Wealth Professional 4.02

REGULATORY REPRIEVE

The UK is rethinking its commission ban – what could it mean for Canada?

ETFs ON FIRE

WWW.WEALTHPROFESSIONAL.CA ISSUE 4.02 | $12.95

Why it’s time to consider this hot investment vehicle

TUULA JALASJAA

On the power of rebranding HollisWealth

WOMEN

OF INFLUENCE THE FACE OF THE CANADIAN WEALTH MANAGEMENT INDUSTRY IS CHANGING, AND THESE 42 WOMEN ARE LEADING THE CHARGE

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ISSUE 4.02

CONTENTS UPFRONT

PEOPLE

04 Editorial

INDUSTRY ICON

Why the TFSA is worth another look

How Tuula Jalasjaa rebranded HollisWealth and led it to double-digit growth in the midst of a volatile market

06 Head to head

Will insurance be the next CRM2 target?

08 Opinion

Applying ‘moneyball’ principles to business

10 Statistics

Another banner year for ETFs

14 Intelligence

This month’s big movers, shakers and new products

16 Alternative investment update

Hedge funds were the stars of 2015

18 ETF update

Canadian advisors are optimistic about equities

PEOPLE 47 Career path

Careers in the financial industry run in Rachel Dyck’s family

48 Other life

On the river with Paul Mowbray

20 24 COVER STORY

WOMEN OF INFLUENCE

ALWAYS

The financial industry still has a significant gender gap, but these 42 women are helping to close it

WE ARE SEE THE DIFFERENCE LEGITIMATELY ACTIVE MANAGEMENT CAN MAKE. dynamic.ca/Active WEALTHPROFESSIONAL.CA CHECK IT OUT ONLINE 2 www.wealthprofessional.ca

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559 College Street, Toronto, ON M6G 1 416-323-3282

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UPFRONT

NEWS ANALYSIS

PEOPLE

Will the UK’s updated stance on its commission ban spell reprieve for further regulations in Canada?

44

ADVISOR PROFILE

PASSIVE.

When her tennis career was sidelined, Jennifer Black set her sights on the financial industry

NEVER

12 ACTIVE, At Dynamic Funds, we firmly believe that legitimately active asset management matters. We consider it to be the cornerstone of exceptional portfolio construction.

Leave conventional thinking to the rest of the pack and see the difference true active management can make.

40 Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P.

, Suite 401 1A9

01-07-16 10:45 AM

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Date: January 7, 2016 9:48 AM 13.23” x 10.875”

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UPFRONT

EDITORIAL

TFSA’s turn to shine?

T

he TFSA is a baby when it comes to retirement savings vehicles in Canada.

After coming into existence in January 2009, it’s been a used as a political tool in elections as politicians twist it to suit their needs. After starting off with annual contribution room of $5,000, it was bumped to $5,500 and then, in a vote of confidence by the Harper government, increased again to $10,000. The Trudeau government recently rolled it back to $5,500, but it still offers Canadians, especially young people, perhaps the most efficient retirement savings vehicle.

The irony is that it never was really designed for retirement. It was thought of more as a short-term savings fund that people could dip into if an emergency arose. The RRSP was meant to be the retirement fund for Canadians, and it has been since it was introduced in 1957. But the TFSA seems to be quickly outstripping the RRSP as the best retirement savings option for a good portion of the population.

The TFSA seems to be quickly outstripping the RRSP as the best retirement savings option for a good portion of the population For one, the TFSA offers clients the opportunity to withdraw funds tax-free for emergencies and then re-contribute in future years without penalty. With the RRSP, on the other hand, a withdrawal is taxed at the current rate and cannot be re-contributed unless the person has unused contribution room.

For young people especially, there is a lot of upside. Take the example of someone who turned 18 in 2009 and hasn’t yet opened a TFSA. They could immediately contribute up to $46,500, thanks to the accumulated contribution room during that seven-year period.

The issue, though, is that many Canadians are simply unaware of the potential of a TFSA. In a recent BMO survey, only 3% of respondents were able to correctly answer eight basic true-or-false questions about the TFSA. Advisors often double as educators when they’re talking to clients. You might have to start with TFSA 101 at your next client meeting.

wealthprofessional.ca ISSUE 4.02 EDITORIAL Editor Nicolas Heffernan Writers Paul Lucas Olivia D’Orazio Donald Horne Kayla Haigh Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Jamie Townsend Jane Anderson Nikki Fogden-Moore

ART & PRODUCTION Design Manager Daniel Williams Designer Kat Vargas Production Manager Alicia Salvati Traffic Manager Kay Valdez

SALES & MARKETING National Accounts Manager Dane Taylor Associate Publisher Trevor Biggs General Manager, Sales John Mackenzie Marketing and Communications Claudine Ting Project Coordinator Jessica Duce

CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global COO George Walmsley Global CEO Mike Shipley

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Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss

INVESTING IS NOT A SPECTATOR SPORT. A LWAY S A C T I V E , N E V E R PA S S I V E .

Legitimately active growth investing requires the expertise that comes from years of experience and a disciplined process to uncover compelling investments in markets worldwide.

SERIES F

1 YR

2 YR

3 YR

5 YR

10 YR INCEPTION

DYNAMIC POWER AMERICAN GROWTH FUND*

28.1%

20.0%

29.4%

18.7%

10.9%

8.8%

DYNAMIC POWER GLOBAL GROWTH CLASS

25.9%

17.9%

25.6%

15.4%

11.4%

10.4%

DYNAMIC POWER GLOBAL BALANCED CLASS

17.2%

13.4%

17.0%

11.1%

–

8.6%

DYNAMIC POWER BALANCED FUND*

4.6%

6.7%

9.2%

3.8%

6.4%

8.4%

DYNAMIC POWER CANADIAN GROWTH FUND*

6.6%

9.1%

12.4%

2.5%

4.9%

8.7%

DYNAMIC POWER GLOBAL NAVIGATOR CLASS

20.4%

16.7%

22.6%

10.0%

–

9.0%

SEE THE DIFFERENCE LEGITIMATELY ACTIVE MANAGEMENT CAN MAKE. dynamic.ca/Power

Series F units are only available to investors who participate in eligible fee-based or wrap programs with their registered dealer.

Corporate class versions of these funds are also available. Performance for the class version and a trust version of a fund may differ due to differences in inception dates, and there is no guarantee that the funds will deliver similar returns. Performance as at December 31, 2015. Inception date for Series F of Dynamic Power American Growth Fund, Dynamic Power Global Growth Class, Dynamic Power Balanced Fund and Dynamic Power Canadian Growth Fund is March 4, 2002. Inception date for Series F of Dynamic Power Global Balanced Class and Dynamic Power Global Navigator Class is July 2, 2008. Commissions and trailing commissions are not payable on Series F units of the Fund but management fees and expenses may be associated with these investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemptions, distributions or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P. *

UPFRONT

HEAD TO HEAD

Is CRM2 headed to the insurance channel?

Now that full CRM2 implementation is months away, will the insurance channel be regulators’ next target?

Bill McElroy

Christopher Riddell

Sterling Rempel

Senior financial advisor William Douglas Group

Group pension and individual insurance advisor Wise Riddell Financial Group

Wealth and estate planning specialist Future Values Estate & Financial Planning

“Advisors should be concerned about CRM2 changes finding their way to the insurance channel, especially those who only have an insurance licence – although I don’t think disclosing your commission on a life insurance policy is going to be a problem, as commissions are pretty much standardized on these products.

There may be a big issue with the elephant in the room: DSC commissions on segregated funds. CRM2 may also direct more attention to the higher fees associated with the guarantees segregated funds offer. When a client starts adding up all the fees and commissions, it could be a big turn-off for them, and they will look for less expensive alternatives.”

“The upfront commission percentages in the insurance industry are set by the insurance companies and are not a decision that [advisors] get to make. With an insurance policy, the compensation doesn’t affect the benefit. The amount of disability benefit does not change [based on] the commission a broker receives; rather, the compensation paid by the insurer is built into the pricing.

Whether you are an insurance advisor or an investment advisor, you have to be able to justify your value. So, the introduction of CRM2 to the insurance industry might affect some brokers, but I do not feel it will have as big an impact as it will on the investment industry.”

“I foresee the following benefits of CRM2 applied to segregated funds: increased consumer understanding and diminished confusion; transparency and level playing field across product types; opportunity to describe the distinctive features of segregated funds; better appreciation for the advisor’s value; a deeper client relationship; opportunity to consolidate assets; internal consistency in practice standards, compliance, and oversight for dual-licensed advisors, dealers, and product manufacturers; and diminished regulatory arbitrage.

In the future, compensation disclosure may also apply to life insurance and living benefits. The same benefits would apply.”

CHANGES ON THE HORIZON Once CRM2 is fully implemented in July, clients will begin receiving several new reports from advisors that address costs and performance. Clients will receive trade confirmations, which will include the amount incurred for all transaction costs and charges. They’ll also get an annual statement that details all fees and costs incurred and all compensation the advisor received from third parties. Finally, they’ll receive an investment performance report, which includes the opening and current market value of all investments and the money-weighted rate of return on those investments.

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DO NOT BE BOUND BY BOUNDARIES. A LWAY S A C T I V E , N E V E R PA S S I V E .

Dynamic’s Core Equity Team brings together their global expertise with an active, disciplined, business owner approach to deliver a world of opportunities.

SERIES F

1 YR

2 YR

3 YR

5 YR

10 YR INCEPTION

DYNAMIC GLOBAL BALANCED FUND

15.2%

10.6%

–

–

–

10.2%

DYNAMIC GLOBAL EQUITY FUND

22.9%

15.3%

–

–

–

15.6%

SEE THE DIFFERENCE LEGITIMATELY ACTIVE MANAGEMENT CAN MAKE. dynamic.ca/Core

Series F units are only available to investors who participate in eligible fee-based or wrap programs with their registered dealer.

Performance as at December 31, 2015. Inception date for Series F of Dynamic Global Balanced Fund and Dynamic Global Equity Fund is November 29, 2013. Commissions and trailing commissions are not payable on Series F units of the Fund but management fees and expenses may be associated with these investments. Please read the prospectus before investing.

The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemptions, distributions or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P.

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? E-mail wealthprofessional@kmimedia.ca

‘Moneyballing’ a business The same principles that led the Oakland A’s to baseball success can set any business up to weather a crisis, writes Jamie Townsend AFTER THE Oakland A’s went up 2-0 in the 2001 postseason and then lost the series to the New York Yankees, the A’s general manager, Billy Beane, knew he needed to do something. That something, as it turned out, was to ask new questions about how to properly value a player. This led Beane to place a higher importance on a player’s on-base percentage, which in turn gave the A’s, a team with one of the lowest payrolls in Major League Baseball, an early advantage no one else had. Michael Lewis wrote about this in his book, Moneyball, which was eventually adapted into a movie starring Brad Pitt.

Today, this same idea of using data to provide a fresh look at business is offering similar advantages to many business owners.

Their ability to grow and protect their businesses has dramatically improved.

According to the Canadian Cancer Society, one in 2.2 men and one in 2.5 women will develop cancer in their lifetime. If that’s true, what’s the impact if those workers don’t show up to work for eight or 12 months while battling the disease?

In the case of a real-life business we’ll call ABC Company, it was greater than they expected. ABC Company is a secondgeneration manufacturing business that has experienced tremendous success. The owners, who are great at their particular craft, are looking to hire more staff and expand their facility. One of the founding shareholders (let’s call him Bob) is still heavily involved in the day-to-day operations and continues to drive approximately 25% of total revenue. The other shareholders are working to transition

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Bob’s existing relationships and purchase his shares in the business, but recognize that this is not an overnight process. They understand they would have significant exposure if Bob were not able to come to work each day.

of their key project managers. These individuals represent many years of experience and would be hard to replicate in the future.

3) The building expansion they started would be at risk of becoming cash flow negative.

The expansion was based on their original sales projections and did not account for a 25% decrease in total volume.

If we look at successful businesses of similar size, they typically spend 0.5% to 1% of their total revenue on insurance to protect the other 99.5%. ABC Company was spending 0%.

In this case, the company purchased a $1 million critical illness policy on Bob to provide coverage for one of 24 major diseases (the most common being heart attack, stroke or cancer). The intent was for the company

“This same idea of using data to provide a fresh look at business is offering advantages to many business owners” Worst case, if Bob did not show up to work for 12 months, the expected impact is a 25% decrease in sales and a reduced net cash position. However, over time, we would expect the business to adapt and sales begin to increase.

A closer look reveals that Bob’s 12-month absence would create an accumulated cash loss of $1 million over the next five years.

More surprising is that even after five years, the business runs the risk of not growing back to its original expectations.

ABC Company’s ability to ‘moneyball’ their business helped them identify three major risks: 1) Bob’s share purchase would need to be extended an additional three years and would result in $200,000 of additional interest costs. Not to mention, Bob would have to work almost three years longer than he planned to help the business facilitate buying out his shares.

2) To maintain positive cash flow and stay within their banking covenants, ABC Company would need to downsize two

to use this policy to stay in a similar cash flow position even if Bob got sick. Even if Bob is not able to come to work tomorrow due to a critical illness, the company can still continue buying Bob’s shares and funding their facility expansion.

Additionally, they would have the ability to maintain their existing staff and even hire a new person to help cover off some of Bob’s responsibilities. Ultimately, by the end of 2021, ABC Company’s cash position would be similar to their original expectations, even though Bob was sick.

By ‘moneyballing’ their business, they were able to reveal insights about how their company worked and, most important, cover off major risks with only a minor cost to ensure they continue on their growth plan.

Jamie Townsend works with business owners to help simplify their financial lives. Typically this involves finding ways to ‘moneyball’ their planning to achieve tax-efficient solutions for succession, retirement and estate planning problems.

STATUS QUO SHOULD NEVER BE YOUR STATUS. A LWAY S A C T I V E , N E V E R PA S S I V E .

