEADING WOMEN IN WEALTH A ngel Georgijev Financial Advisor/Owner Georgijev Financial Group

Mary Medeiros Chief Operating Officer Harvest Portfolios Group

Phone: 519-472-0055 Email: angel@georgijevfinancial.ca Website: georgijevfinancial.ca

Website: harvestetfs.com

A ngela Oddo Certified Financial Planner® at Sun Life Fiducia Financial Solutions Phone: 306-522-4898 Email: angela.oddo@sunlife.com Website: advisor.sunlife.ca/angela.oddo

Nadine Bernier Associate Wealth and Investment Advisor RBC Dominion Securities Phone: 819-829-5285 Email: nadine.bernier@rbc.com Website: equipeasselinbernier.com

atherine Dorazio C Managing Director, Business Development Connor, Clark & Lunn Private Capital

Nicole M. Deters Investment Advisor and Principal Harbourfront Wealth Management – Gilman Deters Private Wealth

Phone: 604-643-5829 Email: cdorazio@cclgroup.com Website: cclprivatecapital.com

Phone: 250-338-0726 Email: ndeters@harbourfrontwealth.com Website: gilmandetersprivatewealth.com

Danielle Skipp Managing Director, Ontario, and Chief Legal Officer Nicola Wealth

Robyn K. Thompson President Castlemark Wealth Management

Phone: 416-519-7222 Website: nicolawealth.com

Phone: 647-352-5735 Email: rthompson@castlemarkwealth.com Website: castlemarkwealth.com

J anice Bacon Associate Wealth Advisor CIBC Private Wealth

T ammy Cash Executive Vice-President, Head of Marketing Horizons ETFs

Phone: 519-823-4402 Email: janice.bacon@cibc.ca

Phone: 416-640-8249 Email: tcash@horizonsetfs.com Website: horizonsetfs.com

Kathy McMillan Associate Portfolio Manager, Investment Advisor Richardson Wealth Phone: 403-355-6050 Email: kathy.mcmillan@richardsonwealth.com Website: kathymcmillan.ca

A ya Kadi Associate Investment Advisor 3Macs, a division of Raymond James Christine Fortin Senior Wealth Advisor BMO Private Wealth

Andrea Casciato Head of North American Digital Investing Sales and Service BMO Financial Group

Darcie Crowe Senior Vice-President and Portfolio Manager Canaccord Genuity Wealth Management

A nne Wildfong Senior Vice-President and Portfolio Manager Leon Frazer & Associates, an affiliate of CWB Wealth Management

Darlene Hart-Wolstenholme Financial Advisor Edward Jones

Ava Benesocky CEO CPI Capital

Dilys D’Cruz Vice-President and Head of Wealth Management Meridian Credit Union

www.wealthprofessional.ca

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SPECIAL REPORT

5-STAR AWARDS: LEADING WOMEN IN WEALTH LEADING WOMEN IN WEALTH mily Newman E EVP, Sales Wealhouse Capital Management

aurie Bonten L Founder, Senior Vice-President and Senior Investment Advisor Enhanced Wealth Management – Wellington-Altus Private Wealth

loria Malek G Investment Advisor TD Wealth Private Investment Advice

etitia Fluit L Wealth Advisor IPC Securities Corp.

I da Khajadourian Director of Wealth Management, Portfolio Manager and Investment Advisor Richardson Wealth

innea McKercher L VP, Portfolio Manager CWB Wealth Management

I ngrid Denda Financial Advisor Assante Capital Management J acqueline Johnson Financial Planner Coast Capital Wealth Management and Worldsource Financial Management Jade E. Sheiner Investment Advisor Manulife Securities Inc. ane Cheong J Senior Vice-President and Financial Planner T.E. Wealth, an affiliate of CWB Wealth Management essica Keus J Investment Advisor Enhanced Wealth Management – Wellington-Altus Private Wealth oelle Ritter J Vice-President, Wealth Management Client Solutions CWB Wealth Management Julie Shipley-Strickland Senior Investment Advisor/Senior Insurance Advisor Julie Shipley-Strickland Wealth & Risk Management/ Bergh Tatomir & Associates – Wellington-Altus Private Wealth

isa Lake Langley L CEO, President and Founder Emerge Canada oretta Carbonelli L Chief Compliance Officer CWB Wealth Management Lori Weir CEO Four Eyes Financial umi Mironescu L Investment Advisor Investia Financial Services aria Flores M Chief Compliance Officer Carte Wealth Management aria Ioannou M President and Chief Financial Officer Rothenberg Capital Management ichelle Connolly M Senior Vice-President, Advanced Wealth Planning Wellington-Altus Private Wealth Sarah Jones Senior Investment Advisor, Partner Rosedale Family Office – Wellington-Altus Private Wealth

Kacie Linn President Sound Life Solutions

tephanie Hickmott S Vice-President, Portfolio Manager Leith Wheeler

areen Stangherlin K Founding Partner and CEO Zelos Capital

Stephanie Vincec Financial Advisor Keybase Financial

K arin Yorfido General Manager, Global Technology & Operations Broadridge Financial Solutions

aayla Mark T Financial Planner Engrace Financial Solutions

Kelly Demo Executive Vice-President and Senior Wealth Advisor West Oak Family Office – Wellington-Altus Private Wealth

anya Rowntree T Global Head of Client Success, Capital Formation TMX Group

Kristin Ramlal Securities Specialist Canada Life

T ina Tehranchian Senior Wealth Advisor Assante Capital Management

www.wealthprofessional.ca

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DANIELLE SKIPP

Managing Director, Ontario, and Chief Legal Officer Nicola Wealth

“I

was the beneficiary of female mentorship in the early stages of my career, and I continue to lean on a few special women in my life for guidance and support,” says Danielle Skipp, managing director for Ontario and chief legal officer at Nicola Wealth. “I make time to give this support to others. Wealth management is a fabulous industry for women, and those of us who exist in leadership roles can empower young and mid-career women by sharing our stories.” There are few people better positioned to offer such guidance than Skipp. Her 25-year career in financial services includes roles at the Canadian Banking Association, CIBC and UBS, among others. Skipp is an advocate for industry associations, notably 100 Women in Finance, a global organization committed to empowering women in the finance industry, where she recently served as the Toronto chapter chair for two years and remains actively involved. She is also a participant in Women in Capital

Markets and a former co-chair of the Managers Only Committee for the Alternative Investment Management Association of Canada. In 2018, she joined the board of directors of Ridge Canada Cyber Solutions, which provides cyber insurance products, consulting and loss control services to insurance agents and brokers, and in 2020, she joined the University of Toronto Governing Council. This wealth of experience didn’t make the past year less of a challenge, however. Skipp navigated both the pandemic and a new role at Nicola Wealth with aplomb, ensuring her rightful place on WP’s 5-Star Leading Women in Wealth list. “This past year was the first full year for me at Nicola Wealth as a member of our senior leadership team,” she says. “As a ‘newbie,’ I focused on building strong relationships, listening and learning, and stepping into opportunities where I could roll up my sleeves on day-to-day work to support my colleagues. It is not a cliché to say that it is important to be a strong team player. In my

view, it is everything.” While remote work has been an obstacle for many, it’s something that presented both Skipp and Nicola Wealth with an abundance of opportunities during 2021. “Remote work was not a roadblock,” Skipp says. “In the past 18 months at Nicola Wealth, we have onboarded something like 120 new employees across our Vancouver and Toronto offices, [which is] something we will look back upon as truly remarkable. And remote work has been helpful as a working mom. Flexibility at work has been very important for me, giving me the opportunity to pursue my career, raise my children and enjoy a social life.” Overall, Skipp concludes, it’s not just the recognition of being on the 5-Star Leading Women in Wealth list that matters – although that is “gratifying” – but “the opportunity to share some of my career path story to inspire both women and men who are considering career opportunities in the wealth management industry.”

