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Is Canada’s real estate market too uncertain for investors right now?


Alignvest’s Randy Cohen on why the industry desperately needs new ideas


The bond markets get a long-awaited infusion of modern technology


How Jay Bhutani and 49 other leading lights have shaken up wealth management this year

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ISSUE 5.06

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


54 HOT LIST 2017

Wealth Professional names the 50 industry professionals who have had the biggest impact on Canada’s investment landscape over the past year

facebook.com/WealthProfessional Canada

02 Editorial

Signs of regulation fatigue

04 Head to head








Alignvest Investment Management’s Randy Cohen talks industry innovation and the best way to construct resilient funds

Marijuana stocks: yay or nay?

06 Statistics

Charting the unstoppable rise of ETFs

08 Opinion

How to manage your clients’ finances in the event of a layoff

10 News analysis

Where to invest in real estate without shouldering too much risk

12 Intelligence

This month’s big movers and shakers

14 Alternative update

The latest numbers on venture capital deals



How Overbond is modernizing the bond market with new technology

16 ETF update

A new ETF makes it easier to diversify into real estate

18 Life insurance update

The story behind Great-West Life’s recent layoff announcement

20 Health insurance update

How chronic conditions are contributing to skyrocketing plan costs

PEOPLE 72 Advisor profile

Simon Jochlin takes his portfolio analytics strategies south of the border



Who took home top honours on the industry’s biggest night? Find out in this special commemorative guide to the Wealth Professional Awards




Four ways to walk the walk when it comes to innovation

79 Career path

Ryan Colwell’s entry into the industry might have been accidental, but his career since has been anything but

80 Other life


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Breaking a sweat with advisor and fitness instructor Cherise Dacquay


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Regulation fatigue and best interest


inding consensus on a best interest standard for financial advisors in Canada was always going to be a tough proposition, and so it has proven. Last month, the CSA posted a bulletin revealing that the respective regulatory bodies of all provinces except two – Ontario and New Brunswick – no longer plan to implement a mandatory best interest standard. The decision comes after years of debate regarding the issue. The CSA first published a paper in 2012, followed by a second consultation paper in 2016. After the publication of the latter, a series of roundtable discussions took place across the country, where advisors debated the pros and cons of further regulation. It now appears the negatives have outweighed the positives in the minds of most securities regulators in Canada. “The Ontario Securities Commission and the Financial and Consumer Services Commission in New Brunswick expressed their support for a regulatory best interest standard that would act as a guiding principle in the consultation paper,” the CSA said in a statement, “while the British

It now appears the negatives of a best interest standard have outweighed the positives in the minds of most securities regulators in Canada Columbia Securities Commission, Alberta Securities Commission, Autorité des marchés financiers and Manitoba Securities Commission expressed strong concerns about the benefits of introducing a regulatory best interest standard over and above the targeted reforms.” The sticking point here is that the latter group of regulators believe better enforcement, rather than more legislation, is the best path to take. The announcement by the CSA comes on the heels of the US Department of Labor’s stalled fiduciary rule. A host of new legislation has been introduced since the financial crisis, and the mood now appears to be that enough is enough. Responding to the CSA’s announcement, the Investment Industry Association of Canada praised the regulators “for recognizing that revised targeted reforms will advance the best interest of investors without the introduction of a vague and uncertain regulatory best interest standard.” While those in Ontario and New Brunswick may disagree, it appears some regulators believe less is more when it comes to rules for client protection.

wealthprofessional.ca ISSUE 5.06 EDITORIAL


News Editor David Keelaghan

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Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

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It’s time for ETFs to go beyond basic market-cap weightings. Introducing Franklin LibertyShares, active and strategic beta ETFs that leverage active insights to pursue better investment outcomes. Because there’s simply no substitute for the Human Factor.








FACTOR Commissions, management fees and expenses may all be associated with investments in exchange-traded funds (ETFs). Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus and the summary document; please read the prospectus and the summary document before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. © 2017 Franklin Templeton Investments Corp. All rights reserved.

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Would you add marijuana stocks to a client’s portfolio? Marijuana legalization is coming to Canada, and so are opportunities to invest in the sector. But are advisors on board?

Senior investment advisor Canaccord Genuity Wealth Management

Mike Hayhoe

Branch manager and portfolio manager Canaccord Genuity Wealth Management

Darren G. Pastro

Christopher Dewdney

“The short answer: no. The long answer: no way. If you want your money to go up in smoke, then by all means. Much like the hit from some good weed – not that I’m speaking from experience – you might feel great for a short time, but the high will quickly fade and you’ll be left wondering where your money went. Like all hot sectors – who remembers graphite, hydrogen fuel cells, solar stocks? – it will start with a bang and investor interest, but then the interest fades and the stocks will languish. This is the domain of speculators – long-term investors, beware.”

“We have, in fact, been actively invested in the sector since late 2016. I would note that due to the significant oversight and strict regulations of Health Canada, the process of becoming a licensed producer is rigorous and comprehensive, creating significant barriers to entry. Since the industry is in its early stages, individual investors should be prepared to withstand periods of high volatility, as is the case with almost any emerging growth sector. Given the potential for significant share price volatility, I would strongly recommend that individual investors seek the advice of a qualified investment advisor before committing capital.”

“The short answer is yes; however, we remain cautious. There are many issues to resolve – overvaluation, competition, regulation, market and, more importantly, legislation – so for now, we remain on the sidelines. As the market grows and becomes more profitable, larger companies – including tobacco companies – will likely enter and take market share from the small to mediumsized players. Currently, it’s regarded as a speculative, high-risk investment, and thus we would only recommend it to our clients with the appropriate appetite for risk and not exceeding 10% of portfolio assets.”

Principal Dewdney&Co.

NOT JUST BLOWING SMOKE If it passes as expected, the bill to legalize cannabis introduced to Parliament in April 2017 has the potential to unleash an industry estimated to be worth nearly $5 billion a year. Traditionally, marijuana stocks in Canada – where medical use has been legal since 2001 – tend to be concentrated in OTC penny stocks. However, there are TSX-traded unicorns: Canopy Growth Corp., with its $1.2 billion market cap, branded product lines and association with rapper Snoop Dogg, returned more than 300% to investors earlier this year. However, those impressive returns have sagged in the face of a more crowded mainstream market, which has welcomed new players like Aphria and the Horizons Medical Marijuana Life Sciences ETF in recent months.



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Forward momentum

On the heels of a record-breaking 2016, the ETF industry shows no signs of slowing down this year EXCHANGE-TRADED FUNDS continue to expand at a rapid pace, both in Canada and worldwide. Although ETFs are a relatively new addition to the investment space – the world’s first ETF debuted on the TSX in 1990, but the vehicle only really started to gather steam after the financial crisis – it has completely surpassed hedge funds in terms of assets. The latest data from research firm ETFGI shows that global ETF/ETPs now account for

$4.5 tri


US$3.9 trillion in assets. It’s an impressive figure in and of itself, but even more so considering the fact that it’s US$847 billion more than the assets currently invested in hedge funds. Hedge funds have been around for 40 years more than ETFs, which emphasizes just how rapid the growth of this industry has been. It’s no less intense in Canada, the birthplace of the ETF, where the investment vehicle reached a new record of US$126 billion at the end of April.

While ETFs can’t yet boast a larger number of products than hedge funds, they have eclipsed hedge funds in terms of assets. The amount of assets held in ETFs first surpassed hedge fund assets in 2015, and the distance between the two has only grown since.



Number of ETFs in Canada at the end of April, an increase of 86 funds in a year

$126.6 billion Total assets invested in ETFs in Canada at the end of April

$2 tri


$1.5 tri


$1 tri


Share of equity funds in Canada’s ETF industry; fixed income accounts for 29.9%



The Canadian ETF space continues to add new names – eight firms have launched ETFs in the last year alone – but overall it’s still dominated by a handful of industry stalwarts.

The equities ETFs that performed the best year-over-year on the TSX run the gamut of providers – seven different firms managed to make it into the top 10. Emerging markets, financials and tech were the standout themes. BMO Equal Weight US Banks Index ETF (ZBK): +48.97% First Trust AlphaDEX US Technology Sector Index ETF (FHQ): +47.11% Horizons NASDAQ-100 Index ETF (HXQ): +40.84% iShares MSCI Brazil Index ETF (XBZ): +39.63%

BMO ETFs: 31.1%

First Asset Global Financial Sector ETF (FSF): +39.40%

Others: 10.1% Vanguard: 8.3%

BMO Equal Weight US Banks Hedged to CAD Index ETF (ZUB): +36.89%

Horizons: 5.6%

First Asset Tech Giants Covered Call ETF (TXF): +35.93% iShares Emerging Markets Fundamental Index Fund Common (CWO): +34.79% Questrade Russell 1000 Equal Weight US Technology Index ETF (QRT): + 34.19% iShares India Index ETF (XID): +33.73% Source: ETF Insight


Sources: ETF Insight, April 30, 2017


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$3 tri


Sources: Canadian ETF Association April Monthly Report

iShares: 44.1%

$3.5 tri

$2.5 tri



ETF providers in Canada, after Excel Funds and Franklin Templeton launched in May

$4 tri

3/06/2017 2:12:46 AM

$5 bi



$4.5 trillion


$4 trillion


$3.5 trillion


$3 trillion


$2.5 trillion


$2 trillion


$1.5 trillion


$1 trillion


$500 billion



















Source : ETFGI and Hedge Fund Research,



On the fixed-income side, the top year-over-year performers on the TSX are all about corporate bonds, high yields and global exposure. Horizons’ place at the top of the list makes a case for the value of active management in the current low-yield environment.

The Canadian marketplace has added 86 new ETFs in the past year, but BlackRock’s XIU stands far above the rest with assets exceeding $12 billion.


Horizons Active High Yield Bond ETF (HYI): +13.15% BMO Mid-Term US IG Corporate Bond Index ETF (ZIC): +11.13% First Asset Active Credit ETF (FAO): +11.03% BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY): +10.56% iShares US High Yield Fixed Income Index ETF (CHB): +10.47% iShares US High Yield Bond Index ETF (XHY): +10.24% First Asset Canadian Convertible Bond ETF (CXF): +9.46% Horizons Active Global Fixed Income ETF (HAF): +8.78% PowerShares Fundamental High Yield Corporate Bond Index ETF (PFH): +7.95% BMO Long Corporate Bond Index ETF (ZLC): +7.55% Sources: ETF Insight, April 30, 2017

iShares S&P/TSX 60 Index ETF

$12.07 billion

iShares Core S&P 500 Index ETF

$4.13 billion

BMO S&P 500 Index ETF

$3.75 billion

iShares Core S&P/TSX Capped Composite Index ETF

$3.05 billion

BMO Aggregate Bond Index ETF

$2.85 billion

BMO S&P/TSX Capped Composite Index ETF

$2.44 billion

iShares Canadian Universe Bond Index ETF

$2.2 billion

iShares Canadian Short Term Bond Index ETF

$2.2 billion

BMO Laddered Preferred Share Index ETF

$2.03 billion

iShares 1-5 Year Laddered Corporate Bond Index ETF

$1.95 billion

Sources: Canadian ETF Association April Monthly Report


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GOT AN OPINION THAT COUNTS? Email wealthprofessional@kmimedia.ca

When clients get the axe Jackie Porter outlines how to bulletproof your clients’ finances for sudden unemployment NO ONE WANTS to hear the words “It’s over” – especially from their employer. For an advisor working with a client going through this transition, the important thing is to listen to your client and ask thought-provoking questions to help them to think through the implications of decisions they will make at this crucial time in their lives. Encourage your clients to retain the services of a legal professional familiar with employment termination. Employment lawyer Lambert Boenders warns against “signing off quickly on a termination letter, no matter how tempting it may be in the moment to do so.” In the wake of an unexpected termination, feelings of anger, guilt and surprise may lead to wanting to sign off on a termination and final settlement and release letter just to get it over with. According to Boenders, the key is to take the time to speak with someone who is familiar with the options to determine whether the settlement being offered is fair and legal. Ensure your client gets a copy of their record of employment [ROE] so that the paperwork can be filed as soon as possible. An ROE lets the government know the reason for the employee’s termination and also helps to identify when the employee may be eligible for employment insurance benefits. If the employee was terminated for cause, they would not be eligible for employment benefits, which is why the employer needs to accurately document the reason for termination on the ROE. Help your clients understand how their severance package will be paid and what options for allocating the payments may be


available to them. Is there a severance, and will it be paid out in one lump sum? Will some of the severance be paid now and the remaining paid after a period of time? Will some of the severance be contingent on not finding another job? Will it be a working notice termination? Will the severance package delay eligibility for employment

Prepare your clients financially for the transition by helping them to map out their current financial circumstances in detail. For example, how much does your client need to live each month? Do they have a budget? How much debt is the client in? What is their credit score? Can they access low-interest financing such as a consolidation loan or a home equity line of credit? How long can they live on their severance based on current lifestyle needs? What expenses can be reduced by the client at this time? This an important time to devise a plan to take control of discretionary spending and interest costs as much as possible. A CBC news article published in June 2016 predicted that 42% of jobs in the marketplace are at risk of being automated. Are your clients prepared for this potential ‘new normal’ in the labour market? To fully prepare for any future job insecurity, your client must be willing to take personal responsibility for their own career development like never

“Listen to your client and ask thoughtprovoking questions – help them to think through the implications of decisions” insurance? All of these scenarios will require different contingency planning strategies for a person facing sudden unemployment. Educate your clients about having their severance classified as a ‘retiring allowance’ and how it can help them reduce the taxes on their settlement. If your client has worked for their employer for many years and is currently being downsized, they may be eligible to roll over funds from their settlement into their RRSP without reducing their current RRSP contribution room. Now is the time for your clients to take stock of their insurance needs and confirm when their life and health plans will expire. What is your client’s family situation and their current state of health? What type of coverage is currently available to them at work? Have they taken advantage of medical benefits available to them while they last? Determine what will need to be done with your client’s group retirement or pension plan. Carefully weigh the options with your client.

before. Encourage your client join their industry’s professional associations, whether or not their employer pays for it. Get them to commit to lifelong learning in their profession and to think like a consultant, even when working in a full-time position. Maintaining a LinkedIn profile is an important tool for your clients to promote themselves and make contacts for their next career move, even after securing employment. In this day and age, there is no way to predict when the next tap on the shoulder will come. The best way to help your clients to bulletproof their finances is to get them to embrace uncertainty by planning ahead and managing what they can control.