In ever-evolving market conditions, not all income solutions are created equal. Managed by some of Canada’s most experienced investment minds, our alternative income solutions can help reduce volatility and provide attractive yields in ways that traditional solutions cannot.

SERIES F

1 YR

2 YR

3 YR

5 YR

10 YR INCEPTION

DYNAMIC ALTERNATIVE YIELD FUND*

6.4%

10.7%

12.0%

–

–

11.0%

DYNAMIC PREMIUM YIELD FUND

8.3%

12.3%

–

–

–

12.3%

SEE THE DIFFERENCE LEGITIMATELY ACTIVE MANAGEMENT CAN MAKE. dynamic.ca/EquityIncome

Series F units are only available to investors who participate in eligible fee-based or wrap programs with their registered dealer. * Corporate class version of Dynamic Alternative Yield Fund is also available. Performance for the class version and a trust version of a fund may differ due to differences in inception dates, and there is no guarantee that the funds will deliver similar returns. Performance as at December 31, 2015. Inception date for Series F of Dynamic Alternative Yield Fund is September 30, 2011. Inception date for Series F of Dynamic Premium Yield Fund is October 28, 2013. Commissions and trailing commissions are not payable on Series F units of the Fund but management fees and expenses may be associated with these investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemptions, distributions or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P.

UPFRONT

STATISTICS

How high can they go?

UPWARD TRAJECTORY CONTINUES

ETFs experienced phenomenal growth in 2015 – and with another year of increases projected, where’s the limit?

ETF GROWTH in Canada continued unabated in 2015. The country set a record for ETF/ETP assets under management, counting $89.6 billion as of Dec. 31, 2015, according to National Bank Financial. It was also the first calendar year on record in which all 12 months experienced positive inflows. The amount of new money coming also reached a new high of $16.5 billion, smashing 2012’s record of $12.1 billion and easily eclipsing 2014’s new inflows of $10.3 billion.

It was a similarly successful story globally as well. According to Deborah Fuhr, managing partner of ETF research firm ETFGI, “The record level of asset-gathering in 2015 shows that more investors are using ETFs/ETPs in more ways due to the market turmoil: Retail is using more ETFs through robo-advisors, institutions are using ETFs as alternatives to futures, and financial advisors are using more ETFs, especially in multi-asset portfolios.”

$372 billion $338 billion

Amount of net new global ETF/ ETP assets in 2015

Over the past 10 years, global ETFs have seen steady growth in both assets and numbers.

Given current market conditions, that growth appears poised to continue for the foreseeable future.

$55 billion

Amount of net new global ETF/ ETP assets in 2014

ETF assets

ETP assets Number of ETFs Number of ETPs

23

Amount of net new global assets collected in December 2015 (the best month in 2015)

Consecutive months of net positive inflows for global ETFs, as of December 2015 Source: ETFGI

UP ACROSS THE BOARD

JAPAN, EUROPE LEAD IN GROWTH

There was growth almost across the board for ETFs and ETPs in 2015 – from listings and assets under management to the number of providers.

While ETF/ETP inflows surpassed previous records in almost every part of the world, Japan and Europe in particular showed impressive growth over the previous high-level marks.

Number of ETFs/ETPs 2014 5,550 2015 6,146 Number of listings 2014 10,771 2015 11,750

Assets under management 2014 $2.78 trillion 2015 $2.99 trillion Number of providers 2014 239 2015 276 Number of exchanges 2014 62 2015 64 Source: ETFGI

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Global

10%

Canada

8%

Europe

45%

Japan

142% 0

30

60

90

120

150 Source: ETFGI

Global ETF and ETP Growth 3,000

4,500

2,700

4,000

2,400

3,500

2,100

3,000

1,800

2,500

1,500

2,000

1,200

1,500

900

1,000

600

500

300

Number of ETFs/ ETPs

Assets (US$ billion)

5,000

0 2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: ETFGI

BEST ETF SECTORS

TOP THREE ETF PROVIDERS

ETFs track almost all market sectors, but the ones that gathered the most inflows in 2015 were equities, fixed income and commodities

There are 276 ETF/ETP providers in the marketplace, but the top three account for nearly 70% of global assets

31.1%

All other providers

37.1%

iShares $1.11 trillion

$81.5 billion Fixed income

$258 billion Equities

14.8%

$2.4 billion

SPDR ETFs $443.2 billion

Commodities

Source: ETFGI

17.0%

Vanguard $509.6 billion Source: ETFGI

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UPFRONT

NEWS ANALYSIS

Embedded compensation gets a lifeline The UK has admitted it’s looking at reintroducing commissions – will this be the final nail in the coffin for Canadian regulators considering a ban?

BACKTRACKING is never a good sign.

In 2013, the United Kingdom instituted its Retail Distribution Review [RDR], which forced advisors to charge upfront fees to their customers rather than receive commissions from companies supplying financial products.

The industry feared it would decimate the ranks of advisors and cut off advice from smaller investors – and it appears those fears weren’t unfounded.

Statistics suggest that client numbers have fallen since the implementation of the new rules, and many have wondered whether the changes are to blame.

want to look at is actually what is the best way of delivering advice and guidance across the market, so I wouldn’t rule out that there may be some element of commission, but we are not going to reverse the RDR.” Given the copycat nature of governing bodies, it stands to reason that this change of heart by one of Canada’s regulatory role models would force their counterparts here to put the brakes on any hasty move to eliminate commissions.

“As we’ve seen in the UK and other markets, once those things happen, there’s disintermediation, and you’ve got a number of smaller

“The UK was a guinea pig for us, and I hope our regulators learn from their experiences, positive and negative” Sean Harrell, Howe, Harrell & Associates Now, it appears the UK is admitting that it has a problem. The Financial Conduct Authority’s acting CEO let the cat out of the bag in January when he mentioned that he was exploring reintroducing some form of commissions to the country’s wealth management industry.

“We do not want to go back to a world where we had the problems of the pre-RDR,” acting FCA CEO Tracey McDermott told the BBC’s Money Box program. “What we do

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clients that can’t get advice, and I think that would be a mistake,” says Tuula Jalasjaa, CEO of HollisWealth.

Not only did it affect the public’s access to financial advice, but the UK’s move also severely downsized the ranks of advisors, sending numbers tumbling from 40,000 investment advisors registered in 2011 to about 31,000 currently.

“With the problems the UK has experienced – regarding rising costs for advice and

dwindling numbers of independent advisors – I find it hard to believe that there will be an outright ban on commissions here in Canada,” says Sean Harrell, partner and senior advisor with Howe, Harrell & Associates. “In this case, the UK was a guinea pig for us, and I hope our regulators learn from their experiences, positive and negative.”

But the concern around commissions still lingers. “Advisors are worried about whether trailers going to be banned,” says Jalasjaa, who travels regularly to speak with advisors.

However, the final stage of CRM2 should solve any issues regulators might have around trailing commissions, she says.

“If CRM2 does what it’s intended to do, and you’ve got transparency around fees, then there should be no need to ban trailers,” Jalasjaa says. “Worst case, maybe they get capped.”

Harrell agrees that CRM2 should eliminate

WHAT’S COMING WITH CRM2 While embedded commissions may never be banned outright, CRM2 will require advisors to clearly communicate to clients how they’re being compensated, among other requirements. Here’s what you can expect when the new regulations take effect in July: Account statement requirements will be expanded Advisors must provide an annual report on charges and other compensation that shows, in dollars, what the dealer or advisor was paid for the products and services provided Advisors must provide an annual investment performance report that covers deposits into and withdrawals from the client’s account, the change in value of the account, and the percentage returns for the previous year, as well as the previous three, five and 10 years

the need for an outright ban of embedded commissions.

“I 100% agree that investors should know exactly how much they are paying for our advice,” he says. “But I don’t think that means

and fee-based planning in Canada. And that should provide Canadian investors with the options they need to feel confident that they are receiving good value from their advisors.”

There seems to be a groundswell against

“If CRM2 does what it’s intended to do, and you’ve got transparency around fees, then there should be no need to ban trailers” Tuula Jalasjaa, HollisWealth we need to ban embedded commissions. I believe that if an investor is given a choice of programs – commission-based or fee-based – and the programs are explained and policed properly, there is room for both commission-

commissions, however: Several reports denigrating trailers have emerged over the past year. The Brondesbury Report, released in June, suggested that fee-based compensation is likely a better model than commission-

based compensation, but softened its stance by suggesting there’s not enough evidence to determine conclusively that the former compensation model delivers better long-term outcomes for investors.

Meanwhile, the Cummings Report, released in October, suggested the influence of past performance on fund sales is considerably reduced when fund manufacturers pay sales and trailing commissions.

However, for her part, Jalasjaa considers these reports inconclusive at best.

“I think there have been some errors around the methodology of some of the studies they’ve done on how trailers influence behaviour,” she says. “I think if you’ve got transparency, and clients know what they’re paying, and advisors are giving value and the client perceives it as a value, then there would be no need to ban trailers.”

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Brookfield Asset Management

Isagen SA

The acquisition bolsters Brookfield’s global renewable energy business with high-quality, predominantly hydro assets

Euro Pacific Canada

Dundee Securities

Euro Pacific has acquired Dundee Goodman Private Wealth, along with Dundee’s separately managed account program and employees related to its fixed-income, foreign-exchange and insurance businesses

Invesco

Jemstep

The acquisition will help Invesco combat robos by adding advisors able to provide online advice to clients

Nasdaq OMX Group

Chi-X Canada

The deal expands the market for Canadian equities, derivatives trading and ETP listings

Scotiabank

Citigroup

Scotia has acquired the New York-based banking giant's retail and commercial banking business in Panama and Costa Rica

Wealthsimple

Canadian ShareOwner Investments

The move will help Wealthsimple to work more closely with financial advisors by building more than just model portfolios

Sentry Investments plans to simplify its mutual fund series

Sentry Investments is reducing management fees across its mutual fund lineup and making changes to simplify the funds. Current investors who purchased Series A and T funds under a back-end option will be re-designated into a newly created Series B and corresponding fixed-rate distribution series; this allows Sentry to replace previously implemented fee rebates with formal management fee reductions. Sentry will also re-designate Series P, PF, PT and PFT into the corresponding Series A, F, T and FT of the same fund, which now have similar preferred pricing features.

National Bank announces material changes to two funds

Asset manager makes big infrastructure acquisition

The government of Colombia sold its majority stake in power generator Isagen SA for 6.5 trillion pesos ($2 billion) to a group led by a subsidiary of Brookfield Asset Management. Brookfield, Canada’s largest alternative asset manager, presented a bid of 4,130 pesos per share at the midJanuary auction at the stock exchange building in Bogota amid protests over the privatization. The price matched the minimum set by the Colombian government. Chile’s Colbun SA, the other approved bidder for the government’s auction, dropped out just before the auction, leaving the Brookfield consortium the sole bidders in a process that started in 2013.

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National Bank Investments has switched portfolio managers for its NBI Real Assets Private Portfolio, replacing National Bank Trust with BNY Mellon Asset Management Canada; Boston Company Asset Management will act as a subadvisor. The bank also has proposed a change to the objective of its National Bank Mortgage Fund to allow the fund to tactically invest, directly or through investments in securities of other mutual funds, in a portfolio composed primarily of Canadian bonds and Canadian mortgages. The proposed change is designed to give the portfolio manager more flexibility for asset diversification.

PEOPLE RBC expands suite of US investment solutions RBC Global Asset Management is expanding its corporate class funds, including the addition of US-dollarpriced options on 11 existing solutions and the launch of two new US-dollar corporate class funds. RBC Corporate Class Funds include a selection of fixed-income and equity funds that provide investors with tax-free switching and rebalancing, reduced taxable distributions, and a method of tax-efficient bond investing.

CI Investments announces new mandates for income investors

CI Investments is providing new options for incomeseeking investors with the launch of its Signature Tactical Bond Pool and Signature Preferred Share Pool. Signature Global Asset Management will serve as the portfolio advisor. “Canadians continue to seek investments that provide reliable income and capital preservation,” said Derek J. Green, president of CI. “We are expanding our diverse lineup of income-oriented solutions with two new mandates that are actively managed by an investment team with deep expertise and extensive experience in these asset classes.”

Horizons ETFs introduces new Canadian municipal bond ETF

Horizons ETFs Management and its affiliate, AlphaPro Management, have added to their lineup of low-cost, actively managed ETFs with the launch of the Horizons Active Cdn Municipal Bond ETF (HMP), the first ETF in Canada to provide diversified exposure to Canada’s municipal bond market.

Sub-advised by Fiera Capital Corporation, HMP is an actively managed ETF that invests primarily in a portfolio of Canadian municipal bonds. Canada’s municipal bond market is worth approximately $40 billion; Quebec municipalities make up more than half of the issues.

NAME

COMPANY

COMMENTS

Anita Anand

University of Toronto

The former corporate law and governance expert will become the university’s first ever research chair to focus on investor protection and shareholder rights

Randolph Brown

Sun Life Financial

As chief investment officer, Brown will oversee the investment operations of Sun Life Assurance Company of Canada

Frances Donald

Manulife Asset Management

The former Scotiabank economist moves into a similar role at Manulife

Naureen Hassan

Morgan Stanley

Hassan, who was instrumental in developing Charles Schwab’s robo-advisory offering, will become Morgan Stanley’s chief digital officer for wealth management

Maureen Jensen

Ontario Securities Commission

Jensen becomes the first woman to be appointed chairwoman and CEO for the OSC

Robert Kidd

Artemis Investment Management

Kidd replaces Conor Bill as Artemis’ president and CEO

Saäd Rafi

Ontario Retirement Pension Plan Administration Corp.