www.wealthprofessional.ca

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SPECIAL REPORT

5-STAR AWARDS: LEADING WOMEN IN WEALTH

CATHERINE DORAZIO

ROBYN K. THOMPSON

Managing Director, Business Development

President

Connor, Clark & Lunn Private Capital

Castlemark Wealth Management

“W

atherine Dorazio credits Connor, Clark & Lunn Private Capital for recognizing and nurturing her talent. Now, as managing director, responsible for business development, sales recruitment and branding, Dorazio is paying it forward. “You have to hire great, talented people, but you need a broad enough group of them to identify with clients,” she says. “Our work is largely built on trust and communication – people are going to gravitate to individuals more like them, which speaks to needing diversity in our team when you have a diverse client base.” Dorazio is a member of the three-person leadership team that sets the strategic direction for CC&L Private Capital, one of the largest independent and privately held discretionary investment counsellors in Canada, managing over $13 billion in client assets. That leadership team was a finalist for EY Pacific Entrepreneur of the Year in 2017 in the Investment Services category, and Dorazio herself has received numerous honours, including a Five Star Wealth Manager Award and being named to Business in Vancouver’s Forty Under 40 and BCBusiness’ Most Influential Women in Finance lists. Both personally and professionally, Dorazio is determined to provide opportunities for others and support talent development through mentorship and seeking to understand what helps people thrive. “I’m making sure I can play that role for a diverse group of people, who are deserving of advancement in their career and may just not have the right cheerleader.”

hether professionals, business owners or executives, our clients are ready for the next stage in bespoke wealth management services,” says Robyn Thompson, founder and wealth management advisor at Castlemark Wealth Management. “Whatever the goal – wealth accumulation and management or retirement, estate, and decumulation planning – Castlemark has the vision and expertise to tailor a plan for you.” With a decade in the financial services and wealth management sector, Thompson holds CFP and CIM designations and is a member of the FP Canada Standards Council and a Fellow of the Canadian Securities Institute (FCSI), the highest honour and most senior credential in Canadian financial services. Additionally, Thompson uses her expertise to promote financial literacy, especially for young people through her association with Junior Achievement. She also appears regularly as a financial expert in many media channels, including BNN Bloomberg and The Globe and Mail. In addition to serving high-net-worth families and individuals, Castlemark specializes in helping women develop and maintain a financial plan that considers their specific challenges. “Castlemark has developed a customized wealth management plan that fits women’s needs specifically,” Thompson says. “We can also expand to fit client needs for investment management; tax and estate planning; and pension, retirement and insurance planning – all designed by and for women.”

www.wealthprofessional.ca

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JANICE BACON Associate Wealth Advisor CIBC Private Wealth

anice Bacon’s first job in the wealth management industry was in an administrative capacity. Thanks to the encouragement of her business partner, Christopher Bedard, and her own self-belief, Bacon worked her way into becoming an associate wealth advisor at CIBC Private Wealth. “When I first started in the business years ago, it was really just about investment,” she says. “Now it’s really about holistic wealth management, which suits me better.” Having begun her career in 2000, Bacon is a fully licensed advisor for both the financial and insurance sides of the business. She attributes her success to her approach, likening meeting new clients to building a friendship. “Starting a new friendship with somebody, you have to prove yourself in the beginning – you have to follow up with them, you have to keep in touch, you have to be accountable, and you have to be able to help them when it’s needed,” she says. Bacon currently sits on the board of directors for Guelph General Hospital and is president of the Kiwanis Club of Guelph. She has also served on the board of directors for St. Joseph’s Health Foundation and Big Brothers Big Sisters of Guelph. Her commitment to the community earned her a spot among Guelph’s Top 40 Under 40 in 2011. “I believe that because I live here, it’s really important to me to give back,” she says.

ANGEL GEORGIJEV Financial Advisor/Owner

Georgijev Financial Group

or Angel Georgijev, it all starts with the client’s needs and wants – not only today, but into the future. “There is nothing more rewarding than helping clients succeed,” says Georgijev, a Certified Financial Planner and wealth advisor. “From buying their first home to getting married and having kids, to building a business and wealth through to retirement and beyond, I’m here to help steer them through life’s financial challenges.” After her father and mentor, Walter V. Georgijev, established Georgijev Financial Group in 1994, Georgijev joined the firm in 2002 and took over leadership in 2021. “He instilled the importance of always doing what’s right for the client, and that’s something I keep top of mind every day,” she says. With a focus on investment, insurance, and financial and estate planning, Georgijev helps business owners, professionals and families create wealth with a dual focus on protecting it. She is also involved in her community, volunteering for Ronald McDonald House Charities Southwestern Ontario. What advice does Georgijev have for those entering the wealth management industry? “Having a mentor is one of the most valuable resources you can have, especially early in your career,” she says. “This business can be lonely at times, so building a network of like-minded advisors is helpful as well.”

www.wealthprofessional.ca

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SPECIAL REPORT

5-STAR AWARDS: LEADING WOMEN IN WEALTH

KATHY MCMILLAN

Associate Portfolio Manager, Investment Advisor Richardson Wealth

“C

uriosity and a love of people” is what Kathy McMillan credits for the success of her more than 30-year career in wealth management. Kathy has built a holistic wealth management practice that puts clients and their needs first. At the core is Kathy’s ability to build and cultivate meaningful relationships. “What I really do is connect with people. We discuss their dreams and what keeps them awake at night and then combine all of life’s puzzle pieces – children, partners, job situations, health – into a meaningful full-life plan that helps them achieve their aspirations. I help my clients understand their relationship with money, and how it changes them and the lives of those around them.” Kathy and her team, McMillan Wealth Solutions at Richardson Wealth, believe in finding the true significance behind clients’ wealth. “When we dig deep in conversations with our clients, we often learn there is much more beneath the surface than what someone will initially share,” she says. “We

don’t start with running numbers – instead we ask about the meaning of the money, and what a person wants to achieve with it. We believe the most joy is created when the whole person is taken into consideration.”

A partnership with Richardson Wealth Several years into her career, Kathy realized that to provide her clients with the best wealth plans possible, she needed access to the most sophisticated planning and modelling tools in the industry. Aligning McMillan Wealth Solutions with Richardson Wealth has allowed Kathy and her team to select from a vast array of investments, rather than a limited shelf of ‘approved products,’ enabling her to provide her clients with truly unbiased advice. As a female in a largely male-dominated industry, Kathy is also passionate about inspiring and mentoring more women to pursue a career in financial services – a goal shared by Richardson Wealth. “The percentage of women in brokerage firms is 12%; at Richardson Wealth we’re at 16% and growing,” she says. “The firm is committed to hiring, mentoring and empow-

ering women – yet another way in which the firm’s interests align with our own values.”

Cultivating relationships For nearly three decades, Kathy and the McMillan Wealth Solutions team have taken an intergenerational approach to wealth management, with loyal client relationships spanning third and even fourth generations. Kathy is quick to give credit to her strong team of associates. “I couldn’t do what I do without the support of my talented team of financial professionals, who are all fully committed to helping our clients meet their financial goals. I truly believe that collectively we are stronger.” Backed by her team, Kathy can focus on what she does best: listen, ask questions and create meaningful wealth plans for her clients and their families. “At the heart, our practice is about cultivating relationships with our clients, and understanding the meaning behind their money. From the head to the heart, it’s all about how money can change people’s lives.”

www.wealthprofessional.ca

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MARY MEDEIROS Chief Operating Officer

Harvest Portfolios Group

ary Medeiros has always known the importance of perseverance, patience and planning. “My job is to turn ideas and strategies into business realities,” says Medeiros, chief operating officer and a director of Harvest Portfolios Group. “A large part of my role is to set expectations, track results and manage the shortfalls, if any. In any type of business, a lucrative recipe is to be adaptable and aware of risks.” Medeiros began her career in 1989, working with a top advisor and helping grow a book from $8 million to more than $100 million. Twelve years ago, she and CEO Michael Kovacs founded Harvest, which was among the first firms to launch ETFs in Canada and is now among the top 20 ETF providers in the country with assets under management in excess of $1.9 billion. Harvest was also named a 5-Star Asset Manager by Wealth Professional in 2021. Medeiros has more than 27 years of experience in the industry; before co-founding Harvest, she managed national administration and sales systems for a Canadian mutual fund company and branch operations for an investment dealer. Of her success and longevity, she says, “You need to believe that you can help clients reach their investment goals by managing their money, with guiding principles that will be the foundation of your business. If you want to be in this business, you need to understand what really motivates you.”

