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ISSUE 5.01

CONNECT WITH US Got a story or suggestion, or just want to find out some more information?

CONTENTS

22 THE TOP

twitter.com/wealth_proca plus.google.com/+WealthprofessionalCa facebook.com/WealthProfessional Canada

UPFRONT 02 Editorial

Reasons for optimism in 2017

04 Statistics

08 UPFRONT

NEWS ANALYSIS

As the banks pull back from wealth management, independent firms are stepping up to fill the void

Canada comes out on top as an investment destination

06 Head to head

Advisors reveal whether they’re making bets on the US this year

07 Opinion

The times, they are a-changin’ – here’s how to change with them

10 Intelligence

This month’s big movers, shakers and new products

14 Alternative investment update

Private equity falls out of favour as venture capital rises COVER STORY

TOP 50 ADVISORS

12

This year’s list of the cream of the crop of Canada’s wealth management industry features some familiar names, as well as plenty of promising newcomers

UPFRONT

PEOPLE

A new study reveals that ESGfocused ETFs deliver solid returns along with a clean conscience

INDUSTRY ICON

John Taft, the former head of RBC WealthUS, weighs in on how regulators should design standards to best serve the needs of the industry

16

ETF UPDATE

PEOPLE 39 Career path

David J. Ferrante’s journey from the hockey rink to the financial industry

40 Other life

Getting in tune with singer and advisor Martina Govednik

36 PEOPLE

ADVISOR PROFILE

UK-based advisor Bhupinder Anand urges Canada to learn from his country’s example and give up the idea of banning commissions

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

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UPFRONT

EDITORIAL

New Year cheer for equities

F

or investors, and those in the business of advising them, predicting where the markets may be headed in 2017 is much more difficult this January than in previous years. Looking back to this time last year, we were coming off a pretty dismal 2015 for Canadian equities, and the smart money was on the oil price climbing and the markets responding in kind. And so it proved – oil bounced back to record a 45% gain over the year, recovering much of the ground it had lost since the energy shock took hold.

In Canada, the performance of the equity markets and the wider economy is intrinsically linked to the oil patch. The Prairies are far from out of the woods yet, of course, but the recent OPEC deal certainly suggests the dark days of 2015 won’t be returning for the time being.

The past year was a stellar one for the TSX overall – in 2016, the S&P/TSX Composite Index climbed more than any other developed market index. And after recording their biggest fall since the financial crisis in 2015, Canadian

Can stocks continue their growth in 2017? Opinion is divided – bull markets can only run so far, after all, and all eyes are on the US equities rose by 18% in 2016 – their biggest increase since 2009.

Can stocks continue their growth in 2017? Opinion is divided – bull markets can only run so far, after all, and all eyes are on the US. Specifically, the world’s attention is focused on how the globe’s largest economy will fare under its new commander in chief.

Speaking at the Empire Club of Canada’s Annual Investment Outlook earlier this month, Ian Russell, president and CEO of the Investment Industry Association of Canada, outlined some reasons for optimism regarding the Trump administration.

“There is reasonable expectation that economic momentum will strengthen if Congress pushes through some of the proposals of president-elect Trump,” Russell said, “notably cuts to personal, corporate and investment taxes, as well as increases in infrastructure spending and deregulation.”

The team at Wealth Professional

wealthprofessional.ca ISSUE 5.01 EDITORIAL

SALES & MARKETING

News Editor David Keelaghan

National Accounts Manager Dane Taylor

Writers Joe Rosengarten Libby Macdonald Leo Almazora

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Executive Editor – Special Features Ryan Smith

Project Coordinator Jessica Duce

Copy Editor Clare Alexander

CONTRIBUTORS Dave Nugent

ART & PRODUCTION Design Manager Daniel Williams Designer Randy Pagatpatan Production Manager Alicia Salvati Advertising Coordinator Kay Valdez

General Manager, Sales John Mackenzie

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

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UPFRONT

STATISTICS

Canada: open for business

Yukon Territory Strategic Industries Development Fund Research and Development Tax Credit Yukon Manufacturing and Processing Profits Tax Credit

With a $120 billion infrastructure plan, a predictable business environment and a highly skilled population, Canada makes an appealing investment IN 2016, KPMG named Canada as the most cost-competitive G7 nation to do business in, with a cost advantage of 14.6% over the US. Knowledge-based businesses display an even greater disparity this side of the 49th parallel – the average business costs are 27.7% lower in R&D services and 26% lower in digital services.

Canada’s access to global markets represents another advantage: As a NAFTA partner, Canada

1

Canada’s position among the best countries in the world to headquarter a corporation

has preferential access to 480 million North American consumers, and the forthcoming Canada-European Union Comprehensive Economic and Trade Agreement should open access to another 500 million consumers. And in the five years to 2014, Canada was the largest recipient of foreign direct investment in the G7 on a per-capita basis, according to the United Nations Conference on Trade and Development.

1

Canada’s rank among the best places to do business in the G20

1

Canada’s rank among the best countries in the G20 to start a business

1

Canada’s position among the most cost-competitive economies in the G7

Western Canada Western Innovation Initiative

British Columbia Interactive Digital Media Tax Credit

INCENTIVES FOR INVESTMENT Canada’s favoured status as an investment destination is backstopped by a slew of national and provincial programs – including business support and tax credits – designed to support and draw investment, development and expansion.

Source: US News, BAV Consulting and WPP, Best Countries to Headquarter a Corporation 2016; Bloomberg, Best Countries for Business 2014; World Bank Group, Doing Business 2015: Going Beyond Efficiency; KPMG, Competitive Alternatives 2016

GDP FRONTRUNNER

CANADA COMES OUT AHEAD OF THE US

In terms of cumulative real GDP growth in G7 countries between 2006 to 2015, Canada was more than 3% ahead of its nearest competitor.

The Great White North is often pitted against its nearest neighbour in the struggle to attract investment dollars. Recent research shows that Canada has some pronounced cost advantages over the US, particularly in the emerging field of digital entertainment.

20%

Telecommunications Green energy Aerospace Pharmaceuticals Plastics Metal components Medical devices Software design Support services Biotechnology Professional services Product testing Clinical trial administration Digital entertainment

15% 10% 5% 0% -5% -10%

Source: OECD Economic Outlook No. 98, November 2015

4

9.6% 9.9% 9.9% 11.2% 11.5% 11.5% 13.1% 22.1% 24.9% 26.6% 27.6% 27.8% 29.6% 30.6% Source: KPMG, Competitive Alternatives 2016

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National AgriInnovation Program Automotive Innovation Fund

Ontario

Automotive Supplier Innovation Program

Investing in Business Growth and Productivity: Federal Economic Development Agency for Southern Ontario

Manitoba

Southwestern Ontario Development Fund

Commercialization Support for Business Program

Jobs and Prosperity Fund

Manufacturing Investment Tax Credit

Industrial Research Assistance Program SD Tech Fund: Sustainable Development Technology Canada

Business Development Program: Atlantic Canada Opportunities Agency

Northern Business Opportunity Program – New Investment Projects

Manitoba Research and Development Tax Credit

Technology Demonstration Program

Atlantic Innovation Fund: Atlantic Canada Opportunities Agency

Eastern Ontario Development Fund

Manitoba Industrial Opportunities Program

Strategic Aerospace and Defence Initiative

Atlantic Canada

SD Natural Gas Fund: Sustainable Development Technology Canada

Ontario Tax Credit for Manufacturing and Processing

Data Processing Investment Tax Credit

Scientific Research and Experimental Development Program

Ontario Computer Animation & Special Effects Tax Credit Ontario Interactive Digital Media Tax Credit Ontario Research and Development Tax Credit/ Ontario Innovation Tax Credit Feed In Tariff [FIT] Program

Alberta

Newfoundland & Labrador

Prince Edward Island

R&D Proof of Concept

Aerospace and Defence – Tax Rebate Incentive Program

Health Product Development Program

Bioscience Tax Holiday

Quebec

Petroleum R&D Accelerator ArcticTECH Economic Diversification and Growth Enterprises Program Scientific Research and Experimental Development Tax Credit

Investissement Quebec: UNIQ Financing – Capital Assets

Saskatchewan

Investissement Quebec: ESSOR Investissement Quebec: Development Capital

Agriculture Development Fund

Tax Credit on Salaries – R&D

Manufacturing & Processing Investment and Tax Credit

General business support

Technology/innovation support

R&D support

Nova Scotia

Investissement Québec: Tax Credit for the Development of E-business

Tax breaks or other discounts

Research and Development Tax Credit

Investissement Quebec: Tax Credit for the Production of Multimedia Titles

New Brunswick

Investissement Quebec: Tax Credit for Investments Relating to Manufacturing and Processing of Equipment

Financial Assistance to Industry Program Research and Development Tax Credit Source: Invest in Canada, Government of Canada, December 2016

TAXES TAKE A DIVE

LOWEST COSTS

The backbone of Canada’s investment-friendly business environment is a competitive corporate tax rate designed to provide value to foreign investors. One of the lowest in the world, Canada’s combined federalprovincial corporate tax rate has fallen sharply from 42.4% in 2000.

When all factors are considered (including labour, transportation, capital and tax costs), Canada offers investors one of the most cost-competitive locations to do business.

137.4%

51.3% 43.9% 47.6% 48.8% 15.0%

21.1%

Saudi Canada Arabia

UK

South Korea

US

Australia Germany Japan

1

6

2

7

3

8

4

9

5

10

60.6% 62.7% 67.8%

33.2% 28.8% 32.0%

South Africa

COUNTRIES WITH THE LOWEST BUSINESS COSTS

India

France

China

Argentina

Source: Paying Taxes 2016, PriceWaterhouseCoopers

Source: KPMG, Competitive Alternatives, 2016

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13/01/2017 6:39:08 AM

UPFRONT

HEAD TO HEAD

Do you plan to increase your exposure to the US in 2017?

Advisors discuss how our nearest neighbour’s new government might affect their investment outlook for the coming year

Gene Kim

Grant White

Wolfgang Klein

President and portfolio manager Summit Private Wealth/ Mandeville Private Client

Partner CGW Family Wealth Management Group

Senior vice-president and portfolio manager Canaccord Genuity Wealth Management

“We are cautiously optimistic about the US. We have benefited greatly over the last eight years by identifying the mispricing in the US market. With valuations becoming fairer, however, the current market demands that we sharpen our tools as stock pickers to continue identifying growth opportunities.

The risk definition has changed, and asset classes or industries typically viewed as safe are somewhat risky, and vice versa. Therefore, it is important to construct portfolios paying attention to correlations, as risk is not the sum of the parts, but rather the interaction of the elements within the portfolio.”

“At CGW Family Wealth, we believe in taking a bottom-up approach to investing. We focus on buying quality companies with strong balance sheets and cash flow at valuations below intrinsic value. However, we have a healthy weighting of US holdings currently, as we believe that some of the best companies in the world are America-based.

Valuations in the US market are looking a little rich for us right now, and so we are not adding at this time. This could change, however, even with a small market correction, as we would be looking to buy on the dip.”

“Most Canadians should increase their US exposure when it comes to equity and fixed income. The US stock market is the world’s largest, most diverse and most liquid. With the Canadian market heavily weighted toward financials and commodities – almost 70% of equities are concentrated in these two sectors – adding US assets makes sense to diversify away some risk and lower the standard deviation of Canadians’ portfolios.

America’s is a bull market. Get long and expect bumps along the way. I run three discretionary model portfolios: growth, balanced and conservative. My US equity weights are 50%, 38% and 17%.”