The former CEO of the Toronto Pan Am games will take the top spot at the ORPP

Douglas Turnbull

DBRS

In the newly created position of vice chairman and country head for Canada, Turnbull will oversee DBRS’ Canadian operations

Ontario nominates new chair and CEO for the OSC Ontario has nominated Maureen Jensen as the new chair and CEO of the Ontario Securities Commission; she was confirmed in February by the Standing Committee on Government Agencies. Jensen is the first woman to be appointed to the role, as well as the first person to ascend to the job from within the OSC’s ranks. She has been the OSC’s executive director and chief administrative officer since 2011. A well-respected securities regulation leader, Jensen brings a wealth of hands-on experience in ensuring that investors are safeguarded and capital markets are fair and efficient.

ORPP Administration Corporation appoints CEO Former Pan Am CEO Saäd Rafi has been appointed as the first CEO of the Initial Board of the Ontario Retirement Pension Plan Administration Corporation.

Rafi will focus on building the new Administration Corporation and delivering on its mandate to implement the ORPP for the benefit of millions of Ontario workers.

He will be responsible for developing the ORPP Administration Corporation’s organizational structure, engaging service delivery partners such as the Canada Revenue Agency, and overseeing the setup of the infrastructure and technology required to administer the plan.

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UPFRONT

ALTERNATIVE INVESTMENT UPDATE

Hedge funds beat equities and bonds While the markets suffered, hedge funds offered advisors solace by ending the year on a high note

Canadian Hedge Fund Index found hedge funds returned an average of 6.21% last year, while the broader S&P/TSX Composite Index fell 11.09% during the same period.

This was a huge contrast to American hedge funds, where the HFRI Fund Weighted Composite Index, which tracks hedge fund performance, closed down 0.85% in 2015, marking only the fourth time since 1990 that the index recorded a loss.

“The majority of hedge funds produced positive returns amid challenging market conditions”

LAST YEAR was a good one for hedge funds – they finished up 2.42% globally, beating equities and bonds on an absolute and riskadjusted basis.

“While 2015 will not be remembered as a vintage year for the industry, the majority of hedge funds still produced positive returns amid challenging market conditions, beating stocks and bonds on both an absolute and risk-adjusted basis and preserving capital for pension funds and other investors,” said Jack Inglis, CEO of the Alternative Investment Management Association [AIMA], the global representative body for alternative asset

NEWS BRIEFS

managers. “Given that this period of market volatility is set to continue during 2016, we remain confident that hedge funds will continue to meet their investors’ expectations for competitive, diversified and low-volatility returns.”

AIMA said the analysis, based on returns reported to HedgeFund Intelligence by funds with total assets under management of roughly $1.1 trillion, represented one of the most comprehensive assessments of the global hedge fund industry’s performance last year.

It was an especially good year for Canadian hedge funds, as the asset-weighted Scotiabank

Calpers pension members made money in 2015

Calpers, the sixth-largest pension fund in the world, released its 2015 annual report in mid-January, revealing that its fund posted a net return of 2.4% in 2015. Over the past three and five years, the fund has delivered annualized returns of 10.9% and 10.7%, respectively, beating its benchmark by 59 and 34 basis points annually, even with a fixed-income weighting of 26%. Taking into account real estate, private equity and absolute return strategies, Calpers has approximately $18 billion, or 6%, of its portfolio invested in alternatives.

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However, in terms of AUM, the Canadian hedge fund industry is a drop in the bucket compared to the US. Canadian hedge funds have approximately $35 billion in total AUM, whereas a single fund in the US – the Bridgewater Associates Pure Alpha II Fund – has about US$81 billion in AUM. According to AIMA, Canada’s $35 billion AUM is divided up among approximately 140 hedge fund managers, and 58% of Canadian hedge funds have AUM of less than $100 million.

AIMA research also found that hedge funds, on average, outperformed stocks and bonds on both a headline and risk-adjusted basis. Around two-thirds of funds (65.3%) reported positive returns; the best-performing strategies were equity market neutral/quant (up 10.44%), long/short equity (up 6.79%) and multi-strategy (up 5.65%).

BlackRock discontinues its hedge fund

BlackRock threw in the towel on its lacklustre macro hedge fund in November – a capitulation that stunned the investing world. Before it was shut down, the Global Ascent Fund was on course for its worst ever year, tumbling 9.4%. The fund, which had $4.6 billion in assets just two years ago, had shrunk to less than $1 billion.

Mark McCombe, co-lead of BlackRock’s alternatives arm, said the macro fund was a “huge disappointment,” but declined to specify how BlackRock would fill that gap in its multi-strategy lineup.

Q&A

James Burron Chief operating officer ALTERNATIVE INVESTMENT MANAGEMENT ASSOCIATION CANADA

Years in the industry 20+ Fast fact Burron also does research and writing as a chapter executive and spokesperson for the Chartered Alternative Investment Analyst Association

Setting the record straight on hedge funds What’s the number-one advisor misconception about hedge funds?

Should advisors be looking at Canadian funds or looking abroad?

That hedge funds are high-risk. Hedge funds were invented to use so-called high-risk tactics (like shorting and using leverage) together in order to create a low-risk portfolio. Some look at the tactics in isolation and not the overall strategy and assume they are high-risk. Our analysis of hedge fund performance shows that the volatility of many hedge funds and the bulk of hedge fund strategies is lower than the markets. In 2015, according to AIMA’s analysis of the HedgeFund Intelligence database, hedge funds’ average return for the year was 2.42%, with a standard deviation of only 4.05%, which is much lower than the volatility of equities.

There are many good funds in Canada as well as elsewhere. Some funds simply do not sell into Canada, as it requires them to be registered here or change their distribution model – and Canada is a relatively small country. Given the plethora of strategies available from Canadian funds, [the fact] that all of the managers here are regulated and the many world-class service providers, buying Canadian is certainly recommended from our vantage point, irrespective of market conditions.

What’s the main thing advisors should keep in mind when trying to select a hedge fund?

Hedge funds come in many styles, or strategies, and like mutual funds, some managers are higher-octane than others. Knowing the typical risk and return profile of a fund or manager is key. Just like any investment, advisors need to match the fund to the investor for best results.

What is the outlook for hedge funds in the coming year?

While we are not market analysts or commentators, should this current period of market volatility continue during 2016, we would hope and expect hedge funds to continue to meet their investors’ expectations for competitive, diversified and low-volatility returns.

Equity crowdfunding gets unexpected boost

IIAC’s latest “Letter from the President” painted a bleak picture for Canada’s public venture market. “The extended weakness in resource markets and recent structural changes in the smallcap marketplace have battered boutique firms and the small-cap marketplace alike,” wrote IIAC CEO Ian Russell. In light of crowdfunding rules that took effect in Ontario in January, equity crowdfunding looks to benefit directly from these changes.

By the end of 2016, many provinces are expected to have similar rules.

Why are Canadian hedge funds performing so much better than their American counterparts?

We represent the global hedge fund industry, and as such, would never compare hedge fund businesses between different countries or jurisdictions. Suffice it to say, both markets have many excellent managers. Last year, roughly two-thirds of all hedge funds worldwide were up for the year – a decent performance amid falling or flat equity and bond markets.

Given the current markets, why are hedge funds such a good option for advisors?

Advisors generally want investments that produce positive returns for their clients and preserve capital during times of market stress. Hedge funds do both of these things, which are especially important versus a long-only portfolio when markets are facing steep declines, which makes them appropriate for many advisors to recommend to their clients.

Savvy investors looking to alternative data

Industry observers have found that sophisticated investors are increasingly using alternative data and other obscure information they can glean to ‘job’ the markets. Hedge funds have been using alternative data for some time now; the thinking is mutual fund providers will soon jump onboard. “There is a whole class of emerging data, and that comes from the deployment of millions of sensors around the world by governments, companies or consumers,” said Adam Broun, chief operating officer at Kensho.

Alternatives taking on more prominence

Institutional investors are turning to alternatives, claiming that stocks and bonds are too highly correlated to provide distinctive sources of return, revealed a recent survey by Natixis Global Asset Management. “The events of the last month have shown the need for a sophisticated, balanced approach to asset allocation,” said Natixis CEO John Hailer. “That’s part of the reason institutional investors plan this year to supplement traditional stocks and bonds by making an even bigger commitment to noncorrelated, alternative assets.”

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UPFRONT

ETF UPDATE NEWS BRIEFS Socially responsible investments on the upswing

According to a recent survey, environmental, social and governance issues are becoming a bigger factor in the industry. The survey found that assets in Canada being managed using one or more responsible investing strategies increased in value from $600 billion to more than $1 trillion in just two years. That represents a 68% increase in responsible investing [RI] assets under management. The Responsible Investment Association of Canada attributes that growth to large pension funds using RI guidelines; many new entrants to the industry, particularly among investment managers; and qualitative factors including personal values and generational wealth transfer.

iShares lowers ETF fees even further iShares announced in January that it’s lowering the annual management fees of its iShares Core S&P US Total Market Index ETF (XUU) and iShares Core S&P US Total Market Index ETF (CADHedged) (XUH) to 0.07%, making the duo of funds the cheapest and easiest way for Canadian investors to access the US stock market. “As part of our mandate to deliver easy-to-access, welldiversified and cost-effective solutions through our iShares Core funds, these product enhancements are another step towards delivering on that goal,” said Warren Collier, head of iShares.

New ETF plays to senior citizen audience US ETF provider Van Eck Global has launched the Market Vectors Generic Drugs ETF (GNRX), which provides advisors with a conduit to indirectly save

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their retired clients some money. Rising drug prices are a thorn in the side of most retirees, who live on fixed incomes with very few ways to battle never-ending pharmaceutical inflation – until now.

“With rising health care costs, drug manufacturing innovation and public support for less expensive options to brand-name drugs, this is a compelling ETF,” said Edward Lopez, Van Eck Global’s marketing director.

Vanguard’s digital success ensures robo-advisor future

The success of Personal Advisor Services, Vanguard’s hybrid automated advice service, has provided the best proof yet that robo-advisory services are here to stay. In March 2015, when it was still a pilot project run by the ETF giant, Personal Advisor Services had $7 billion in AUM. Nine months later, the digital offering had amassed $31 billion in AUM, 70% of which was new money. As for how the company will continue to grow its digital advice platform, an acquisition is not out of the question, said Tom Rampulla, head of Personal Advisor Services.

Industry giant cuts minimums in fight against robos In a drastic attempt to fight back in its battle against digital advice platforms, industry giant Charles Schwab has decided to slash minimums on most of its mutual funds on the OneSource platform – some as low as just $100, a dramatic 96% drop from the previous $2,500 level. Schwab, which is based in California but ran a business in Canada until 2002 when it was taken over by Scotiabank, has decided that after the first investment of $100, subsequent minimums on the platform will be just $1 – down from $500 previously.

Canadian advisors still bullish on equities A recent survey revealed some surprising insights related to US equities and crude oil Canadian advisors remain optimistic about US equities, according to the Q1 2016 Advisor and Investor Sentiment Surveys conducted by Horizons ETFs Management.

Advisors were bullish on only four of 14 classes, which included the S&P 500, NASDAQ-100, S&P/TSX 60 Index and the S&P/TSX Capped Financials Index; however, the degree of bullishness declined for each of these indices compared to the previous quarter.

“The decline of the Canadian dollar against the greenback has had a significant effect on US equity returns, and advisors realize that an active currency hedging strategy can play a very important role in ultimate returns,” says Steve Hawkins, co-CEO of Horizons ETFs. “The Fed also raised rates in December, which is generally considered a signal of strength for their markets overall, and that may have been what has kept the majority of advisor sentiment bullish on US equity markets.”

Looking ahead to the first quarter of 2016, 60% of advisors said they were bullish on the S&P/TSX 60 Index, a decline of only two percentage points from the previous quarter. Meanwhile, the number of advisors bullish on the S&P/TSX Capped Financial Index declined by eight percentage points, down to 54% from 62% last quarter.

“After a near 8% decline in the S&P/TSX 60 in 2015, advisors may think Canadian

equities could be poised for a comeback,” Hawkins says. “While the performance of financials may have been flat over Q4, advisors may see the banks as a value opportunity over the coming quarter, and of course, they are always a great source of dividend income for Canadian investors.”

Surprisingly, sentiment for crude oil rose somewhat quarter-over-quarter, even with a 17.85% decline in the spot price of crude oil in the fourth quarter of 2015. The

“Advisors increased their positive sentiment towards crude oil, thinking its price may have bottomed” number of bullish advisors on crude oil rose to 45%, up from 39% last quarter, while the number of advisors who expressed bearish sentiment fell to 24% from 30%.

“Advisors increased their positive sentiment towards crude oil heading into Q1, thinking its price may have bottomed; unfortunately, this has not been the case so far, with WTI trading well below where it ended the year,” Hawkins says. “There’s also positive sentiment around energy producers, which are very oversold at the moment. If there is a bounce-back in crude oil prices, investors are expecting energy stocks to really ramp up performance.”

Q&A

Mark Noble Senior vice president and head of sales strategy HORIZONS ETFs MANAGEMENT

Years in the industry 6 Fast fact Before working for Horizons, Noble was a news reporter for Rogers Communications

Where are Canadian equities headed?

Do you think Canadian equities are poised for a comeback?

Fundamentally, there’s not a whole lot suggesting they would be.

The one factor here is crude oil. If crude oil went from $33 and change today to $50, then yeah, you’re going to see a rally in Canadian equities. If it holds pat, then you’re not. And if it stays around $30, then you’re looking at further interest rate cuts come April, which are going to impact other areas. I think what happens with Canadian equity investors over the next year is they have to parcel out their exposure from a broad standpoint, because the energy sector has such a large weight that’s going to be a drag on Canadian equity performance unless crude oil increases.

Where there is some opportunity is in things like the gold sector.