NICOLE M. DETERS Investment Advisor and Principal

Gilman Deters Private Wealth – Harbourfront Wealth Management

ith more than 28 years of experience as a financial advisor, Nicole Deters has the highest standards for client care and offers a holistic approach to wealth management. Embodying the values of hard work, honesty and professionalism, Deters attributes her success throughout the COVID-19 pandemic to her ability to pivot and willingness to embrace technology. “That has allowed me to maintain my client relationships and business dealings without interruption,” she says. Deters began her career in 1992 as an executive assistant to a senior wealth manager for the first independent mutual fund distributor in Canada. In 1998, she completed the Canadian Securities Course and earned a Professional Financial Planning designation through the Canadian Securities Institute in 2003. In 2005, she established an income tax preparation company, Valley Tax Services, that is exclusive to wealth clients. She has been nominated multiple times for Female Trailblazer of the Year at the Wealth Professional Awards and was recently featured in The Top 100 Magazine. Deters also supports several charities, including the Canadian Breast Cancer Foundation and the Canadian Cancer Society. When asked how the wealth management industry can empower and support more women in their careers, Deters says, “The simple act of sharing of successes, experiences and challenges can propel others to greater heights.”

www.wealthprofessional.ca

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SPECIAL REPORT

5-STAR AWARDS: LEADING WOMEN IN WEALTH

NADINE BERNIER

TAMMY CASH

Associate Wealth and Investment Advisor

Executive Vice-President, Head of Marketing

RBC Dominion Securities

Horizons ETFs

“I

am privileged to be on the other side of the table from my clients and to have the opportunity to work with them to achieve their financial goals,” says Nadine Bernier, a wealth advisor specializing in responsible investments on the AsselinBernier Team at RBC Dominion Securities. Bernier became one of the first RBC associates in Canada to earn the Responsible Investment Specialist (RIS) designation from the Responsible Investment Association, and she ensured other members of her team also got this credential. “The main point is to take the time with the client to understand their needs – not only the financial part of their life, but to understand the whole picture of who they are and what they want to do,” she says. Bernier also created Finances au Féminin, which offers conferences and free videos to give women practical financial tools. Additionally, she co-founded Académie du Trésor to make financial literacy accessible to more than 30 schools in Quebec, New Brunswick and Nunavut, and she is heavily involved in the charity Project Québec-Afrique. Among other initiatives, she has built solid connections with Rwandese organizations and helped raise $700,000 for local projects. “We are very lucky to be in an industry that allows us to live very well,” Bernier says. “You have to give back to others who are less privileged.”

uring her nine-year tenure at Horizons ETFs, Tammy Cash’s top priority has been client experience strategies. “Today, it’s customers who have the power, not the product manufacturers,” says Cash, Horizons’ executive vice-president and head of marketing. “At Horizons, we’ve always believed in product innovation through bringing new and innovative solutions to the market that every investor can access.” With more than 25 years of financial services experience, Cash is also head of the Marketing and PR Committee at the Canadian ETF Association and co-head of Women in ETFs Canada. Founded in 2014, Women in ETFs encourages and supports women in the ETF industry in the US, Canada, Europe and Asia-Pacific. “We have had an incalculable impact on the women and men working in financial services in Canada and across the globe,” Cash says. In 2020, Cash was named ETF Champion of the Year at the Wealth Professional Awards; in 2018, her marketing team at Horizons ETFs won Marketing and Communications Team of the Year at WP’s Women in Wealth Management Awards. Of Horizons’ success, Cash says, “We remain competitive and grow our position as the fourth largest provider of ETFs in Canada. We do this by bringing new and innovative investment solutions with the potential to empower investors of all skill levels to execute strategies that meet their investment goals.”

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ANGELA ODDO

Certified Financial Planner® at Sun Life Fiducia Financial Solutions

rowing up, Angela Oddo watched her mother learn English in a new country, navigate a divorce and open a daycare to support her family, working from sunup to sundown. The work ethic she imparted has never left Oddo, who says, “I also learned never to depend on someone else for money.” Now a Certified Financial Planner® at Sun Life, Oddo is helping her clients reach financial independence. Thanks to her mother’s motivation, Oddo worked three jobs in Grade 12 and put herself through university to get her start in the financial industry. After successfully switching careers to aviation, she circled back to financial services and is now celebrating her sixth anniversary with Fiducia Financial Solutions. She says she has found success with her clients through education and empowerment. “Empowerment through education leads to success,” Oddo explains. “To this day, I continue to educate myself because it just helps you to grow as a person, a friend, a mother, an advisor. There is so much you can learn, and I carry that forward, that philosophy, with my clients and educate them. I want to know what their goals and objectives are; I want to understand where they’re at right now and then help them build the pathway to their financial success.”

JUNE 1, 2022 • TORONTO

THANK YOU FOR YOUR NOMINATIONS Wealth Professional would like to thank its readers for the incredible response to the call for nominations for the 8th annual Wealth Professional Awards! Excellence Awardees will be announced in April. Winners will be selected by an esteemed, independent judging panel and revealed during the celebratory awards show on June 1.

BE PART OF THE CELEBRATION For table reservations and sponsorship opportunities, contact events@keymedia.com

wpawards.ca AWARD SPONSORS

#WPAwardsCA SOCIAL MEDIA SPONSOR

OFFICIAL MEDIA

ORGANIZER

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SPECIAL PROMOTIONAL FEATURE

INDEPENDENT FIRMS

Relationships, responsibilities and results The Gryphin Advantage’s Michael Cox lets WP in on the secrets behind the company’s thriving investment division

IT’S RARE to find a leadership team that’s been working together for more than two decades, but that’s precisely what The Gryphin Advantage delivers, according to Michael Cox, VP of wealth sales: an experienced team focused on the strength of Gryphin’s culture of supporting independent financial advisors in achieving their professional goals. Cox is one of three core team members who has been with Gryphin since the early 2000s. As such, whenever they’re discussing one of their many insurance or investment strategies, team members often find themselves leveraging the strengths that each one brings to the table. “When we’re at a boardroom table, we know exactly what the other is already thinking,” Cox says. “Challenging each other is in our nature; it makes us better, focused on a solution to find the best path forward. It’s just who we are, and there’s nothing we wouldn’t do for the firm. That’s always been our philosophy.” Yet it’s not just these close relationships with colleagues that have enabled Gryphin to flourish. A friendly, down-to-earth approach

with clients, advisors and partners alike has proved to be a yardstick for the company. “I’m always excited to make a positive impact in advisors’ lives,” Cox says. “We’re unconditionally committed to working with our partners. Our cultural fabric is rela-

to thrive, and so did Gryphin.” The firm’s independence is critical, especially in regard to the ever-growing success of its investment division, which consists of a robust lineup of segregated funds and a partnership with Worldsource Financial Management focused on mutual funds. “Our primary purpose within the segregated funds is to help advisors facilitate their goals and objectives for their clients,” Cox says. “We have access to just about every seg fund contract available through Canada. I am extremely proud of the entire wealth team – how proficient the division is with the back office, administration, practice management and effectively allowing advisors to serve their clients and grow their business.” As for the mutual funds, Cox reveals that the approach is more or less the same, except for Gryphin’s partnership with Worldsource Financial Management as a mutual fund dealer. “For more than two decades, we’ve built an enterprise model within Worldsource to provide a holistic experience for our advisors,” Cox says. “The key to our success

“Challenging each other is in our nature; it makes us better, focused on a solution to find the best path forward” Michael Cox, The Gryphin Advantage tionships, responsibilities and results. It’s coded in our corporate DNA. We believe this genuine enthusiasm is where we get separation, helping advisors meet their needs.” This commitment to advisors has led to ongoing success for both Gryphin and its advisors throughout the pandemic. “We had to pivot our business practices and support our advisors in shifting how they ran theirs,” Cox says. “As a result, our advisors were able

is that we work collaboratively to provide an independent open architecture for advisors seeking MFDA or IIROC solutions.” The partnership has met with an enthusiastic response from advisors themselves. “There’s a saying that ‘tough times never last, but tough people do,’” says Martin Weiler, a financial advisor at Worldsource. “I’ve learned just how tough the team at Gryphin is. They are the advantage that