Jackie Porter is an award-winning financial planner who has been in the financial industry for the past 18 years, serving more than 400 families, established businesses and professionals in the GTA.


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Balancing risk and reward For yield-hungry investors, are there still options in real estate that don’t involve loading on risk?

THE HOME CAPITAL saga has brought alternative lending into the spotlight recently, creating anxiety that a full-scale housing correction could be on the horizon. Spectacular price growth in the GTA over the past year hasn’t eased that concern, but just how much of a risk is real estate for investors right now? That depends on the size, the location and the type of investment, of course, and there are plenty of different options available when you’re talking about real estate investing. Aside from buying land or property, investing in a mortgage investment corporation [MIC] has become an increasingly attractive option for Canadians in search of yield. The bread and butter of these companies is providing mortgages that the banks deem too risky, so the Home Capital scandal has provided plenty of ammunition for alternative lending naysayers. As a result, MICs that aren’t making headlines for the wrong reasons are quick to point

“As a lender, you are really looking for a market that is steady,” he says. “There are certain areas of the GTA market that have seen price growth of more than 30% in the last 12 months, so we have been very careful lending in those areas. We look at what values were two to three years ago in assessing the safety of a new loan, and make sure that our loan exposure is well below those values.” The approach has served the company well, and while Goodall is adopting a cautious approach to the current market, it hasn’t hindered the firm’s ability to generate returns. “Since 2008, Atrium has consistently been in the 60% to 65% loan-to-value range, which means our developer clients have 35% to 40% equity on any project we are lending on,” he says. “We are over 8% annual dividend yield today, but more importantly, for 15 years, we have never been less than 8%.” The prospect of a bubble forming in the GTA prompted the Ontario government to step in and apply the brakes in April.

“We are over 8% annual dividend yield today, but more importantly, for 15 years, we have never been less than 8%” Robert Goodall, Atrium Mortgage Investment Corporation out the safeguards that have been put in place to protect investors. Atrium Mortgage Investment Corporation, for instance, markets itself as “Canada’s premier non-bank lender,” which president and founder Robert Goodall attributes to its prudence when issuing loans.


The measures introduced include new rent controls, as well as a 15% non-resident speculation tax, and already it appears the market has slowed somewhat. Opinion is divided on whether the government’s moves will ultimately prove a success, but Goodall is generally

supportive of the new rules. “Like every CEO of a bank here, I’m not displeased that this legislation is being brought in,” he says. “It will cool the market, no question. That’s good for the lender and ultimately good for the developer, because if values go up too quickly, they will correct at some point.” However, Jeffrey Olin, president and CEO of portfolio manager Vision Capital Corporation, takes the opposite view. As manager of the Vision Opportunity funds, which focus on the real estate sector, Olin observes the industry at close quarters on a daily basis, and he has strong feelings on the government’s involvement, particularly when it comes to rent controls. “To build an apartment building before the


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Granite REIT: Predominantly industrial properties in North America and Europe; owns approximately 30 million square feet and 92 properties Share price*: $51.11 Yield*: 5.09%

Boardwalk REIT: A residential REIT that currently owns and operates more than 33,000 residential units, totalling over 28 million net rentable square feet across Canada Share price: $45.18 Yield: 4.98% Brookfield Canada Office Properties: Office REIT that owns and manages 26 commercial office properties, encompassing 20 million square feet in Toronto, Ottawa and Calgary Share price: $32.51 Yield: 3.81%

Smart REIT: Retail REIT that resulted from the acquisition of SmartCentres by Calloway REIT in 2015. Focuses on retail and mixed-use Share price: $31.78 Yield: 5.19%

RioCan REIT: Retail REIT with more than 300 properties across Canada, for a total of 63 million square feet of leasable property Share price: $25.71 Yield: 5.48%

*As of May 10, 2017 Source: REIT Report

government changed the rules – if you paid market price for the land, had all the construction costs, paid the city’s egregious development charges, and if you got $3 per square

increases are capped at 2.5%, Olin believes even fewer apartments will be built. That certainly won’t help matters when it comes to Toronto’s supply shortfall, although it will

“We own Pure Industrial REIT in Toronto ... You can contemplate a 15% total return there” Jeffrey Olin, Vision Capital Corporation foot in rent, and you did that on time and on budget, you would get a return of 5%,” he says. That’s not a number that will inspire many developers to rush out and start constructing rental properties, and now that annual rent

likely benefit apartment REITs, he explains. “We like apartments in the US and Canada,” Olin says. “In December, Vision made a regulatory filing that its funds owned 10% of Pure Multifamily REITs units, which

are apartments in the Sun Belt, Dallas, Phoenix and Austin.” Aside from apartment REITs, Olin and his team are also moving into the industrial space. The changing retail dynamic across North America means more companies are adopting the Amazon model, negating the need for storefronts but making warehouse space essential. It makes investing in industrial space much more attractive, Olin says. “We own Prologis in the United States – a US$30 billion market cap and the largest logistics and industrial company in the world,” he says. “We own Pure Industrial REIT in Toronto, which is probably the only institutional-calibre, publicly traded entity for industrials in Canada. You can contemplate a 15% total return there.”


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3/06/2017 2:14:43 AM







Shareholders at the US bank finally agreed to a takeover after the initial offer was bumped up twice

Waterous Energy

Northern Blizzard

Waterous completed its acquisition of approximately 67% of the oil producer and developer on May 11






The joint venture will help advance the CPPIB’s interest in India’s logistics space

National Bank


The partnership will focus on innovations in financial services, artificial intelligence and data analysis



The partnership will allow OneEleven to enhance its ability to help high-growth tech startups


Kensington Capital

The two have entered into a memorandum of understanding to accelerate clean tech in Canada

BMO shakes up fund lineup to reduce fees

BMO Investments has added series F units to certain index funds to give investors access to global exposures at low costs. Series F and advisor series have also been added to BMO Risk Reduction funds, which are fixed-income and equity products focused on downside protection. In late April, BMO cut management fees on certain series A, D, F and T5 units, as well as the advisor series, on 12 of its mutual funds. The firm also lowered administration fees across nine BMO mutual funds and applied an across-the-board cut to trailing commissions on the BMO Target Education Portfolios.

CIBC secures PrivateBancorp at a steep price

After almost a year of uncertainty and persistence, CIBC has finally succeeded in acquiring a long-time US target. Chicago-based PrivateBancorp has been in the Big Six bank’s sights since June 2016, when CIBC initially offered $3.8 billion for the US bank. The bid has since been ratcheted up twice as increases in PrivateBancorp’s stock have prompted shareholders to ask for more. They finally voted in favour of an offer of $4.9 billion on May 12. But there’s still work to be done. PrivateBancorp’s return on equity was 11.8% at the time of the vote – impressive when compared to the average of 8.4% among its peers, but not so spectacular when compared to CIBC’s 17.5% ROE. To make the deal profitable, CIBC CEO Victor Dodig has been charged with improving PrivateBancorp’s results.


CI launches automatic feediscount scheme

CI Investments has launched preferred pricing and private wealth programs to provide eligible investors with automatic fee discounts. The two programs will use the same pricing model, in which a flat-fee rate will be applied to all eligible assets. Once an investor’s assets reach a certain minimum threshold, assets in class A and class F, along with class E (ISC) and F (United Funds) in Evolution Private Managed Accounts, will be automatically placed in the appropriate fee tier to receive the discount. There will be no tax consequences for switching.


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PEOPLE Excel winds up Latin America fund

After receiving the required approvals from regulators and unitholders, Excel Funds completed the merger of the Excel Latin America fund into the Excel Emerging Markets Fund on April 28. Investors holding units of any series in the Latin America Fund have received securities of the equivalent series of the Emerging Markets Fund, as determined on a dollar-for-dollar basis. The Emerging Markets Fund seeks long-term capital appreciation from equity and debt securities issued by companies in emerging markets.

Bridgehouse makes mutual fund series redesignations

Bridgehouse Asset Managers has announced planned redesignations of series K, KH, L, LH, M and MH for all the mutual funds it manages. Effective on or about July 7, the aforementioned series will be redesignated into units of other series in order to simplify the firm’s fund lineup. Consistent with current arrangements applicable to the units being redesignated, Bridgehouse will provide management fee distributions to investors who meet certain thresholds to ensure there is no aggregate increase in management fees and operating expenses as a result of the redesignations.

Gestion Férique updates balanced fund lineup

Gestion Férique has renamed its Moderate Balanced, Balanced and Balanced Growth Funds Series A as the Férique Portfolios. The funds’ investment strategy, objectives and risk level remain unchanged, but MER reductions of up to 7 basis points will take effect on or about July 4. In addition, the firm has launched two new Férique Portfolios: the Férique Conservative Portfolio and the Férique Aggressive Growth Portfolio. Both are subject to a minimum investment of $500, with MERs of 0.80% and 1.15%, respectively.





Karen Adams

Alberta Pension Services

Fundserv Capital

President and CEO

Chris Blackwell

Access Holdings

Canaccord Genuity

Head of investment banking, Canada

Brenda Eprile


Home Capital Group

Chair of the board

Jason Melbourne


Canaccord Genuity

Head of institutional equity sales and trading/ securities

Maria Pacella


PenderFund Capital Management

Senior vice-president of private equity

Ian Taylor


Goldman Sachs

Head of equity capital markets, Canada

Kevin Webber

Webber, Brodlieb & Associates

Raymond James

Senior vice-president and portfolio manager, private client group

Goldman Sachs names equity capital markets head

Goldman Sachs has officially named Ian Taylor as its head of equity capital markets [ECM] for Canada. Prior to this role, Taylor served as the head of ECM in Latin America, excluding Brazil. He has been with Goldman since 2000 and was named managing director in 2015. In his new role, Taylor will be responsible for driving engagement between Goldman’s Canadian issuer clients, its sector-focused ECM teams, and its investing clients in Canada, the US and around the world. In addition, Taylor will continue to lead the company’s real estate, lodging and gaming business for the Americas. He will be based in New York but will split his time between Canada and the US.

Canaccord bolsters Canadian capital markets unit

Canaccord Genuity has named Chris Blackwell (pictured) as the new head of investment banking for its Canadian capital markets business and Jason Melbourne as its new head of institutional equity sales and trading/ securities. Blackwell will oversee non-resource investment banking activities, while Melbourne will be responsible for institutional sales and trading products and services. Blackwell was most recently a partner at Access Holdings, a US-based mid-market private equity outfit. Prior to that, he was co-head of diversified industries at Scotiabank for three years. He also spent 14 years with CIBC World Markets. Melbourne joined Canaccord in 2010 when the firm merged with Genuity Capital Markets. In 2016, he was promoted to head of Canadian equity sales. .


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ALTERNATIVE INVESTMENT UPDATE NEWS BRIEFS Tech fund built from Bay Street backing OMERS Ventures Fund III, a techoriented fund started by pension giant OMERS, has closed with backing from BMO, CIBC, National Bank of Canada, TD Bank, Sun Life Financial and US fund-of-funds investment firm Wafra Group. Sources said OMERS put in two-thirds of the fund’s $300 million capital pool. The fund’s mandate lets it pursue investments ranging from $500,000 for seed-stage startups to tens of millions of dollars for late-stage, pre-IPO funding. Sectors of interest include fintech, artificial intelligence, robotics, quantum computing and synthetic biology.