During the sell-off, gold has actually gone up. Things like the staples sector are doing very well because companies that manufacture and export goods in Canada, they’re still getting their revenue in US dollars, and their costs and overhead have decreased, so from a net revenue standpoint, they’re doing well. So there are pockets of the Canadian equity market that are likely to do well with the lower dollar, and there are pockets that won’t, so you’re going to have to be more selective. In the ETF space, you’re likely going to have to go from being broadly exposed to Canadian equities to picking out, potentially, sectors to be overweight or underweight in order to outperform.

Are you seeing more optimism for crude oil?

We’re seeing it in the flows, believe it or not. Just in our company alone, we’ve raised about $57 million since the start of January into our crude oil ETFs, which are both leveraged and non-leveraged.

From our investors, reading their sentiment, they’re taking a big bet on crude oil going up from here.

Are you surprised at that at all?

Once it hits $30, this is kind of uncharted territory, so I think there’s a natural inclination to think things have maybe been overdone. To give you a sense, the December 2016 NYMEX crude oil contract is priced at about $40 … about $7 ahead of the current WTI crude contract. So the market is still pricing in oil that will be $7 higher [at the end of the year]. That’s a substantial gain for an investor over time. One thing that’s important to keep in mind [is that] if you do invest in crude oil futures as an advisor, you’re subject to a roll in the contract. We have a product that’s done quite well, which is ticker symbol HUC, and it’s only down 7.5% versus regular crude, which is down about 13.5%. Again, that’s because it’s tracking that December contract versus the current contract.

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PEOPLE

INDUSTRY ICON

DECLARATION OF INDEPENDENCE After three years at the helm of HollisWeatlh, Tuula Jalasaa has positioned the firm well for the future and given advisors an independence that is the envy of the industry

IN 2011, Tuula Jalasjaa was presented with a challenge she simply couldn’t turn down.

Scotiabank had just completed its billiondollar acquisition of DundeeWealth, and Jalasjaa was charged with leading the newly rebranded HollisWealth into the future.

“I thrive on challenge,” she says. “I don’t do easy very well. I don’t do status quo very well. There was an opportunity to lead HollisWealth, and I’ve always been fascinated by the independent space. I knew it would be an opportunity for me to embark on that next challenge and really reinvigorate myself.”

‘Challenge’ might be an understatement – not only did Jalasjaa take over a company that was embarking on a massive change, but she did so within an industry in the throes of a mini-revolution of its own, thanks to CRM2.

“That was a challenge on trying to get to know the business, grow it and enhance it while also spending time on all these regulatory changes,” she says. “They’re necessary, and they’re important for investor protection, but you can’t underestimate the time and resources involved in executing them.”

Three years later, she’s navigated the storms and helped HollisWealth earn a reputation of independence and entrepreneurship that sets it apart from other firms in the industry.

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In with the new When Jalasjaa first took the reins, she had to focus on integrating the business, which didn’t happen overnight. In fact, she estimates it’s taken her entire three-year tenure to harmonize everything from systems, technology and policies to – perhaps most important – company culture.

She credits the progress she’s made to her willingness to get out on the front lines with advisors.

history of the firm,” she says. “The last three years, we’ve experienced double-digit growth from a revenue [and] AUM perspective.

We’ve been top quartile, not just against independents, but all firms in the industry.”

Advisors have also benefited; average book size has gone up considerably.

“We’re sharing in that growth equally – so despite the markets, despite being part of a new ownership with Scotia, we’ve been able to grow and outpace a lot of our

“I don’t think you can run a business by sitting in an ivory tower. You have to be out talking to advisors about what they need and what they’re seeing. They’re the voice of our industry” “My first year in the role, I tried to get out and see as many advisors as possible – and I’m proud of the air miles I’ve accumulated and continue to accumulate,” she says.

“I don’t think you can run a business by sitting in an ivory tower. You have to be out talking to advisors about what they need and what they’re seeing. They’re the voice of their clients.”

It’s taken time, but the fruit of Jalasjaa’s labours is becoming apparent.

“This last year was the best year in the

competitors,” Jalasjaa says. “We’re very proud of that.”

Fostering independence One of the hallmarks of HollisWealth, and one of the key reasons for its continued success and growth, is the partnership Jalasjaa has managed to forge between the firm and its advisors. Independence for advisors is something she’s sought to maintain; she created a council that includes advisors to make sure their

PROFILE Name: Tuula Jalasjaa Company: HollisWealth Title: Managing director and head Age: 46 Years in the industry: 20 Career highlight: “Having the good fortune to lead such a vibrant business and to work with so many interesting financial entrepreneurs. It’s a position that brings together all my prior career experiences” Career lowlight: “Early on, I worried a little about how my career aspirations might impact my work/life balance.

Looking back, though, I found a wonderful balance”

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PEOPLE

INDUSTRY ICON perspective is included in every decision the company makes.

“It really is a true partnership,” she says. “We need each other. We need to work together. It’s a team, and I think that promotes more of that entrepreneurial spirit where our advisors feel comfortable sharing ideas. They know that they’ll be heard and that there will be action.”

While other firms slowly chip away at advisors’ independence – dictating the size of accounts, what clients they

The way forward The company is also being proactive by looking for growth opportunities through technology.

“We’re not waiting for those changes; we’re actually being proactive, partnering with Fintechs,” Jalasjaa says. “We’re launching a number of innovative technology solutions that are going to help our advisors meet the needs of all segments.”

One segment that HollisWealth is particularly focused on is millennials.

“The key to independence is that our advisors have the flexibility to make decisions on their own. We’re the only independent firm owned by a bank in the entire world. And that provides that flexibility and stability that they can’t get anywhere else” can deal with or how they have to price – HollisWealth has sought to leave that up to the individual.

“The key to independence is that our advisors have the flexibility to make those decisions on their own,” Jalasjaa says. “They’re seeing HollisWealth as a tremendous opportunity to be able to really be a business owner, be entrepreneurial, drive business the way they want to, yet they still have that safety and stability by being connected with Scotiabank. We’re the only independent firm owned by a bank in the entire world. And that provides that flexibility and stability that they can’t get anywhere else.”

That independence is giving HollisWealth advisors a leg up in the post-CRM2 world.

“To me, that’s our value proposition,” Jalasjaa says. “We think in an environment like CRM2, where advisors need to provide value, the fact that they’re entrepreneurial and independent [allows them to] make objective decisions in the best interests of their clients.”

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“They want online tools,” Jalasjaa says.

“They want mobile tools. They want to be able to move back and forth and then to their advisor, so we need to be able to deliver a seamless experience for our advisors and clients. That’s a big focus for us, and I think it’s going to help us be successful as the innovation leader in the market.”

With a successful rebranding under her belt, Jalasjaa is now working to get the message out to the public. HollisWealth’s recent national TV and magazine advertising campaign – the largest in the firm’s history – was developed after extensive discussions with advisors.

“Our core advertising message was that, as independent business owners, HollisWealth advisors are personally committed to the financial well-being of their clients,” Jalasjaa says. “The new tagline, ‘Invested in you,’ which accompanies the advertising, is a bold summation of all that makes HollisWealth advisors fundamentally different, compelling and relevant.”

JALASAA’S TOP THREE CHALLENGES FOR 2016

THE CANADIAN AND GLOBAL ECONOMY “It’s very anemic, and the growth prospects are going to be sluggish … it creates a lot of angst from clients.”

REGULATORY CHANGES “There’s still a lot more to come. As a dealer, we have to spend a considerable amount of time and resources making sure we are adhering to those, and advisors also have to spend a lot of time adapting their practices to be in line with those changing regulations.”

UNKNOWNS “If there’s ever been a time with a lot of unknowns, it’s right now. Advisors are worried about whether trailers are going to be banned.

Is there going to be a fiduciary responsibility to being an advisor? A lot of unknowns and uncertainties about how that might impact their practice can sometimes detract from their focus.”

FEATURES

COVER STORY: WOMEN OF INFLUENCE

WOMEN

OF INFLUENCE Who says the financial industry is a boys’ club? These 42 women are leaving that traditional view in the dust WHY AREN’T there more female advisors?

It’s a simple question, but one without an adequate answer.

As regulatory change reshapes the industry landscape, the days of the traditional stock picker are gone. Instead, advisors are developing deep, trusting relationships with their clients, a role that seems like a natural fit for women. Indeed, many of the female advisors WP spoke with agreed that intuition, empathy and compassion are vital traits that determine an advisor’s success.

Yet the numbers still paint a bleak picture of women’s involvement in the financial services. Recent PriceMetrix data estimates that the proportion of female advisors in North America is just 12%. Advocis paints a

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slightly better picture of gender representation, estimating that about a quarter of advisors are women. And although the proportion of female financial advisors among newcomers to the industry is double that among advisors who have more than 20 years of tenure, there’s no denying that women remain in the minority within the financial advice industry.

But despite the historical and current gender disparity, there are signs that the pendulum is swinging the other way. To start with, many female clients are seemingly unhappy with the advice they’re getting.

One survey found that 73% of women were unhappy with the service they received from the financial industry. And while roughly 87% of women would like to have an advisor, only

17% actually do.

Socially, there’s been a real shift toward women taking a more proactive approach in family finances. Shifting demographics point to women outliving their male partners; 80% of widows switch advisors after the death of a husband. All this, coupled with an increasing number of divorces, means there will be more opportunities for female advisors to really stake a claim in the industry.

It has been observed that a minority isn’t truly heard until it represents at least 30% of a given population. If that’s the case, women are still short of truly having a voice in this industry – but, as these 41 trailblazers demonstrate, they are making great strides in that direction.

INDEX NAME

COMPANY

Gaelen Morphet

PAGE

Booker-Urban, Wendy

QV Investors

30

Bourque, Michèle

Canada Deposit Insurance Corporation

32

Bowman, Ann

RBC Wealth Management

41

Bradley, Sarah

Ombudsman for Banking Services and Investments

43

Brejak, Lynne

Richardson GMP

40

Bride, Janet

HollisWealth

32

Butler, Kathy

CIBC World Markets

36

Chamberlain, Catherine

Vanguard Investments Canada

32

Chong, Annie

Invesco

41

Crowe, Darcie

Canaccord Genuity Wealth Management

35

Evans, Beverly

Evans Wealth Management

40

Fletcher, Alison

Mandeville Private Client

43

Glenn, Maureen

Richardson GMP

39

Hamilton-Keen, Elizabeth

Mawer Investment Management

38

Harrison, Marianne

Manulife Canada

26

Hastick-Cowell, Michelle

HollisWealth

38

Hay, Allison

Hay Wealth Advisory Group

34

Hay, Lynda

Hay Wealth Advisory Group

34

Hunter, Mitzie

Government of Ontario

26

Ipek, Sevgi

Industrial Alliance Investment Management

30

Jamison, Natalie

The Jamison Group

35

Jensen, Maureen

Ontario Securities Commission

30

LaLiberté, Christine

Insightful Wealth Group

27

Latremoille, Susan

The Latremoille Group

42

Leadbeater, Tricia

The Mackie Wealth Group

39

Moffat, Marcia

BlackRock

43

Morphet, Gaelen

Empire Life Investments

25

Notley, Rachel

Province of Alberta

43

O'Connell-Campbell, Colleen

Scotia Wealth Management

36

Pinkowski, Lori

Pinkowski-Allen Financial Group

41

Presot, Lucie

Dundee Corporation

26

Rogers, Carolyn

FICOM

36

Rotenberg, Joanna

BMO Financial Group

32

Sawaya, Amani

CIBC Private Wealth Management

32

Sharpe, Natasha

Bridging Finance

43

Smirnova, Maria

Sprott Asset Management

27

Stevenson, Jennifer

Dynamic Funds

41

Tan, Christine

Excel Funds

30

Thorpe, Mary

HollisWealth

31

Trian, Laura

Team Trian/HollisWealth

30

Wronski, Kathleen

Wronski Cann Group

42

Yoshikuni, Julie

Empire Life Investments

26

Senior vice president and CIO Empire Life Investments Gaelen Morphet leads the Empire Life Insurance Company’s wholly owned investment company, Empire Life Investments, which provides investment management for mutual funds, as well as Empire Life and its segregated funds.

Throughout her 32-year career, Morphet has held senior investment positions in notable companies such as McLeod Young Weir, Scotia Investment Management, Merrill Lynch Investment Managers and CIBC Global Asset Management.

Self-belief has been key to her success, she says.

“Discipline and conviction come to mind when I think about professional success. Cutting away the noise and being able to focus on what is important, what you are paid to do, is key. That means being results-oriented. I have also surrounded myself with great people – both bright and grounded. It is important to seek out other views. It challenges your thinking and helps [you] gain perspective.”

What’s the biggest challenge you’ve overcome?

Like many career people, my biggest challenge has been balance. I work on that every day. I cannot say I have mastered it, but I keep trying. Four children, family, career, exercise, friendships, interests, religion, giving back – it’s a big list.

Are you seeing any improvements in gender diversity in the industry?

Since starting my career 32 years ago, the investment industry has become much more diverse, which has been a good thing; however, I do not think that gender

diversity has changed materially. Generally, women have such a big load to carry. Many are seeking careers in industries where they can have more flexible hours. That’s one reason why medical schools are full of women. Doctors can design their practice in such a way that they can satisfy their intellectual, financial and social needs while raising a family.

What advice would you give the next generation of female advisors?

Be persistent. Be patient. It’s not personal; it’s often timing. It is well-documented that women make fantastic financial advisors.

WHICH JOB TITLES HAVE THE MOST WOMEN?