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all advisors who partner with them come to know.” “Gryphin is a family of advisors who have such strong relationships,” adds Sue Foley, a financial planner at Hartry Foley. “We have a women’s advisory group, an advisory council and an annual trip for education. Gryphin is the most supportive MGA I’ve ever worked with.” And Allan Dorfman, a Certified Financial Planner with MTA Financial and Worldsource Financial Management, reveals that “by working with Mike and the entire Gryphin team … we have been able to better serve our clients, resulting in a dramatic increase in profitability and assets under management.” Yet even amid such success (“We’re probably going to have our best year bringing new assets to the firm,” Cox says), Gryphin has no plans to slow down anytime soon. This is evident by the recent appointment of president Kirk McMillan – an injection of fresh blood into the company that Cox

is confident will allow Gryphin to go from strength to strength. “We’ve always felt that success can breed complacency,” he says. “You work hard to achieve a future goal or target, perhaps hit that goal, get comfortable or plateau. We’re at another inflection point where we’ve had remarkable growth, and [to avoid complacency], we need to reinvest and refocus.” This, Cox adds, is where McMillan’s presence is a considerable boost. “Kirk brings tremendous corporate experience. He’s been in retail distribution for the better part of his career. He can navigate all sorts of new challenges. It’s great to have his direction and his acumen to help us take our next steps in building out our strategy, new areas of growth, enhancing our tech stack and enhancing our overall value proposition.” Cox also points out that there are challenges on the horizon throughout the industry, a couple of which stand out for him. “We’re seeing two major demographic

shifts on the horizon that are going to impact the financial service sector,” he says. “First, there’s the aging of advisors; second, the massive transfer of wealth from the baby boomers to the next generation. These trends can result in a massive disruption for advisor and client relationships, and ultimately dealerships or MGAs. That’s why we want to continue to evolve and grow and meet those critical shifting dynamics.” Gryphin’s plan for achieving that, he adds, “comes down to delivering on our value proposition to our advisors. We are staying ahead of the curve when it comes to technology, practice management and supporting all of the things necessary to meet the needs of our advisors and partners today and in the future. But it comes back to this: When I look at the growth of Gryphin and how we’re evolving, we want to be modern enough to survive the times … but old-fashioned enough that we have lasting relationships with our advisors and our partners.”

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SPECIAL PROMOTIONAL FEATURE

REAL ESTATE

Designed for defence Avenue Living CIO Jason Jogia tells WP why the company’s real estate strategy is the ideal hedge against inflation WHEN IT comes to inflation, what exactly is in the cards for investors in 2022? It’s a tough question – and if the global events of the past couple of years have taught us anything, it’s that trying to make market predictions is no easy task. Yet according to Jason Jogia, chief investment officer at Avenue Living, asset owners and managers need to ensure their businesses can withstand the effects of inflation and rising interest rates on all fronts for the long haul. “What is actually inflating right now? The short answer is everything,” he says. “Labour availability is tightening, wages are going up, the cost of materials is rising, utility costs are growing, and property tax is increasing. You have really high levels of inflation globally right now, and if investors aren’t scrutinizing the composition of those portfolios, they could actually end up with an eroding profile of wealth.” So how can investors hedge against the risk of erosion? According to Jogia, the answer lies in real estate – an area that “has historically done very well in inflationary environments.” For Avenue Living, this affords the opportunity to potentially give investors the stability they’re seeking in such uncertain times. “We’re seeing a lot of investors allocate

more of their portfolio to alternatives, such as real estate and real assets,” Jogia says. “And rather than having direct ownership – which requires you to be in the business of real estate – there is a prominent interest in real estate vehicles like Avenue Living’s Core Trust right now. It gives you exposure to real estate without having to be involved in the management of those assets.” The Core Trust is Avenue Living’s key product. It’s focused on acquiring multifamily Class B and C assets in the market of ‘workforce housing’ – properties targeted at essential workers, a demographic that covers approximately 40% of North America’s working population, many of whom have delayed homeownership for various reasons. The workforce housing segment is composed of people who are consistently employed, who “play a stable, significant role in the recovery of the North American economy,” Jogia says. Avenue Living’s tried-and-tested approach includes an active management model, which adds potential value for investors. Of particular benefit, Jogia says, “is the focus of the socioeconomic profile or the housing segment that we’ve chosen.” And there are several ways the Core Trust is a highly defensive investment vehicle. The short-term nature of multi-family leases,

combined with the generally stable resident base Avenue Living targets, adds a layer of defence to the company’s business model, giving it the ability to react to inflation as it develops, or interest rates as they rise, by adjusting rents based on current market rates. “The business is designed to be defensible against inflation,” Jogia says. “With the rise in wages, we’re able to increase rents marginally, continue to provide high-level service offerings and infuse capital into our properties – raising the standard of living for our residents and doing wonders to solidify resident satisfaction and retention. “Because Class B and C assets are more affordable, they’re generally better insulated than assets on the higher-priced end of the housing spectrum, giving us the opportunity

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“If investors aren’t scrutinizing the composition of those portfolios, they could actually end up with an eroding profile of wealth” Jason Jogia, Avenue Living to hedge inflation through appropriate rent adjustments while maintaining affordability and high-quality services. Our active management allows us to minimize the risks presented by rising costs, including interest rates, which are typically fixed well beyond tenant lease term maturities.” Avenue Living’s stable yet active approach, Jogia adds, should enable the company to

keep navigating inflationary pressure into the future. So how does Jogia envision that future? In terms of implementing new technology to keep track of inflation – and countless other factors involved in the management of a real estate portfolio – he reveals that Avenue Living is already well ahead of the curve. “We’ve always been tech-forward,” Jogia

says. “We were paperless well before the pandemic because we knew it was necessary to drive optimization and continued efficiencies in 22 different markets. We are continuously adopting various tools and technology that allow us to communicate and serve customers better, including fintech solutions that help provide customized payments. There are fantastic advancements in machine learning in the industry that we’re exploring to help elevate the customer experience. Really, it’s all about embracing the right technologies.” Aside from deploying plenty of innovation, how does Jogia see things progressing into the latter half of 2022 and beyond? “[Inflation-wise], I think we’re in for more of the same for the near term,” he says. “I can’t see what will cause it to slow down, per se, without crippling the economy. Investment advisors and wealth managers are reaching out to us for advice. And the advice we’re giving includes the need to plan for the long run and, in doing so, to take a closer look at adding real assets to portfolios. Beyond that, it’s scrutinizing what different real estate investment opportunities offer. Are they diversified, both regionally and by asset class? How do they manage the assets? “Avenue Living has purposefully designed our asset offerings with investor returns in mind, taking an active approach to management – from acquisition to management and servicing – and creating a vertically integrated business model to optimize efficiency. As investors attempt to protect their wealth and generate yield in this volatile market, now is the time for investors and their advisors to start asking deeper questions. This will enable them to know more about the businesses they are investing in and see the great opportunities that lie within real estate.” This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.avenuelivingam.com for additional information regarding forward-looking statements and certain risks associated with them.

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PEOPLE

ADVISOR PROFILE

An education in value The son of two South Koreans, Gene Kim has built a differentiated practice through the power of perseverance and a hunger for knowledge

LIKE MANY Asian parents, Gene Kim’s father and mother dreamed of a career in medicine or similar professional employment for their son. But even at an early age, Kim’s passion and curiosity naturally pulled him toward business and investments. “I remember seeing a chart of what Einstein called the eighth wonder of the world, and that’s the power of compounding interest,” says Kim, a portfolio manager and private wealth manager with the Summit Private Wealth Group at Mandeville Private Client. “That exponential curve, that hockeystick-shaped graph, had me hooked. But beyond the money and the investments, I like the idea of building personal relationships and helping others.” As for many others, Kim’s decision to enter the industry required a leap of faith. He came from an immigrant family that started with very little; while his parents were well educated, they had very little connection to people with wealth in Canada. That meant the usual advice of building out from a network of friends or family acquaintances was of limited use to Kim. “I made the decision very early on that if I was to have a successful wealth management business, I had to learn how to bring value to people and gain their trust over time,” he says. “That not only requires a lot of soft skills, but also a lot of competencies and continuous education.”

An avid reader, Kim has learned extensively from the proponents of value investing. He cites Benjamin Graham and Warren Buffett as key influences, as well as Bill Miller, Seth Klarman, Paul Tudor Jones and Ray Dalio. Through those and other authors, he has grown to appreciate the merits of both bottom-up micro and top-down macro analyses in building structured, all-weather portfolios. “I’ve also come across great mentors throughout my entire career,” he says. “There are too many to mention, but I was very fortunate to learn from them.” Today, Kim is the owner of Summit Private Wealth, a Montreal-based practice that’s primarily geared toward mass affluent and high-net-worth clients with at least $1 million in investable assets. That means Summit’s clientele leans toward late-stage accumulators, retirees, business owners and high-income professionals. “We have exceptions where we work

with younger high-income professionals or entrepreneurs at an earlier accumulation stage who have a high potential of reaching $1 million,” he says. “We also work with second- and third-generation clients who maybe have less than that, but we accommodate them as a value-add service to the families we have relationships with.” Even before COVID-19 hit, Kim had been adopting a pension-style approach to portfolio management that incorporates both public and private investments. That, he says, provided a valuable layer of defence by creating a diversified portfolio with minimized correlation to the public markets, which were violently rocked during the pandemic’s onset. And while he acknowledges that the phrase ‘holistic planning’ has become a bit of a cliché, Kim says Summit’s multifamily-style approach means the practice can bring together different disciplines to address clients’ myriad needs. Whether it’s

THE POWER OF ALIGNMENT In the course of working with different households, Gene Kim has learned that achieving success takes more than having a good bench of portfolio managers and financial planning experts. “We really engage in dialogue and listen to the client’s needs first,” he says. “From there, we can determine whether we can bring value with practical solutions. Potentially, we may find there isn’t a philosophical alignment or fit based on our strategy or approach. But if they see value in what we do, we can take the opportunity to dive deeper with them.”