TURNING TRUMPWARDS IN THE YEAR TO COME The market uncertainty sparked by Donald Trump’s unexpected victory at the end of last year is mirrored in the varying predictions of the outlook for 2017. Credit Suisse’s forecast acknowledges that US financial markets rarely care which party is represented in the Oval Office before qualifying that “the prospect of Donald Trump in the White House in 2017 is different.” Great policy uncertainty, particularly in the areas of trade and foreign relations, could be offset by a business-friendly agenda of tax cuts and fiscal expansion. According to Morgan Stanley’s prognosticators, the years to come will bring an uptick in import growth and a drop in exports, but that move is predicated on Trump backing away from his campaign promise to raise tariffs to uncompetitive levels in a bid for protectionism.

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UPFRONT

OPINION

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

Change equals opportunity The year to come will bring change for advisors.

Dave Nugent offers three ways to grow your bottom line by embracing it instead of fighting it THE YEAR ahead will be one of significant change in the Canadian financial services industry. Full disclosure of fees and performance courtesy of CRM2, along with the continued growth of fintech firms offering low-cost services, will put pressure on advisory business models. But change can mean opportunity for those who embrace it.

Identify where you add value Picking stocks and mutual funds used to be central to the value proposition of advisors.

However, investors can now easily assemble a diversified portfolio of index funds or ETFs at a low cost using a robo-advisor or on their own.

With a robo, the investor gets automatic dividend reinvestment, portfolio rebalancing and tax-loss harvesting. The value proposition of an advisor who picks stocks and mutual funds depends on their ability to outperform such a passive, low-cost approach, and a significant body of evidence indicates that this is extremely difficult. Unless you’re confident you have the ability to pick the next Facebook or star fund manager, it’s better to focus on areas where your value-add is a sure thing.

The media likes to position robo-advisors as a replacement for human advisors; as someone who runs a robo, I disagree. There are many things human advisors do that provide value to clients and justify their fee. Maybe it’s your relationship with your clients – a trusted advisor is uniquely able to help a client stay disciplined in their investment strategy and avoid destructive performance-chasing behaviour. Or maybe your expertise is in financial and tax planning. For many clients, a sound

financial plan and tangible advice that helps them minimize taxes can add more value than choosing an optimal mix of investments.

Know what your advice is worth With new fee disclosures on the way, it’s critical to be able to confidently explain to a client with, say, a $1 million portfolio why your services are worth $10,000 per year. Other professionals, such as lawyers and accountants, charge on

coaching clients, how much time did you spend with them?

Maximize the time you spend doing value-add activities A good exercise is to look at your revenue over 2016 and divide it by your hours – that’s your hourly rate. To increase this rate, you need to think about how you’re spending your time.

Most advisors spend their first years taking on every client they can. But as your book grows, it’s crucial to become selective about working with clients for whom you can add the most value. Segment your book, hire a junior advisor to deal with smaller accounts, or sell clients to someone else. You can even use a robo-advisor platform to create a farm system for your clients and take clients back once they meet your threshold.

Technology can help you spend more time on value-adds. By embracing the technologies available today, advisors can increase productivity and provide a better experience for clients. Tools like Docusign and Yodlee eliminate much of the paperwork associated with

“Unless you’re confident you have the ability to pick the next Facebook or star fund manager, it’s better to focus on areas where your valueadd is a sure thing” an hourly basis, but advisors add value in ways that do not lend themselves to precise quantification. Value can be added in large increments unevenly (e.g. during market downturns), and it’s impossible to know what a client would have done differently without your advice.

In its Advisor Alpha report, Vanguard contends that an advisor can add as much as 300 basis points of value per year. That’s a nice stat, but it’s important to have an idea of what you specifically bring to the table that surfaces some of that potential value.

If you focus on tax planning, quantify the tax savings your advice on asset location would have generated. If you focus on retirement planning, how much did your withdrawal strategy add to your client’s bottom line? If you specialize in building relationships and

opening new accounts, while video conferencing can reduce travel time without eliminating face-to-face client interactions.

There’s no question that significant change is coming to the financial industry, and advisors who fail to adapt will be at a disadvantage. However, if you embrace new technology, focus on high-value activities and use fee disclosure as an opportunity to discuss the value you add, you can develop stronger, stickier relationships with your clients and thrive in this evolving environment.

Dave Nugent is the chief investment officer at Wealthsimple, Canada’s leading online investing service, which he co-founded in 2014. Previously, he was an investment advisor with RBC Dominion Securities.

www.wealthprofessional.ca

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13/01/2017 5:53:07 AM

UPFRONT

NEWS ANALYSIS

Independents’ day Canaccord Genuity and iA Financial have ambitious plans to expand their wealth management businesses in 2017 THE ANNOUNCEMENT that Scotiabank was selling HollisWealth to iA Financial Group was certainly one of the more notable investment stories of 2016. The deal is expected to pass regulatory approval in the summer and will put iA Financial firmly on the map in the wealth management space.

It also represents further evidence of the Big Five’s changing attitudes toward the advisory business, where high-net-worth clients are now a clear priority.

Contrary to the direction the banks are moving in, a number of independent firms are expanding their wealth operations. iA Financial is one such example – the HollisWealth acquisition will increase its assets under management to $75 billion.

Carl Mustos, president of iA Clarington Investments, explains why his firm’s

independent model.”

As the banks recalibrate their advisory networks to focus on those with investable assets of $1 million or more, investors below that threshold may have to go elsewhere for financial planning.

While the high-net-worth segment is also a crucial part of both iA Financial and HollisWealth’s business, Mustos confirms that all investors will be able to avail of their advisory services.

“It is important to distinguish models versus the size of the client,” he says.

“HollisWealth and the existing iA advice providers have some very high-net-worth clients. But our view is that people across all spectrums should have the opportunity to get advice should they seek it out.”

Industrial Alliance Insurance and

“Buying Hollis gives us the scale to adapt to whatever the regulatory environment throws our way over the next several years” Carl Mustos, iA Clarington Investments purchase of HollisWealth represented a good deal for all those involved.

“I think the crux of this is that Scotia is a bank, so they have an employee and branch model,” he says. “It was a perfect opportunity for them to streamline their employee-based advisory network and for us to continue our commitment to the

8

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Financial Services built its reputation primarily in the insurance space, but now it is fully committed to growing its wealth management business. It has made 25 acquisitions since 2000 to achieve that goal; HollisWealth is the most recent example.

“We are always open to expanding our wealth operations,” Mustos says. “Buying

Hollis gives us the scale to adapt to whatever the regulatory environment throws our way over the next several years. I don’t think many people know about iA Wealth, so I think this is a coming out party for us.” iA Financial isn’t the only company thinking big when it comes to wealth management in 2017. It has been a tough few years for independent investment bank Canaccord Genuity, which has reported net losses in four out of the last five fiscal years.

A recent study by research firm DBRS indicated that Canaccord’s exposure to the resource industry has had a large part to play in the firm’s recent struggles.

To balance out its battered investment banking arm, Canaccord is putting greater emphasis on its wealth management business, both in Canada and abroad. Stuart Raftus, president of Canaccord Genuity Wealth Management, confirms that the

EXPANSION FAST FACTS To fund the HollisWealth acquisition, iA Financial used $139 million in equity financing HollisWealth came under the Scotiabank umbrella in 2011, when the bank purchased DundeeWealth Canaccord Genuity Wealth Management has $31.3 billion AUM in Canada alone

£

Canaccord’s UK operation is another major component of the business, with approximately £12 billion in assets currently Australia is the next major market where Canaccord hopes to expand its wealth business

firm intends to fill the advisory void left by the Big Five.

“Wealth management’s importance has increased within the business model of

flux, there are still plenty of investors who prefer an advisory model where the client is treated as an individual rather than the burgeoning robo-advisor option – after all,

“As the banks look to commoditize [the advisor] experience, that’s where I think there is a great opportunity for us” Stuart Raftus, Canaccord Genuity Wealth Management Canaccord Genuity as a group,” he says.

“There are a number of reasons for that – one is the profitability of the business; two is the changing landscape, which means there are greater opportunities in the independent space, primarily driven by the changes at the banks.”

While the industry is clearly in a state of

as Raftus points out, an algorithm can only go so far.

“The culture of the wealth management business is feeling much more like a bank – more bureaucratic and less independent and entrepreneurial,” Raftus says. “As the banks look to commoditize that experience, driving people more towards technology

rather than an individual advisor experience, that’s where I think there is a great opportunity for us.”

To attract investors to the firm, Canaccord is focused on recruiting the best advisors in the business. At a time when job losses are a real concern for the industry, it’s heartening to see companies adding to their ranks rather than downsizing.

“The expansion started back in June – we brought on eight investment advisors, representing about $1.8 billion in assets,” Raftus says. “We also issued a convertible debenture where we raised $60 million.

We are using that money primarily to fund the growth of our Canadian wealth management business. It has come a long way from two or three years ago when we were losing money. We are profitable today and feeling really good about the progress of this business unit.”

www.wealthprofessional.ca

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Alberta Investment Management Corporation

Howard Energy Partners

AIMCo will take an ownership stake of approximately 28% of Howard Energy Partners, making it the second largest unitholder in the company

BDO Canada

Etelligent Solutions

BDO is one of the largest accounting and advisory firms in the country; this merger with Etelligent Solutions strengthens its position in Western Canada

Fiera Capital Corporation

Charlemagne Capital

The acquisition of Charlemagne is expected to add US$2 billion to Fiera Capital’s AUM

Innergex Renewable Energy/Desjardins Group Pension Plan

BayWa r.e.

Innergex and Desjardins have purchased two wind power projects from French group BayWa r.e.

TD Securities

Albert Fried & Company

The purchase of AF&Co’s services and capabilities will enhance TD’s US growth strategy

TorQuest Partners

Can Art Aluminum Extrusion

TorQuest, a manager of private equity funds, has acquired a leading manufacturer of aluminum extrusions

NEI Investments reduces fees on equity funds NEI Investments has announced fee reductions on all of its Canadian equity funds.

The reductions encompass fee-based series, as well as trust and corporate class funds, and are part of a multi-year plan to gradually lower management expense ratios to maintain the price-competitiveness of NEI’s solutions. “By reducing prices on virtually the entire NEI product shelf, we have sent a strong message to advisors and investors about our commitment to strongperforming and fairly priced investment solutions,” said John Kearns, CEO of NEI Investments.

Mackenzie increases its stake in Chinese asset manager

Mackenzie Financial Corporation has entered into an agreement to acquire an additional 3.9% stake in China Asset Management for around $179 million.

The news comes on the heels of Mackenzie’s acquisition of a 10% interest in China AMC on December 29, 2016. The deal brings Mackenzie parent company IGM Financial’s ownership in the company to 13.9%, for a combined value of $647 million. Power Corporation of Canada, the indirect parent company of IGM Financial, also announced this month that it has entered into an agreement to acquire an additional 3.9% interest in China AMC. The transaction is expected to close in the first half of 2017, subject to customary closing conditions, including Chinese regulatory approval.

10

Franklin Templeton unveils new auto-switch program

Franklin Templeton Investments has announced the implementation of monthly automatic switching as part of its Simplicity Pricing program. With the new program, investors will have an easier time receiving preferred pricing for their accounts. The firm also announced a management fee reduction for the Franklin Quotential Balanced Growth Portfolio and the Franklin Quotential Balanced Growth Corporate Class Portfolio. “We are committed to providing our clients with the best available pricing and making it easy for them to access it,” said Duane Green, managing director of Canada for Franklin Templeton Investments.

www.wealthprofessional.ca

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PEOPLE Green Acre Capital launches marijuana investment fund Green Acre Capital has launched the Green Acre Capital Fund, dedicated to making investments in the legal cannabis industry in Canada, the US and worldwide.

Green Acre has received lead investment commitments from York Plains Investment and Aphria, and is continuing to take on new investment commitments. “The goal of the fund is to build a diversified portfolio of the most compelling cannabis investment opportunities across numerous verticals within the industry,” said Green Acre managing director Tyler Stuart.