Insurance, real estate and financial brokerage managers

55.2% 43.8%

Banking, credit and other investment managers

56.9%

Financial and investment analysts

50.2%

Securities agents, investment dealers and brokers

32.0%

Professional occupations in business services

43.5%

Financial managers

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25

FEATURES

COVER STORY: WOMEN OF INFLUENCE GENDER DIVERSITY IN CANADA’S FINANCIAL INDUSTRY

3rd

Canada’s rank among countries for executive committee gender diversity

25%

Percentage of Canadian board members who are women

23%

Percentage of executive committee members who are women

Marianne Harrison

Since assuming the role of president and CEO of Manulife Canada in January 2013, Marianne Harrison has led the development and implementation of a strategy to evolve Manulife’s Canadian division into a more customer-centric organization. This wide-ranging strategy has affected every aspect of the organization, from the way it operates to its products and services. Prior to her current role, Harrison held several leadership positions across the company, including president and general manager of long-term care insurance for Manulife’s US division, John Hancock, as well as executive vice president and controller for Manulife in Toronto. Before joining Manulife, Harrison was the CFO of wealth management at TD Bank.

Mitzie Hunter Associate minister of finance Government of Ontario As the minister responsible for bringing forward the Ontario Retirement Pension Plan and working closely with a government-appointed advisory panel to set it up, Mitzie Hunter has borne the brunt of the industry’s backlash to the proposal. Now that the province has completed the design of the plan, more details are starting to leak, but that doesn’t seem to be placating advisors and other industry groups, which worry the plan is doomed to failure, describing it as a “jobkilling payroll tax.”

Lucie Presot Executive vice president and CFO Dundee Corporation Lucie Presot has more than 25 years of experience in the financial services industry. For the last 20 years, she’s held various senior and executive positions at Dundee Corporation and its subsidiaries, including, most recently, vice president and controller. She’s been in her current role as executive vice president and chief financial officer since 2009.

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$1,495.52

Average weekly wage for men in the financial industry

Julie Yoshikuni

President and CEO Manulife Canada

26

$1,236.88

Average weekly wage for women in the financial industry

Vice president of retail investment products and marketing Empire Life Investments Julie Yoshikuni joined Empire Life Investments in 2009. In her role as vice president of retail investment products and marketing, she provides leadership to the investment product and marketing team on product development, product management, and marketing and communications for mutual funds and segregated funds. She has more than 19 years of experience in retail and institutional product management, product development and marketing within the mutual fund and insurance industries.

What’s the biggest challenge you’ve overcome?

Coming to terms with the concept that is it OK to make a mistake as long as you learn from it. Women in general have a tendency to be very hard on themselves, and are frequently their own worst critics.

Over the years, I’ve learned to step back, reflect and ask for feedback instead of reacting. It’s helped me a great deal to gain perspective on how to move forward in light of a setback.

Are you seeing any improvements in gender diversity in the industry?

Yes. When I started out 20 years ago, there were fewer women in the industry, especially in senior roles. I remember attending investment conferences years ago, and I’d look around and be one of only a handful of women in the room. Organizations like Women on Bay Street, Catalyst and WXN have done a great job of raising awareness about the industry and workplace inclusion, and helping women connect.

What advice would you give the next generation of female advisors?

My advice to the next generation would be to develop your own brand and be able to articulate your value proposition to prospects and your clients. Your clients want to know who you are and what you stand for. Making connections and conveying what makes you different will help you build trust and relationships with customers.

Christine LaLiberté Senior investment advisor and director, private client group Insightful Wealth Group/HollisWealth Success didn’t come easy for Christine LaLiberté – but looking back over her 25-year career at Insightful Wealth Group, it is easy to see what led to that success.

“The primary reason for the success that I’ve had is, first and foremost, identifying a great team of people around me and creating a sense of ownership of what we’re doing,” she says.

“The second largest reason for our success is creating a feeling of being a part of something and participating in people’s lives like we’re a part of their family and part of their decision-making process.”

But there were certainly challenges along the way.

“It can most certainly be difficult,” she says.

“It took a lot of perseverance. A challenge in this industry is that you not only have to be a great financial advisor and person who is concerned about the families you’re working with, but you also have to be a business owner at the same time.

That’s another whole host of characteristics you have to demonstrate. Combining those two … you either sink or swim.”

Are you seeing any improvements in gender diversity in the industry?

I’ve gone from being at conferences where I’d be one of 10 women in a room of 400 people to now, you look around the room, and 10% or 15% are women. There’s certainly improvement, but it’s been a slower process than what I’d like to see.

What lessons or advice would you give to young women starting out in the industry?

Identify what your passion is as part of this industry, and make that the single biggest part of your business. From that, everything will fall into place.

Maria Smirnova Portfolio manager Sprott Asset Management Maria Smirnova is a portfolio manager with more than 15 years of experience in the financial services industry. She has been part of the Sprott precious metals team since 2007 and has been a portfolio manager on the Sprott Silver Equities Class since its inception in 2012. Smirnova began her career at Excel Funds Management as an operations manager; she’s also worked in product development at Fidelity Investments.

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27

the Quality factor When it comes to investing, quality isn’t always obvious. Identifying high-quality opportunities takes effort and insight.

At Invesco, we’ve invested our time in developing strategies that make quality investments stand out from the crowd.

Learn why quality matters.

Visit www.invesco.ca/quality.

Commissions, management fees and expenses may all be associated with investments in exchange-traded funds (ETFs). Unless otherwise indicated, rates of return for periods greater than one year are historical annual compound total returns including changes in unit value and reinvestment of all distributions, and do not take into account any brokerage commissions or income taxes payable by any unitholder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at www.powershares.ca.

Advertorial

Overlooked qualities

Investments that experience higher volatility have the potential to erode principal much more quickly than lowervolatility investments. With smaller losses in down markets, low-volatility stocks don’t have to rise as much in value in order to recover their pre-downturn value.

Not all low-volatility strategies are the same As global equity markets continue to convulse, the perils of tracking a capitalization-weighted benchmark index have been laid bare once again.

A benchmark doesn’t seek to boost an investor’s exposure to undervalued securities, nor is it able to tap into other qualities overlooked by the market, such as lower volatility. The benchmark simply follows the herd.

Many investors build their portfolios with strategies that simply track the benchmarks. But investing isn’t about achieving average results; it’s about achieving goals.

Many investors may be hoping to reduce the volatility of their portfolios, but simply holding cash could jeopardize many investment plans.

A central tenet of finance is that investors seeking to reduce risk must accept reduced returns. Yet research suggests a portfolio of less-volatile stocks tends to provide a degree of protection during broad market declines while still participating in subsequent rallies.†

Critical differences Managing volatility is critical to investment success because volatility has the potential to wear away capital quickly. When choosing a low-volatility strategy, it is important to consider the qualities that go into that strategy.

While some low-volatility indices have sector constraints that prohibit them from straying too far from their parent index, the low-volatility indices created by Standard & Poor’s (S&P) have the ability to dynamically rotate in and out of sectors as volatility dictates.

This allows S&P low-volatility indices to adjust to market conditions in a more timely fashion, focusing exclusively on volatility, without arbitrary constraints.

For example, PowerShares S&P/TSX Composite Low Volatility Index ETF (TLV) employs an unconstrained

rebalancing approach. By adhering to this methodology, TLV’s underlying portfolio began to reduce its energy weighting in September 2014 as volatility in the energy sector started to spike. By March 2015, the energy weighting in the portfolio had been completely eliminated.

An investment tracking the capweighted benchmark would have reduced its exposure to the energy sector but still held roughly 20% of assets in the struggling sector.

A constrained low-volatility strategy, bound to deviate only slightly from the benchmark, would have maintained its exposure to energy, even as the sector continued to fall through the latter half of 2015 and into 2016.

Between June 30, 2014 and January 31, 2016, volatility spiked repeatedly. In August 2015, the Chicago Board Options Exchange Volatility Index (or VIX) hit levels not seen since 2011, the last previous period of major volatility.

During this period, TLV captured only 75% of the S&P/TSX Composite Index’s volatility, outperforming the benchmark by 18.29 percentage points and demonstrating the value of a low-volatility strategy.

Cumulative return

Name PowerShares S&P/TSX Composite Low Volatility Index ETF (TLV)

June 30, 2014 to Jan. 31, 2016

7.05%

S&P/TSX Composite Index Low-volatility advantage

-11.24% +18.29%

Energy weight in low-volatility and cap-weighted indices (June 30, 2014–January 31, 2016)

Index value

Feb. 2016

Jan. 2016

Dec. 2015

Nov. 2015

Oct. 2015

Sept. 2015

Aug. 2015

July 2015

150 June 2015

200

0 May 2015

5

April 2015

250

March 2015

300

10

Feb. 2015

15

Jan. 2015

350

Dec. 2014

400

20

Nov. 2014

25

Oct. 2014

450

Sept. 2014

500

30

Aug. 2014

35

July 2014

Energy weight (%)

– Energy weight in S&P/TSX Low Volatility Index (left-side measure) – Energy weight in S&P/TSX Composite Index (left-side measure) – S&P/TSX Energy Total Return Index level (right-side measure)

Sources: Invesco and Bloomberg L.P., as at January 31, 2016. You cannot invest directly in an index.

Performance of PowerShares S&P/TSX Composite Low Volatility Index ETF (TLV), as at January 31, 2016: 1-yr, -1.73%; 3-yr, 8.42%; and since inception (April 5, 2012), 9.26%. Performance of the S&P/TSX Composite Index, as at January 31, 2016: 1-yr, -9.88%; 3-yr, 3.44%; 5-yr, 1.86%; 10-yr, 3.65%; and since inception of the ETF (April 5, 2012), 4.95%. †

Source: S&P Dow Jones Indices LLC.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and has been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Invesco Canada Ltd. TSX is a trademark of TSX Inc. (“TSX”) and has been licensed for use by S&P Dow Jones Indices LLC and Invesco Canada Ltd. The S&P/TSX Composite Low Volatility Index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by Invesco Canada Ltd. Invesco Canada Ltd.’s PowerShares Index ETFs are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, its affiliates, LSTA, or TSX and none of such parties make any representation regarding the advisability of investing in such product.

Because the underlying index (the “Index”) is comprised of the 50 least-volatile stocks in the S&P/TSX Composite Index (the “broader index”), the Index is expected to have less volatility than the broader index from which it is drawn. However, the Index will not have the same performance as the broader index, and its performance over any given period may be better or worse than that of the broader index from which it is drawn.

Invesco is a registered business name of Invesco Canada Ltd. Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.

PowerShares®, Leading the Intelligent ETF Revolution® and all associated trademarks are trademarks of Invesco PowerShares Capital Management LLC (Invesco PowerShares), used under licence. Trimark®, Knowing pays® and all associated trademarks are trademarks of Invesco Canada Ltd. © Invesco Canada Ltd., 2016

FEATURES

COVER STORY: WOMEN OF INFLUENCE Laura Trian Portfolio manager and investment advisor Team Trian/HollisWealth Laura Trian was recruited to join the industry. Her tax background meant she had the skills to thrive, but the recruiter was giving her pause. It was her husband.

“He said, ‘Come join, come join. It will be a value-add for the clients with your tax specialty.’ I said, ‘Working with the husband? Ooh, I don’t know if that’s a good idea,’” Trian remembers.

She eventually did join her husband and has added an extra dimension to the firm. And she hasn’t just limited herself to tax issues – she’s also earned her CFP and PM designations, which have allowed her to be an integral part of Trian Wealth Management’s holistic approach.

“It’s the team approach: investments, tax, and estate planning, and we’ve worked with a lawyer we refer out,” she says. “It allows us to ensure that our clients’ financial plans are comprehensive on all levels. I think clients really see added value in that format.”

What are some of the challenges you’re facing?

Market volatility – that’s my huge challenge right now, with interest rates being low and clients looking for return despite volatility in the market. For my clients who are retired, a 1% or 2% interest rate isn’t going to do it. It’s a balance in making sure they’re in the right profile and revisiting the risks and making sure everyone’s comfortable where they are. It is a really difficult investment world.

Christine Tan

Vice president and portfolio manager Industrial Alliance Investment Management

Christine Tan joined Excel Investment Counsel in September 2012 and assumed the role of portfolio manager of the Excel Emerging Markets Fund in January 2013. Tan has in-depth knowledge of emerging markets, acquired through her extensive travel and numerous due diligence trips. She also speaks several languages, including Mandarin, Cantonese and Malay. When managing money, she uses a disciplined bottom-up Growth at a Reasonable Price [GARP] approach to achieve strong riskadjusted returns for investors.

With more than 23 years of experience under her belt, Sevgi Ipek is the lead portfolio manager for international equities at Industrial Alliance Investment Management, managing the IA Clarington Global Value Fund, the Industrial Alliance International Equity Fund and the Industrial Alliance Global Equity Fund, among others. Prior to joining Industrial Alliance in 2008, Ipek managed more than $4 billion for a large Canadian pension fund.

Wendy Booker-Urban Senior vice president QV Investors Wendy Booker-Urban is the co-founder and a director at QV Investors, where she manages QV’s private client business. She also manages the QV Canadian Income Pooled Fund and co-manages the QV Canadian Balanced Pooled Fund. “Our investment objective is to manage risk first and generate acceptable returns second,” she says. “This view of investment doesn’t work with the passive philosophy because you get the return and associated risk of the underlying index – no better and no worse.”

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What advice would you give the next generation of female advisors?

Get as much education as you can; get the designations early. Get involved with your community, and get involved with centres of influence early on.

Sevgi Ipek

Chief investment officer Excel Funds

30

And we have to make sure they get valueadd in other ways, because it’s not all about performance. We do a lot of hand-holding as well.

Maureen Jensen Chair and CEO Ontario Securities Commission In January, Maureen Jensen made history as the first woman to be nominated as chair and CEO of the OSC, stepping up from her previous role as the OSC’s executive director and chief administrative officer, which she’s held since 2011. However, Jensen’s reign atop the OSC could be short-lived – several provinces and the federal government are working to create a co-operative capital markets regulator, which would involve merging the OSC with several other provincial authorities in a bid to create a quasi-national regulator.

Mary Thorpe Senior investment advisor HollisWealth Mary Thorpe has had to endure quite a bit of risk to succeed in the wealth management business.