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FAST FACTS: GENE KIM

PRACTICE Summit Private Wealth

FIRM Mandeville Private Client

LOCATION Montreal

“It would take a tremendous amount of trust and confidence to entrust my financial future to someone else. We don’t take that for granted” helping them achieve a successful retirement or protecting their wealth, Kim and his team facilitate relationships with tax professionals, estate planners and other specialists across different areas of expertise. “I think that if I put myself in the client’s shoes, it would take a tremendous amount of trust and confidence to entrust my financial future to someone else,” he says. “We don’t take that for granted. I think it’s a great privilege to be in that position to serve them.” Many financial services businesses might have been caught on the technological back foot at the onset of the pandemic, making

them ill-prepared for today’s reality. But through years of preparation, Kim says Summit was well placed to adapt to digitizing client files, remote client onboarding, videoconferencing and more. “Over the last two years, we’ve seen tremendous success with expanding our business and growing our national presence,” he says. “Because of digital marketing, we’re not confined by geography anymore. I think every practice has $1 billion in AUM as a [target]. We have a very long runway of time in front of us, so I think we can reach that sometime in the future.”

PROVINCES SERVED Quebec, Ontario, British Columbia, Nova Scotia, New Brunswick

AVERAGE ASSETS PER FAMILY $1 million

FAMILIES SERVED PER ADVISOR Approximately 100

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FEATURES

ALTERNATIVES

SPOTLIGHT ON ALTERNATIVES Whether it’s for uncorrelated returns, portfolio defence or future impact, alternative investments are growing in appeal. WP examines seven emerging alternative asset classes and the potential benefits they offer NEVER HAS the case for alternative investments been so strong. For years, the utility of the traditional 60/40 portfolio has been challenged by anemic yields in fixed income, due in large part to a persistent low interest rate environment and the shrinking breadth of the public investable universe. That problem has only been exacerbated by the COVID-19 pandemic and the resulting return of decades-high inflation. The bold and unprecedented unleashing of monetary and fiscal stimulus across the world has contributed to a massive increase in money supply, which has stoked demand in many markets. On the supply side, crashing waves of COVID-19 infections are causing business interruptions and supply

chain disruptions. Rising rates are also now a concern, as markets expect central banks to turn aggressively hawkish in an effort to prevent inflation from surging even higher. But even in this stormy climate, there are patches of blue sky. Disruptive technologies and innovations, bold government spending initiatives, and a growing need to protect the environment are unlocking opportunities to renew tried-and-true real assets, as well as create new asset classes with unknown and as-yetuntapped potential. To help advisors evaluate the possibilities that are ripe for consideration, WP took a closer look at seven of the big trends in alternative investments.

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Why it pays to buy the farm Economic, demographic and ESG tailwinds are blowing in favour of agriculture investing THOSE WHO like to revisit dark moments in economic history might find some echoes of the 1970s in the current economic landscape. Back then, real rates in North America were negative due to high interest rates being dragged down by even higher inflation. The problem of negative real rates also looms large today as decades-high levels of inflation mix with low interest rates imposed by dovish central bank policy. To many, the accommodations policymakers have introduced over the past two years represent an ominous turning point. As governments posted huge fiscal deficits to support economies choked off by the pandemic, major central banks continued to keep policy rates low and embarked on bold bond-buying campaigns. “Central banks admitted they were directly monetizing government debts,” says Stephen Johnston, the director of Veripath Partners, a Canadian firm specializing in farmland investment. “You could argue they’ve been doing it for 20 years, but now they’ve crossed the Rubicon; they admit philosophically that there’s nothing to prevent them from doing that, and that’s alarming a lot of investors. So now they’re saying, ‘I want some inflation insurance.’” After conducting an analysis of historical data stretching back decades, Veripath found that Canadian farmland is a strong source of potential inflation protection. Based on figures from Statistics Canada, Veripath determined that in years when real rates were lower than 4%, farmland was up 97% of the

time, with an average appreciation of 11.3% in an up year. That behaviour is asymmetrical; during years when real rates were above 5%, farmland went up only 27% of the time. “In the 1970s, farmland went up by around 550% in nominal terms,” Johnston

says. “In Canada, farmland went up 275% in real terms, and it was one of the only assets to outpace the consumer price index, which speaks to its diversifying benefits.” Because of those leaps in performance, farmland represents a very potent solution to the portfolio-corroding effects of negative real rates. With a modest 5% to 10% allocation to farmland, Johnston says, an investor can potentially offset the losses they might see in stocks, bonds and real estate. Johnston also notes that farmland is not correlated to stocks and bonds in any material way. Looking back to the 2001 recession, he says farmland as an asset rose by 6%; in 2008, it increased by 13%. And during the recent COVID-19 market crunch, it once again appreciated, even as the equity and fixed income markets in North America tumbled.

“In Canada [in the 1970s], farmland went up 275% in real terms, and it was one of the only assets to outpace the consumer price index” Stephen Johnston, Veripath Partners CANADIAN FARMLAND’S HISTORY AS INSURANCE IN NEGATIVE REAL RATE ENVIRONMENTS

Real rate range

< 4%

> 5%

Average annual appreciation

11.3%

-0.1%

Proportion of up years

97.1%

26.7%

Average appreciation during up years

11.7%

5.7%

Number of up years

Source: Veripath Partners

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FEATURES

ALTERNATIVES

A number of secular macroeconomic trends developing around the world also make farmland an appealing investment. The demand for the three Fs – food, feed and fuel – will only grow as populations in the developing world swell and mature, which makes investments in productive farms and the commodities they yield even more vital. Another less obvious trend is the need to address water scarcity. Johnston notes that China and India combined represent close to 3 billion people – in other words, roughly 40% of the world’s population. However, the two nations also only have access to 20% of the world’s fresh water. The fact that both countries are on a path toward industrialization, he says, creates further pressure and has tended to crowd out the use of water for agriculture. “It’s more profitable to use a ton of water to produce microchips than it is to use that water to grow food,” Johnston explains. “So as industrializing countries start to ramp up, they go through a dietary transition, which increases their consumption of crops, but they also increasingly use their domestic water for industry, which creates an incremental requirement for them to import. When Canada exports a ton of wheat to China, it’s really as if it exported 1,000 tons of water.” According to Johnston, Canada has some of the most competitively priced farmland in the developed world on a productivityadjusted pricing basis. Veripath also estimates that Canadian farmland covers an area exceeding 160 million acres, with an estimated total capitalization of roughly $500 billion. And from an ESG perspective, Western Canadian zero-till farmland is able to capture material amounts of carbon. Depending on the soil type, that equates to between 0.3 and 0.5 tonnes per acre. “At the moment, less than 1% of all Canadian farmland is held by financial investors,” Johnston says. “Compare that with the US and Australia, where the number is closer to 20%. There’s plenty of room for them to grow, and I expect they’ll be playing a part in that increasing farm size equation.”