RBC launches suite of retirement portfolios RBC Global Asset Management has launched RBC Retirement Portfolios, offering investors a choice of seven portfolios based on the investor’s expected retirement date. The portfolios follow a retirement timeline designed to meet the needs of investors throughout their investing lifetime. The precision-engineered portfolios combine RBC’s investment management expertise with behavioural finance research to diversify investors’ holdings, simplify their choices and manage volatility risk to help them stay focused on long-term plans.

ScotiaFunds introduces client-friendly pricing model ScotiaFunds has announced a new simplified pricing model for its fund lineup, which will lower the management fees on 51 ScotiaFunds that span long-term, actively managed asset classes and portfolio solutions. Investors will have access to a full suite of actively managed funds that combine simplicity and greater value. “The simplified approach to pricing for ScotiaFunds enables our clients to better understand the cost of their invest­ ments while saving money on fees and making their investments go further,” said Neil Macdonald, managing director of ScotiaFunds.

NAME

LEAVING

JOINING

NEW POSITION

Sylvain Dupuis

N/A

Desjardins Business Capital régional et coopératif

Managing vice-president of Desjardins Business Capital’s investments division

Mohammed Ghafari

MSCI

LGC Capital

Member, board of directors

Ian Hardacre

N/A

Empire Life Investments

Chief investment officer

Tim O’Day

Midas International

Boyd Group Income Fund

President and chief operating officer

Cora Pettipas

N/A

National Exempt Market Association

President

Empire Life Investments appoints new CIO Empire Life Investments has selected Ian Hardacre as its new chief investment officer. Hardacre also will join the executive leadership team of The Empire Life Insurance Company, the parent company of Empire Life Investments.

Hardacre came to Empire Life Investments in May 2016 as a senior portfolio manager for Canadian equities, bringing with him more than 20 years of portfolio management and leadership experience, including as head of Canadian equities with a large global asset manager.

“Ian is really looking forward to providing leadership to the team and working closely with our distribution partners,” said Mark Sylvia, Empire Life president and CEO. “With Ian’s leadership and our team’s disciplined approach to value investing, we are well positioned to continue to deliver the strong investment performance and downside protection our customers expect.” .

NEMA promotes from within for new president The National Exempt Market Association [NEMA] has named Cora Pettipas as its new president. Previously a vice-president and director with the organization, Pettipas has more than 15 years of industry experience. Prior to joining NEMA, she was a professor at Mount Royal University, where she taught finance and financial planning.

NEMA said that Pettipas’ promotion was a result of her exemplary work with the association over the past four years, specifically the development of educational tools for investors, the launch of the Exempt Edge publication and numerous regulatory advocacy campaigns, resulting in changes such as the adoption of the offering memorandum exemption in Ontario.

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13/01/2017 5:46:56 AM

UPFRONT

ETF UPDATE

ESG-focused ETFs can deliver better returns One firm discovered that a strategy of investing in socially responsible ETFs paid off

asset or investment management choice.”

Smith said the key to success lies in thorough screening – Sage looks at ESG funds as graded by research firm Morningstar. “We need to look at both growth and value, as well as international and domestic … [and] we generally will look for those that have $25, $50, $100 million or more in size as a qualifier [for liquidity, good two-way markets and reasonable cost in terms of bid-offer spreads],” he said.

“We outperformed our all-cap equity strategy both on a gross and a risk-adjusted basis”

In a victory for advocates of responsible investing, Sage Advisory Services has found that its ESG (environmental, social and governance) strategy was able to outperform its normal, ESG-agnostic strategy.

“We went and looked at our returns over the course of this year, and were able to demonstrate through the selection of ESG-oriented ETFs over non-ESG-oriented ETFs that we were able to outperform our normal strategy, our all-cap equity strategy, both on a gross and a risk-adjusted basis – not hitting that out of the park, but very much slightly ahead and

NEWS BRIEFS

for very similar cost,” said Sage president and CEO Bob Smith in an interview with Financial Advisor IQ. Asked whether ESG investment would go against the planned fiduciary rule in the US that compels advisors to act in the best interests of their client – which are usually interpreted as financial – Smith said there’s no need to worry. “You don’t have to give that up.

In their recent regulatory changes, [the DOL has] allowed ESG-oriented investments to be permitted and brought into the defined contribution world as qualified assets and a qualified

ETFs a major part of Canadians’ investment diet

BlackRock Canada’s first-ever ETF Pulse Survey has revealed exchangetraded funds’ importance to Canadians.

Nearly one-third of respondents (31%) reported owning ETFs. The survey found that investors buy ETFs to replace mutual funds (41%) or individual stocks (45%), or improve diversification (53%). “ETFs have democratized investing by providing investors with a robust range of investment strategies in a solution that is cost-effective, transparent and easy to use,” said Warren Collier, head of iShares for BlackRock Canada.

12

“[And] we generally look for ESG scores of around 50 or higher,” he added, referring to Morningstar’s rating system. While the ratings are new, they are informed by global ESG assessment firm Sustainalytics. “They have 120 analysts all over the world who do nothing but provide assessments from an environmental, social and government standpoint … so that’s really the power behind it.”

Smith also noted that there are gaps in the universe of ESG-oriented ETFs. The small- and mid-cap spaces could do with a few more choices, he said, adding that Morningstar’s rating system applies only when a minimum peer group size of 10 funds is reached. He further pointed out that “there are no ESG-driven fixed-income ETFs … we would like to see more done in the fixedincome area.”

Canadian ETF inflows reach significant high

Canadian ETF data for November showed considerable optimism among investors. The Financial Post reported that net ETF inflows for the month were $2.56 billion, the second-highest month in 2016. The market rush into equities was also reflected – more than 70% of net inflows went into equity ETFs. Utilities took some punishment from rising yields, but dividend ETFs still stood out among factor ETFs. Lowvolatility ETFs experienced relatively modest retractions, and European and emergingmarket ETFs saw modest outflows as well.

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13/01/2017 6:40:30 AM

Q&A

Robert Frances

Mutual fund dealer moves into ETFs

Chairman and CEO PEAK FINANCIAL GROUP

Years in the industry 30 Fast fact PEAK Investment Services, the mutual fund dealer of PEAK Financial Group, will now offer its clients access to ETFs

Why did you decide to offer ETFs through your mutual fund network?

ETFs have been offered through our IIROC-registered advisors at PEAK Securities for years. We realized that there are many advisors out there who don’t wish to use stocks and bonds but do want to add ETFs to their mutual funds as a complement. Advisors are looking for lower-cost options for investors who are very fee-sensitive.

Are there certain types of ETFs your advisors will be focusing on?

There are about 300 that have been approved for our list. They have to be licensed in Canada, and we don’t offer any leveraged ETFs or those that are very high-risk.

Do you find there is much of a difference between the advisors who tend to use ETFs and those who don’t?

It’s not so much the advisor as the type of client.

Some clients are extremely fee-averse, and some are less so and open to active management. Some clients may say, “Get me the cheapest management possible; I’m comfortable earning what the index earns.” Others are willing to pay more of a

Are low-volatility ETFs losing their lustre?

Mirroring a global move from bonds to stocks, Canadian ETF investors have shifted their priorities from low volatility to growth, according to a Globe and Mail report. The post-US election bond yield surge may have hurt dividend stocks in sectors such as utilities, pipelines, telecoms and real estate, exacerbating the rush toward growth. Confidence in a US economic revival from president-elect Trump’s fiscal policy and deregulation plans has also dampened preference for lowvolatility stocks.

management fee for active management.

It’s kind of like a discount brokerage: Consumers are willing to go to one of those firms and buy everything there and not have an advisor. Others say they would never want to save money [on investing] to a point where they don’t have an advisor. It’s mentality at the client level.

The growth of ETFs in Canada and across the world has parallelled developments like CRM2 and a much greater focus on fees. Do you think there are fewer people now who are willing to pay for financial advice?

Obviously we are big believers in the importance of financial advice. When we survey our clients, they are quite clear that they prefer advice. What is shocking is the surveys that show the financial results of people who have had an advisor for many years versus those who haven’t. In the end, finances are very much like medicine – everyone has an opinion on what to eat and how to stay healthy, but none of us do it by ourselves; we try to go see a doctor regularly. It’s the same thing with financial advice – it is much too important to delegate it to the lowest bidder.

I think having ETFs available is an important part of having an overall plan; it’s important that advisors have as many options available to them so they can have the best toolkit to serve their clients.

PEAK opens ETF platform for mutual fund advisors

PEAK Investment Services, the mutual fund dealer of PEAK Financial Group, has announced an in-house solution to let mutual fund advisors place ETF trades directly through PEAK Investment, making it one of the first dealers to provide mutual fund advisors with products typically offered to securities clients. “We believe that providing advisors with an extensive offering of investment opportunities will contribute to create successful financial strategies for their clients,” said PEAK Financial Group chairman and CEO Robert Frances.

Horizons ETFs unveils European blue-chip product

Horizons ETFs has launched the Horizons EURO STOXX 50 Index ETF (HXX), which offers low-cost, taxefficient access to 50 of Europe’s largest sector-leading companies. HXX is the first Canadian ETF to track the EURO STOXX 50. “HXX’s unique TRI structure largely eliminates immediate taxation of [European stock] distributions, which should result in a better after-tax return for holders of HXX versus other Canadian-listed European equity index ETFs,” said Steve Hawkins, president and co-CEO of Horizons ETFs.

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13/01/2017 6:40:47 AM

UPFRONT

ALTERNATIVE INVESTMENT UPDATE NEWS BRIEFS Extended horizons sweeten private equity offerings

Alternative investors’ rising expectations for returns are increasing the pressure in the private equity space, according to a recent Globe and Mail report. Numbers from Thomson Reuters indicated that $14.3 billion was invested in 229 Canadian private equity deals as of November 2016 – significantly less than for the same period in 2015. In response, certain asset management firms have started to offer longer time horizons for their offerings to relieve the pressure on issuers to deliver explosive returns.

The longer horizons also remove the requirement to sell portfolio companies within three to seven years, which is the usual timeframe for a business’s value to get a boost.

Self-storage could be the next lucrative asset class

While some predict trouble in the real estate market, one analyst sees opportunity in property that Canadians will neither live nor work in, according to a Financial Post report. In a note to clients, Raymond James analyst Johann Rodrigues called StorageVault, Canada’s only publicly traded selfstorage company, a “strong buy.”

Self-storage companies have become the best-performing real estate class in the US over the last five and 10 years; in Canada, the market is still in its infancy, Rodrigues said. He predicted the sector’s funds from operations should grow between 3% and 4% annually until 2018.

Fiera Capital acquires private investment manager

Fiera Capital Corporation has acquired Quebec-based private investment manager Centria Commerce; the

14

two companies have worked closely since 2008. The acquisition aims to integrate Centria’s alternative investment portfolio into a new diversified private lending platform for clients, called Fiera Private Lending.

“With this transaction, we are bringing to Fiera Capital a seasoned team in construction financing, real estate investment and short-term business financing,” said Centria president and COO Jean Gamache.

Investors Group adds no-load series for property fund Investors Group has announced new no-load Series B and Series J offerings to its Investors Real Property Fund.

A no-load purchase option will also be opened for the Series C offering, which has been priced in alignment with the fund’s recently discontinued DSC series. The fund is invested in real property, so it is designed for a longterm investment horizon. The changes are expected to take effect on or around January 16, pending regulatory approval.

BDC Capital unveils plans for $135 million VC fund BDC Capital has announced plans for a $135 million venture capital fund for Canadian energy and cleantech startups with global potential. Following up on BDC Capital’s Industrial, Clean and Energy [ICE] Venture Fund I, the BDC Capital ICE Venture Fund II will support 15 to 20 new highimpact Canadian tech startups with demonstrated efficiency and strong scalability. The new fund focuses on late-seed and Series A companies, along with some Series B firms.

BDC Capital plans an initial fiveyear investment period for the fund, followed by a five-year harvest period for anticipated exits.