’Streaming’ scheme a hit with marijuana industry

Small players in the Canadian cannabis space have been financing their growth plans by entering into ‘streaming’ deals with large backers. Under the business model, which has traditionally been used in the mining space, cannabis producers get upfront funding for infrastructure and capital in exchange for a cut of future production. Banks are generally still unwilling to back potrelated ventures, and many producers are unable or unwilling to go public or raise equity. Canopy Rivers (a venture of Canopy Growth Corporation) and Cannabis Wheaton are two companies offering this new financing model.

MaRS IAF closes new womenfocused fund The Business Development Bank of Canada and MaRS Investment Accelerator Fund [IAF] have announced the first closing of StandUp Ventures Fund I. Managed by the MaRS IAF, the fund will invest in capital-efficient, high-growth Canadian health, IT and


clean tech ventures that are still in the pre-seed and seed stages. Qualifying investments must include one female founder in a C-level role and a significant ownership position. Over the next three to five years, the fund will make 12 to 20 investments ranging from $250,000 to $1 million each.

Quebec gets backing for life sciences strategy The Fonds de solidarité FTQ has declared its strategic and financial participation in implementing the Quebec government’s life sciences strategy. The organization has invested more than $1.2 billion in life sciences over almost 30 years. It will also tap its network of international partners to help patients and further the economy. With the help of these contributions, Quebec hopes to draw $4.4 billion in private investments to become one of North America’s top five most important life sciences hubs by 2027.

Can Canada remain an energy contender? A new report from PwC highlights the key actions the Canadian energy industry needs to undertake to navigate the rapidly changing terrain of the global oil & gas industry. According to the firm’s analysis, there’s an ongoing power struggle in the global energy industry between OPEC and the shalerich US. As this struggle for supremacy shakes up the market, Canadian players have an opportunity to weather the lows and excel in the future. To do that, however, they have to balance multiple priorities, including “cost containment, capital discipline, strong sustainability practice, operational excellence and an innovation culture,” said Reynold Tetzlaff, national energy leader at PwC Canada.

More cash but fewer deals in VC The number of venture capital deals has dropped to its lowest point since 2015, although dollar volume is up Venture capital deals may be down significantly, but the amount of money changing hands has risen. That’s the finding of PwC Canada and CB Insights in their MoneyTree Canada Q1 2017 report, which showed a total of US$460 million in VC funding for the first quarter, a 10% rise compared to the same period last year. However, the number of deals for the quarter was the lowest it has been since the third quarter of 2015. In terms of inflows, the internet sector led all others with US$195 million, seeing more dollars on both a quarter-over-quarter and year-over-year basis. “Internet deals in Q1 saw an increased focus on enterprise solutions for data analytics, business intelligence and productivity,” said Shivalika Handa, corporate finance director at PwC Canada. The sector also led in terms of deal count, inking 23 deals, although it continued its downward progression from its peak in the first quarter of 2016. The healthcare sector was a distant second in terms of both funding and number of deals. Deal activity accelerated to reach a two-year quarterly high of 14 deals. However, the US$65 million worth of funding was a significant drop compared to the US$328 million seen in the sector in the fourth quarter of 2016, which was the highest amount in an eightquarter time frame. “Venture funding is showing perennial support for the development of new therapies and diagnostic tools against the backdrop of


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said Scott Collinson, health industries leader at PwC Canada. Seed-stage deal share remained weak, making up just under a third of all deals in Q1 and hitting an eight-quarter low. On the

“Internet deals saw an increased focus on enterprise solutions for data analytics, business intelligence and productivity” other hand, the share of early-stage funding deals inched up to 28%, reaching an eightquarter high. Seed-stage deal activity was driven by Canadian investors, accounting for nearly two-thirds of all Q1 2017 seed-stage deals. International investors increased their presence in later stages, representing roughly a third of both early-stage deals (35%) and expansion-stage deals (31%). There were only four later-stage deals, but US investors accounted for nearly three-quarters of active firms at this phase. The three largest VC deals for the quarter – all of which were for later-stage funding – involved PointClickCare in Ontario (US$85 million), Visier in BC (US$45 million) and CSDC Systems in Ontario (US$30 million). The most active investors were Quebec’s BDC and Real Ventures, and MaRS in Ontario. From a region-by-region perspective, the top-funded markets in Q1 2017 were Toronto (US$227 million), Montreal (US$77 million) and Vancouver (US$80 million), though they saw less funding compared to the fourth quarter of. They were also the top regions in terms of deal count, though only Montreal experienced a quarterly rise in the number of deals. In terms of year-over-year improvement, Toronto saw the largest funding increase at 239%.

Peter Kinkaide

A new privatemarket option


Years in the industry 14 Fast fact Raintree Financial Solutions recently won two awards at the Private Capital Markets Association Awards in late April

Raintree Wealth Management has launched on a limited basis. In what way is it limited, and why have you chosen to put off a full-scale launch? The launch is limited in terms of the number of clients we’re taking on at the moment. We’ve limited our full-scale launch mainly because of the amount of demand from clients who are very interested in using us as their portfolio manager. We want to make sure that we’re prepared to scale up quite quickly with those clients and deliver the best service possible.

What are some of the most overlooked alternative investments that you offer clients through Raintree Financial Solutions? I think it comes down to industry and style. A lot of investors in the private capital markets have come to expect real estate as part of their alternative investments. We’ve spent more time looking for unique opportunities. I would say some of the overlooked areas are private equity and private debt, as well as unique real estate asset classes, such as senior living spaces, along with healthcare and medical office buildings. We even have exposure to farmland, which is unique for a couple of reasons: You can’t have a public farmland fund, and this asset class is driven more by agricultural fundamentals, like farmer performance, crop prices and food demand.

You’ve said that Raintree’s advisors can now refer their clients to third-party managers or to Raintree Wealth Management. Can you talk about how clients are guided during that decision process? Our advisors start by sitting with clients and thinking about their financial objectives and risk parameters. After establishing that, they set a ratio following our Core + Explore investment philosophy. The portfolio ‘core’ will generally be placed with a portfolio manager for traditional securities like stocks, bonds and ETFs. A certain portion will go on the ‘explore’ side, which are the alternative investments. The advisors are thoughtful about recommending a portfolio manager – or even multiple portfolio managers – as well as specific alternative investments to round out the client’s portfolio.

Are there any new or upcoming investment opportunities that you’re looking to add to your portfolio? We’ve spent a lot of time customizing our asset allocation mix for Raintree Wealth Management, and I think we’re going to have very good subadvisors to our core portfolios. As for Raintree Financial Solutions, we’ve never seen more opportunity in private and alternative investments; I’m actually meeting with managers in Toronto and New York about that. We’re looking to be sector and geographically diversified, going further afield to find good managers and opportunities for our clients.





RBC GAM announces real estate ETF The launch of the ETF gives advisors new options to invest in a lucrative sector

ings and cash flow, the team behind the fund also looks at fundamental real estate metrics, selecting companies that not only pay good yields, but have good coverage of those yields. They also look for stability, making sure to avoid companies with high levels of debt – a particular concern in real estate, which is sensitive to interest rates. RGRE’s global portfolio has a low correlation to Canadian equities, which Cummings

“This brings our best practices in the institutional market to retail investors”

RBC Global Asset Management has launched the RBC Quant Global Real Estate Leaders ETF (RGRE), which joins the RBC Quant Global Infrastructure Leaders ETF (RIG) as the first real-asset ETFs in Canada that employ a quantitative methodology. “The team and I have been investing in active quantitative products for 20+ years,” said Bill Tilford, head of quantitative investments for RBC. “We’re simply leveraging our skills and expertise in that area to target specifically a real estate-oriented ETF product. This brings our best practices in the institutional


market to retail investors.” “It’s getting harder and harder for investors to generate yield as more people age and enter retirement,” added Trevor Cummings, head of business development for ETFs. “The oldfashioned portfolio of 60% stocks and 40% bonds is probably not going to cut it for retirees and those who want income. But it’s not enough to just screen for businesses with good levels of income. What we’re trying to accomplish with this product is a very consistent and high level of income to investors.” Aside from scrutinizing figures like earn-

Will ETFs take the place of stocks in the markets?

The TSX has seen more new listings of ETFs than operating companies in recent years. Ten years ago, the TSX listed only 25 ETFs; today, it has more than 460. Last year saw only three corporate IPOs and 77 new ETFs. Trends toward private capital, increasing regulatory burdens for public companies and takeovers engulfing small firms have become a major drag on publicly traded stocks. Meanwhile, ETF providers are continuing to come out with new products to cater to investors’ appetite for easy diversification at a low cost.


says is important to give investors more diversification at a lower cost. The team is open to investing in any type of property, including malls, server farms, assisted-living homes, storage facilities and more. “Relatively recently, real estate was given its own GICS sector,” said Mark Neill, head of ETFs at RBC. “People’s exposures to real estate may increase as a result of that. Also, institutional investors have been expanding and increasing their exposure to real estate for some time, both domestically and globally. For the same reason they’re doing that, retail investors will be increasingly looking to real estate. Speaking with our partner advisors about their needs, they’ve confirmed a desire for more solutions that enable them to invest in real estate.”

Excel debuts on ETF market with two new products

Excel Funds has officially entered the Canadian ETF market with two new products: the Excel Global Balanced Asset Allocation ETF (EXGB) and the Excel Global Growth Asset Allocation ETF (EXGG), both of which trade on the TSX. EXGB aims for a conservative return over a rolling two- to three-year period with controlled volatility, while EXGG seeks a superior total return over a rolling three- to five-year period. Both will make direct or indirect investments in globally listed ETFs, as well as equity and fixed-income securities.


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Michael Cooke

Going active for higher fixed-income yields

Senior vice-president and head of ETFs MACKENZIE INVESTMENTS

Years in the industry 22+ Fast fact Mackenzie Investments now offers 11 ETFs, five of which are in fixed income

The Mackenzie Global High Yield Fixed Income ETF (MHYB) is the fifth in your series of active fixed-income ETFs. Why did you decide to enter the high-yield fixed-income space? We’ve been running high-yield strategies across various Mackenzie mutual funds for a long time, and there was a desire to give investors more specific and pure-play exposure to our active fixed-income capabilities in high yield through both a mutual fund and an ETF. The new ETF extends our active capabilities to a broader audience of investment professionals and investors.

How does your active fixed-income investing approach differ from other fund providers’? We don’t have a Canadian fixed-income team siloed from a high-yield team, which is apart from an emergingmarket team in another corner. Everybody is integrated and working closely together, allowing us to leverage our macroeconomic, quantitative and fundamental research across all asset classes and geographies. You might have active fixed-income ETFs from competitors that use big-picture or macro views; we employ that, but we go right down to the individual security level. We take research on macro themes, monetary policy in different economies, currency trends and so on, and combine it with quantitative analysis at the individual security level, which very few – if any – of our competitors employ. We’re also trying to blend elements of our core competency in active management with the needs of the ETF market – particularly the desire

Horizons completes advisor-class unit conversions

Horizons ETFs has completed the conversion of all advisor-class units of its Canadian-listed ETFs to the corresponding class E units. The ETFs for which units were converted include the Horizons Active Corporate Bond ETF, the Horizons Active US Dividend ETF, the Horizons Enhanced Income Gold Producers ETF and the Horizons Natural Gas Yield ETF. The conversion effectively reduced management fees by 0.25% to 0.75% for all investors originally holding advisorclass units.

for liquidity and cost-effectiveness – and we think we’ve struck a nice balance.

Broadly speaking, what promising sector or regional exposures can you see in the high-yield space using your active management approach? Our flexible approach gives us primary focus on global high-yield securities, but we can complement that exposure with senior loans, emerging-market debt and other high-yielding global debt. We are looking at some relative value opportunities in Europe and emergingmarket debt currently; although our portfolio is mostly North America-focused, we will take advantage of opportunities that could arise in other geographies.

What advantages does active bond management have compared to active equity management? Bonds are more of an institutional asset class that don’t have the same sort of pricing transparency as an exchange-traded security such as a stock. That lends well to institutional-quality management, which is very important during this protracted period of below-trend interest rates and an uncertain economic recovery. There are also some nuances in the way that bond indices are constructed, which lends well to the flexibility and the depth of risk management that comes with an active overlay. That’s not to say that active management doesn’t add value to equities or other asset classes, but with the nature of fixed income and the current backdrop, we think active management makes a great deal of sense.