Bitcoin takes centre stage With an extreme volatility profile and a history of stellar returns, the blockchain-based currency is getting more attention than ever

FOR A LONG time, Bitcoin was an ultraniche asset embraced only by the most hardcore technophiles. But last year marked a turning point for the cryptocurrency, which saw more mainstream adoption. After starting 2021 at just over US$30,000, Bitcoin surged to reach an all-time high above US$68,000 in November. Along the way, it saw increased attention from institutional investors looking to diversify their portfolios, as well as individual investors who were more willing to do their research and chase thrills amid the pandemic. The Canadian investment industry also played a trailblazing role. In February 2021, Purpose Investments unveiled the world’s first Bitcoin ETF, which invested directly in physically settled bitcoin rather than getting derivatives-based exposure. Other providers followed suit with their own Bitcoin ETFs,

and the offerings have since expanded to include carbon-neutral and carbon-negative Bitcoin ETFs and enhanced-yield Bitcoin ETFs, as well as multi-crypto offerings. Considering they just debuted last year, Bitcoin ETFs have accumulated assets at an impressive rate. Purpose’s Bitcoin ETF amassed $1 billion in its first month; over the whole of 2021, it took in nearly $900 million in net inflows, according to data from National Bank Financial and Bloomberg. That same data revealed that the Bitcoin ETF from 3iQ, the company that launched Canada’s very first Bitcoin mutual fund in 2020, took in more than $1.3 billion during 2021. Despite the tremendous response to Bitcoin ETFs in Canada, there are those who argue that they’re not the best way to get exposure. The low fees and ease of trading associated with ETFs might make them

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appealing to the average Canadian looking to trade in and out of them through registered accounts. But as Fred Pye, executive chairman and CEO of 3iQ, has pointed out, the decision doesn’t have to end there. “The best possible rate of return on a Bitcoin ETF is the price of Bitcoin less the expenses,” Pye told WP last year. “For a closed-end fund, you also consider the price of Bitcoin less the expenses, but then also add the accretive nature of at-the-market offerings and normal course issuer bid purchases. … So as long as we can make it accretive that it pays off the management fees, it’s the best way to own it long term.” A 2021 survey by Hardbacon, a Montrealbased fintech, offers a glimpse into how much Canadian investors have embraced Bitcoin. Out of approximately 500 respondents, 28% said they own cryptocurrency, and 85% of those said they own Bitcoin. Another survey conducted by Ipsos for Bitcoin Well in June found that out of around 2,100 respondents, 200 owned Bitcoin. A buy-and-hold Bitcoin strategy might be worth considering for those seeking portfolio diversification and the potential for long-term gains. According to data from CoinMetrics, the correlation coefficient between Bitcoin and the S&P 500 dipped to as low as -0.22

following the cryptocurrency’s 2018 crash, though that has trended upward to around 0.35 of late. And while Bitcoin’s price history is the very picture of volatility – by the end of 2021, concerns around the omicron variant had dragged it down to around US$47,000, and it settled to just under US$38,000 by the end

and using them as “a fun way to gamble a little bit of money” (25%). Understandably, some veterans of the investment industry might dismiss Bitcoin and other crypto assets, while others might see them as weapons of financial destruction. But many advocates tout Bitcoin as a worthy addition to portfolios – maybe even

“Looking forward, it would be of no surprise if Bitcoin’s market cap exceeded that of the world’s total holdings of gold over the next decade” Arthur Salzer, Northland Wealth Management of January – some experts are predicting it will breach US$100,000 by 2023, and more bullish advocates say US$250,000 is in sight. In the Ipsos survey, people who owned Bitcoin and cryptocurrencies cited numerous reasons for their decision, including a belief in their deflationary properties (22%), a desire to be part of a new form of digital money (30%), a view that they’re an effective hedge against other investments (16%), seeing it as a chance to get rich quickly (21%)

as an alternative to gold. Among them is Arthur Salzer, CEO and CIO of family office Northland Wealth Management. “Looking forward, it would be of no surprise if Bitcoin’s market cap exceeded that of the world’s total holdings of gold over the next decade, as well as coming closer to the market caps of other asset classes such as real estate, equities and fixed income in the decades to come,” Salzer told Wealth Professional in a 2021 interview.

BITCOIN’S RISE AND FALL THROUGH COVID-19 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0

2/1/20

5/1/20

8/1/20

11/1/20

2/1/21

5/1/21

8/1/21

11/1/21

2/1/22

Source: Yahoo! Finance; all figures in US$

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FEATURES

ALTERNATIVES

An investment in climate action The burgeoning market for carbon credits opens a path for investors to diversify their portfolios while making a difference

AMONG THE three components that drive ESG investing, there’s no doubt that environmental issues are the most talked about, and climate change is by all accounts the hottest topic. It’s not hard to find examples of growing pressure on companies to minimize their carbon emissions and lighten their environmental footprint. That was especially true in 2021, which arguably heralded a new era of climate awareness. In May, a report from the International Energy Agency held up the Net Zero by 2050 agenda as the “world’s first comprehensive energy roadmap.” That same month, shareholder engagement and pressure from activist

“strong, rapid and sustained reductions in greenhouse gas emissions” to reach net-zero carbon emissions. Those and other developments have kicked off a spate of net-zero pledges and initiatives – even a few going as far as net-negative – among corporations and governments. But because a large majority of business activities are inherently reliant on fossil fuels, these organizations and public entities must offset their emissions by purchasing carbon credits. “A carbon credit represents one metric ton of carbon dioxide or carbon dioxide equivalent that’s either removed directly from

“Carbon credits are a new asset class for many investors. As a commodity, they have performed exceptionally well” Justin Cochrane, Carbon Streaming investors led to power shifts that pushed companies like ExxonMobil and Chevron to take more climate-conscious positions. In August, the UN-backed Intergovernmental Panel on Climate Change issued a report titled Climate Change 2021: The Physical Science Basis, which warned that urgent and concerted action is needed to stabilize the climate. Notably, it called for

the atmosphere or prevented from being emitted into the atmosphere,” explains Justin Cochrane, founder and CEO of Carbon Streaming, which invests in impact projects around the world that can remove or reduce carbon emissions in the atmosphere. If the developer of a project can prove it’s successfully accomplishing that to an independent organization, Cochrane says, they become

CARBON CREDITS: GOALS AND OPPORTUNITIES

2ºC

The global warming containment threshold set by the 2015 Paris Agreement

$1 billion

Size of the voluntary carbon market as of November 2021

900%

Surge in the price of carbon credits eligible for the UN’s CORSIA program during 2021

$851 billion

Total value of traded global markets for carbon permits in 2021

Source: Ecosystem Marketplace, S&P Global Platts, Refinitiv; all figures in US$

qualified to issue and sell carbon credits. “Carbon credits are a new asset class for many investors,” he says, “and they tend to be uncorrelated with a number of other commodities and lines of business. As a commodity, they have performed exceptionally well.”

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Focusing on 2021, Cochrane says the EU compliance market for carbon credits posted a return of approximately 140% for the year, while the GEO spot carbon contract was up by almost 1,000%. That’s multiple times the returns of other asset classes like Bitcoin, oil and US equities (as represented by the S&P 500). As with any form of investment, participating in the carbon credits market entails a certain degree of risk. According to Cochrane, investors should be mindful of the differences between regulated carbon markets, a US$400 billion industry that’s subject to government regulations or oversight, and voluntary carbon markets, where the forces of supply and demand hold more sway. “When you’re buying those credits [in the voluntary market], you need to ensure that you’re investing in the right projects,” Cochrane says. “There are almost 6,000 carbon projects in existence today across many different jurisdictions.” While the idea of investing outside regulated markets might cause more than a little unease in investors of any stripe, Cochrane emphasizes that efforts to stem the impact of climate change are mushrooming across the world. Some very worthy projects are being undertaken in jurisdictions that don’t have access to regulated markets, he says, which is where voluntary markets have an opportunity to pick up the slack. And while regulated markets often lend themselves to higher pricing than voluntary markets, the voluntary market for carbon credits crossed the billion-dollar mark last year. The slice of the market represented by projects aimed at stemming deforestation, Cochrane adds, saw nearly 300% growth between September 2020 and September 2021, and his firm doesn’t see that trend fading in 2022 – or even during the rest of the decade. “We see lots of fascinating new projects that are being developed to meet demand from corporate entities and governments looking to offset their carbon emissions,” Cochrane says.