Private equity slips while VC shines While private equity experienced a slump in 2016, venture capital soared to new heights Even before 2016 ended, analysts were calling it a bad year for private equity. By late November, the sector was on pace for a 24% decrease in value and a 19% decrease in number of transactions compared to 2015, according to the Financial Post.

Citing numbers from capital research firm Pitchbook, the Post reported that Canada’s private equity slowdown mirrored trends in other regions. The total value of Canadian private equity deals in 2016 was recorded at $31 billion, compared to $49 billion for 2015.

One reason for the space’s slide was continued volatility in the energy industry: The 18 energy deals, worth $3.1 billion, that closed through the end of October were but a fraction of 2015’s $7.1 billion and 36 transactions. While the second and third quarter of 2016 saw growth in private equity deals (particularly Q3, which had 71 deals worth an aggregate $13 billion), Q4 deal-making was slow to start.

Canada’s exit trends mirrored those in the US; private equity-backed exits dropped around 16% compared to 2015.

The first 10 months yielded only 65 sponsorbacked exits done to completion, far less than the 103 from 2015. But despite the sluggish pace, the value of those exits still managed to grow: In Canada, $26 billion was transacted by the end of October, exceeding the $18 billion in exit transactions for 2015.

Private equity activity in Canada in 2016

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13/01/2017 5:49:52 AM

Q&A

occurred overwhelmingly through corporate acquisitions; only a single IPO was filed in the country for the year. Toronto-based apparel manufacturer Canada Goose, backed

by Bain Capital, has reportedly been plan-

“If the incoming US administration successfully renegotiates trade deals, cross-border PE activity could be negatively affected” ning to follow up on gains it made from a weakened loonie by staging an IPO for 2017.

The venture capital market, meanwhile, reached a record high in Canada: $2.11 billion in deals through the end of October exceeded the total deployment for 2015. But similar to the broader trend in private equity, dealmaking slowed. The 296 deals completed by the end of October put the sector on pace to achieve only 75% of its total for 2015. Exit activity was also anemic – only 37 exits were completed through October 2016, which set the sector up for its lowest number of exits since 2009.

According to Pitchbook, the Trump administration’s handling of allies abroad will be a concern for private equity firms in Canada in 2017. “[A] favourable tax position currently allows Canadian public pensions to invest in US companies without paying capital gains taxes on either side of the border,” said Pitchbook analyst Nizar Tarhuni. “However, if the incoming US administration successfully renegotiates trade deals with its North American partners, crossborder PE activity could be negatively affected.”

John Wilson

After-effects of the US election

CEO SPROTT ASSET MANAGEMENT

Years in the industry 25 Fast Fact Prior to joining Sprott, Wilson was chief investment officer at Cumberland Private Wealth Management; he also founded alternative investment management firm DDX Capital Partners

Last year was a volatile one for gold. How has that affected Sprott’s business?

Basically, the price retraced almost all of its gains from earlier in the year. A large portion of that is understandable – think of how dramatically people’s outlook changed before the US election and now. If you look back to the summer, when gold peaked, people generally were saying that rates would stay extraordinarily low for a long time and growth would be disappointing across the world. What happened then was that economic data picked up in the fall, and people became more convinced the Fed would raise rates, and that is not positive in the near-term for the price of gold.

Donald Trump’s election surprised many people. Were you surprised by the markets’ reaction to his victory?

Trump, for all his flaws, does offer a very different mandate from what we thought we would get with Hillary. When people started to think about large-scale tax cuts and deregulation, it seemed a lot more pro-growth, and that convinced them we would have higher rates – that’s a headwind for the price of gold. Gold’s reaction has been fairly logical leading up to the election and since then.

For our business, our physical bullion products obviously go up and down with the price of gold. With our managed products, our role is to capture more upside than downside, and we have been largely able to do that.

Did the huge sell-off in bonds after the election have much of an impact on your business?

Our funds are not benchmark-oriented strategies. We have strategies that are high active share and look very different than underlying benchmarks. The bond sell-off has come with the largest decline in correlation since before the financial crisis.

That’s very positive for fund strategies that are high active share, so we enjoyed the bond sell-off.

What were the main drivers of business for Sprott in 2016?

Our alternative income suite continues to do extremely well.

Our suite of products that offer yields in that 6% to 10% range continue to do very well, and we have a lot of demand for those products. Even with a better US economy, which we expect next year, I still think that group of funds will remain strong for us.

Our energy manager, Eric Nuttall, has been the top-performing energy manager the last three years, so that has been a key driver for us, too. But our whole business is growing, and I think that’s good in an environment when many other fund companies are shrinking.

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13/01/2017 5:50:04 AM

PEOPLE

INDUSTRY ICON

WHERE REGULATORS GET IT WRONG John Taft, the recently retired head of RBC Wealth-US, discusses why it’s important for regulators to engage with advisors before forcing through rule changes

HAVING NAVIGATED RBC’s US wealth business through the stormy seas of the financial crisis and its aftermath, John Taft speaks from a great deal of experience when he discusses the problems currently facing the industry.

Regulation, for instance, is an issue that divides the wealth management business in the US just as it does in Canada. In his position as chairman of the Securities Industry and Financial Markets Association, Taft has testified before Congress on the need for a fiduciary standard. He was successful in that respect: New rules governing financial planners in the US were set for rollout in April.

The presidential election changed all that, of course, and it now looks likely the new rules will never see the light of day.

While he’s not exactly a fan of the new occupant of the Oval Office, Taft explains that scrapping that particular fiduciary standard isn’t a bad thing.

“The element causing the most heartburn is a provision that makes it very difficult to do business on a commission basis,” he says. “I think that will be changed. I also think Congress will give the Securities and Exchange Commission exclusive authority to write a fiduciary standard that applies to retirement and non-retirement accounts.”

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Starting the conversation Taft’s current position on the matter is something of a turnaround, given his work over many years to bring about a fiduciary standard. The reason for his volte-face is simple – the DOL neglected to consult with those in the industry before pushing ahead with its own plan. It’s a lesson those tasked with shaping the regulatory landscape in Canada should heed, Taft believes.

In Taft’s view, the industry needs regulation – but the right kind of regulation that protects investors and allows advisors to do their job to the best of their ability. It’s an industry that has changed greatly since Taft first entered the business in 1981, so the rules governing it also have to adapt, as he explains.

“What has been happening in the wealth management business is that for decades, we have been moving step by step from a

“For 10 years I have been advocating for a fiduciary standard that preserves client access to all the products and services they have today, but allows clients to work with the advisors they have today and pay however they want to.

The DOL rule flunks on all three” “For 10 years I have been advocating for a fiduciary standard that preserves client access to all the products and services they have today, but allows clients to work with the advisors they have today and pay however they want to – fees, commissions or a combination of the two,” he explains. “The DOL rule flunks on all three.”

business that was really a sales business to a business that is a profession like law or accounting,” he says. “A fiduciary standard for people who provide financial advice is the final step on that path.”

He points out that it’s key for regulators to involve those within the industry when they are drafting rule changes. This was a massive

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13/01/2017 6:41:55 AM

PROFILE Name: John Taft Title: Former president and CEO Company: RBC Wealth-US Fast fact: Taft’s great-grandfather was US President and Supreme Court Justice William Howard Taft. He is the only person in history to hold both those positions, but had the unenviable task of succeeding the legendary Teddy Roosevelt in the Oval Office.

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13/01/2017 6:42:10 AM

PEOPLE

INDUSTRY ICON

oversight by the US Department of Labour when it came to creating its fiduciary standard, Taft says.

“It raises the bar in terms of client protection and helps restore trust and confidence,” he says. “But there’s a right way to do it and a wrong way, and the Department of Labour did it the wrong way. If they had consulted with the FCC and hadn’t been so aggressive, then you might have a rule that would survive – this one will not.”

business model of Wall Street is fraud,” he says. “Hillary Clinton got in trouble for giving speeches to Goldman Sachs. There is a lot of raw anger and mistrust.”

That anger has been lingering for quite some time, but it really started to build after 2008 when wide-scale job losses blighted Western nations for the first time in a generation. Distrust of both the financial services industry and politicians was ubiquitous during the Great Recession. Governments have come

“They say I’m part of the self-perpetuating elite that only feathers their own nest. So people like me need to figure out what to do differently to unite the country again because it is really badly divided right now” Political pedigree Prior to leading RBC Wealth-US, Taft built his reputation as chairman, president and CEO of Voyageur Asset Management; as president and CEO of Dougherty Summit Securities; and as a managing director at Piper Jaffray & Hopwood. The world of finance has been his home for more than three decades, but his family name is even more synonymous with the political realm. His great-grandfather was William H. Taft, America’s 27th president, while his father was Robert Taft, the storied Republican Party leader in the US Senate.

It’s not too surprising, then, that Taft has strong feelings on the current political climate in America. The discourse during the election campaign generally laid the blame for the country’s ills on the elite class. While Taft readily admits that he’s part of that demographic, he takes issue with the argument that America’s middle and working classes are suffering because of the actions of his peers.

“If you look at the election and the things that were said – one of the leading Democratic candidates for president said the

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and gone over the past eight years, but the general public’s frustration has remained. It’s a phenomenon that the great-grandson of a president struggles to comprehend.

“It’s a weird combination of entitlement and anger – like spoiled teenagers,” Taft says.

“I feel we have become a spoiled and entitled nation. What creature comfort isn’t available to most people? Standards of living have improved, yet here we are so angry. We have nothing to be angry about and everything to be grateful for.”

Taft, a living embodiment of the link between the financial and political spheres, knows this problem isn’t going away anytime soon. For that reason, he believes those who are considered part of the elite need to find a way to speak to the disenfranchised.

“Somehow people like me are the source of that anger,” he says. “They say I’m part of a self-perpetuating elite that only feathers their own nest. So people like me need to figure out what to do differently to unite the country again because it is really badly divided right now.”

JOHN TAFT: CAREER HIGHLIGHTS

2005

Taft becomes CEO of RBC Wealth-US, having distinguished himself previously as president and CEO of Voyageur Asset Management and Dougherty Summit Securities

2011

Taft becomes chairman of the Securities Industry and Financial Markets Association, and later goes on to testify before Congress in support of a federal fiduciary standard

2012

Taft authors his first book, Stewardship: Lessons Learned from the Lost Culture of Wall Street

2015

Taft releases his second book, A Force for Good: How Enlightened Finance Can Restore Faith in Capitalism

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13/01/2017 6:42:26 AM

PowerShares Canadian Dividend Index ETF Performance as at December 31, 2016.

1-year 3-year

23.33%

7.81%

5-year

Since inception†

11.49%

9.69%

High conviction means we go beyond traditional indices.

Think beyond average. Visit invesco.ca.

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 powershares.ca.

Nasdaq®, OMX®, and Nasdaq OMX® are registered trademarks of The Nasdaq OMX Group, Inc. (“Nasdaq OMX”) and LadderRite® is a registered trademark of LadderRite Portfolios LLC (“LadderRite”). Nasdaq®, OMX®, Nasdaq OMX® and LadderRite® are collectively the “Marks”. The Marks are used under licence to PowerShares Capital Management LLC and Invesco Canada Ltd. The product(s) have not been passed on by Nasdaq OMX or LadderRite as to their legality or suitability. The product(s) are not issued, endorsed, sold, or promoted by Nasdaq OMX or LadderRite, and NASDAQ OMX AND LADDERRITE MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units. Most PowerShares ETFs seek to replicate, before fees and expenses, the performance of the applicable index, and are not actively managed. This means that the sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the index regardless of whether the financial condition of one or more issuers of securities in the index deteriorates. In contrast, if a PowerShares ETF is actively managed, then the sub-advisor has discretion to adjust that PowerShares ETF’s holdings in accordance with the ETF’s investment objectives and strategies. †

Inception date is June 8, 2011.