“You have to feel the confidence you can do it – sometimes it’s taking on loans, taking on debts, and having the support of people around you really gets you through that,” she says.

Especially at the beginning, establishing a business is difficult, but Thorpe, who has also served as president of the Greater Hamilton chapter of Advocis, says it’s essential to keep the faith.

“The biggest challenge when you start out in the business is that you don’t have the funding when you’re an independent, so you have to work within budget,” she says. “You have these great ideas, but you don’t have the budget, so you’re working on a shoestring. Those first few years are difficult.”

What advice would you give the next generation of female advisors?

Stay balanced. Stay current. Stay positive. And only take on clients that you like. Align with professionals. Make sure you seek out people who are top in the industry and get to know them and work with them.

Are you seeing any improvements in gender diversity in the industry?

It’s always nice because there’s never a lineup at the women’s washroom! I see more women coming in. I’ve been in the business since 1980, and I’ve worked in different firms. My partner comes with me, and they automatically assume he’s the advisor – it still

happens. It’s changing, but it’s very slow, and I think we need more women in the business to make that change.

How can the industry appeal to more women to accelerate change?

I think the biggest difficulty is family. I took time off from the business to have my children, then returned six years later. It is extremely difficult to re-establish yourself in the business, and being an advisor is more than a full-time job coupled with very inconsistent hours. If a woman decides to pursue [it as] a career, she must be able to let go of her notions of conventional motherhood; she must hire a nanny or have a partner who stays at home or has a less demanding position.

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FEATURES

COVER STORY: WOMEN OF INFLUENCE Joanna Rotenberg Head of personal wealth management BMO Financial Group Joanna Rotenberg leads BMO’s personal wealth businesses – BMO Nesbitt Burns, BMO InvestorLine and Private Banking in Canada, the US and Asia – where she’s responsible for delivering a strategy that advances BMO through a focus on high-growth opportunities, strong collaboration, disciplined risk and regulatory adherence, and a consistently exceptional client experience. She also oversees BMO’s enterprise wealth planning capability. She took on her current role in 2015; prior to that, she served as BMO Financial Group’s chief marketing officer and head of strategy.

Amani Sawaya Executive director and head of private banking, Eastern region CIBC Private Wealth Management In charge of CIBC’s private banking arm for Eastern Canada, Amani Sawaya is responsible for building and implementing strategies such as cash management, credit, investment solutions, trust services and financial planning. With more than 30 years of experience in the financial services industry, Sawaya supports the needs of affluent individuals and families to help grow, preserve and transition their wealth.

Catherine M. Chamberlain Head of legal and compliance Vanguard Investments Canada Catherine Chamberlain joined Vanguard as head of legal and compliance in September 2011. Prior to that, she held senior positions at BMO Financial Group, most recently as vice president of compliance for BMO’s Private Client Group, where she served as legal and policy counsel. In addition to her duties at Vanguard, she is a member of the Registrant Advisory Committee established by the Ontario Securities Commission and a member of the Canadian ETF Association’s Policy Committee.

Michèle Bourque President and CEO Canada Deposit Insurance Corporation Michèle Bourque was appointed president and CEO of Canada Deposit Insurance Corporation [CDIC] in 2010, following a career with CDIC that has spanned more than two decades. Under Bourque’s leadership, CDIC has made critical strides toward becoming a global leader in deposit insurance and resolution, including the development of the resolution framework for Canada’s domestic systemically important banks.

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www.wealthprofessional.ca

Janet Bride Associate Investment Advisor HollisWealth Janet Bride took an unorthodox path into the industry. She spent five years taking courses and getting designations before she ever worked at a wealth management firm.

“It was a challenge just to get through the courses without having industry experience,” she says. “But I knew that’s what I wanted to do. I think a lot of people get in the industry and then do the courses, but I did it the other way around, which worked really well for me.”

Looking for a job away from the city, she partnered with Dave Sweeney in Squamish, BC. She’s been with him 10 years and recently became his business partner.

While the investment knowledge she’s gained along the way is important, Bride says the relationships with her clients are paramount.

“I love the knowledge of financial planning,” she says, “but it comes down to dealing with people, getting their trust and helping families follow their dreams.”

Are you seeing any improvements in gender diversity in the industry?

It’s still skewed – there are still more men in the industry, for sure. But I think there are more women willing to come in and get involved, and I think a lot more women are going to enter the industry in the near future. The average age of planners is around 58. Some people will be retiring in the next few years, and I think there are a lot of opportunities for women to partner with, learn from and mentor their peers.

What advice would you give the next generation of female advisors?

Get a foundation through education – that worked well for me. But more importantly, love what you do, and do it with a purpose.

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33

FEATURES

COVER STORY: WOMEN OF INFLUENCE Lynda Hay Vice president and investment advisor Hay Wealth Advisory Group TD Waterhouse Private Investment Advice

Allison Hay Investment advisor Hay Wealth Advisory Group TD Waterhouse Private Investment Advice One of the rare sister acts in the industry has proven to be extremely successful.

“There are lots of family partnerships in our business, but there aren’t a lot of sister acts,” Lynda says. “Most women say, ‘Wow, I couldn’t work with my sister.’ We love what we do.

It’s a pleasure and an honour, as sisters, to work together.”

One simple maxim has helped the Hays form a thriving practice.

“We’ve always put the client’s interests first,” Lynda says.

“It’s short and sweet, but you don’t survive in this business long-term if you don’t do what’s right for your client.”

Both Lynda, who has been in the wealth management industry for more than 29 years, and Allison, who has logged 15 years, have witnessed its rapid evolution.

“The industry certainly has changed and evolved throughout all these years,” Allison says. “The way business is done has been a progression, and it’s becoming more and more so with tighter compliance and regulation. This is good, but it’s primarily a relationship business.”

“We have this big pink elephant called CRM2,” Lynda adds. “TD and our competitors are investing millions of dollars to be ready by the implementation deadline. This is a very important catalyst for change because it provides the clarity, information and education that is vital to the investor and part of the role of the advisor. We take this responsibility very seriously, and this has been part of our practice for years.”

Are you seeing any improvements in gender diversity in the industry?

Allison: We’ve found a welcoming environment, but I recognize that this is not always the case. While the industry is trying to attract more women to advisory roles, those of us who have been around for a while need to lead the way and show younger women that a career in investment advice can be truly rewarding.

With the industry moving toward a fee-based model, could that entice more women to pursue a career as an advisor?

Lynda: Having moved our practice to more of a fee-based model allows us more time to take care of our clients, which is really important, since building a trusted advisory relationship – not picking individual stocks – is what determines your success.

Women typically are very nurturing, and this is an asset

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www.wealthprofessional.ca

when developing relationships with clients. A fee-based business provides a more stable income, and this is something that appeals to women in particular.

What trends do you see for the year ahead that either concern or excite you?

Allison: The volatile markets magnify the importance of talking to your clients, and given that we are in Alberta, we have additional economic challenges as well. These are obviously of concern to our clients, and we look forward to helping them through this difficult time.

Demographically speaking, there are billions of dollars that will be changing hands from one generation to the next, and our approach to business will be a benefit to those in this situation.

We have an amazing opportunity to help the next generation with their finances, and this is particularly exciting.

Natalie Jamison Wealth advisor and associate director of wealth management The Jamison Group Scotia Wealth Management Natalie Jamison was ahead of the curve. While many in the industry are hastily trying to adopt a holistic approach as CRM2 comes into effect, Jamison was offering that to clients 20 years ago.

“I think what women investors value that I bring to the table is a slightly different approach than the traditional old-school stockbroker,” Jamison says. “I really focus a lot on conversations about their life and their dreams and their family, so we’re not just having discussions about stocks and asset allocation. The key to my success is that I didn’t start doing this last year. I started doing it 20 years ago.”

Starting out in the industry at a time when most advisors were primarily stock pickers, it would have been easy to simply follow the norm, but “I immediately said it’s not how I’m going to do things,” Jamison says. “I put myself in the shoes of my clients.

How would I want to have a conversation about my finances? I just always approached it that way.”

Are you seeing any improvements in gender diversity in the industry?

Absolutely, I’m seeing improvements. I’m super thrilled that women graduating university today are seeing wealth management as a viable career choice. Even more exciting is that the industry is embracing them. What we’ve seen are wealth management firms recognizing there are benefits to having gender diversity, and those benefits are to both our clients and the bottom line. It’s slow – it’s maybe slower than we might wish. But we are going in the right direction, and it’s exciting.

What advice would you give the next generation of female advisors?

First, they need to hone their networking skills and practice public speaking. If you can’t do those two things, I don’t think you’ll do well in this industry. The second thing is to invest in yourself, your business and your brand. I’ve always been a proponent of hiring help. Don’t hesitate to hire a business coach to help with branding or website creation or your social media profile.

I would also advise them to have an investment philosophy and to stick to it and to be able to clearly explain that philosophy to clients. Only take on clients you actually enjoy working with and who match your ideal profile. If you take a client you don’t enjoy or who doesn’t actually match your profile, you will end up regretting it, and nobody wants to be in a position where they have to fire a client.

Darcie Crowe Senior investment advisor and portfolio manager Canaccord Genuity Wealth Management For Darcie Crowe, it’s all about the big picture. “I think putting a much greater focus on what clients want to do with their wealth in the long-term enables advisors to develop a much more meaningful and impactful financial and investment plan for their clients,” she says.

That approach has put Crowe on track to become one of the top financial advisors at Canaccord Genuity – she was recognized as a member of the 2014 President’s Club and 2015 Chairman’s Club.

She’s also made an effort to include more women in the planning process to move beyond the days when advisors deferred to men for financial decisions.

“Women in general have been very unsatisfied with the financial services industry and feel like they’re being a little bit underserved and not understood as well,” Crowe says. “They want an authentic partnership with their financial advisor and a more comprehensive strategy and process. That’s something I’ve put a lot of focus into.”

Why do you think there aren’t many women in the financial industry?

I think there is the historical mentality that the industry was built by men, for men, but it’s come a long way even in the 12 years I’ve been in the industry. I think there have been a lot of strides made in various areas that have made it a very comfortable and supportive work environment. To be honest, I think it provides a great work-life balance and flexibility for my life.

What advice would you give the next generation of female advisors?

[Wealth management] provides a fantastic career opportunity for both men and women, and I truly believe that it’s an opportunity many more women should take a look at. It certainly is a challenging environment, but it’s also very rewarding. You can really shape your career in serving the clients who are meaningful to you. If you have passion for the business, it can certainly provide a very rewarding career in many aspects.

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FEATURES

COVER STORY: WOMEN OF INFLUENCE Colleen O’Connell-Campbell Senior wealth advisor Scotia Wealth Management A year of tragedy at the beginning of her career – during which she lost her grandmother, brother and aunt – could easily have derailed Colleen O’Connell-Campbell, but her tenacity and perseverance brought her through the rough times.

“I set high standards for myself, and I just was determined I was going to make it through – and maybe a little bit of naivety helped,” she says.

Now that she’s established a thriving business, O’ConnellCampbell has been setting an example in the industry by trying to help others as much as possible.

She’s spearheaded a peer-to-peer sharing series, where different female advisors gather by phone every two months to discuss an industry topic and share resources. She also was recently involved in an inaugural venture with other female advisors to provide mentoring to women just entering the industry.

How can the industry appeal to more women?

I guess not pretending that [the gender gap] doesn’t exist is a starting point – simply being open and starting conversations.

It’s just like anything that’s a little taboo: If you don’t have the conversation, you can’t invite people in to talk about it.

Are you seeing any improvements in gender diversity in the industry?

I think there have been some improvements, but it’s only been

Kathy Butler

marginal. It’s not just gender diversity – maybe it’s because I’m in Ottawa, but I see a bit of an issue with diversity in general. From what I see, we really are not a true 100% reflection of the public that we serve.

What advice would you give the next generation of female advisors?

Be positive, value yourself and business, and don’t think you can’t do it. If you have any interest, just do it.

Carolyn Rogers

Head of personal wealth management BMO Financial Group

CEO FICOM

Kathy Butler joined CIBC’s investment banking group more than 16 years ago in Toronto, and has been involved in a number of M&A advisory mandates, as well as debt and equity financings in a variety of industries, including technology, consumer retail, gaming, forest products and industrial products. In addition to her duties at CIBC, she sits on the BC Jobs and Investment Board and the board of the Atira Women’s Resource Society, and is a partner of BC Social Venture Partners.

As CEO of FICOM, Carolyn Rogers heads the commission that regulates and supervises provincially licensed insurance companies, trust companies and credit unions. The commission makes major regulatory decisions regarding incorporations, business authorizations, amalgamations, liquidations and windups. Prior to joining FICOM, Rogers worked in the financial services sector, holding a number of progressively senior roles in the Canadian credit union system.

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FEATURES

COVER STORY: WOMEN OF INFLUENCE Michelle Hastick-Cowell Senior investment advisor HollisWealth After setting a high bar for herself as a hugely successful university athlete, Michelle Hastick-Cowell is now doing the same as an advisor.

At York University, the track and field star set school records in the long and triple jumps that have yet to be beat. She brought the same competitive spirit to HollisWealth’s recent Epic Challenge, where six of the company’s advisors from around the country were invited to discuss an industry-related topic. Hastick-Cowell was the only female finalist, and was deemed the winner by her peers and a panel of judges.

“I won in a landslide in terms of defining what value is in a world with CRM2,” she says. “I see that as a win for advisors and women in wealth.”

The topic she discussed is certainly very timely as the industry approaches full CRM2 implementation in July.

“There’s a bit of concern, but looking at it holistically, we shouldn’t be concerned because I truly believe the value we provide is priceless,” Hastick-Cowell says. “When markets are going through their turmoil, when the rain comes, that’s truly when the advisor has to shine and really guide their client through that storm.”

Are you seeing any improvements in gender diversity in the industry?