Fund provider enters the Canadian ETF market

Franklin Templeton has announced the launch of four ETFs. The suite includes two active ETFs: the Franklin Liberty Risk Managed Canadian Equity ETF and Franklin Liberty Canadian Investment Grade Corporate ETF, which will be rebal­ anced based on variations in valuations, fundamentals and prices. There are also two strategic beta ETFs: the Franklin LibertyQT US Equity Index ETF and Franklin LibertyQT International Equity Index ETF, which use a rules-based index that incorporates quality, value, momentum and low volatility.

Invesco expands income ETF offering

Invesco has released two additional series of its popular PowerShares Senior Loan Index ETF, offering investors either unhedged Canadian dollar exposure or US dollar exposure to senior loans. Senior loans offer several benefits, including enhanced yield compared to other fixed-income securities, reduced interest-rate sensitivity, high payment priority in case of default and low correlation to other parts of the fixed-income market. If demand is strong, Invesco may add similar ETFs in the future.


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LIFE INSURANCE UPDATE NEWS BRIEFS Canadian roboadvisor launches digital life insurance

To help Canadians hoping to purchase insurance online, Invisor has launched Invisor TermLife Insurance, the first fully digital insurance buying experience offered by a Canadian robo-advisor. The product will be underwritten by the Teachers Life Insurance Society. According to Invisor co-founder and COO Dan Poole, the available packages feature up to $500,000 in coverage and flexible terms from 10 to 40 years. “We are excited about our partnership with Teachers Life and the opportunity to offer Canadians a flexible, fully underwritten life insurance solution through our unique online experience,” he said.

Industry heavyweights record mixed Q1 results

Industry leader Manulife recorded solid results for the first quarter as net income increased to $1.35 billion, up $305 million from the same quarter in 2016. The firm also saw its assets under management exceed $1 trillion for the first time in its history. Sun Life Financial reported strong earnings, posting a net income of $551 million. While Sun Life’s asset management division saw high outflows within its mutual fund business, insurance sales represented a major success. Meanwhile, Great-West Life’s net earnings fell from $620 million in Q1 2016 to $591 million in Q1 2017 in the midst of a restructuring period for the company.

New Foresters product marries affordability and charity

Foresters Financial has launched a new term life product, Your Term, that combines affordable protection with charitable giving. Designed for


families in the US, Your Term is part of an effort to refine and grow Foresters’ US product portfolio over the next 10 years. The product’s highly competitive rates rank in the top five for medically underwritten business based on data from life insurance quotes provider Compulife. It also offers non-medical face amounts of up to $400,000 with no need for saliva collection and no life event or mortgage requirements.

Empire Life offers bonus to use new digital service

Empire Life is offering a bonus to advisors who use its newly launched eContract Delivery service. The firm introduced digital delivery of insurance contracts as part of the Fast & Full Life application process it launched in 2013. As an incentive for financial advisors, Empire will pay a $50 bonus per contract delivered electronically between April 5 and June 30, 2017. The eContract Delivery service is part of wider efforts across the industry to make insurance more accessible through enhanced digital efforts.

Manulife names successor to retiring CEO As Donald Guloien makes plans to step down from the top job at Manulife, the insurance giant has announced that it will promote from within for his replacement. Roy Gori, the current general manager of Manulife’s Asia division, will succeed Guloien as CEO. Gori was already scheduled to take over as president in June, and now will take the top job on October 1. “Building a strong bench of succession candidates for the future is one of the most significant responsibilities for a CEO,” Guloien said when announcing his retirement, “and so I am proud that an individual of Roy’s calibre will be taking the leadership of the company.”

Great-West slashes 1,500 jobs The company’s CEO has said the massive layoffs are necessary to improve efficiency and digital capabilities

Great-West Lifeco will shed 1,500 jobs as part of its restructuring program as it seeks to move further into the digital realm. The insurance giant made the announcement in late April, explaining that the layoffs were a regrettable step it needed to take to remain competitive. “These are difficult but necessary decisions that we are not taking lightly,” Great-West Life president and CEO Paul Mahon said in a conference call to analysts. “We are committed to treating all those affected fairly and respectfully, consistent with our values.” The cuts represent close to 13% of the firm’s 12,000 employees in Canada. The job losses will affect mostly back-office staff and are set to occur over the next two years. Great-West revealed the reductions will come from its temporary workforce, as well as through voluntary retirement and severance programs. Addressing the decision, the company outlined how a smaller workforce would ultimately benefit consumers. “The changes announced today are across the organization,” Mahon said. “Positions will be eliminated to align with business changes to become more efficient, while at the same time investing more in customer-focused innovations and service offerings.” The company’s restructuring plan first became evident in November of last year as it repositioned its Canadian operations around two business units – individual and group


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“Not only are customers demanding greater digital and mobile access to financial services, they are becoming increasingly cost-sensitive” customers. Changes rang in at the executive level too, as Jeff Macoun and Gerry Hasset were selected to oversee the two units. It’s a challenging marketplace out there, and Mahon was keen to stress that in his conference call. “Not only are customers demanding greater digital and mobile access to financial services, they are becoming increasingly cost-sensitive,” he said. This means that while consumers’ expectations are higher when it comes to digital services, they’re not willing to pay more for

them, leaving companies like Great-West Life with little choice but to search for cost efficiencies elsewhere. The company also plans to reduce costs through real estate consolidation, process improvements and updates to information systems. “We’ll become more efficient by organizing around the customer, automating and improving processes, and becoming more productive through tools, technology, and recruiting and retaining employees with the skills and capabilities for the future,” the

Winnipeg-based insurer said in a statement. Great-West recorded earnings of $2.6 billion last year; however, it reported a $29 billion dip in net earnings in the first quarter of 2017 compared to the same quarter last year. The company attributed that fall to restructuring costs of $28 million, specifically its health and retail businesses in Ireland and the completion of integration activities for Empower Retirement.

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Chronic conditions a major cost driver A recent study reveals that insurers must take a closer look at chronic conditions to control plan costs

2016 paid for medication for diabetes or an inflammatory condition. Addressing the report, John Herbert, director of strategy, product development and clinical services at Express Scripts Canada, identified some of the key reasons drug costs are spiralling in this country. “A big portion of that is the introduction of new high cost-drugs in Canada and the increased prevalence of drugs for diseases that

Spending on highcost drugs has grown from 13% of total drug spending in 2007 to 30% in 2016

Escalating drug costs are an ongoing concern for Canadians – not just for individuals, but also for employers and governments. According to the Pharmacare 2020 report, public drug plans account for 42% of all prescription drug costs in Canada, while private plans cover 36%, and individuals not covered by either a public or private plan account for the remaining 22%. The recently released Express Scripts


Canada Drug Trend Report has revealed certain areas where efficiencies could be made – and chronic conditions topped the list. The findings showed that spending on high-cost drugs (those used to treat diseases such as hepatitis C and cancer) has grown from 13% of total drug spending in 2007 to 30% in 2016. The report also revealed that one out of every five dollars spent on prescription drugs in

High-cost drugs don’t offer better outcomes

Since January 2015, Health Canada has allowed 17 high-cost cancer drugs to come onto the market, but only three showed any real evidence of improved “overall survival” when approved by the regulator. The National Post reports that while follow-up trials showed survival benefits for four others, the results for more than half left significant doubt on whether they actually bought sick patients more time than existing treatments. The list prices for the new drugs ranged from $4,700 to $33,000 per month.


were previously not treatable with medication,” he says. “There are more medications that are being expanded in their use to treat a broader part of the Canadian population.” According to the report, a small proportion (14%) of plan members account for a large amount (72%) of total plan spending, suggesting that the insurance industry needs to put more focus on managing these claimants’ care. “They struggle with knowing which medications are the most cost-effective and clinically effective for their care,” Herbert says. “So there is a huge opportunity for plans to really focus on driving better decisions and empowering those members with more information so they can make a better, more informed decision.”

Study probes rise in Chinese Canadians’ heart attacks

More and more Chinese Canadians are being admitted to hospitals due to heart attacks, and experts believe changes in lifestyle among that community could be at fault. “For second-generation Chinese Canadians, Western fast foods may be a major culprit,” Dr. Jack Tu, a professor of medicine at the University of Toronto, wrote in the Toronto Star, contrasting these preferences with traditional Chinese diets, which leaned toward rice, noodles and vegetables, allowing small portions of meat and rare inclusions of sugary desserts.


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Joan Weir

The challenge of healthcare fraud in Canada

Director of health and disability policy CLHIA

Years in the industry 20+ Fast fact CLHIA member companies provide supplementary health coverage to 24 million Canadians and pay more than $30 billion annually for healthcare services

The Claims and Anti-Fraud Annual Conference took place last month in Montreal. How long has this event been in operation? It is a yearly event. We have had a claims conference for a decade, but three years ago we decided to add an antifraud component. How big of a problem is fraud for the life and health insurance industry in Canada? It is difficult to measure, as sometimes fraud is undetected. As an industry, we consider the total to be between 2% to 10% of claims that are fraudulent. That’s consistent with our neighbours in the US, who are about the same. Previously the Canadian Health Care Anti-Fraud Association oversaw this issue. When did it become part of the CLHIA’s remit? The Canadian Health Care Anti-Fraud Association was rolled into the CLHIA in early 2015 – that’s when we started the conference. We are a leading partner with the Global Health Care Anti-Fraud Network [GHCAN] as well. We have a couple of meetings per year [with GHCAN], and we speak about the trends we are finding in Canada. There seem to be the same trends throughout the world when it comes to healthcare fraud. What is the most common type of fraud? It could be claims that were submitted where the services simply didn’t happen. Another common case

Health minister eyes digital healthcare revolution

Federal Health Minister Jane Philpott has said that digital healthcare is “absolutely critical” to drive reform in the Canadian system. “The sustainability of healthcare to the future of Canada is one of my top priorities,” Philpott told attendees at Mohawk College’s Apps for Health Conference in Hamilton. Citing solutions such as online patient portals, telemedicine and telephone care, she said new technology is critical to help patients in remote locations, as well as those who are aging or suffering from mobility issues.

is what we call up-coding – that is where there is a higher charge for a higher set of services than is actually delivered. Sometimes there is even collusion between the provider and the patient. How do insurers protect themselves from fraud? Can they use data analytics? Yes. That would mean things like profiling healthcare providers and comparing them to other providers in the area to see what kind of services are being billed and whether they are out of the norm. Data analytics is a big part of figuring out what sort of claim profiles do not fit with the norm. Are there ways providers can help prevent fraud from even happening? That’s the key question – how to prevent it. Some insurers send out confirmation letters to their members to ask if they actually received the service that was billed. So they might ask for backup documentation from providers or members to substantiate a claim. What are the ramifications for someone who is found to have committed healthcare fraud? Are criminal proceedings likely? It’s possible. One of the avenues our members take is going to the relevant regulatory college. As the body that issues providers their licence, a complaint would then be handled by them. They would look into the compliant and decide what punishment to give – a suspension of your licence is typical.

Ontario budget the first step toward Pharmacare?

The 2017 Ontario budget, which included a provision for the province to cover 100% of the cost of prescription drugs for anyone aged 24 and under, was welcomed by national Pharmacare advocates. In the study Pharmacare 2020, academics from University of Toronto, Harvard and the University of British Columbia argued that Canada’s system was incongruous and in need of reform. The research cited a 2015 poll that showed that 91% of Canadians support the concept of universal access to necessary medicines.

Partnership aims to improve health in the workforce

Canadian corporate wellness provider Heidary Health has teamed up with Excellence Canada, a national authority on organizational quality, to help create healthier workforces. Heidary Health provides private and secure programs that let employers reduce benefit plan costs and absenteeism. The company goes beyond traditional corporate wellness programs, featuring blood screening for issues ranging from hypertension to food intolerances, and even markers for cancer.


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KEEPING THE RIGHT COMPANY Harvard professor and Alignvest Investment Management partner Randy Cohen outlines what the investment industry needs to do to offer true innovation

AS A SENIOR lecturer of entrepreneurial management at Harvard Business School, Randy Cohen uses a ‘design thinking’ approach when explaining how to launch a business. The strategy is applicable whether you’re selling a mutual fund or a smartphone; it basically involves a lot interaction with different people before bringing a product to market. It’s a drawn-out process, but Steve Jobs didn’t start selling his first Mac in a week. Budding entrepreneurs can expect to log a lot of hours and go through many setbacks before they have the product they want. “Entrepreneurial people have a tendency to believe that if you sit and think for a long time, or if you talk to a couple of your smart friends, that will solve the problem,” Cohen explains. “That is a piece of it, but you need to show your idea to lots of potential customers, and they will tell you what you wouldn’t have thought of otherwise.” In addition to lecturing at Harvard, Cohen lends his expertise as a consultant to burgeoning businesses across various industries. A partner with Alignvest Investment Management, a firm that prides itself on ingenuity, Cohen places a lot of importance on being a leader rather than a follower. “Anything that worked really well 20 years ago probably still works, but probably doesn’t work nearly as well,” he says. “That’s


true in all businesses. When it comes to investing, when something is a good idea, you will see people latch onto that.” These days, Canadian investors have a huge selection of stocks, bonds, mutual funds, ETFs and an ever-increasing amount of alternative strategies to choose from. Regardless, Cohen believes true innovation is still hard to find in this industry. This is a topic he has devoted a great deal of time

around for a long time,” Cohen says. “In theory you can have a fund that has been around for a long time and has evolved and changed, but really that is fairly unusual. Most funds have their principles that they follow, and investors don’t expect them to change. But if you are investing in those funds, it will be very hard for them to match the performance that earned them their reputation.”