Building a better tomorrow A once-in-a-generation infrastructure spending plan in the US allows for expanded scope and impact in investment opportunities

IN THE PAST, infrastructure investment usually involved large transportation-focused developments like ports, roads, bridges, railroads and airports. It might also encompass utilities and projects related to energy generation and distribution, like high-power electrical networks and oil pipelines. But with the passage of the US$1.2 trillion infrastructure spending plan in the US in November, an entirely new world of possibilities has opened up for this real asset class. As part of the new plan, the Biden administration has pledged to spend US$65 billion on reliable high-speed internet through broadband infrastructure, as well as US$75 billion on upgrading power infrastructure and transitioning to renewable

energy. There’s also the US$15 billion earmarked for electric vehicles and the infrastructure needed to charge them. One useful way to navigate this evolving set of opportunities, as proposed by Bill DeRoche, Mark Stacey and Grant Wang of AGF Investments, is to consider two broad categories: digital infrastructure and renewable energy infrastructure. In AGF’s 2022 Outlook, the trio explained that digital infrastructure encompasses three related niches. The first, telecommunication towers, involves building and maintaining cell towers and renting them to the world’s biggest telecommunication providers. That arrangement has become commonplace in most of Europe and North America and has

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FEATURES

ALTERNATIVES

A NEW WAVE OF INFRASTRUCTURE

Telecommunications towers

Digital infrastructure

Data centres

Cloud services

Renewable energy infrastructure

Renewable energy utilities

Renewable energy equipment

Source: AGF Investments

led to several REITs with billions in revenue. “Moreover, a growing number of REITs and companies are also focused on owning or leasing real estate space for use as data centres,” the AGF report said. Such business arrangements can involve customers from a wide variety of industries, including telecom, media and internet service providers, as well as government and various other private enterprises. The third sub-niche of digital infrastructure – cloud services – represents one of the decade’s biggest operational trends. As a growing number of companies move away from having on-premises servers and embrace database hosting and cloud computing, large tech giants that offer these services have seen the revenue generated from these businesses grow. The other broad umbrella of renewable energy infrastructure, which AGF described as an enhancement to traditional energy infrastructure, includes two sub-niches. The first, renewable utilities, involves the growing and increasingly profitable enterprise of providing consumers and businesses

“Despite being the wealthiest country in the world, [the US] ranked 13th in quality of infrastructure in 2019,” NEI Investments CIO John Bai told Wealth Professional in a 2021 interview. He added that in the World Economic Forum’s 2020 Global Competitive Survey, the US ranked 31st in terms of upgrades needed to accelerate the energy transition, which put it behind Canada (in 23rd) and other large countries like China, Poland and Brazil. Over-reliance on ill-maintained infrastructure doesn’t just have implications for an economy’s productivity – it can also lead to more dire consequences. Bai highlighted the cold snap in Texas last winter, which caused more than 5 million people to lose access to power and led to more than 100 deaths. With its infrastructure spending plan, the Biden administration hopes to accomplish muchneeded repairs, as well as ensure equitable access to the benefits of capital spending.

“It’s really not just how to build a greener infrastructure, but how do you build a more inclusive one?” John Bai, NEI Investments with power generated by multi-source energy platforms that include hydroelectric, wind and solar facilities. The other subcategory, renewable energy equipment, covers the growing cohort of manufacturers that produce solar panels, wind turbines, hydrogen cells and other components essential to harnessing renewable energy. “If anything, then, infrastructure is a growing potential opportunity for investors, not just in size but in scope as well,” the AGF report said. The increasing opportunity in infrastructure isn’t just about an expanding universe of investable sectors – it also represents a chance to participate in the creation of a stronger and more inclusive society.

“That’s really what the building blocks for this Joe Biden infrastructure plan are,” Bai said. “It’s really not just how to build a greener infrastructure, but how do you build a more inclusive one?” As infrastructure increasingly shifts toward the greener end of the investing spectrum, investors can not only participate in businesses that provide solid and secure returns, but also seize opportunities to help initiate positive change. As David Rutherford, vice-president of ESG services at NEI, noted, “What this infrastructure plan does is it introduces countless investment opportunities that not only can help [investors] grow their portfolios on a financial basis, but can also help them deliver that positive impact that they want to make.”

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Exploring possibilities in private credit Asset managers are stepping up their efforts to offer investors access to a market that’s expected to reach US$1.46 trillion by 2025

AMID THE years-long persistence of low interest rates, fixed income investors have increasingly been forced to turn to higherrisk areas of the public debt space to get the kind of yield they need. But as that strategy becomes increasingly untenable, the case for private debt – including private credit – is only growing stronger. Since the 2008 global financial crisis, the private credit space has surged at a tremendous rate. The boom, fuelled by increased focus on private credit, caused the market to grow to US$880 billion by the end of 2020, according to Preqin. And in a 2020 survey looking into the future of alternative assets, Preqin estimated the market would reach US$1.46 trillion by the end of 2025. One of the major drivers of that growth is investors’ need for higher yield than traditional fixed income can deliver. Specifically among institutions, private debt has been appealing because it allows for higher allocations, quicker execution and expectations for consistent risk-adjusted returns. “During the COVID crisis, we saw a period of low competition and distorted asset prices, which allowed experienced managers to uncover interesting opportunities,” Judy Goldring, president and head of global distribution at AGF Investments, told WP in late 2021. The COVID-19 outbreak and its aftermath also led to the acceleration of a pre-existing trend of banks being reluctant to lend to middle- and lower-middle-market businesses, which were perceived to represent greater risk. As banking institutions retreated further from that market, it created an opening for private lenders and managers to fill an unmet need for businesses seeking growth capital. In the process, it also created an asset class that provides a very attractive illiquidity premium and risk-adjusted return profile. And because private debt has a different return profile from the public markets, it creates a potential hedge against the risks of rising interest rates. Looking at the makeup of debt in the US, more than half is held in the private market. And while the country represents a deep and

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FEATURES

ALTERNATIVES

expansive pool of opportunity, the majority of Canadian investors have historically not had the opportunity to get exposure to it – but that could be set to change. Blue Owl Capital, a leading US-based alternative asset manager, recently unveiled plans to bring its institutional middle-

terms of IIROC-licensed investment advisors and family offices in size, yet underserved from an alternative perspective,” says Sean Connor, a managing director and president of Blue Owl Securities. He notes that Canadian investors’ average allocation to private credit amounts to less than 1%.

“We think Canada is an enormous wealth market … yet underserved from an alternative perspective” Sean Connor, Blue Owl Securities market lending capabilities to the Canadian market. Its plan entails giving accredited Canadian investors access to the institutional share class of Owl Rock Core Income Corp. (ORCIC), a diversified lending fund that’s managed by a division of Blue Owl. “We think Canada is an enormous wealth market, encompassing over $4 trillion in

“ORCIC co-invests alongside Owl Rock’s existing products, so Canadian investors will get access to the same opportunities as Owl Rock’s institutional clients,” Connor says. Canadian asset managers have also been working on expanding Canadians’ access to the US private credit space. In July 2021, AGF Investments unveiled

the AGF SAF Private Credit Limited Partner ship, a private credit fund for Canadian accredited retail investors. It aims to provide attractive risk-adjusted returns with low correlation to traditional asset classes through a portfolio of private and public incomegenerating credit securities. Through various credit strategies, the limited partnership allocates capital to a variety of middle and lowermiddle market companies, primarily within Canada and the US. And in January, Mackenzie Investments announced the launch of the Mackenzie Northleaf Private Credit Interval Fund in partnership with Northleaf Capital Partners. A first-of-its-kind retail fund in Canada, its structure as an interval fund allows investors to make restricted redemptions at quarterly intervals. This opens a new channel for ordinary investors to access illiquid private credit investment strategies that were previously only available to accredited and institutional investors and had high minimum investment restrictions.

THE GROWING WAVE OF PRIVATE DEBT PRIVATE DEBT AUM WORLDWIDE $1trn $945 billion $800bn

$845 billion

$848 billion

2019

2020

$742 billion $600bn

$400bn

$200bn

$315 billion

$346 billion

2010

2011

$378 billion

2012

$443 billion

$451 billion

2013

2014

$517 billion

2015

$578 billion

2016

$639 billion

2017

2018

2021 (projected) Source: Preqin; all figures in US$

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A booming oil opportunity Despite the increasing attention on climate change, supply-and-demand fundamentals support a case for multi-year growth in the oil industry

TO ANYONE paying attention to the increasing clamour for climate action, it might sound like the writing’s on the wall for the traditional energy industry. But Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, is keeping the faith. As one of a handful of investment professionals focused exclusively on the oil sector, Nuttall is in an ideal position to offer credible commentary on the space. “My expectation is that in a post-COVID world, the demand for oil will continue to grow for at least the next decade,” he says. “At the same time, the curtailments to the ability to grow supply are what I think are entering us into a supply crisis.” Most notable among those supply curtailments, Nuttall says, is the structural change that’s taken root among US shale companies. While the past 10 years have seen all non-OPEC oil production being fulfilled by a boom in the shale sector, subsequent poor performance across the energy industry has forced many players to change business models. Instead of pursuing growth at all costs, they are now focusing more on returning capital to shareholders through dividends and buybacks. “The era of hyper-growth in US shale is over,” Nuttall says. “There’s a lot less capital going into the ground. Going forward, we think US shale growth can only satisfy half of global demand growth. I’m not sure people understand how profound the implications of that are.” The US shale industry, Nuttall explains, was disruptive because of how quickly it was able to bring oil to the global market – compared with the four- to seven-year timeframe expected from offshore drilling and oil sands projects, shale producers are able to roll out barrels in as little as six months. With US shale production hobbled, the world is back to relying more on long-cycle producers. However, Nuttall points out that the global energy giants have gone through a seven-year period of underinvestment, which is expected to extend in the face of accelerating ESG sentiment.