PowerShares Canada 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® and all associated trademarks are trademarks of Invesco PowerShares Capital Management LLC (Invesco PowerShares), used under licence. © Invesco Canada Ltd., 2017

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13/01/2017 6:42:40 AM

FEATURES

COVER STORY: TOP 50 ADVISORS

THE TOP

For the fourth year in a row, Wealth Professional names Canada’s top-performing advisors WELCOME TO Wealth Professional’s annual Top 50 Advisors list. Each year since 2014, we have reached out to the industry to gauge which advisors are driving the business forward. Looking at this year’s selection, you’ll see some familiar names, but plenty of new faces, too. That’s a good sign – the advisory business needs new blood if it is to continue to thrive in a challenging investment environment.

In compiling this list of Canada’s premier financial planners, we turned to the industry’s top advisory firms for their input. We asked which individuals had distinguished

20

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themselves in 2016, either by increasing assets under management, bringing in new clients, boosting revenue or perhaps another variable unique to that particular advisor. We sifted through that data to put together this year’s list.

Just glancing at some of the numbers, it’s clear that Canadian advisors are still bringing in a considerable amount of new business. This year’s Top 50 had a combined AUM of $8.8 billion, and the top 10 alone has more than $3.5 billion AUM. That makes it clear that while the advisory business is undoubtedly changing, investors

across Canada are still showing their faith and entrusting their wealth management to the professionals.

This year’s list also marks the first Top 50 since the final phase of CRM2 came into effect. Starting this month, investors will see, in dollar amounts, exactly what they have been paying their advisor. The story of 2017 is sure to be investors’ reaction to that disclosure and whether they feel they are getting value for their money.

How different will our Top 50 Advisors list look in January 2018? If nothing else, this is sure to be an interesting year.

Top 50 advisors RANK

NAME

YEARS IN THE INDUSTRY

COMPANY

1

William Vastis

21

William Vastis Wealth Management Group

2

Thane Stenner

30

StennerZohny Investment Partners+

3

Chad Larson

12

MLD Wealth Management

LOCATION

AUM*

AUM GROWTH†

AUM % GROWTH†

REVENUE PER CLIENT*

CLIENTS*

NEW CLIENTS GAINED†

Toronto, ON

$715,000,000

$65,000,000

10%

N/A

92

Vancouver, BC

$465,000,000

$116,250,000

33.3%

$52,271

62

10 9

Calgary, AB

$322,000,000

$58,500,000

21.7%

$10.514

196

34 14

4

Elie Nour

10

Nour Private Wealth

Oakville, ON

$224,000,000

$58,000,000

34.9%

$14,010

195

5

Kash Pashootan

14

First Avenue Advisory

Toronto/Ottawa, ON

$270,000,000

$45,000,000

20%

N/A

192

9

6

Kevin Hegedus

25

Prairie Wealth Management

Saskatoon, SK

$366,750,000

$12,750,000

3.6%

$4,883

879

13

7

Dave Lee

12

ScotiaMcLeod

White Rock, BC

$103,000,000

$65,800,000

174%

$5,242

175

99

8

Rob McClelland

25

The McClelland Financial Group of Assante Capital Management

Thornhill, ON

$376,054,636

$43,820,627

13.1%

$7,594

550

27

9

Rob Tetrault

7

Tetrault Wealth Advisory Group

Winnipeg, MB

$221,000,000

$95,798,450

75.9%

$2,236

633

77

10

Duncan Stewart

17

Stewart Financial

Oakville, ON

$220,000,000

$40,000,000

22.2%

$11,666

150

10

11

Robert Luft

17

Luft Financial

Vancouver, BC

$200,000,000

$30,000,000

17.6%

$4,668

482

52 25

12

Gene Kim

12

Summit Private Wealth

Montreal, QC

$200,000,000

$50,000,000

33.3%

$10,000

150

13

Alexandra Horwood

6

Alexandra Horwood & Partners

Toronto, ON

$161,000,000

$41,925,245

26%

$9,861

184

13

14

AJ Chase

22

AJ Chase Financial Group

Hamilton, ON

$148,000,000

$33,000,000

28.7%

$3,831

243

39

Vancouver, BC

$135,000,000

$33,750,000

33.3%

$44,503

62

9

Toronto, ON

$155,000,000

$27,000,000

21.1%

$8,226

238

18

15

Youssef Zohny

10

StennerZohny Investment Partners+

16

Wolfgang Klein

16

The Wolf on Bay Street

17

Rod Tyler

34

The Tyler Group

18

David Christianson

34

Christianson Wealth Advisors

19

Mark Winson

29

20

Gerald Goertsen

15

Regina, SK

$180,000,000

$20,000,000

12.6%

$3,682

315

15

Winnipeg, MB

$190,000,000

$17,000,000

9.8%

$20,538

91

17

Wise Riddell Financial Group

Oakville, ON

$198,000,000

$11,650,000

6.2%

$12,622

122

4

De Thomas Wealth Management

Kelowna, BC

$141,000,000

$31,550,000

28.8%

$782

1150

193

Burlington, ON

$115,000,000

$30,000,000

35.3%

$1,788

685

72

Ottawa, ON

$152,000,000

$14,000,000

10.1%

$2,380

630

10

$130,000,000

$30,000,000

30%

$9,677

155

25 50

21

Daniel Noonan

20

Argosy Securities

22

Michael Prittie

30

Capital Wealth Architects

23

Paul Green

24

Green Private Wealth Counsel

Woodstock, ON

24

Bobby Ning

14

Financial Literacy Counsel

Vancouver, BC

$110,000,000

$30,000,000

38.8%

$2,500

400

25

Dave Ritcey

25

The Ritcey Team

Kentville, NS

$103,000,000

$25,000,000

30.1%

$4,194

221

18

26

Thierry Jabbour

7

Manulife Securities

Dorval, QC

$157,000,000

$19,000,000

13.8%

$4,137

361

42

27

Luke Kratz

24

The Kratz Group

Victoria, BC

$157,000,000

$19,000,000

13.8%

$6,805

190

12

28

Nathalie Racine

22

The Racine-Marcotte Advisory Group

Pointe-Claire, QC

$211,000,000

$18,000,000

9.3%

$3,692

325

15

29

David Barnsdale

30

Barnsdale & Hussain Wealth Management Group

Mississauga, ON

$177,000,000

$17,844,085

11.1%

N/A

130

10

30

Sean Baylis

5

Baylis Wealth Management Group

Calgary, AB

$90,000,000

$17,000,000

23.3%

$4,707

175

20 12

31

Leo Belmonte

21

Security Financial Services & Investment

32

Ronald Rusnak

13

Rusnak Financial

33

Kate Brown

12

Brown Wealth Management Group

Toronto, ON

$103,000,000

$15,000,000

13.6%

$1,875

400

Bonnyville, AB

$105,000,000

$12,850,000

13.8%

$1,330

650

5

London, ON

$150,000,000

$12,235,000

8.9%

$8,949

178

12

34

Simon Partington

10

Partington Wealth Management

Toronto, ON

$155,000,000

$11,000,000

8.7%

$11,600

140

5

35

Pravin Kumar

23

The Pravin Kumar Group

Vancouver, BC

$137,000,000

$7,000,000

3.5%

$11,472

180

30 18

36

Lyle Rouleau

19

Rouleau Investment Group

Edmonton, AB

$315,000,000

$0

0%

$9,472

180

37

Susyn Wagner

20

Wagner Investment Group

Calgary, AB

$187,000,000

$10,274,320

5.8%

N/A

198

8

38

Nadeem Ibrahim

20

Educators Financial Group

Toronto, ON

$151,000,000

$11,000,000

7.9%

$1,430

769

69

39

Reez Sajan

2

CIBC Imperial Service

Coquitlam, BC

$156,000,000

$8,833,757

6%

$2,558

328

24

40

Greg Milley

20

The Milley Team

Oakville, ON

$130,000,000

$10,000,000

8.3%

$2,500

400

20

41

Darren Luck

25

Luck Financial Group

Windsor, ON

$190,000,000

$5,000,000

2.7%

$5,434

184

15

42

Laura Thompson

16

Investia Winnipeg

Winnipeg, MB

$103,000,000

$9,347,542

10%

$2,710

443

10

43

Brad Jardine

30

CIC Financial Group

Ancaster, ON

$115,000,000

$9,000,000

8.5%

$2,181

485

24

44

Graeme D. Baird

25

G.R. Baird Financial Group

Ottawa, ON

$97,000,000

$11,000,000

12.8%

$1,529

850

50

45

Kevin Haakensen

19

Prairie Wealth Management

Saskatoon, SK

$122,000,000

$4,250,000

3.6%

$4,883

293

13

46

John Rathwell

25

HollisWealth

Red Deer, AB

$130,000,000

$3,000,000

2.3%

$2,500

500

10

47

Brian Lonsdale

21

CIBC Wood Gundy

Ottawa, ON

$120,000,000

$7,000,000

6.1%

$2,066

300

0

48

Sean Harrell

17

Howe Harrell & Associates

Winnipeg, MB

$126,000,000

$6,000,000

5%

$2,724

312

12

49

Douglas Griffioen

15

Griffioen Wealth Management

Waterloo, ON

$95,741,000

$7,346,000

8.3%

$3,237

311

27

50

Jason Pereira

14

Woodgate Financial

Toronto, ON

$68,000,000

$4,400,000

6.9%

$5,732

345

6

*End Oct 2016

†12 months to Oct 2016

www.wealthprofessional.ca

21

FEATURES

COVER STORY: TOP 50 ADVISORS JASON PEREIRA

50

Woodgate Financial IPC Securities Toronto, ON

Named Outstanding Advisor in the Insurance Channel at the 2016 Wealth Professional Awards, Jason Pereira has many other strings to his bow when it comes to financial planning. A guest lecturer at York University in Toronto, Pereira generated enough revenue this year to put him among the best and brightest of Canada’s financial advisors. That’s not to mention increasing his AUM by $4.4 million, which represents a 6.91% jump.

DOUGLAS GRIFFIOEN

49

Griffioen Wealth Management HollisWealth Waterloo, ON

A graduate of both York University and Nijenrode Business School in the Netherlands, Douglas Griffioen makes his first appearance in our Top 50 Advisors list after boosting his AUM by 8.31% in 2016. That represents an additional $7.3 million in assets, bringing his total to more than $95 million. A certified management accountant, Griffioen also teaches a number of junior achievement courses on money management for Grade 8 students and volunteers on the Financial Assistance Committee at a local nonprofit organization.

SEAN HARRELL

48

Howe Harrell & Associates Quadrus Investment Services Winnipeg, MB

‘Holistic financial planning’ is a phrase often used by advisors, and Sean Harrell certainly subscribes to the belief that a one-stop shop is likely to entice more clients. “I am building a family office model for business owners to access investment, insurance, accounting and legal advice all in one office,” he says. He added 12 new clients to his book last year, with a corresponding $6 million jump in AUM.

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BRIAN LONSDALE

47

The Lonsdale Financial Group CIBC Wood Gundy Ottawa, ON

With two decades of experience in the advisory business, CIBC Wood Gundy’s Brian Lonsdale has been able to accumulate $120 million in assets, adding $7 million in the past year alone. Holding CFP, CIM and FCSI designations, Lonsdale oversees financial planning and discretionary portfolio management at Lonsdale Financial Group, where he creates custom investment and estate planning strategies for his 300 clients.

46 JOHN RATHWELL HollisWealth Red Deer, AB

Last year was a memorable one for John Rathwell: In addition to increasing his AUM to $130 million, he made the big switch to a fee-based model. “This has been a big conversion year for switching from embedded commission over to fee-based – we have converted $60 million over this year,” he says. In doing so, Rathwell gained an extra $3 million in assets, so the move appears to have been a positive one.