“The problem is that at any given moment the vast majority of money will be managed in products that have been around for a long time. But if you are investing in those funds, it will be very hard for them to match the performance that earned them their reputation” to. The paper he co-authored with Joshua Coval and Lubos Pastor in 2005, “Judging Fund Managers by the Company They Keep,” was nominated for the Smith-Breeden Prize for best asset-pricing paper published in the Journal of Finance. “The problem is that at any given moment the vast majority of money will be managed in products that have been

The beauty of diversification Managing a portfolio that beats its benchmark has proven to be a difficult proposition for active managers in recent years. As an asset manager, Alignvest prides itself on having dedicated alternative strategies that investors can’t find elsewhere. The firm models its portfolios on leading pension and endowment funds, so the long view is always


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PROFILE Name: Randy Cohen Company: Alignvest Investment Management Title: Partner Fast fact: Cohen teaches finance and entrepreneurship in the MBA program at Harvard Business School, as well as investments at the MIT Sloan School of Management.


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the main concern. It is a complex process involving experts with decades of experience in their chosen field, but there is one constant when it comes to these funds. “We are huge believers in diversification – everyone involved with investing recognizes that the one free lunch is diversification,” Cohen says. “We absolutely look for investment opportunities that are uncorrelated with other assets in our portfolios. Another way we can really help investors is

investment vehicle itself, is the fact that we live in an era of globalization. If Canadian equities are dragging on your portfolio, as they would have in 2015, you can easily switch to other geographies. Being able to change course as circumstances dictate is essential for a successful fund manager; being dogmatic on strategy will only lead to underperformance in the long run. “If something is happening in the oil or minerals markets that is good or bad for

“We are huge believers in diversification – everyone involved with investing recognizes that the one free lunch is diversification. We absolutely look for investment opportunities that are uncorrelated with other assets” by identifying strategies that haven’t been around a long time. It means we have to be constantly on our toes.”

Resilient funds When Cohen wrote his paper on fund managers in 2005, he was analyzing a very different industry than the one we know today. The financial crisis of 2008 still looms large in the collective mindset, which naturally affects investment strategy. Cohen doesn’t waste time trying to predict when the next correction may be; rather, he concerns himself with constructing funds that can prosper through different market cycles. “I remember going through the crisis of 2008–2009, and people were asking if they should get out of stocks,” he says. “What you have to do is change that mentality. You have to think in terms of times when you are 45% stocks and other times when you are 58%. It’s not a question of getting out or getting in – it’s a matter of shifting.” Another consideration, in addition to the


Canada, you try to identify those times and then decide if you want to have a stronger or weaker position,” Cohen says. “The key is to not be too arrogant and recognize that the goal with each decision is to make intelligent, moderate adjustments that add moderately to value.” Combining these different considerations will make for better funds and ultimately higher returns for investors. It’s the MO of any asset manager, although finding the people who can mould such strategy doesn’t come easy. “If you add a moderate amount of value looking at the asset allocation level with stocks, bonds and real estate,” Cohen says, “then add a moderate amount of value by being in the right region at an attractive time, then add a significant chunk of value by finding the right strategies and the right managers to implement the strategies – when you add up all those theses, there will be quite a lot of value-add across the different dimensions.”


The Alignvest Strategic Partners Fund attempts to upgrade the typical Canadian investor’s 60/40 portfolio

Alternative investments that have low correlation with stocks and bonds are a key feature of fund

The fund is overweight in foreign currencies relative to Canada to benefit from weakness in the loonie

Since its inception on November 1, 2016, the net return of the fund (Class F) is 4.28%. For Q1 2017, the net return is 3.73%

Risk management is a central plank of the fund’s management. Estimated portfolio volatility is currently 6.7%


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FORTUNE MAGAZINE RANKS US ONE OF THE BEST:* WORKPLACES FOR WOMEN. WORKPLACES FOR MILLENNIALS. AND NOW, #5 OVERALL. THE MORE YOU KNOW, THE MORE WE MAKE SENSE. We don’t just take care of our 7 million clients.† We take care of our own. It’s why we’ve placed in the top 25% for employee engagement in the 2017 List of Best Employers in Canada.‡ And why our financial advisors are so robustly supported by our home office staff of 6,000.† Well-served associates equal well-served clients. Maybe it’s time you got to know Edward Jones. Visit edwardjones.ca/knowmore

©2016, 2017 Time Inc. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, Edward Jones. Related to Edward Jones U.S. operations only. Edward Jones is a limited partnership in Ontario, Canada, and is a wholly owned subsidiary of Edward D. Jones & Co. L.P., a Missouri limited partnership (“Jones US”). Jones US and its parent do not guarantee the obligations or liabilities of Edward Jones. ‡ For the 15th consecutive year, Edward Jones placed in the top 25% for employee engagement in the 2017 List of Best Employers in Canada published in Canadian Business Magazine, November 2016. *

Daisy Cheung Financial Advisor Toronto

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6/2/17 3:28 PM 5/06/2017 11:03:07 PM


A record number of nominations flooded in for this year’s Wealth Professional Awards. Now, WP reveals the winners across 20 categories



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THE THIRD annual Wealth Professional Awards returned to the luxurious ballroom of the Liberty Grand in Toronto on June 1. Professionals from across the wealth management industry assembled to celebrate the contributions of those driving innovation and raising standards in asset management and financial planning. Twenty awards were given out during the night; some of the winners were making their first appearance on the Liberty Grand podium, while others were returning champions. Prizes were awarded to the asset managers that reached new heights over the past year, as well as the financial advisors who bring those products to Canadian investors. With categories for alternatives and ETFs, the awards reflected the changing face of the industry as product suites expand across the board. For financial advisors, the Young Gun and Lifetime Achievement awards distinguish the fact that this is a business that needs to respect its heritage while also planning for the future. As robo-advisors continue to increase access to investments for everyday Canadians, advisors need to consistently prove their worth to clients. That means the job of an advisor has changed a great deal since the financial crisis rewrote the rules of the game almost a decade ago. Clients in 2017 expect a lot more when it comes to professional financial advice, which is something this year’s award winners have recognized and incorporated into their practices. The 2017 event was notable in that it was Wealth Professional’s first awards ceremony in the new regulatory era spearheaded by CRM2. Canada’s new reporting standard for advisors was expected to create seismic change across the wealth management space. That hasn’t happened yet, but increased regulation and compliance requirements are here to stay. Fortunately, there is help out there, demonstrated by the award for service providers that assist advisors in the back-office side of the job, which is now such a major part of their day-to-day work. Another feature of Canadian financial services is the dominance of the Big Six banks. Those institutions are only growing in scale, but investors do have other options when it comes to seeking investment advice, such as this year’s award-winning independent offices, both large and small. Choice is important for consumers at all levels, and financial advice is no different. In that respect, it’s a welcome development that more practices are thriving at all levels of the wealth management spectrum. www.wealthprofessional.ca www.mortgagebrokernews.ca www.australasianlawyer.com.au 27

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AS MORE and more Canadians realize that solid returns and a clear conscience are not mutually exclusive, advisors like Ross Campbell are leading the shift toward responsible investing. “If you boil it down, responsible investing means you’re looking at making good companies better,” Campbell says. “You’re screening out the bad ones and looking to promote the ones that promote the environment.”

Ross Campbell

Assante Capital Management

FINALISTS Alicja Brown

Remy Brown Investment Group of CIBC Wood Gundy

Aaron Ruston

Purposed Financial

Ryan Colwell

IPC Investment Corporation

Stephen Whipp

Stephen Whipp Financial of Leede Jones Gable

Ross Campbell Assante Capital Management

Ashley Cameron NEI Investments

“It’s nice to be acknowledged for the years I’ve spent in the industry. I’ve got a good relationship with NEI – I’ve been big supporter of theirs for around 15 years now” ROSS CAMPBELL Assante Capital Management

Funds dedicated to responsible investing are being launched all the time, and award sponsor NEI Investments has emerged as a market leader in this sector. “Making money while also making a difference – that’s what responsible investing is all about,” says Ashley Cameron, VP of sales for Eastern Canada at NEI. PROUDLY SPONSORED BY

NEI Investments is a national investment firm with over $6 billion in assets under management. It offers Canadian retail investors unique access to top independent money managers through high-quality investment solutions in two fund families, Northwest Funds and Ethical Funds. Its products provide investors with a full range of investment management styles as well as conventional and socially responsible investment choices. For more information, visit www.neiinvestments.com

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BMO Nesbitt Burns

FINALISTS Chris Lennox

Lennox Financial Group

Danielson Group Wealth Management of Assante Capital Management David Barnsdale

Barnsdale & Hussain Wealth Management Group of RBC Dominion Securities

Julia Chung

Spring Financial Planning

AGF INVESTMENTS celebrates its 60th anniversary this year – so it knows a thing or two about the importance of keeping customers happy. “We recognize how hard it is to maintain your client base while also building your business,” says Chris Jackson, AGF’s chief information officer and SVP of IT and operations. “We’ve been in the business for 60 years, and we’ve always put our clients first. This award meshes with what we’re all about.”

“I spend a lot of time listening to clients to find out what they want me to do. I do what I can to help them out and make them successful” MELANIE GOTTS

Kevin Daley

BMO Nesbitt Burns

Rod Tyler

Melanie Gotts of BMO Nesbitt Burns clearly concurs with that sentiment, as she picked up the award for her commitment to client care. “I take the time to meet with clients and spend time with them,” the Regina-based advisor said at the awards ceremony. “Over the years, I’ve been at birthday parties, funerals and all kinds of events. It’s important to connect not just with a client, but with their family, too.”

TD Wealth

The Tyler Group Financial Services

The McClelland Financial Group of Assante Capital Management Troy Busniuk


Founded in 1957, AGF Management Limited is a diversified global asset management firm with retail, institutional, alternative and high-net-worth businesses. As an independent firm, we strive to help investors succeed by delivering excellence in investment management and providing an exceptional client experience. For more information, visit www.agf.com

Chris Jackson AGF Investments

Melanie Gotts BMO Nesbitt Burns

www.wealthprofessional.ca www.australasianlawyer.com.au

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ScotiaMcLeod of Scotiabank Wealth Management

FINALISTS Aaron Hector

IT’S NOT easy to make a name for yourself as a new financial advisor, something Karl Cheong, head of ETFs for Canada at First Trust Canada, certainly recognizes. “For the most part, rookie programs in the industry have been eliminated,” he says. “So where is the youth going to come from? We’re proud to recognize and help them succeed.”

Cory Garlock

“It can be hard for young advisors. You should not be afraid that you’re not worth the position you are in. Be confident that you have enough to offer”

George Halkidis


Jason Pereira

Wealth Professional’s Young Gun of the Year, Millicent Hicks of ScotiaMcLeod, isn’t a newcomer to the industry, but is still in the process of building her practice – and in her opinion, having confidence in your ability is the key to being successful as a young advisor.

Doherty & Bryant Financial Strategists of T.E. Wealth

Adam Schacter

Mandeville Private Client Inc.

Benjamin Waite

Your Investment Manager of PEAK Securities TD Wealth Private Investment Advice Richardson GMP

Woodgate Financial at IPC Securities Corporation

Simon Partington


Richardson GMP

Thomas Cook

Affinity Financial Group, Affinity Securities/Worldsource Securities PROUDLY SPONSORED BY

First Trust

Portfolios Canada


The First Trust companies are a well-respected global enterprise, established in 1991 in the Chicago area, with a mission to offer investors a better way to invest. Total global assets under management or supervision by First Trust is US$99.6 billion as of August 31, 2016..

Karl Cheong First Trust Canada

For more information, visit www.firsttrust.ca

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“HelloLife” Program

FINALISTS BMO Global Asset Management “BMO Canadian ETF Dashboard” Dan Bortolotti “Canadian Couch Potato”

insurance for children (IFC) New School of Finance Provisus Wealth Management “Transcend” Program

Sun Life Global Investments


IN DEVELOPING its “HelloLife” program, Great-West Life was focused on the major demographic shift currently underway in Canada. “The inspiration behind the campaign was helping our clients seamlessly transition into retirement and giving them the ability to co-create a plan with our advisors, which helps them feel like they have control over their retirement plan,” says Marta Graham, associate manager for product marketing at Great-West Life.