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FEATURES

ALTERNATIVES

OIL’S COVID-19 COMEBACK STORY AVERAGE PRICE PER BARREL, WEST TEXAS INTERMEDIATE (US$) $100

$80

$60

$40

$20

Ja n

20 Fe 20 b 20 2 M ar 0 20 Ap 20 r2 02 M ay 0 20 Ju 20 n 20 20 Ju l2 0 Au 20 g 20 Se 20 p 20 2 O ct 0 20 2 N ov 0 20 De 20 c 20 Ja 20 n 20 Fe 21 b 20 2 M ar 1 20 Ap 21 r2 02 M ay 1 20 Ju 21 n 20 21 Ju l2 0 Au 21 g 20 Se 21 p 20 2 O ct 1 20 2 N ov 1 20 De 21 c 20 21

Source: Statista.com

“Companies all around the world are under enormous pressure to reach net-zero targets, with most aiming for 2050,” he says. “To achieve that, they’re either divesting from conventional production or just not investing. There’s a few large examples of that, notably BP and Royal Dutch Shell, both of which are allowing conventional oil production to fall to free up cash to invest in renewable projects.” A multi-year struggle with low prices has prevented OPEC members from investing in new capacity, and they have precious little room for spare production capacity as they step back from curtailing supply. And while the International Energy Agency recently predicted that global renewable electricity capacity would rise past 4,800 GW by 2026, it remains to be seen whether it will be able to satisfy global demand to the point that fossil fuel-based electricity won’t be necessary. There’s also the fact that oil isn’t just used to generate electricity, but also as fuel

for transportation and a raw ingredient in producing plastics, lubricants, petrochemicals and a variety of other products.

Nuttall predicted that oil prices could reach US$100 a barrel this year, a conviction that’s proven to be correct. A standoff

“The average person in the world consumes five barrels every year. So, as global living standards are rising and populations are growing, that oil intensity is rising, not falling” Eric Nuttall, Ninepoint Partners “The average person in North America consumes over 20 barrels; the average person in the world consumes five barrels every year,” Nuttall says. “So, as global living standards are rising and populations are growing, that oil intensity is rising, not falling.”

between the West and Russia, one of the world’s top oil producers, over Ukraine hit a boiling point in late February, pushing Brent crude futures above US$105 a barrel for the first time since 2014. With oil prices at record highs, climate-conscious investors who don’t want to support fossil fuel

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companies’ operations are facing a dilemma – but there could be a solution. “People have this idea that commodities and ESG are just diametrically opposed,” Tim Pickering, president and CIO of Auspice Capital, told WP in December. “But the question is, how do you go about gaining that commodity exposure as an investor?” According to a white paper from Auspice, neither the OECD nor the UN Principles for Responsible Investment provides comprehensive guidance on commodity futures, which prompted the company to develop its own thesis. “Ultimately, what matters for carbon accounting is who owns the company,” Pickering told Wealth Professional. “It’s the owners of the company that provide the capital that powers this economic activity, and thus creates an environmental footprint and emissions issue.” According to Pickering, futures contracts don’t affect the production activities of a resource company one way or another. Rather, they’re just a way to manage exposure to risks associated with the price of a certain commodity. “Some may say that commodity futures can be taken to delivery,” he said, referring to the fact that some investors in futures contracts exercise their right to buy a certain amount of a particular commodity at a certain price. “But at a high level, just 5% of commodities futures contracts are taken to delivery. In the case of big participants in the commodity space, like CTAs or futures-backed commodity ETFs, that’s effectively zero. “The reality of our world right now is different investors, including large institutional investors, are saying, ‘We can’t have anything to do with the resource space or commodities, because it has this negative environmental and sustainability aspect to it.’ That might be true for equities, but not for commodity futures because they have zero impact. So we think these investors are missing out on an incredible opportunity.”

A fine liquid alternative One ambitious company is using a cutting-edge platform to spread the word about wine investing

NORTH AMERICANS tend to view wine not as a means for storing wealth, but as a product to be consumed. But Atul Tiwari, an oenophile and investment industry veteran, knew that needed to change. “I’d always known that fine wine was an established asset class in Europe and Asia,” says Tiwari, the North American CEO of Cult Wines. “But it wasn’t something that was prevalent in North America. I always thought that was probably because of regulation. But as I got deeper into it and spent some time with lawyers across the country, I realized it wasn’t regulation that was getting

in the way here.” Tiwari, who helped launch BMO ETFs and then led Vanguard Canada for almost eight years, wanted to marry his passions for wine and asset management. So he assembled a business plan for a wine investment organization in Canada, then began researching global companies already doing it. “It was clear from my research that Cult Wines was the best and the global leader, so I contacted the global CEO in 2020,” he says. The two talked, blended their plans and publicly launched Cult Wines in North America in April 2021. The company also

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FEATURES

ALTERNATIVES “Fine wine has some great attributes, like low downside capture, low correlation to equities and low volatility” Atul Tiwari, Cult Wines reopened its small New York office, which it had set up just before the pandemic began. “There’s a lot of comfort in knowing that we’ve been in business for 14 years and can demonstrate solid returns and the benefit of fine wine to client portfolios,” Tiwari says. Cult Wines is the only such presence in Canada, though Tiwari says there are a few similar organizations in the US. However, Cult Wines has the most scale and global reach, and uses data and technology in its asset management processes. With 2,500 global clients, Cult Wines has grown by about 250 new clients a year over the past two years. Collectively, it has $380 million of assets under management and has seen a compound annual growth rate of 28% in Europe and Asia over the last five years. Tiwari expects good returns again this year. And although it’s only been operating in North America for nine months, Cult Wines has around $35 million of North American assets. Once clients onboard, they own a segregated, separately managed portfolio of fine wine – “so you actually own the wine,” Tiwari says. They’re then responsible for acquiring, transporting, storing (in perfect conditions), insuring and selling it, so there’s liquidity. As an active manager, Cult Wines has all those pipelines. “Wine is pretty sensitive,” Tiwari says. “So in order to preserve the value of the wine when you go to sell, you need to demonstrate all that has happened to preserve the value of what you’re selling.” Clients can get involved at two levels. For $12,500, they can onboard through the website and do their KYC and risk profile online. Then, based on their risk portfolio, objectives and tolerance, Cult Wines’ algo-

rithm builds and rebalances their portfolio. They don’t work with a portfolio manager. Clients who pay $45,000 have the same onboarding process, but get a dedicated portfolio manager who will discuss their objectives, then build their portfolio and discuss it with them. While some clients want to be more engaged and learn about wine, Tiwari says most North American clients give Cult Wines full discretion to manage their accounts, although it doesn’t buy or sell without consulting clients. Historically, Tiwari says, the company’s portfolio turnover is about 20% a year. It has a global investment committee, to which he belongs, which meets quarterly to

set the benchmark allocation among various wine regions. The company also has a Cult Wines Index, which aggregates all of its portfolio experiences. Since 2009, it has had average annual returns of around 12%, falling above that benchmark in 2021 (16.1%) and below it in 2020 (5.81%) – although “we were actually pretty pleased with that return, given all the uncertainties and everything else that was happening in the world,” Tiwari says. He adds that “fine wine has some great attributes, like low downside capture, low correlation to equities and low volatility. And very importantly right now, it’s a real asset, so it provides you with a hedge against inflation as well. So there are a lot of great investment merits. “We’re pretty excited about the future because it really is an untapped area of investing. Right now, we’re focused on awareness of asset class and who Cult Wines is. It’s very exciting. Nobody in the world is doing what we do.”

WINE INVESTMENTS AGING WELL WINE INDEX RETURNS AS OF JANUARY 31, 2022 One year Liv-ex Fine Wine 1000

Liv-ex Bordeaux 500

Bordeaux Legends 40

Five years

22.28% 45.81% 11.05% 21.44% 12.90% 26.22% 36.76%

Burgundy 150

102.23% 47.77%

Champagne 50

Rhone 100

Italy 100

92.28% 15.80% 32.64% 16.77% 49.35% Source: Liv-ex

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Commissions, management fees and expenses all may be associated with an investment in the Horizons Active Ultra-Short Term Investment Grade Bond ETF (the “ETF”) managed by Horizons ETFs Management (Canada) Inc. The ETF is not guaranteed, its values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETF. Please read the prospectus before investing.

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