I see some gender diversity. I see more women getting into the industry – not necessarily as advisors, but looking at it from an admin, tech or compliance level. There’s always room for improvement in getting women into the industry.

What advice would you give the next generation of female advisors?

My coach used to tell me, “If you like helping people be successful in reaching their goals, then come into this role because you’re preparing them for that opportunity.” When you look at success, all it is, at the end of the day, is preparation and opportunity.

Elizabeth Hamilton-Keen Director of investment counselling Mawer Investment Management Elizabeth Hamilton-Keen never thought she’d have a career in investment management. But after coming to west to Alberta to find work, she eventually landed a job at CIBC. “That accident of opportunity kind of opened up a path to investment management for me,” she says. “What’s fascinating about the work, and what’s always kept me grounded in it, is that every client is unique. There have been opportunities and obstacles, and helping clients overcome that … has really been a constant thread throughout my career.”

Two decades later, she heads up Mawer’s investment counselling team, and after being elected last year as chair of the CFA Institute, she’s helping to show the public the value of an advisor.

“I’m really trying to shine a light on the value of our industry in terms of the value of an investment management professional,” she says.

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Are you seeing any improvements in gender diversity in the industry?

We’ve only begun to benchmark in the last little while. There’s been increased focus and increased attention on women in investment management. In my CFA volunteer capacity, from a global perspective, we have three major initiatives; one of them is to work to attract more young women to the industry. We’ve seen research that diverse management teams improve the returns of a company. Diversity on boards improves the thought process and governance of the company, and therefore can improve the overall rate of return. That’s huge.

What advice would you give the next generation of female advisors?

The benefit you bring as a female financial advisor is intuition – that’s really our asset. So it’s not just up to the client to tell us what they need, but we can collaboratively work to understand not only what the client is telling us, but also what they’re not telling us.

Tricia Leadbeater Portfolio manager and director of wealth management The Mackie Wealth Group Richardson GMP Dinner at a friend’s house completely changed Tricia Leadbeater’s career trajectory. After finishing her masters in philosophy, Leadbeater thought she’d be an academic for life, but after having dinner with a friend whose mother worked at National Bank, she was invited in to meet everyone in the office. One of the people she met was Jamie Mackie, director of the Mackie Wealth Group, who was looking for a sales assistant at the time. The meeting turned into a job interview, and he offered her a position.

“My mother thought I was crazy to give up [a spot in the University of Toronto’s PhD program],” Leadbeater says, “but I thought this was just fate reaching into my life and putting this opportunity here, and I should just explore it.”

It’s safe to say she made a good choice – she’s been in the industry for 15 years and is now a portfolio manager and director of wealth management at the Mackie Wealth Group.

Are you seeing any improvements in gender diversity in the industry?

In brokerage firms, most women are in assistant/associate roles, and most men are in advisor/banker roles. That ratio is changing a little bit. I think it’s getting a little better, but I think it has something to do with the choices women make, and personal preference and goals, versus roadblocks put in their way.

What advice would you give the next generation of female advisors?

There is a huge opportunity because there is a huge demand to have accomplished, empathetic and smart women on the other end of the line advising and helping people to create wealth and plan their financial future. There are very few women out there to work with, so I think there’s a big opportunity there because it is such a relationship-driven customer service model, and some people just feel more comfortable with women. I think there’s a way of connecting and slightly different cultural values that younger clients who are in their 30s and 40s have that people who are just starting out in the industry can work with because they are experiencing those cultural changes and norms themselves.

Maureen Glenn Vice president of tax and estate planning Richardson GMP Maureen Glenn has two different extremes in her personality that have set her up for success as an advisor.

“Those two extremes are the ability to be very technical and understand complex information at a deep level, but also being outgoing and charismatic with clients,” she says. “So I guess you could call me a charismatic nerd. I think the technical term is an extroverted introvert. But I think that is the real key to my success.”

After starting her career in life insurance, Glenn transitioned over to the wealth management side of the business, where she specializes in tax and estate planning.

“It was kind of a natural progression into investments,” she says. “Those two industries need to work together, but always primarily with client focus. I love working with clients face-to-face, and that’s really what’s driven me to continue in this particular industry.”

Are you seeing any improvements in gender diversity in the industry?

I’ve been lucky in my career that I haven’t really faced too much of a challenge from the gender diversity side. I always felt empowered to do as much as my male colleagues or more. I do believe the women in this industry have a great opportunity because I think my female colleagues can see that bigger picture maybe a little more naturally.

I think the evolution of the industry is that we need to address the family unit and include both spouses – we’re looking after the entire family’s needs and recognizing that one person in the family doesn’t drive the whole family’s finances. I see a much broader approach to that planning, and I think that’s natural, especially when you look at it from the estate planning side of things. There’s an emotional, personal element that goes far beyond investment.

What advice would you give the next generation of female advisors?

A mentor told me, “Don’t ever assume that the other people in a room are smarter than you.” I think coming up through your career, you assume your elders have more experience and know more than you do.

But I believe that you need to work hard and explore and learn more all the time. The key thing is, never assume that you know less than the person sitting beside you, but if you do know less than that person, be a sponge and soak it in and learn.

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FEATURES

COVER STORY: WOMEN OF INFLUENCE Beverly Evans Portfolio manager and director of wealth management Evans Wealth Management Team Richardson GMP It’s during volatile market conditions that Bev Evans really comes through as an advisor. The winner of the WP Award for First Class Customer Service has built a thriving practice by making sure her clients know she is there for them when things are at their worst.

“In a word, it’s communication – whether it’s writing and giving them perspective, or educating them about opportunities that sometimes come along with periods of volatility like this,” she says. “It’s talking through any worries they have, making sure they know that we’re here, and most importantly, making sure they know that we have a plan and we stick by our game plan.”

As the leader of the all-female Evans Wealth Management Team, Evans points out that one of the most important aspects of building her practice was making sure she was surrounded by the right people.

“I’m blessed that right now I have a long-standing team,” she says. “We’ve made sure that we’ve had the type of assessments where we know we’re doing what we love. Each one of us is doing what we’re good at and what we love. Then it just doesn’t seem like work.”

Are you seeing any improvements in gender diversity in the industry?

I have been happy to see, over the last few years, that the relationship-driven part of the business has grown, as opposed to the old-style performance-driven relationships. And I think that’s an acknowledgement that what has often been seen as a more ‘female’ approach is being recognized as something that clients are looking for. A more holistic, relationship-driven approach is what people are connecting with. I think that’s from

an acceptance of what women bring to our industry, and that is nice to see.

What advice would you give the next generation of female advisors?

The key is they need to be ready to work really hard. They need to be ready to embrace continuous change, but also be ready for a very rewarding opportunity to help people and to know that you’re making a difference, which is what we have the privilege of doing.

Lynne Brejak Director of human resources Richardson GMP For Lynne Brejak, a job in the financial services sector was love at first sight.

“It’s very high-energy and intense, but it’s a very relationshipbased industry, so that’s very appealing,” she says. “There are a lot of very smart people running it. From an HR perspective, there is no time for a lot of process and policy that doesn’t add value. But because it’s all relationship-based, especially on the leadership teams, there’s a good level of emotional intelligence and humour.”

After being in the industry for 15 years, she’s managed to succeed thanks to developing a strong understanding of what advisors and management require.

“Whatever we do in HR has to matter to the people that need us,” she says. “So it’s always trying to understand what they want versus what an HR rule is. I have a really strong view of how everything we do impacts those people at the end, so let’s be smart about our choices. Let’s not add undue burden to them without understanding the impact.”

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Are you seeing any improvements in gender diversity in the industry?

I am. There’s always work to be done, but this is definitely an industry where you have to earn your way, so in some ways it’s gender agnostic.

The industry has evolved so much. One of the criticisms is that there probably aren’t a lot of female managers in this industry, but more female advisors would mean more female managers – and we are always looking to hire strong female advisors. I’m definitely seeing the trend in a positive direction.

What advice would you give the next generation of female advisors?

How everybody gets there is different, and there’s so much competing advice for women out there. My only thought is: Be true to yourself. If it’s important for you to be more aggressive in advancing your career, get the support you need at home or other areas and do it. If what matters to you is that you have balance, then that’s what you should be seeking. You’ve got to be true to yourself and to grow in the way that matters to you.

Jennifer Stevenson Vice president and portfolio manager Dynamic Funds Jennifer Stevenson joined Dynamic Funds in 2010 as a portfolio manager and member of the award-winning Equity Income team. She specializes in global energy and equity income investments, bringing 25 years of experience in the energy sector to the role. Most recently, she was the managing director of portfolio management at a Calgary-based investment management company, where she was responsible for identifying and selecting oil & gas investment opportunities.

Annie Chong Global head of portfolio services Invesco

Lori Pinkowski Senior portfolio manager and senior vice president, private client group Pinkowski-Allen Financial Group/Raymond James Lori Pinkowski became a licensed financial advisor at 21 and joined Raymond James in 2009 along with her partner, Seth Allen. They currently manage close to $500 million in assets, and business is growing exponentially. Pinkowski’s commitment to clients’ well-being through sound investment advice and regular communication has helped her build strong, long-term relationships with each of the families she works with.

Pinkowski was recently named to the Raymond James Global Top 50 out of 6,500 financial advisors worldwide. She also received the 2015 Raymond James Woman of Distinction Award, recognizing both her successful practice and her extensive charitable endeavours and community involvement.

As a well-known financial expert in Vancouver, Pinkowski has appeared on Global News and has been a financial columnist for the North Shore News since 2001. Her column is often published in other Canadian newspapers, including the Vancouver Sun, The Province and the Calgary Herald. She also hosts a weekly radio segment, “Making Cents of the Markets,” where she discusses market conditions and financial industry news.

Are you seeing any improvements in gender diversity in the industry?

Yes. When I started in the industry in my previous firm, there were less than 10 female financial advisors out of a total of 500 investment professionals in the firm. Raymond James, my current firm, is leading the way with their Network for Women Advisors – they have a goal of increasing female advisors from 15% to 25% by 2025. I feel there is a huge benefit to clients by having more women in the financial industry. This isn’t Wolf of Wall Street anymore … this is serious business, and women are leading the way in wealth

management. I always encourage young women to look at this as a possible career path when evaluating which direction to go within finance.

What advice would you give the next generation of female advisors?

There is no limit to your career, and never be intimidated by others in the business.

Always put your clients first, and success will ultimately follow. I still always view myself as a person in business and not a woman in business. Be confident in who you are, and don’t compete with others, but rather within yourself, to attain your goals.

As Invesco’s global head of portfolio services, Annie Chong manages a global team that looks after trade and portfolio operations, security pricing, corporate actions, and security master data management. Chong also serves as a member of the Invesco Canada Executive Committee and the Invesco Global Investment Operations Management team.

Ann Bowman Head of Canadian Private Banking RBC Wealth Management As head of Canadian Private Banking, Ann Bowman leads the business responsible for delivering holistic wealth planning advice, service and solutions to high-networth and ultra-high-net-worth clients.

One of Canada’s most successful private banks, Canadian Private Banking has earned numerous distinguished awards, including being named the number-one private bank in Canada for eight consecutive years in the Euromoney Private Banking and Wealth Management survey. Bowman also serves as the chair of the Ontario Chamber of Commerce and as chair of the investment committee and a member of the executive committee of the National Gallery Foundation.

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FEATURES

COVER STORY: WOMEN OF INFLUENCE Kathleen Wronski Portfolio manager and director of wealth management Wronski Cann Group Richardson GMP Emotion is a huge part of Kathleen Wronski’s practice.

“We work with a select group of clients, and we really try to get to know them,” she says. “We don’t get emotionally involved one way or the other in terms of the stock market, but we do get very emotionally involved in our clients’ lives.”

It’s that connection to her clients that has allowed Wronski to forge a successful career that spans more than three decades and has seen her author several books, including If I Retire, How Will I Know When It’s the Weekend?

“I have clients who are approaching 100 years old, and I’ve worked with them for over 30 years,” she says, “so I am definitely someone who believes in being there for someone through thick and thin. I like getting involved with people’s lives and making a difference for them.”

Are you seeing any improvements in gender diversity in the industry?

Some, but not as much as you’d think.

When I first got into the industry, there was a tremendous push to try and bring in women advisors. For whatever reason, we probably have more women advisors than most firms, but that still makes us in the minority.

What advice would you give the next generation of female advisors?

First of all, I think it’s a wonderful industry to be in. I think you can work hard, earn a good living, and you can truly make a difference in people’s lives.

Women should absolutely take a look at this industry as something that certainly could be a very satisfying career choice.

Susan Latremoille Wealth advisor and director of wealth management The Latremoille Group Richardson GMP After forging a successful career serving institutional investors at Merrill Lynch, Susan Latremoille found that her role as a new mother didn’t allow her enough opportunity to be a larger part of her son’s life. So she “made a lifestyle choice to move from the institutional side of the business to serving private clients, where I had more control over my work schedule.”

Shortly after, she formed The Latremoille Group, where she developed a strong support team to serve high-net-worth individuals.

She says the move to working with private clients was a better fit for her advisory style, as it allowed her to focus on the one-to-one approach.

“I’m a people person,” she says, “and I believe that working with individual clients in the wealth management world requires an ability to understand people and their concerns for themselves and for the future of their families.”

She emphasizes how important it is to have the technical understanding of how the market performs, but also says that “as a wealth advisor, I look after the money while at the same time focusing on understanding what helps each person have a sense of comfort and security in having us plan and manage their wealth.”

Are you seeing any improvements in gender diversity in the industry?

To be successful in this business, you have to be an entrepreneur as well as a good leader, and I am happy to say that I do see many more women entrepreneurs today. At the same time, it’s not easy for any woman to run a business like this and also be a mother because you first have to have the home front all worked out.

I believe that there should be more women in the business, because it’s not just a number-crunching game; it’s also about

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working with people, building relationships and paying great attention to detail – to me, these are a woman’s natural traits.