“We wanted to do something terribly different that hadn’t been done before in the industry” SHELAGH DALY Great-West Life

Digital marketing is an area that will only grow in importance in the years ahead, something Richard Rohan, VP of global sales at the TSX, recognizes. “Obviously [digital] is how millennials choose to do business, and we wanted to recognize that,” he says.

TMX Group’s key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes, including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, NGX, Shorcan, Shorcan Energy Brokers, AgriClear and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key US markets (New York, Houston), as well as in London, Beijing and Singapore.

Richard Rohan Toronto Stock Exchange

For more information, visit www.tmx.com

Shelagh Daly and Marta Graham Great-West Life www.wealthprofessional.ca www.australasianlawyer.com.au

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The Seidman Kaufman Group of Richardson GMP

FINALISTS Arthur Salzer

Northland Wealth Management

Davis Zhang

Pinnacle Wealth Brokers

Eric Roy

Pinnacle Wealth Brokers

Ida Khajadourian Richardson GMP

Kevin Algajer

BMO Nesbitt Burns

Kevin Haakensen

Prairie Wealth Management of HollisWealth

IN A COMPETITIVE investment environment, advisors are increasingly turning to alternatives – a sector where award sponsor Sprott Asset Management has emerged as a market leader in recent years. “Alternative investing really differentiates an advisor’s practice,” says David Duranovich, the firm’s vice-president of sales. “It’s such a vital asset class, and we’re very proud to support it.”

“We work and study very hard and put significant commitments in terms of time and research efforts to be the best at what we do” JESSE KAUFMAN The Seidman Kaufman Group

Jesse Kaufman of the Seidman Kaufman Group at Richardson GMP took home the award for Best Advisor – Alternative Investments for the second year in a row. He and his team have excelled by using a number of different alternatives products. “It’s all about how the different components interact – not a specific alternative investment strategy,” Kaufman says. “The total is greater than the sum of its parts by virtue of the way strategies work together.”


David Duranovich Sprott Asset Management

Jesse Kaufman The Seidman Kaufman Group of Richardson GMP

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Sprott Asset Management is a Toronto-based asset management company, dedicated to being the most innovative fund company in Canada. Through our diversified offering of mutual funds, hedge funds, physical bullion funds and specialty products, we offer financial advisors unique investment solutions that help them differentiate their businesses and add significant value to their clients’ portfolios. For more information, visit www.sprott.com

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WITH THE arrival of CRM2 and the prospect of more regulatory upheaval on the way, service providers are performing an important role in the wealth management space, freeing advisors from time spent on compliance so they can focus on the actual meat and bones of financial planning. “From our standpoint, we bring the industry together,” says Robert Ebel, director of corporate services at Fundserv, “so that whenever a regulation is changed, what we do best is


FINALISTS Advicent Advisor Websites Blue ID

“We have worked so hard to be the provider in the industry, and to have people let us know they depend us means the world”

Broadridge Financial Solutions Canadian Securities Institute EquiSoft Foran Financial Institute Kronos Technologies Maximizer CRM Wealth Manager


NexJ Systems


Qtrade Financial Group

have everyone talk about it and discuss how we can help the industry meet regulatory needs.” Radius Financial Education, which sponsored this year’s award, recognizes that asset managers and advisors have a great deal of choice nowadays when it comes to service providers, which was reflected in the tough competition Fundserv overcame to take home the trophy. “Radius Financial Education is a service provider as well,” says CEO Jeffrey Shaul. “We recognize how difficult it is to stand out in this competitive environment.”


Radius Financial Education has been producing high-level conferences within the financial services sector in Canada for more than 16 years. For more information, visit www.radiusfinancialeducation.com

The team at Fundserv

Jeffrey Shaul Radius Financial Education 34 34

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l cial



Proven performance. Sentry delivers. Overall Morningstar Rating

Sentry Canadian Income Fund (Series F)

Performance and Morningstar Ratings as at May 31, 2017 1 year

3 year

5 year

10 year

Since inception*






Canadian Focused Equity category: out of 530 funds out of 360 funds out of 183 funds *Series inception: July 28, 2005

Sentry Small/Mid Cap Income Fund (Series F) Performance and Morningstar Ratings as at May 31, 2017 1 year

3 year

5 year

10 year

Since inception*






Canadian Focused Small/Mid Cap Equity category: out of 103 funds out of 70 funds out of 37 funds *Series inception: July 28, 2005

Talk to your Sentry sales representative or call 1-888-698-5553.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compound total returns net of fees (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Series F securities are generally only available to investors who have a fee-based account with their dealer. Morningstar Ratings reflect performance as of 5/31/2017 and are subject to change monthly. The ratings are calculated from a fund’s 3, 5, and 10-year returns measured against 91-day Treasury bill and peer group returns. The top 10% of the funds in a category get five stars. The Overall Rating is a weighted combination of the 3, 5 and 10-year ratings. For greater detail see www.morningstar.ca. www.wealthprofessional.ca 35 www.australasianlawyer.com.au Sentry, Sentry Investments, the Sentry Investments logo and Calmly create wealth are trademarks of Sentry Investments Corp.

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2017-06-09 10:27 6/13/2017 10:07:54 AMAM



RBC Dominion Securities

FINALISTS Arthur Salzer

Northland Wealth Management

Brian Jones

TD Wealth Private Investment Advice

Francis Sabourin Richardson GMP

Ken MacNeal

Richardson GMP

Martin-Charles Plouffe National Bank Financial

Neil McIver

Richardson GMP

Susyn Wagner

CIBC Wood Gundy

Wolfgang Klein

Canaccord Genuity Wealth Management

François Tetu RBC Dominion Securities

NOW THAT a great deal of focus is being placed on the fiduciary

duty of financial advisors, the example set by discretionary portfolio managers is all the more important. This year’s award sponsor, BlackRock Canada, believes the role of PMs is vital in raising standards across the investment industry. “We have consistently wanted to associate our business with this award,” says Warren Collier, head of iShares at BlackRock Canada. “There are truly professional

“I’m really surprised to have won because there were tremendous candidates, and I was only here to enjoy the evening” FRANÇOIS TETU RBC Dominion Securities

advisors in this industry, and these nominees are incredible investors ... and they’re even better at customer service.” It’s a profession where the highest standards are expected – standards that are the foundation of François Tetu’s business. Tetu has been in wealth management for more than two decades, and in that time, client expectations have grown significantly – a challenge he fully embraces. “I’ve been managing for over 20 years, and I think the way people have perceived what I have done has enabled me to win,” Tetu says. “I think there are a lot of different ingredients.”


Warren Collier BlackRock Canada

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iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm. iShares is a global leader in ETFs, with more than a decade of expertise and commitment to individual and institutional investors of all sizes. For more information, visit www.blackrock.com

www.wealthprofessional.ca www.australasianlawyer.com.au

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Rosemary Horwood Wealth of Richardson GMP

FINALISTS Alexander Massouras

The Alexander Massouras Wealth Management Group

Andrew Oproiu

Manulife Securities

Lakshmi Pillai

Manulife Securities

Sean Mikucki

National Bank Financial

Victor Kuntzevitsky

Northland Wealth Management

LAST YEAR’S Young Gun of the Year is 2017’s Rising Star, and the recognition is something Rosemary Horwood takes a great deal of pride in. “The Wealth Professional Awards are an absolutely fantastic opportunity to really engage with your clients,” she says. “Last year I got the promotional cover, and it ended up rallying and stacking my calendar with prospect meetings all through July, which tends to be a very seasonally slow time.”

“It feels fantastic to win this award. I would like to thank all of my clients for rallying behind me with their incredible testimonials to make this dream come true” ROSEMARY HORWOOD Richardson GMP

Rosemary Horwood Rosemary Horwood Wealth of Richardson GMP

Horwood is following in the footsteps of her parents and sister at Richardson GMP while also charting her own path in the industry – and it’s clear she’s prospering, despite some of the potential roadblocks for younger advisors. “As a new up-and-comer ourselves,” says Jim Roach, EVP and head of sales at award sponsor Natixis Global Asset Management, “we know how important it is to acknowledge and reward new advisors and people in the industry.” PROUDLY SPONSORED BY

Jim Roach Natixis Global Asset Management

Natixis Global Asset Management serves thoughtful investment professionals with more insightful ways to understand and manage risk. Through our Durable Portfolio Construction® approach, we help them construct more strategic portfolios that seek to produce better outcomes in today’s unpredictable markets. For more information, visit www.ngam.natixis.com

www.wealthprofessional.ca www.australasianlawyer.com.au

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ONE ADVISOR who has long heralded the value of looking outside Canada when it comes to investing is Francis Sabourin of Richardson GMP, winner of the Global Advisor of the Year Award for the second year in a row. He explains why those seeking long-term growth need to consider an international approach. “India is an emerging market where investors should be looking because there is growth there,” he says. “For long-term returns in portfolios, Canadians had better have some investments abroad. Canada

Francis Sabourin

Richardson GMP


The David Esch Wealth Management Group of National Bank Financial Wealth Management

“In Canada, we have outgrown our market in terms of savings, so we need to get outside of Canada and the US for growth and investing”

Frencho Rampersaud WealthDejavu

Michael Kuzik

RBC Dominion Securities

Raymond Choo HollisWealth

Stella Ng

Scotia Wealth Management


Walter Flores

Richardson GMP

Scotia Wealth Management

could be the most at-risk market going forward.” Excel Funds has become synonymous with emerging-market funds in Canada, and as such, was a natural choice to sponsor this award. “We wanted to recognize an advisor who sees the growth opportunities in emerging markets,” says Darren Gazdag, SVP of business development at Excel Funds. “The way forward is in emerging markets, and it’s time the rest of the industry hops on board.”

Francis Sabourin Richardson GMP


Darren Gazdag Excel Funds

Excel Funds Management is a multiple Lipper Award winner specializing in emerging markets. Founded in 1998 with the launch of the Excel India Fund, the largest and longest-running India-focused mutual fund in Canada, Excel Funds has become a true leader in the emerging markets investment space by offering a wide range of innovative investment products that capture new growth opportunities. For more information, visit www.excelfunds.com

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EXCHANGE-TRADED funds continue to gobble up assets and

Dan Bortolotti

break records both in Canada and across the globe. According to 2017 ETF Champion of the Year Dan Bortolotti, the growth of this industry will only gain momentum in the years ahead. “As more and more investors understand how to use ETFs properly, I think they will become more popular,” he says.

PWL Capital

FINALISTS Benjamin Waite

Your Investment Manager of PEAK Securities

Guy Lalonde and Christian Lamarre National Bank Financial

Shafik Hirani

Aligned Capital Partners

Tyler Mordy

Forstrong Global Asset Management

“I think it is really important that investors understand how to use ETFs properly, and that’s what I’ve tried to do with the work and writing that I’ve done” DAN BORTOLOTTI PWL Capital

While many ETF producers in Canada also sell mutual funds, award sponsor Horizons ETFs is solely committed to this burgeoning industry. “Each of these individuals [has] shown a commitment that is shared by Horizons,” says Steve Hawkins, the company’s president and co-CEO. “We’re an ETF asset-only company, and it’s important to go out of our way to recognize advisors who go out of their way to help this segment of the industry grow.”

Dan Bortolotti PWL Capital


Steve Hawkins Horizons ETFs Management (Canada)

Horizons ETFs Management (Canada) and its affiliate, AlphaPro Management,. are innovative financial services companies offering the Horizons ETFs family of exchange-traded funds. The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. For more information, visit www.horizonsetfs.com

www.wealthprofessional.ca www.australasianlawyer.com.au

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Little Wealth Management Group of HollisWealth

David Little and his wife of 35 years, Deborah, grew up in Kingston, Ontario. After Little graduated from Queen’s University in 1984, the couple moved to Mississauga, Ontario, where Little started his career in the financial services industry with North American Life. In 2015, Little founded the Retirement Income Planners of Canada to assist dentists coming into their retirement years. With the assistance of his portfolio management team, he created the Wealth Legacy Portfolios, which consist of five investment plans to help manage the income and long-term spending goals of retired clients. David’s company, Little Wealth Management Group, has won the Burlington Post Readers’ Choice Award for Best Financial Planner for the last six years, and for the first time in 2016, Little was named one of Wealth Professional’s Top 50 Financial Advisors in Canada and was a finalist for Multi-Service Advisor of the Year at the Wealth Professional Awards. This was followed in 2017 with nominations for Advisor of the Year and Best Practice Independent Advisor Office (Fewer Than 10 Staff).