KEVIN HAAKENSEN

45

Investia Winnipeg Investia Financial Winnipeg, MB

Prairie Wealth Management HollisWealth Saskatoon, SK

One of two members of the Prairie Wealth Management team to make it on this year’s Top 50 Advisors list, Kevin Haakensen has $122 million in assets under management and revenue per client of $4,883. He credits his success to setting the highest standards and then rigidly maintaining them, or as he puts it: “A true alignment of interest between advisor and client, robust communication, client education, and a strict adherence to the highest level of professional ethics and integrity.”

GRAEME D. BAIRD

44

For Winnipeg advisor Laura Thompson, business and family life are particularly intertwined.

She was mentored by her father in the wealth management business when she started in 2000 and was joined by her husband at Investia Winnipeg in 2009. The support has obviously served her well, judging by her AUM growth of $9.3 million in 2016. With 443 clients to her name, Thompson’s goal for 2017 will be increasing those numbers even further.

DARREN LUCK

41

Luck Financial Group CIBC Wood Gundy Windsor, ON

G.R. Baird Financial Group Opti Insurance/DFSIN Ottawa, ON

After adding 50 new clients in 2016, Graeme Baird now has 850 investors who rely on his expertise in financial planning. That growth meant he also saw his assets under management increase by $11 million, representing a 12% bump. In addition to providing integrated insurance and investment solutions, the founder of G.R. Baird Financial Group also crafts strategic plans and business coaching for startups and growing companies in the Ottawa region.

BRAD JARDINE

42 LAURA THOMPSON

43

Aligned Capital Partners CIC Financial Group Ancaster, ON

In 2016, Brad Jardine marked his 30th year in the advisory business by adding $9 million in assets to his book of business. With an AUM total of $115 million, the veteran has now set his sights on the next generation, mentoring his 24-year-old son in the intricacies of financial planning. Like many of his peers, Jardine spent the past year moving to a flat-fee model, which brought a substantial revenue increase that allowed him to provide greater resources for clients.

A former branch manager for CIBC Wood Gundy, Merrill Lynch and Midland Walwyn, Darren Luck built his reputation as an advisor by serving affluent families, foundations and corporations. Currently managing $190 million in assets, his clout at CIBC was clear when the firm named him a first vice-president at Wood Gundy. A 26-year veteran of the business, this is Luck’s third time on our Top 50 Advisors list.

In serving his clients, he puts great emphasis on keeping them in the loop on how their portfolios are performing in a format they can understand. This is part of his team’s Peace of Mind Experience commitment to clients. Eight years ago, he developed a performance-reporting software called Wealth Tracks™. Luck was almost a decade ahead of the curve of the industry’s current push for greater transparency. CRM2 is the latest and most high-profile example of wealth management’s changing face, and is a development that Luck wholeheartedly agreed with.

“I have always believed in full transparent fee disclosure and charging as little as possible to enhance returns,” he says.

“Wealth Tracks™ shows a client exactly how they are doing, and in turn, rewards my team with a greater share of their hard-earned assets; as a client’s portfolio performs well, they consolidate more business, assets grow and costs go down, and we are able to pass on the savings.”

This approach has served him well, cementing his third appearance on our Top 50 Advisors list.

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FEATURES

COVER STORY: TOP 50 ADVISORS GREG MILLEY 40

SUSYN WAGNER 37

The Milley Team HollisWealth Oakville, ON

Wagner Investment Group CIBC Wood Gundy Calgary, AB

With 400 clients to his name and $130 million in assets, Greg Milley is thinking expansion for 2017.

“We are actively looking to grow our team in 2017 by two more professionals, increasing the broad scope of a true planning practice,” he says. In addition, The Milley Team is preparing for the future by mentoring two university students interested in the business.

REEZ SAJAN

39

CIBC Imperial Service CIBC Investors Services Coquitlam, BC

38

Educators Financial Group Toronto, ON

With two decades of experience in financial planning, Nadeem Ibrahim places a great deal of importance on ensuring the future well-being of the industry by mentoring young advisors.

An exam marker for Moody’s Analytics, he also held several estate and financial planning workshops in the GTA last year. Those who avail of his teaching can rest assured they’re talking to someone who has mastered his trade – Ibrahim’s $151 million in AUM confirms as much.

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LYLE ROULEAU

36

Rouleau Investment Group CIBC Wood Gundy Edmonton, AB

While many of this year’s Top 50 Advisors have decades of experience to call on, Reez Sajan has just two years in the advisory business under his belt. But that only makes his individual AUM of $156 million all the more impressive, particularly the more than $8 million in growth he’s seen over the past year.

In an industry that has had a problem attracting new blood, it’s heartening to see younger advisors like Sajan make their mark.

NADEEM IBRAHIM

The head of Wagner Investment Group, Susyn Wagner makes her first appearance on our Top 50 Advisors list thanks to an individual AUM of $187 million, more than $10 million of which she added in 2016. A qualified portfolio manager, Wagner holds CIM, FCSI and CFP designations, and specializes in the development and maintenance of discretionary managed portfolios, personally designing portfolios for her clients.

In contrast to the other advisors on this list, Lyle Rouleau’s AUM actually dipped in 2016, from $344 million to $315 million. This occurred largely due to “one large institutional client using some cash for their members,” which of course is a hazard of the business when you’re dealing with assets on the scale that Rouleau Investment Group does. However, Rouleau retains his place on the Top 50 Advisors list thanks to an impressive revenue per client of $9,472 after adding 18 new clients to his book this year.

PRAVIN KUMAR 35 The Pravin Kumar Group CIBC Wood Gundy Vancouver, BC

Pravin Kumar makes it three in a row on our Top 50 Advisors list. With a diverse client base that includes small business owners and professionals in the engineering, accounting, legal and medical fields, Kumar has built an impressive book of business with AUM of $137 million. His efforts haven’t gone unnoticed by CIBC Wood Gundy, either, where he has served as a member of both the President’s Council and the Chairman’s Council.

SIMON PARTINGTON

34

Partington Wealth Management Richardson GMP Toronto, ON

Simon Partington celebrated a decade in the financial planning business in 2016, and his performance over the past year made him a natural choice for the CSI to approach to discuss the tools of his trade. “I was interviewed to share insight into our industry for new students and advisors looking to upgrade their education,” he says. “They wanted the discussion to explain how we mange investments, the different challenges we face, and advice for anyone looking to enter the wealth management industry and build a successful practice.”

Partington’s own start came in 2005, shortly after he graduated from St. Mary’s University in Halifax, where he studied finance. As an assistant to an advisor with Richardson Partners Financial (now Richardson GMP), he worked his way up the ladder at Canada’s largest independent brokerage until becoming an associate investment advisor in 2009. On the way, he gained LLQP and CFP designations, allowing him to specialize in insurance and financial planning. Working as part of Lorna and Stuart McKay’s team at Richardson GMP, he eventually bought their practice in 2015, a decade after first joining the firm.

The past year has been one of transition for Partington, yet he was still able to increase his AUM by $11 million, bringing his total assets to $155 million. Given that his typical client has investable assets of $1 million or more, it’s likely his AUM total could increase again in the year ahead. “I was able to attain my CIM, so we run a fully discretionary, fee-based business,” he says. “Now I want to continue to help families build their wealth and improve on efficiencies and grow my business.”

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25

FEATURES

COVER STORY: TOP 50 ADVISORS

KATE BROWN

33

Brown Wealth Management Group RBC Dominion Securities London, ON

The founder of Brown Wealth Management at RBC, Kate Brown has been able to build an impressive practice by providing financial guidance to highnet-worth clients. In 2016, she boosted her individual AUM by more than $12 million, taking her up to the $150 million mark, while increasing her client base to 178. A graduate of the MBA program at the Richard Ivey School of Business at the University of Western Ontario, Brown also holds CFP, FCSI, FMA and CIWM designations.

RONALD RUSNAK

32

Rusnak Financial Manulife Securities Bonnyville, AB

Manulife advisor Ronald Rusnak is proof that you don’t have to be located in a major financial centre to run a successful advisory business. Based in Bonnyville, Alberta (population 6,000), he had AUM growth of $12.8 million in 2016, and now manages $105 million in assets and has 650 clients to his name.

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31

LEO BELMONTE Security Financial Services & Investment Toronto, ON

Having started his career with Investors Group before moving on to BMO Nesbitt Burns, Leo Belmonte eventually went out on his own by purchasing an independent mutual fund dealer, Security Financial Services & Investment. It was a risk, but a calculated one, and Belmonte has grown the enterprise from five advisors and $80 million in assets to more than $200 million and 15 advisors today. Leading the way, he increased his individual AUM by $15 million in 2016 to an impressive total of $103 million.

SEAN BAYLIS

30

Baylis Wealth Management Group RBC Dominion Securities Calgary, AB

Heading the Baylis Wealth Management Group at RBC, Sean Baylis had an impressive showing in 2016, increasing his personal AUM by $17 million, despite his location in the challenging Calgary market. Previously a teacher in the city’s private school system, Baylis puts a real priority on education, and he continues to mentor young business owners, teaching them the financial literacy skills they need to succeed.

DAVID BARNSDALE

29

Barnsdale & Hussain Wealth Management Group RBC Dominion Securities Mississauga, ON

David Barnsdale celebrated his 30th year in the advisory business in 2016 by increasing his assets under management by more than $17 million. The co-founder of Barnsdale & Hussain Wealth Management assists clients in all wealth management services, including portfolio management, retirement planning, tax and estate planning, business succession, and wealth protection.

www.wealthprofessional.ca

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FEATURES

COVER STORY: TOP 50 ADVISORS NATHALIE RACINE

28

The Racine-Marcotte Advisory Group RBC Dominion Securities Pointe-Claire, QC

At the Racine-Marcotte Advisory Group, Nathalie Racine has assembled a collection of specialists she calls the “Olympic Team.’’ It includes market analysts, portfolio managers, accountants, tax specialists, notaries, lawyers, bankers and life insurance experts – but despite having such an array of talent around her, Racine remains heavily involved on an individual level. Her personal AUM of $211 million attests to that, and given the fact that she increased that number by $18 million over the last year, the head of RacineMarcotte is clearly leading from the front.

THIERRY JABBOUR

27 LUKE KRATZ The Kratz Group CIBC Wood Gundy Victoria, BC

A testament to staying power, Luke Kratz has appeared on every one of Wealth Professional’s Top 50 Advisors lists. He’s done it by consistently adding new clients, retaining the ones he has and building his book of business to its current total of $157 million. In 2016, he increased his AUM by 13%, or $19 million – an impressive boost for the 24-year industry veteran.

26

Manulife Securities Dorval, QC

A Circle of Excellence Achiever and member of the President’s Circle at Manulife Securities, Thierry Jabbour has become one of the top-performing advisors at the firm, so it’s not surprising to find him among our Top 50 Advisors. Boasting AUM growth of $19 million in 2016, Jabbour now manages $157 million in assets. He also added 42 clients during the course of 2016, bringing his book of business to 361 investors as he enters his eighth year in the wealth management industry.

DAVE RITCEY

25

The Ritcey Team Scotia Wealth Management Kentville, NS

Dave Ritcey has been a perennial presence on the Top 50 Advisors list since its inception, but he says he doesn’t take the recognition for granted. “The endorsement has been incredibly significant for me professionally,” he says. “I continue to be sought out by many new clients, individuals with larger portfolios and more advanced needs. Over the past year, my assets under management increased from $78 million to $103 million with 18 new clients.”

In addition, the Nova Scotia-based advisor was also promoted to the position of director of wealth management with Scotia last month.

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BOBBY NING

24

Financial Literacy Counsel Customplan Financial Advisors Vancouver, BC

Bobby Ning of the Financial Literacy Counsel had an impressive showing in 2016. In addition to growing his AUM by 38% over the past 12 months, he also added 50 new clients, bringing the number of investors that seek his advice to 400.