What are some of your keys to success?

Hard work and consistency are essential. Every day counts, and it is important not to get sidetracked, especially when we go through economic times such as now. I would say to stay focused and goaloriented, and ensure that you have clarity on what needs to be achieved.

The support of my whole team has been essential to our success.

Rachel Notley Premier of Alberta After becoming the leader of the first New Democratic party to sweep into power in Alberta, Rachel Notley has been on the hot seat. With the province’s economy hitting the skids as the price of oil plummeted, Alberta shed more jobs last year than any time since the early 1980s and is enduring its highest unemployment rate in 20 years. While also trying to build pipelines in the province, Notley has developed a plan to address climate change that’s progressive for a resource jurisdiction. The success she’s looking to bring to Alberta’s economy will go a long way in helping the Canadian economy bounce back from the slump it’s in.

Sarah P. Bradley Ombudsman and CEO Ombudsman for Banking Services and Investments Last year, Sarah Bradley was appointed as the ombudsman and CEO of the Ombudsman for Banking Services and Investments, becoming the fourth ombudsman in the organization’s history. A former lawyer, Bradley also served as chair and CEO of the Nova Scotia Securities Commission, vice chair of the Canadian Securities Administrators and as a member of the North American Association of Securities Regulators and a representative on the Canadian Joint Forum of Financial Regulators. She also spent several years as an associate professor at the Schulich School of Law at Dalhousie University.

Marcia Moffat Head of Canadian business BlackRock Marcia Moffat took over as the head of Canadian business for BlackRock in September. In the evolving regulatory environment, BlackRock is pinning its next stage of growth on Moffat’s deep roots in the Canadian retail sector of the financial services industry. Prior to this role, Moffatt was the principal of consulting firm Compasar Solutions; she also spent 12 years at Royal Bank of Canada, where she held roles in retail banking, investor relations and capital markets.

Alison Fletcher Chief compliance officer Mandeville Private Client Alison Fletcher has more than 20 years of experience in the financial services industry. As Mandeville’s chief compliance officer, she has a demonstrated strength in serving diverse groups, including regulators, senior management teams, financial advisors and clients.

Natasha Sharpe CEO and chief investment officer Bridging Finance Natasha Sharpe is the head of Bridging Finance, which provides working capital solutions to companies who need more leverage and more aggressive advance rates than traditional lenders can provide. Prior to her tenure at Bridging, Sharpe was the chief credit officer for Sun Life Financial, where she was responsible for creating risk policy for the company’s $110 billion global portfolio of managed assets.

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PEOPLE

ADVISOR PROFILE

Game, set, match After injuries forced her to retire from a tennis career, Jennifer Black reinvented herself as an advisor

MORE THAN a decade ago, Jennifer Black faced a serious dilemma: She could continue to chase her dream of becoming a professional tennis player, or accept that her body was starting to betray her (with stress fractures in both shins), and it was time to give up the sport.

“I could try to recover and go back and play again, but I was advised by doctors that [the fractures were] never going to be fully healed,” she says. “I will always have problems if I try to put that much pressure and pounding on my legs, so it was a decision that was somewhat handed to me.”

After accepting that her tennis career was over, Black found herself crossroads, unsure of what was next for her.

“It was definitely difficult in the beginning,” she says. “[Tennis] was pretty much what I’d known for most of my life at that point. I didn’t really know exactly what I wanted to do, but I knew I wanted to do something where I was helping people.”

So she decided to become an advisor and started her own practice.

“I’ve always enjoyed providing guidance and helping people solve different situations and problems, so this really seemed like a good fit,” Black says. “We’re able to work with people all the time, but we’re also able to be strategic, and there’s some creativity that goes into finding the right solution for somebody.”

A dedicated approach About five years ago, Black teamed up with her mother, an accountant, to form Dedicated Financial Solutions [DFS].

DFS focuses on high-net-worth individuals and business owners, but they’ve also developed a niche among engineers, teachers and widowers.

The company offers full wealth management solutions that integrate financial planning ser vices, estate planning, insurance, tax planning, personal pension plans and employee benefits.

The model is clearly a success: The firm has been recognized as the top financial planner in Mississauga for the last three years. In 2014, they also won the Mississauga Board of Trade’s Small Business of the Year Excellence Award.

Black and her mother have developed a process of really looking at the big picture and helping clients find and assess opportunities to create wealth through various strategies such as investments, insurance and pensions.

“We’re able to help them in that area and tie that back to their personal goals,” Black says. “One of the things that sets us apart in the industry is that we actually write a vision document and provide that back to the client, just making sure we heard correctly what’s important to them and their family.”

By not taking the typical tack of only discussing figures, Black has made a point of including both

“We actually write a vision document and provide that back to the client, just making sure we heard correctly what’s important to them and their family”

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HELP FOR THE BEREAVED

After helping a friend cope with the emotional and financial challenges of losing a spouse, Black decided to help others in that situation. Using the knowledge and insight she gleaned during that time, she launched Widowed.ca, a free online resource for widows and widowers in the Greater Toronto Area.

Not only does the site provide financial advice for those going through the pain of losing a spouse, but it provides emotional support as well. Articles and comments deal with both the emotional and financial aspects of continuing with life after the death of a spouse.

Along with her mother, Janet Baccarani, Black also authored Managing Alone, a book on financial planning for widows and widowers.

spouses in the process.

“We’re not just talking numbers,” she says. “A lot of times, the spouse who doesn’t typically deal with the finances will glaze over the numbers or not be fully engaged. We’re talking about goals and what’s important to the family, so they’re fully engaged throughout that meeting and that process.”

Despite her injury, Black still enjoys playing tennis – and she’s carried over some of the lessons she learned as an athlete to her new career, including “the discipline to be able to set goals, see the big picture and then doing the work to be able to achieve those goals. We’ve grown our practice very well over the last few years, and it’s been a lot of hard work, but it’s nothing I wasn’t accustomed to from my tennis career with early mornings and long days. It’s all the same.”

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PEOPLE

CAREER PATH

A FAMILY AFFAIR For Rachel Dyck, working in the financial industry runs in the family 2016

LOOKS TO BECOME A PORTFOLIO MANAGER Thanks to her determination and drive to succeed, Dyck soon hopes to add the title of ‘portfolio manager’ to her resume – just like her mom

2015

GETS INVOLVED WITH THE CENTRE FOR CHILD DEVELOPMENT

“With the volatility in the markets recently, it gives you the opportunity to service clients in the timeliest manner”

Dyck also expanded her community outreach efforts in 2015, becoming an honorary director on the board of the Centre for Child Development, a nonprofit that provides rehabilitation services to children with special needs and their families

2015

PARTNERS WITH HER MOTHER Last year, Dyck and her mother, Sandra, partnered to form the mother-daughter wealth management team that is Dyck Investment Management

“We waited to partner until I grew my portfolio.

We complement each other very well. We’ve been able to deliver great results”

2012

MOVES TO CIBC WOOD GUNDY Dyck continued to move through the ranks at CIBC, eventually heading to CIBC Wood Gundy to work as an investment advisor in White Rock, BC. While there, she obtained her CIM designation and her insurance licence

2008

“This was the branch that I grew up going to. I’ve had great mentorship and management here, which has helped me achieve my portfolio goal. I enjoy getting to know my clients and problem-solving”

BECOMES A FINANCIAL ADVISOR In the spring of 2008, Dyck became a financial advisor with CIBC, serving high-net-worth clients in Ladner, BC. A year later, she earned her Certified Financial Planner and Registered Retirement Consultant designations “I worked really hard to make sure I was making my targets at work.

Doing financial planning from the very beginning [helped me] distinguish myself from the get-go”

In the spring of 2006, Rachel Dyck had just graduated from the University of Alberta. After passing the Canadian Securities Course, she started working as a financial services representative for CIBC in White Rock, BC, following in the footsteps of her mother, a portfolio manager at the bank “I recognized I had a passion for working with people, and I really enjoyed the problem-solving aspect of financial planning. Watching my mother in the financial services role, it became very clear to me very early on that this is what I wanted to do”

2007 RECEIVES A PROMOTION Just one year into the job at CIBC, Dyck was promoted to senior financial services representative, a role that saw her managing smallbusiness clients

2006

DIVES INTO THE REAL WORLD

“It felt great moving up the ladder at CIBC in such a short time. I had great management that recognized my goals and were willing to support me through them”

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PEOPLE

OTHER LIFE

PEACE ON THE RIVER

Whether fly-fishing or creating a financial plan, Paul Mowbray needs a few things: patience, precision and a very long line

TELL US ABOUT YOUR OTHER LIFE Email wealthprofessional@kmimedia.ca

WHETHER HE’S sitting at a desk or wading waist-deep in a river, Paul Mowbray is the epitome of patience and precision. Both as a financial planner and as a fly-fisher, he needs to be methodical and in control.

Mowbray joined the financial industry more than 30 years ago, and became an independent financial advisor a few years later. But it took him a couple more decades to discover fly-fishing.

“A friend of mine took me fly-fishing one time, and since that day, I’ve never

80

The weight, in pounds, of the largest fish Mowbray has caught fly-fishing

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taken up a different kind of fishing rod,” he says. “I’m organized and precise and detail-oriented, and flyfishing is like that.”

Fly-fishing is more sporting than traditional fishing, Mowbray says, pointing to the longer line, the different casting method and the lack of live bait.

“It takes a little bit more patience, but once you get into the stream … time flies like you wouldn’t believe,” he says. “All of a sudden three hours goes by, and you’ve sort of forgotten where you are. It’s very peaceful.”

9

The typical length, in feet, of a fly-fishing rod

225

The average length, in feet, of the line on a fly-fishing rod

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For Advisor Use Only. © 2016 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 1Morningstar RatingTM is the overall rating for Class F units as at December 31, 2015 and is subject to change monthly. Renaissance Optimal Income Portfolio, Class F received a Morningstar Rating of 5 stars over 3 years (338 funds rated) and 5 stars over 5 years (253 funds rated). The overall 5 star rating is calculated from a fund’s 3- and 5-year returns measured against 91-day Treasury bill and peer group returns. The top 10% of the funds in a category get five stars.

For greater details see www.morningstar.ca. 2Distribution yield of the Class A units of the fund for the period November 13, 2007 (inception) to December 31, 2015. The distribution yield at a given time is calculated by dividing the distributions made over the 12-month period prior to that time by the market value at that time. The fund intends to distribute monthly. The monthly distribution rate is expected to be 1/12th of approximately 4% per annum for Class A units. Distributions for other classes may vary. The monthly distribution rates may be adjusted from time to time at our discretion. The payment of distributions is not guaranteed and may fluctuate. If the annual amount distributed exceeds the portfolio’s net income and net realized capital gains, such excess will constitute a return of capital. 3MER annualized as at August 31, 2015. Please refer to the annual Management Report of Fund Performance for further details. 4Source: Morningstar Direct as at December 31, 2015. Risk-adjusted returns are measured by the Sharpe ratio for the Class F units of the fund over 5 years to December 31, 2015 and compare the ratio of the fund against the ratio of the average for the Canadian Fixed Income Balanced Category. (Fund: 1.12, Category Average: 1.03). Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The information presented is accurate at the time of first printing, and is subject to change without notice. Please read the Fund Facts or the Renaissance Investments Simplified Prospectus before investing. Mutual funds are not guaranteed, their values may change frequently and past performance may not be repeated. ®Renaissance Investments is offered by, and is a registered trademark of CIBC Asset Management Inc.

Paul Musson

Lead, Mackenzie Ivy Team

“We believe it is our patience, discipline and independent thought that gives us the conviction to consistently apply our process in all market conditions.”

Star Performance From Mackenzie Ivy Funds “

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The Mackenzie Ivy Global Balanced Fund: five-star Morningstar rating The Mackenzie Ivy Foreign Equity Fund: four-star Morningstar rating

Compound Annual Performance

1 Year

3 Year

5 Year

10 Year

Mackenzie Ivy Global Balanced Fund

10.9%

14.4%

10.5%

6.4%

Mackenzie Ivy Foreign Equity Fund

15.9%

18.0%

12.8%

7.6%

Source: Mackenzie Investments, As of December 31, 2015

mackenzieinvestments.com Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns as of December 31, 2015 including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of Mackenzie Ivy Global Balanced Fund and Mackenzie Ivy Foreign Equity Fund or returns on investment in Mackenzie Ivy Global Balanced Fund and Mackenzie Ivy Foreign Equity Fund. Morningstar Star Ratings reflect performance of Series A units as of December 31, 2015 and are subject to change monthly. The ratings are an objective, quantitative measure of a fund’s historical risk-adjusted performance relative to other funds in its category. Only funds with at least a three-year track record are considered. The overall star rating for a fund is a weighted combination calculated from a fund’s 3, 5, and 10-year returns, as available, measured against the 91-day treasury bill and peer group returns. A fund can only be rated if there are a sufficient number of funds in its peer group to allow comparison for at least three years. If a fund scores in the top 10% of its fund category, it gets 5 stars; if it falls in the next 22.5%, it receives 4 stars; a place in the middle 35% earns a fund 3 stars; those in the next 22.5% receive 2 stars; and the lowest 10% receive 1 star. For more details on the calculation of Morningstar Star Ratings, see www.morningstar.ca.

Quartile rankings and peers beaten are calculated by Mackenzie Investments based on the fund series-level data Morningstar provides. The CIFSC categories, Star Ratings and number of funds in each category for the standard periods are: Mackenzie Ivy Global Balanced Fund Series A, Global Equity Balanced category: 3 years – 5 stars (605 funds), 5 years – 5 stars (436 funds), 10 years – 5 stars (143 funds). Mackenzie Ivy Foreign Equity Fund Series A, Global Equity category: 3 years – 3 stars (928 funds), 5 years – 4 stars (675 funds), 10 years – 5 stars (250 funds).