WHILE FINANCIAL advisors sometimes suffer from an image

problem, individuals like David Little act as a counterpoint to any negative perception of the industry. You don’t last in a job for 33 years unless your clients are happy with your work. After getting his start in wealth management with North American Life in 1984, Little joined Fortune Financial – the firm that would ultimately become HollisWealth – in 1994. HollisWealth is currently

“It’s something you never expect. You go to work every day, and 30 years later, somebody says they are going to recognize you” DAVID LITTLE Little Wealth Management Group

in the process of switching hands from Scotia to iA Financial, which means Little will have a new place of business heading forward, and his commitment remains as steadfast as ever. “I think my passion for the industry has driven me on,” he says. “You just have to put clients first and have a real passion to help them and work with them to make things better for their families – that’s what drives me.” Sponsoring the award again this year is Invesco Canada. “This is a noble profession,” says Invesco SVP and national sales manager Jason MacKay. “We want to remind everyone what qualified advisors do for their clients. To acknowledge someone who has been doing it for 33 years is especially awesome.” PROUDLY SPONSORED BY

Invesco Canada is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. For more information, visit www.invesco.ca

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Jason MacKay Invesco Canada

David Little Little Wealth Management Group of HollisWealth

www.wealthprofessional.ca www.australasianlawyer.com.au

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Tétrault Wealth Advisory Group

FINALISTS Aaron Ruston

Purposed Financial

Drew Abbott TD Wealth

MLD Wealth Management Group of National Bank Financial Nadeem Ibrahim

Educators Financial Group

Renee Rebelo

“Rob has always been a guy who has contributed back to the community. From that aspect, this award is well deserved”

Life Coach Financial Strategies


Sean Baylis

National Bank Financial

RBC Dominion Securities


National Bank Financial has been a leading purveyor of financial services to individuals, corporations and governments since 1859, making it one of Canada’s oldest financial institutions. With a workforce of 20,000 highly motivated employees totally committed to delivering the bank’s promise – “We are the bank that truly takes care of its clients” – it is also the leading bank in Quebec, and is steadily expanding its footprint across the rest of Canada. Overall, National Bank has been one of the best-performing Canadian bank stocks over the past decade (2005-2014). For more information, visit www.nbc.ca

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NATIONAL BANK FINANCIAL has made great strides in recent years, and as a major player in the nation’s banking system, its influence can be felt far and wide. A philanthropic spirit extends across the company, and particularly with Rob Tétrault of Tétrault Wealth Advisory Group. Winning the award for Philanthropy & Community Service was just part of an eventful week for the Quebec-based PM, who welcomed a new daughter to his family just days before the

event at the Liberty Grand. John Cucchiella, SVP and national sales manager for Central, Western & Atlantic Canada at National Bank Financial, accepted the award on Tétrault’s behalf. In doing so, he outlined the importance of charitable giving for companies like National Bank. “Legacy is not what you leave behind; it’s what you give to people,” Cucchiella said. “For our institution to give back to our community is so important. It’s also important for our industry to give back, given how lucky we all are to work in it.”

John Cucchiella accepted the award for Philanthropy & Community Service on behalf of Rob Tétrault

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6/13/2017 10:08:31 AM



FUND PROVIDER OF THE YEAR WINNER Franklin Templeton Investments


FUND PROVIDER of the Year Franklin Templeton celebrates its 70th anniversary this year, and the firm recently made waves with its entry into the Canadian ETF space in May. “We are humbled and honoured,” president and CEO Duane Green said at the ceremony. “We’ve been doing a lot of hard work to re-engage with advisors in

Mackenzie Investments

“I think a new energy from our firm in the marketplace has allowed us to win tonight. It’s all about engagement with your end clients”

Manulife Investments


RBC Global Asset Management

Franklin Templeton Investments

BMO Global Asset Management CI Investments Fidelity Investments Invesco Canada

Sun Life Global Investments TD Asset Management


the Canadian market, and if this is some recognition for all of that hard work, we are absolutely thrilled.” Sponsoring the award once again this year was EquiSoft. “In today’s environment, with so much focus on fees and fee contraction, it’s important to focus on the value of fund providers who bring great investment products to the industry,” says Jonathan Georges, EquiSoft’s VP of wealth management solutions.

EquiSoft specializes in the design and development of digital solutions for the wealth management and insurance industries. Founded in 1994, EquiSoft is a Canadian-based company featuring a growing team of more than 200 professionals with offices in Montreal, Philadelphia, Dallas, Cape Town and Santiago. For more information, visit www.equisoft.com/wealth

Jonathan Georges EquiSoft Dennis Tew Franklin Templeton Investments

Duane Green Franklin Templeton Investments www.wealthprofessional.ca www.australasianlawyer.com.au

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FINALISTS De Thomas Wealth Management Manulife Securities (Laval Office) Northland Wealth Management The McClelland Financial Group of Assante Capital Management


Franklin Templeton Investments is a global leader in investment management with clients in more than 170 countries. Here in Canada and abroad, we are dedicated to one goal: delivering exceptional asset management for our clients. At the core of our success is our multiple independent investment teams – each with a focused area of expertise, from traditional to alternative strategies and multi-asset solutions. All of these investment teams share a common commitment to excellence grounded in rigorous, fundamental research and robust, disciplined risk management. This expertise in Canada, combined with extensive global resources and a focus on excellence, has made us a trusted partner to generations of advisors and investors.

THERE ARE many advantages to having a larger office, but greater scale can be challenging, too. That’s something award sponsor Franklin Templeton Investments is keenly aware of. “On behalf of everyone at Franklin Templeton, we are proud to sponsor this award,” says Duane Green, the firm’s president and CEO. “Our business is built on relationships; to have an office with 10 or more advisors takes a lot of hard work.”

“This is our 20th anniversary, and it’s the highlight of our year to have won the award. I’m going to retire at the end of the year, so this means a lot to me and to the guys here” KIRK POLSON Polson Bourbonniere Financial

Now in its 20th year, Polson Bourbonniere Financial of HollisWealth knows exactly what it takes to succeed in the wealth management business. A collaboration between father and son Kirk and Derek Polson, along with Paul Bourbonniere, the business is primed for further expansion in the years ahead. “I look forward to being outvoted by my two partners, who are my juniors, but we will hopefully have a nice blend of experience and youth,” Bourbonniere says. “We look forward to the next 25 years because we think there are some tremendous opportunities. Clients need us more than ever, and we have to prove our value every single day.”

For more information, visit www.franklintempleton.ca

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Michael Derby, Derek Polson, Kirk Polson and Paul Bourbonniere Polson Bourbonniere Financial of HollisWealth

Duane Green Franklin Templeton Investments Canada

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6/13/2017 10:08:42 AM



WITH THE rise of robo-advisors, some have doubted the future of financial advisors. It’s not a belief anyone at the Mandeville Group subscribes to, however. “Our personal view is there will always be a need for the advice channel,” says Frank Laferriere, SVP and chief

Mandeville Private Client Inc.

FINALISTS Canaccord Genuity Wealth Management

“We live and breathe facilitating and enabling advisors and their success, so we’re very honoured with this”

CIBC Wood Gundy HollisWealth Investment Planning Counsel


Investors Group

Mandeville Private Client Inc.

Manulife Securities

operating officer. “The difference now is that it’s important for advisors to differentiate their practice from others, so you have to really concentrate on the value that you’re bringing to clients.” Financial planning encompasses many different areas in 2017, and the advisors who prosper in the role are the ones who can best adapt to that new reality. “It’s not securities selections; it’s not transactions – it’s that extra value that goes a long way,” Laferriere says. “For us, that translates into access to products that are usually reserved for the uber-wealthy.” Award sponsor Fundserv was keen to point out how important the role of the advisor remains in the investment industry. “For us, distribution is a key component of our ecosystem,” says Peter Lacasse, Fundserv’s head of sales and relationship management. “We’re proud to be a part of something that recognizes their success.”

Frank Laferriere Mandeville Private Client Inc.


Peter Lacasse Fundserv

Fundserv is a business-to-business electronic network with worldclass transaction-processing applications, servicing the Canadian investment industry. For more information, visit www.fundserv.com

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6/13/2017 10:08:48 AM




McNulty Group of HollisWealth


AJ Chase Financial Group at ScotiaMcLeod

Chad Larson

MLD Wealth Management Group of National Bank Financial

David Babbitt

CIBC Wood Gundy

David Little

Little Wealth Management Group of HollisWealth

Elie Nour

Nour Private Wealth of Manulife Securities

Kyle Richie

Richie Group Wealth Management of Investors Group

William Vastis

THE ADVISORY business is clearly in a state of flux, but that’s a good thing, in the opinion of this year’s Advisor of the Year, Mark McNulty. “I’m part of a new wave of advisors that is changing the business and is going to continue to do so,” he says. “The industry doesn’t know what is about to hit it.”

“I tried to make out this wasn’t a big deal, but this morning my wife noticed that I was getting nervous, and I never usually get nervous!” MARK MCNULTY McNulty Group

Frank Laferriere, SVP and chief operating officer at Mandeville Private Client Inc., expressed why his firm wanted to associate itself with this particular award. “Our chairman, Michael Lee-Chin, is one of the most successful advisors in the world, and he’s still an advisor,” he says. “We understand the extra mile advisors have to go to provide value for clients. We do everything in our power to help them do their jobs.”

The William Vastis Wealth Management Group of RBC Wealth Management


At Mandeville, your interests always come first when we suggest solutions or investment approaches. We are dedicated to conducting business with the utmost transparency, professionalism and integrity. We are committed to creating and preserving your wealth. For more information, visit www.mandevilleinc.com

Mark McNulty McNulty Group of HollisWealth

Frank Laferriere Mandeville Private Client Inc.

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6/13/2017 10:08:52 AM


ADVERTISING CAMPAIGN OF THE YEAR WINNER Mackenzie Investments “Innovation Matters”

FINALISTS Fidelity Investments “Meet Will Danoff”

iA Clarington Investments “Overcome Income Inertia”

Invesco Canada

“We don’t have huge budgets, so we have to make sure we’re speaking to the right people at the right times”

“Do You Have Access?”


RBC Global Asset Management

Mackenzie Investments

“Why Choose?”

Sprott Assest Management “Bonds Are Broken”

Vanguard Investments Canada Inc. “We’re in It Together”

Eric Kirzner Rotman School of Management

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THERE’S A lot of competition in the asset management business in Canada. Mackenzie Investments is well aware of that fact, and the firm’s commitment to putting its message across that “Innovation Matters” was instrumental in its win for Advertising Campaign of the Year.

“We are building a brand and trying to keep it so that everything we do is based around our thinking and confidence in a changing world – everything relates to that,” says Jim Wortley, AVP and creative director at Mackenzie. Presenting Mackenzie with its award was Eric Kirzner, professor of finance at the Rotman School of Management. “My field is finance,” he says, “and over the years I’ve come to understand the importance of advisors and the importance of campaigns to get that advice out there and to clients.”

Jim Wortley Mackenzie Investments

Ben Barton Mackenzie Investments

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MULTI-SERVICE ADVISOR OF THE YEAR WINNER Janet Baccarani and Jennifer Black DFS Private Wealth

FINALISTS Andrew Ellis

Raymond James

Duane Francis

Mandeville Private Client Inc.

Frank Danielson

Danielson Group Wealth Management of Assante Capital Management

Gina Macdonald

Macdonald Shymko & Company

James Britton

Western Canadian Brokerage Group

Jason Nagel

Three60 Wealth & Estate Solutions

Lyle Rouleau

Rouleau Investment Group of CIBC Wood Gundy

BEING ABLE to offer clients a multitude of services under the same

roof is becoming an increasingly important part of the wealth management business. “This award is special because it involves a multi-disciplinary approach, and that’s what clients need – a holistic approach to investing,” says Neil Gross, president at Component Strategies Consulting, who presented the award.

“I think we won because we do so much for our clients. We look at the whole picture” JANET BACCARANI DFS Private Wealth

Jennifer Black and Janet Baccarani of DFS Private Wealth took home the prize for Multi-Service Advisor of the Year. It isn’t the first time the pair have tasted success at the WP Awards – last year, they won the Engagement, Loyalty and Client Care Award. “To us, multiservice means going above and beyond and looking at the big picture and helping clients find solutions or opportunities in areas other than just investing or traditional financial planning,” Black says.