Founded in 1999 as a university student club, the Financial Literacy Counsel has since morphed into its present form, serving families, institutions and corporations not just in Canada, but worldwide.

Ning’s success in building his business has allowed him to become a member of the prestigious Million Dollar Round Table.

DANIEL NOONAN

21

Argosy Securities Burlington, ON

Daniel Noonan made his 20th year in the industry a memorable one by increasing his assets under management by 35%. That meant a boost of $30 million, bringing his total AUM to $115 million. With a client base of 685 investors, he was also able to serve as the lead sponsor for a charity golf event in his home base of Burlington, for which his clients and financial partners raised more than $15,000.

PAUL GREEN

23

Green Private Wealth Counsel HollisWealth Woodstock, ON

In addition to increasing his assets under management by $30 million in 2016 to a total of $130 million, Paul Green of HollisWealth’s Green Private Wealth Counsel also expanded his client base and his revenue per client over the past year. Approaching a quarter-century in the advisory business, he has made it a priority to reach out to his local community in Woodstock, holding seminars to help educate the public on the importance of holistic financial planning.

GERALD GOERTSEN De Thomas Wealth Management Kelowna, BC

Dually licensed as a mutual fund and life insurance advisor since 2002, Gerald Goertsen is committed to self-improvement in his chosen profession, recently completing his CFP designation. Now in his 15th year in the business, Goertsen added $31.55 million to his AUM in 2016, representing a 28% increase – evidence that education brings its own rewards.

MARK WINSON MICHAEL PRITTIE 22 Capital Wealth Architects Mandeville Private Client Ottawa, ON

It’s somewhat of a cliché in this business to say clients’ needs come first, but Michael Prittie walks the walk in this respect. He runs a client service/advice-focused practice, which entails monthly information seminars, a children’s Christmas party, Family Movie Day and numerous other client appreciation events. Then there’s the actual financial advice side – with AUM growth of $14 million in 2016, he’s certainly not lagging there, either.

20

19

Wise Riddell Financial Group Aligned Capital Partners Oakville, ON

Differentiating yourself from other financial advisors is always a challenge, but one way to do it is by specializing. Mark Winson’s team has helped him build a solid book of business by focusing primarily on the financial planning needs of physicians.

Capitalizing on a doctor’s ability to incorporate and to generate steady income with an integrated plan for financial independence has allowed Winson to double his AUM in the past four years. An increase of $11.7 million this year brings his total to an impressive $198 million.

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29

FEATURES

COVER STORY: TOP 50 ADVISORS WOLFGANG KLEIN

16

The Wolf on Bay Street Canaccord Genuity Wealth Management Toronto, ON

DAVID CHRISTIANSON

18

Christianson Wealth Advisors National Bank Financial Winnipeg, MB

David Christianson is a veteran of the business with more than three decades to his name, yet he’s still producing the goods when it comes to the serving his clients and their investment needs. With assets under management of $190 million, the head of Christianson Wealth Advisors also boast an enviable revenue per client of $20,538. His client book is smaller than most on this list, but that has allowed him to pay more attention to boosting the assets of the clients he has, evidenced by his 9% AUM growth this year.

ROD TYLER

17

The Tyler Group PEAK Investments Regina, SK

The recipient of the Lifetime Achievement Award at the 2015 Wealth Professional Awards, Rod Tyler is now entering his 35th year in the wealth management business.

It’s fair to say the founder of The Tyler Group has learned a thing or two about financial planning over that time, so now he works to impart that wisdom to the next generation of advisors, taking great pride in mentoring those new to the industry. And he hasn’t slowed down when it comes to the bread and butter of his profession, either, growing his AUM by $20 million last year.

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A fixture on the Top 50 Advisors list since its inception, Wolfgang Klein continues to stay aloft in the wealth management business by holding true to the same investment strategies that have served him so well over the years.

“I have a lot of skin in the game in that I have my own investable assets invested in my model portfolios, so I am as aligned with my clients’ success as much as possible,” he says. “As more and more clients move assets towards third-party management and passive ETF strategies, I strongly believe an opportunity exists for those willing to be an active manager.”

YOUSSEF ZOHNY

15

StennerZohny Investment Partners+ Richardson GMP Vancouver, BC

One of two members of the StennerZohny team to make this year’s list, Youssef Zohny makes his first appearance among our Top 50 Advisors – and deservedly so. Zohny’s selective approach to taking on clients has meant his business has thrived over the past year. Specializing in managing capital for the high-net-worth segment, including entrepreneurs, family offices, trusts and foundations, the Vancouver-based advisor has increased his personal AUM by 33% to $135 million.

AJ CHASE

14

AJ Chase Financial Group Scotia Wealth Management Hamilton, ON

AJ Chase makes our Top 50 Advisors list for the third time in a row in what has been a transformative year for his business. The introduction of the new regulatory standard meant the founder of AJ Chase Financial Group elected to take his team in a new direction.

“Due to CRM2, we chose to incorporate those rule changes into our business model,” Chase says. “Previously, we had 410 families that we managed – we have reduced that to 243 households, but revenue increased by 10% last year.” The team’s AUM increase of $33 million suggests it was a change worth making.

ALEXANDRA HORWOOD

13

Alexandra Horwood & Partners Richardson GMP Toronto, ON

Now in her sixth year in the advisory business and the head of her own team at Richardson GMP, Alexandra Horwood clearly had a great 2016. By increasing assets under management by close to $42 million – growing her book of business by more than 25% in a year – Alexandra Horwood & Partners has emerged as one of the top performers for Canada’s largest independent advisory firm, Richardson GMP.

www.wealthprofessional.ca

31

FEATURES

COVER STORY: TOP 50 ADVISORS DUNCAN STEWART 10 Stewart Financial Manulife Securities Oakville, ON

Making his first appearance on Wealth Professional’s Top 50 Advisors list, Duncan Stewart of Stewart Financial finds himself in the upper echelons after a highly productive year. Adding $40 million to his AUM total last year, Stewart now oversees $220 million for his clients.

A graduate of the MBA program at McMaster University, Stewart looks to his alma mater first when searching for new recruits for his team at Stewart Financial. Education clearly is a priority for him – he holds FCSI, CIW, CIMA and CFP designations. He took his first step on the financial services ladder at Laurentian Bank in 1997, and has overseen the Stewart Financial team for 16 years.

9 ROB TETRAULT

GENE KIM

12

Summit Private Wealth Mandeville Private Client Montreal, QC

Financial understanding is not something that should be put off, in Gene Kim’s view – he’s currently in the process of writing a financial book for adults and children. His future readers are in good hands: A holder of CFP, CIM and FCSI designations, Kim grew his AUM by $50 million this year, and also increased his client base to 150 people.

ROBERT LUFT

11

Luft Financial HollisWealth Vancouver, BC

A 17-year veteran of the wealth management business, Robert Luft uses his expertise in financial planning to aid his home city of Vancouver whenever he can. Each year, he hosts upwards of 15 retirement courses for employees of the City of Vancouver, Vancouver Police and Vancouver Fire, instructing more than 500 people annually on the importance of proper financial planning. It’s pretty valuable advice, especially when you consider the person offering it has 482 clients at his practice and AUM of $200 million.

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Tetrault Wealth Advisory Group National Bank Financial Winnipeg, MB

Increasing his assets under management by an eye-popping $95 million (a 75% bump on his book of business), Rob Tetrault has certainly had a good year. His place among our top 10 reflects that, but it’s not just this publication that has taken notice of his talents in 2016. Investors in his home of Winnipeg have also flocked to Tetrault – he added 77 new clients over the past 12 months. In the business for seven years, Tetrault is still in the process of building his business at National Bank Financial, but with a current book of 633 clients, it’s clear that he’s making great progress on that front.

When he’s not talking investment strategy with clients, Tetrault devotes a great deal of time to his local Franco-Manitoban community. He is the longest-serving president of the St. Boniface Chamber of Commerce and is also the co-founder of Le Classique, Western Canada’s top outdoor winter hockey festival, which will be hosting its largest-ever event in February 2017.

8 ROB MCCLELLAND The McClelland Financial Group Assante Capital Management Thornhill, ON

Rob McClelland celebrated his silver anniversary in the advisory business in 2016.

It’s fitting, then, that the head of The McClelland Financial Group finds himself in such a lofty position on this year’s Top 50 Advisors list. With AUM growth of almost $44 million in 2016, he has been able to cultivate new business by dedicating himself to ensuring that his clients always stay in the loop.

This comes in many forms other than traditional consultations.

McClelland and his team host monthly lunch and learns on financial planning, as well as an annual McClelland University event where a variety of guest speakers address the firm’s clients.

The TMFG Scholarship Program is another provision McClelland has introduced to strengthen ties with his clients. “We are incredibly proud of this initiative,” he says. “We understand the impact that well educated youth will have on the quality of our communities and the long-term sustainability and global competitiveness of the Canadian economy. Therefore, we offer this scholarship to children and grandchildren of our clients.”

DAVE LEE

7

ScotiaMcLeod Scotia Wealth Management White Rock, BC

While Scotia Wealth Management advisor Dave Lee may not have the AUM of many of those on this list, the fact he was able to increase his AUM this year by more than $65 million – a jump of 174% – means he more than deserves his place among Canada’s premier advisory talent. Last year was a great one for Lee, and 2017 is sure to be busy as well.

Investors who work with Lee are coming to someone with plenty of credentials. In his 12 years in the business, he has earned CIM, CFP and FCSI designations. His focus on providing clients with a complete financial picture also led him to serve as president of the Fraser Valley Estate Planning Council; these days, he also devotes his spare time to work with the Peach Arch Hospital Foundation.

KEVIN HEGEDUS

6

Prairie Wealth Management HollisWealth Saskatoon, SK

Winner of the Multi-Service Advisor of the Year Award at the 2016 Wealth Professional Awards, Kevin Hegedus of Prairie Wealth Management has built an impressive book of business with an AUM to match. Hegedus serves 879 clients, with assets under management of nearly $366.7 million (representing an increase of more than $12 million over the past year).

One key to Hegedus’ success in 2016 was a migration toward alternatives, offering his clients greater diversification for their portfolios. “We take a conservative approach, using alternative assets, structured notes and private debt in our portfolios,” he says. “We continue to transition clients to our managed program, negotiating lower product fees and providing strong capital preservation in uncertain market and economic conditions.”

In addition, Hegedus is a noted supporter of community programs in his home base of Saskatoon, specifically the award-winning Robb Nash Project, which assists nearby high schools.

KASH PASHOOTAN

5

First Avenue Advisory Raymond James Toronto/Ottawa, ON

A new entry to Wealth Professional’s Top 50 Advisors list, Kash Pashootan finds himself among some esteemed company in our top 10.

Splitting his time between Toronto and Ottawa, the portfolio manager at First Avenue Advisory has distinguished himself in terms of AUM growth and revenue per client, increasing his assets under management by 20% this year.

That growth has been aided in part by Pashootan’s advantage in being dually licensed to manage investment portfolios for both Canadian and US residents.

With Raymond James for almost nine years and a member of its Chairman’s Council since 2011, Pashootan’s abilities are well regarded both inside and outside his own professional sphere. He regularly shares his investment insights with various media outlets, including Wealth Professional, The Globe and Mail and BNN, where he appears on the station’s advisor show, Market Call.

www.wealthprofessional.ca

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FEATURES

COVER STORY: TOP 50 ADVISORS CHAD LARSON

3

MLD Wealth Management National Bank Financial Calgary, AB

Alberta has seen some tough times over the past few years, but there are plenty of advisors in the province who are still thriving – and Chad Larson of MLD Wealth Management at National Bank Financial is a prime example. Despite the oil shock that has rocked Calgary, Larson has been able to grow his business substantially – in 2016, he increased his AUM by more than $58 million, to $322 million. His abilities haven’t gone unnoticed at National Bank, either, where he’s currently a member of the President’s Club.

People need financial advice when times are good, but even more so when the economy isn’t faring well, and increasingly they are coming to Larson and his partners at MLD Wealth for guidance.

Appearing in our Top Portfolio Managers feature last year, Larson revealed that directing his clients toward assets other than energy stocks was a common starting point for his team.

THANE STENNER ELIE NOUR

4

Nour Private Wealth Manulife Securities Oakville, ON

Once again, Manulife Securities’ Elie Nour is among our top 10 advisors; this year, he jumps six places from his 10th-place finish last year. The reason for that is simple: The founder of Nour Private Wealth has improved performance across the board when it comes to AUM growth, new clients and revenue per client. Most notable was a jump in AUM of $58 million over the past 12 months, representing an increase of 34%.

Aside from those metrics, Nour is well known for his commitment to mentoring those entering the industry. It’s no secret that wealth management has a problem attracting new talent, and Nour has made it a priority in his firm to assist those making their start.

“The most senior advisors in my office were personally trained by me,” he says. “These same advisors are now mentoring the new recruits we bring in from career fairs. Sixteen associates have joined my team over the past 12 months, and I hold weekly and monthly meetings with the entire branch to provide continuity in training.”

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www.wealthprofessional.ca

2

StennerZohny Investment Partners+ Richardson GMP Vancouver, BC

Thane Stenner takes second place among our Top 50 Advisors thanks to his highly impressive growth in assets under management and revenue per client. The co-founder of StennerZohny Investment Partners+ has boosted his individual AUM by more than $116 million over the past 12 months – an increase of 33%.

Based in Vancouver, Stenner has built a business that may not have the client count of other advisors on this list, but where quality supersedes quantity. A finalist for Advisor of the Year at last year’s Wealth Professional Awards, Stenner and his team focus on entrepreneurs and corporate executives on the higher end of the scale, usually with a net worth between $10 million and $1 billion and a minimum of $3 million in investable assets. Investors of that ilk tend to have high expectations when it comes to financial advice, but the team at StennerZohny has been able to meet them, with the numbers to prove it.

WILLIAM VASTIS

1

The William Vastis Wealth Management Group RBC Dominion Securities Toronto, ON

The Advisor of the Year at the 2016 Wealth Professional Awards leads the pack of our Top 50 Advisors, too. And for good reason: With assets under management of $715 million – an increase of $65 million this year – Vastis and his team at RBC have excelled in catering to high-net-worth clients across Canada. It’s a growing segment in this country, so it’s not surprising that he has boosted his revenue per client considerably over the past 12 months.

In our September issue, Vastis revealed how the lower risk tolerance of many of his clients led him to localize much of his investment in North America in 2016. With Brexit and ongoing uncertainty in Europe, that approach has proven fruitful, as his 2016 numbers attest. Using ETFs to gain exposure to previously untapped sectors is another strategy Vastis is increasingly using to gain returns for his clients.

Outside of his pretty hectic day job, our number-one advisor guest lectures at the Rotman School of Business at the University of Toronto. He’s also the founder of the Compete to Complete business suit drive, which asks Bay Street professionals to donate business suits to help at-risk young men break into the workforce.

www.wealthprofessional.ca

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PEOPLE

ADVISOR PROFILE

Fee-based folly UK-based advisor Bhupinder Anand explains why Canada should learn from his country’s example and keep commissions for advisors intact

WHETHER CANADIAN regulators should ban commissions for financial advisors is a frequent source of debate across the industry. Many advisors here have moved their businesses to a strictly fee-based model already, and the noises emanating from regulators over the past year certainly suggest trailer fees could be on the way out.

The UK and Australia have already moved in that direction, but according to award-winning advisor Bhupinder Anand, founder of London-based Anand Associates, Canada would do well to think long and hard before banning commissions outright.

In 2013, the UK’s Financial Conduct Authority introduced the Retail Distribution Review [RDR], which it hoped would improve service levels and promote greater transparency among financial advisors.

RDR had a number of provisions, including new education and training requirements, but the most significant, and contested, was the requirement that all financial advisors would move to a fee-based model. Anand is one of many critics of RDR and its impact on the industry across the Atlantic.

“They implemented these changes, and advisors who were older and didn’t want to sit through the extra qualifications left the profession,” he says. “That raised the average age literally overnight. It also affected how advisors engage with their clients. The immediate impact was a real dip in new business because advisors were so busy educating existing clients on what

36

this new world was about.”

The new world in this case was one with a lot fewer advisors. Numbers had been gradually falling for years in the UK, but in the wake of RDR, the impact was immediate.

“We used to have 300,000 financial advisors servicing the population of the UK,” Anand says. “The population [of the UK] has risen, but now we have 22,000 [advisors]. There was a dramatic decline in the ’80s and early ’90s, but after RDR, we went from 30,000 to 22,000. The banks sacked thousands during that period.”

Job losses have been mounting in Canada also, and that’s without a ban on commissions. The rise of robo-advisors and ETFs has meant that many of the larger firms – and the banks in particular – have been reducing their advisor networks substantially. In Anand’s opinion, forcing the industry to go exclusively fee-based would accelerate that exodus.

“It’s worrying,” he says, “and the lesson to learn is that just because the UK implements regulatory change first, that doesn’t

mean we are ahead of the world in a better way – it just means we are ahead. It is the same in Australia – they have suffered the same problems.”

Aside from his day job as managing director of his own advisory firm, Anand travels the globe as a motivational speaker and trainer. The basics of what makes a good financial planner, he says, are the same wherever you go.

“Ultimately it’s a core understanding of guiding a person to think about their own future,” he says. “Ask them questions that might disturb their thinking: the classic ‘What if this happened?’ – if you died, had an illness, wanted to retire early. These questions are irrespective of language, culture, country – they are questions that every human being faces, but won’t face themselves.”

One thing financial advisors must consider when crossing borders is the fact that regulatory systems can be quite different from country to country. As someone who clocks a substantial number

THE GIFT OF GAB Bhupinder Anand has a number of awards to his name, including being named IFA of the Year in 2003 by the Financial Adviser newspaper, as well as his firm, Anand Associates, being selected as Best IFA in the Capital in 1998 by the Evening Standard. Recognition such as this has made Anand a hot commodity on the speaking circuit. Last June, he addressed an audience of 12,000 people as the opening speaker at the Million Dollar Round Table annual meeting in Vancouver, and in November he spoke at the Advocis summit in Toronto.

www.wealthprofessional.ca

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REGULATION AROUND THE WORLD

AUSTRALIA Starting in 2017, the Canberra government will require all new financial planners to hold a degree, pass an exam and spend a year developing their professional skills under new proposed laws

UK The Retail Distribution Review was implemented in 2013, banning commissions for financial advisors, but it has proven controversial, and regulators are considering amending the legislation

CANADA The CRM2 reporting standard was introduced in July 2016, but it will really start to have an effect this January when investors receive their first year-end statements

“Commissions work because you spread the cost over a number of years rather than expecting clients to pay upfront” of air miles each year, Anand has observed these discrepancies firsthand.

“Regulation is very different – in the Far East and the Middle East, you practically have zero,” he says. “Even they are realizing you can’t carry on that way. Singapore is pretty ahead in what it is doing – their regulator was talking about getting rid of commissions soon after RDR. To their credit, they didn’t implement it.”

When it comes to how investors pay for financial guidance, Anand is adamant that

commissions have their place, particularly when it comes to the mass market. Canada’s regulators need to take this on board, he believes, or an industry that is already shrinking will really start to suffer.

“Commissions work because you spread the cost over a number of years rather than expecting clients to pay upfront,” he says.

“There are certain clients I cannot take on because the fees I would have to charge I would not feel comfortable with. It’s not fair to them.”

US The Department of Labour Fiduciary Standard rule, which would obligate financial advisors to put the well-being of their clients first, was scheduled for rollout in April, but it’s up in the air now that Donald Trump will occupy the Oval Office

SINGAPORE The city-state is moving in the opposite direction of the other countries noted here – the Monetary Authority of Singapore recently announced that it plans to streamline regulations in order to spur innovation, particularly in the fintech sector

www.wealthprofessional.ca

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PEOPLE

CAREER PATH

ALL THE RIGHT MOVES

Whether playing hockey or finding his niche as an advisor, David J. Ferrante has always been motivated to drive his own destiny The child of first-generation Italian immigrants, Ferrante grew up bilingual in a small Frenchspeaking town on the south shore on Montreal.

Both of his parents were teachers, so Ferrante was inculcated with a strong respect for the importance of education, which coexisted with his passion for hockey “My two loves were hockey and math”

1980s

GROWS UP IN LA BELLE PROVINCE

1998

JOINS BMO NESBITT BURNS Toward the end of his degree in actuarial mathematics at Concordia University, Ferrante was approached by a friend working at BMO Nesbitt Burns, who asked if he would be interested in working with a senior advisor at the firm. The position, initially a part-time post while Ferrante completed his studies, led to a full-time position once he graduated

2005

TAKES THE LEAP Approached by Pembroke Private Wealth Management, Ferrante found himself drawn to the advisory firm’s focus on small to medium-sized publicly traded companies

I thought the specialization and the niche was a way to stand out among the crowd of investment advisors. We drive our own destiny – I took a leap of faith 2011

BECOMES VP After rising to the level of branch manager at Pembroke, Ferrante was promoted again to vicepresident – a recognition, he says, of his contribution to the firm as a whole “All the incremental hard work was being recognized.

You are only as good as the people who surround you, and I have the privilege of working with such high-quality individuals”

1993

WINS A HOCKEY SCHOLARSHIP His skill at hockey earned Ferrante a scholarship to Milton Academy in Massachusetts when he was 16. In his final year of high school, his interest in math drew Ferrante to finance “I was in reading financial publications and following the stock market; it got me curious and pushed me toward this field”

1998

TRAINS AS A ROOKIE Ferrante credits his 18 months in ‘rookie training’ at BMO Nesbitt Burns with equipping him with critical skills he has put to good use throughout the course of his career “I learned from being immersed in [the senior advisor’s] business, being in meetings with him. I was effectively with this guy for seven years. It was a huge learning experience”

2007

STARTS GIVING BACK Ferrante’s eyes were opened to the importance of giving back when he joined Pembroke, where many of his new colleagues were already involved with various charities. In recognition of his heritage, he chose to get involved with organizations that focus on the Italian-Canadian community “I like to keep busy, I like to help people in any way that I can, and I like raising money. If I have the opportunity to use that skill set to help a community, why not?”

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13/01/2017 5:56:59 AM

PEOPLE

OTHER LIFE

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

SINGING ALONG When she’s not advising clients, Martina Govednik can be found belting out tunes with her choir SINGING WAS what brought Martina Govednik to Canada. Serbian-born Govednik, who works as a financial advisor with CF Canada Financial Group in Vancouver, comes from a musical background – her father was a composer, her mother a violinist. As a child, she was constantly singing, and she even learned English by listening to Anglophone music.

Her love of song eventually led Govednik to Montreal to study at McGill University.

So it’s no surprise that, upon her arrival in her new home of British Columbia last year, Govednik sought out a choir to sing with. She found the Vancouver Chamber Choir, now in its 46th year. In particular, Govednik says she was drawn to the variety of musical styles employed by the choir. “It might go from early Renaissance music to jazz – sometimes in even the same performance,” she says.

But the real lure is the community within the choir. “It’s a really lovely group of people,” Govednik says. “They range in age from early 20s to mid-70s, and everybody has strong musical backgrounds, but almost all work in other domains.”

The choir performs up to 20 concerts a year, and touring around Canada and beyond lends itself to bonding, says Govednik, who likens the experience to a school field trip, with one key difference: “and then you sing beautiful music.”

18

Years Govednik has spent singing

13,000

Hours Govednik has spent in singing lessons and music education

30

Number of concerts Govednik has performed with the VCC Photo: Appletreecafe.ca

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