Janet Baccarani and Jennifer Black DFS Private Wealth

Neil Gross Component Strategies Consulting

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6/13/2017 10:09:00 AM


BDM/WHOLESALER OF THE YEAR WINNER Zachary Sikorski Sun Life Financial

FINALISTS Alain Desbiens

BMO Global Asset Management

Darren Gazdag

Excel Funds Management

Harry Cheung

Dynamic Funds

Jeff Gibbons

Invesco Canada

Philip Douglas

Horizons ETFs Management

Warren Miles-Pickup Sun Life Financial

THE CONDUIT between BDMs and advisors is crucial in the asset

management business. Clients want to know their financial planner is up to date with the latest products and the returns they can potentially offer. Keeping abreast of all these developments is easier said than done, so that’s where wholesalers come in, providing the infor-

“I think being different from everyone else has helped me win this award. What we do is distill best practices from top-producing advisors and share those with our partners” ZACHARY SIKORSKI Sun Life Financial

mation that advisors need on a plethora of new funds. In 2017, Zachary Sikorski, director of wealth at Sun Life Financial, performed that role to a tee, making him a worthy recipient of the BDM/Wholesaler of the Year Award. At the ceremony at the Liberty Grand in Toronto, Sikorski reflected on why Sun Life has excelled when it comes to the sales side of the business. “Our approach is value first, so once we deliver value, we actually help advisors grow their practice by sharing the best practices from top producers,” he said. Presenting Sikorski with his award was Dane Taylor, sales manager of wealth and insurance products at KMI Media, who identified the importance of sales and financial planning being in alignment. “Wholesalers and BDMs for fund companies and life insurance providers are on the front line along with the advisors,” he says. “They are an integral part of the Canadian wealth management industry.”

Dane Taylor KMI Media Zachary Sikorski Sun Life Financial

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WINNER Caring For Clients

FINALISTS Danielson Group Wealth Management of Assante Wealth Management Family Tree WealthManagement of IPC Securities Corporation The Lance Howard Group of IPC Investment Corporation Little Wealth Management Group of HollisWealth Lysnes Magreehan Wealth Management of Canaccord Genuity Wealth Management Richie Group Private Wealth Management of Investors Group Tina Tehranchian Team of Assante Capital Management Western Canadian Brokerage Group

The team at Caring for Clients

CONTRARY TO conventional wisdom that the dominance of the big

banks is making wealth management much more difficult for smaller operators, Rona Birenbaum, the founder of Caring for Clients, is highly optimistic about the future. “Being an independent practice in

“I’m so excited to be recognized for all of the hard work and the value we have created over the past 17 years” RONA BIRENBAUM Caring for Clients

Canada is easier now than it was 17 years ago,” she says. “Consumers now are looking for objective, unbiased advice, and they understand that they don’t have to be dealing with the large institutions to get that. It’s taken a long time, but now we are where we need to be.” That journey has led Caring for Clients to win this year’s award for Best Practice Independent Advisor Office (Fewer Than 10 Staff), a recognition that proves that the firm’s years of hard work are really coming to fruition. Presenting the award was Carolyn Seaforth, VP of business development at Pinnacle Wealth Brokers, who says that while the major companies still rule the roost in the advisory business, there is plenty of room for smaller operators to thrive. “In smaller offices, the vital component is teamwork, and they are often the least recognized,” she says. “But with events like this, they can be in the spotlight where they deserve to be.”

Carolyn Seaforth Pinnacle Wealth Brokers

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6/13/2017 10:09:07 AM



2017 Meet 50 individuals who have shaped the investment climate in Canada over the past year

SINCE Wealth Professional last published its Hot List a year ago, it’s safe to say that many investors are better off now than they were then. At the beginning of 2016, Canada was still reeling from the oil shock, but as that industry recovered, so did the rest of the economy. Savvy investors used the downturn as a chance to pick up undervalued stocks, as savvy investors tend to do, and you’ll find some of them featured in this Hot List. The past year also saw the political shocks of Brexit and Donald Trump’s election victory, which, surprising as they were, ultimately did little to slow momentum in the global equity markets. The Big Five banks prospered as the bull market gathered pace, but despite that, many of those same institutions decided to shake things up in the boardroom, signalling a new era for banking. Canada’s


world-renowned pension funds have also seen assets grow substantially over the past year as they embark upon more globally focused investment strategies. Then there are the regulators, which this nation has no shortage of. In the advisory world, the focus is now on a best interest standard for financial planners, which on the surface looks like a no-brainer, but in reality has created division on just how it can be enforced. The investment industry continues to evolve, presenting a major challenge for advisors, fund managers, institutional investors, banks, service providers and regulators. As a result, the individuals embracing innovation and driving change are the ones who will prosper – and many of them are the same people you’ll see represented on this year’s Hot List.


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NAME Greg Pollock

AGF Management


Jay Bhutani

Bank of Canada


Stephen Poloz

Beutel Goodman


Stephen Arpin

Beutel Goodman


William Otton



Darryl White

BMO Global Asset Management


Mark Raes

Caisse de dépôt et placement du Quebec


Michael Sabia

Canaccord Genuity Wealth Management


David Durno

Canaccord Genuity Wealth Management


Mike Shuh

Canada Pension Plan Investment Board


Mark Machin

Canadian ETF Association


Pat Dunwoody

Capital Markets Regulatory Authority


Kevin Cowan



Victor Dodig



Guy Cormier

Dynamic Funds


Mark Brisley

Excel Funds


Bhim Asdhir

Fidelity Investments


Will Danoff



Karen Adams

Genus Capital


Wayne Wachell

Goldman Sachs


Ian Taylor

Horizons ETFs


Steve Hawkins

iA Financial Group


Jocelyne Bourgon



Andrew Kriegler

Investment Funds Institute of Canada


Paul Bourque

J2 Capital Management


Gerard Ferguson

JPMorgan Chase Canada


David Rawlings

LOGiQ Asset Management


Joe Canavan

Manulife Financial


Alan Wicks

Manulife Financial


Sandy Sanders



Mark Gordon

National Bank


Joseph Guagliano Sr.

National Exempt Market Association


Cora Pettipas

NEO Exchange


Jos Schmitt

Office of the Superintendent of Financial Institutions


Jeremy Rudin

OMERS Ventures


John Ruffolo

Ontario Ministry of Finance


Charles Sousa

Ontario Securities Commission


Maureen Jensen

Qtrade Financial


Catherine Wood



David McKay



Kathleen Taylor

RBC Global Asset Management


Hanif Mamdani



Brian Porter

SEI Investments Canada


Rachel Volynsky

Sprott Asset Management


John Wilson

StennerZohny Group


Thane Stenner

Sun Life Financial


Melissa Kennedy

Taylor Asset Management


David Taylor

TMX Group


Jay Rajarathinam



Michael Katchen

WILL DANOFF Fidelity Investments

Fidelity Investments’ Canadian operation started 2017 off with a bang with the January announcement that Will Danoff would be managing its Fidelity Insights Class. One of the most highly regarded portfolio managers in the US, Danoff is bringing his expertise to Canada for the first time. He is perhaps best known for managing the Fidelity Contrafund, which he took over in 1990 and grew to more than $100 billion in assets, making it the largest solely managed active equity mutual fund in the US. A graduate of the Wharton School at the University of Pennsylvania, Danoff has developed a reputation as an expert stock-picker, identifying companies that can offer sustained, above-average earnings growth.

CHARLES SOUSA Ontario Ministry of Finance

In late April, Ontario Finance Minister Charles Sousa released the ruling Liberals’ first balanced budget in a decade. Those in investment circles were unsurprised by Sousa’s decision to shift regulation of syndicated mortgage investment products to the Ontario Securities Commission; that change was recommended last year by an expert panel, which argued that syndicated mortgages should be regulated like other securities. Sales of syndicated mortgages in Ontario have exploded in recent years, increasing to $6 billion in 2016, making Sousa’s decision to tighten oversight of this sector somewhat of a formality. Also included in the budget were other measures to try to cool the GTA market, including rent controls and a tax hike on speculators.





ALAN WICKS Manulife Financial

The Manulife Dividend Income Fund marks its fifth anniversary this year, and during that time, assets have grown to $2.1 billion. Rated as a five-star fund by Morningstar, its five-year rate of return stands at an impressive 15.94%. Overseeing that performance is lead portfolio manager Alan Wicks. Alongside Duncan Anderson, Jonathan Popper and Conrad Dabiet, Wicks heads the Manulife Value Equity team, a collaboration established in 1996 that now manages more than $17 billion in assets. “The Value Equity team seeks to de-risk businesses and invest in companies with the best risk/reward,” Wicks explains. “We achieve this by comparing the buy and sell targets with the current market price of every security in the team’s investment universe – this comparison determines the upside opportunity or downside risk that exists for every company, given its current market price.” In constructing the portfolio for the Manulife Dividend Income Fund, Wicks and his team use a strategy called ‘conglomerate portfolio,’ which ensures that anyone buying into the fund can count on numerous checks and balances embedded in the way it is run. “This approach involves thinking about the portfolio as if it were a conglomerate, with divisions of the conglomerate comprised of individual public businesses,” Wicks says. “The Value Equity team constructs the conglomerate with diversified and uncorrelated divisional profitability, and focuses on bottom-up stock selection and diversifying by business risk.” This method is used to limit exposure to the more cyclical sectors such as materials, energy and financials, which have a heavy weighting in the Canadian markets. For that reason, the portfolios managed by Wicks and his team bear little resemblance to the underlying benchmarks. “Active management is nothing new to us – we have never looked like the index,” he says. “The challenges are no different today than in the past 20 years. The goal is to provide superior risk-adjusted returns for clients and partners, and the team has done that by looking different than the index.”


LOGiQ Asset Management

A respected veteran of the business, Joe Canavan knows a thing or two about what it takes to succeed in the asset management field. Previously the CEO of both Synergy Asset Management and Assante Asset Management, Canavan occupies the same position at the newly formed LOGiQ Asset Management. The firm is a result of last year’s merger between Aston Hill Financial and Front Street Capital; the company has since also acquired Integra Global Advisors, bringing its total AUM to $5.2 billion. Soon after being named CEO of LOGiQ, Canavan outlined his vision for the firm: “This transaction positions the combined company for future growth as a leading intermediate independent asset management company and a strong alternative to bank-owned asset managers.”


In April, industry service provider Fundserv named Karen Adams its new president and CEO. In doing so, the company selected someone with a wealth of experience across the financial sphere. A graduate of Queen’s University and the University of British Columbia, Adams received her Institute of Corporate Directors designation at the University of Toronto’s Rotman School of Management in 2014. During that time, she served as president and CEO of Alberta Pension Services, where she oversaw a $60 million revamp of the organization. As the new leader of Fundserv, Adams will oversee strategic direction, products and day-to-day operations.


Horizons president and CEO Steve Hawkins has been a regular fixture in financial media over the past couple of months, following his company’s launch of the world’s first marijuana-focused ETF in April. The Horizons Medical Marijuana Life Sciences ETF (HMMJ) includes licensed medical marijuana producers in Canada, as well as various ancillary companies across North America. With the legalization of recreational cannabis slated for Canada Day 2018, Hawkins has been a noted advocate for the vast potential of this burgeoning industry. Currently, Horizons has 77 ETFs listed on the TSX and more than $7.5 billion of assets under management; Hawkins and his team will be hoping the firm’s latest product can boost that number considerably in the years ahead.


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JOHN WILSON Sprott Asset Management

One of the more notable investment stories of 2017 has been the acquisition of Sprott Asset Management by the firm’s CEO, John Wilson, and president, James Fox. According to Wilson, the $46 million deal is expected to reach regulatory approval by late in the second quarter of 2017 or early in the third, and will see the yet-to-be-named entity assuming control over Sprott’s mutual fund business. Sticking to what it knows best, the parent company, Sprott Inc., will retain the metals, natural resources and real assets side of the business, which accounts for $7.5 billion in assets under management. The split has been conducted amicably, and the new company led by Wilson and Fox will retain strong ties with their former employer. “Sprott has a large passive business based on precious metals, so that is staying with them,” Wilson says. “The gold investment team is staying with Sprott, but they will subadvise on our precious-metals-related mutual funds.” Having joined the company in 2012, Wilson arrived with a goal to make the Sprott name about much more than just precious metals. He has been pretty successful in that respect: Sprott Asset Management has developed a reputation as one of Canada’s top fund managers in the alternative space. That success ultimately created a division between Wilson’s team and the top brass regarding the future direction of Sprott, leading the two sides to go their separate ways. “We have grown and diversified our business over time, but when you are part of a parent organization whose primary focus is precious metals, there are only so many things the whole organization can accomplish at once,” Wilson says. “A lot of times we lost out on some of the strategies we wanted to do to precious metals strategies they wanted to do.” Some of those strategies will now resurface in the months to come when the deal is finalized, and that will likely mean a new entrant into Canada’s ETF market. “We are happy to stay on the active side, but that doesn’t mean some of our active strategies can’t be rolled into an ETF,” Wilson says. “It’s a different way to buy a strategy; frankly, we don’t mind either way. There are some technical and regulatory issues to get around – when you are doing alternative funds with things like options involved, it becomes a little more complicated.”


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Canaccord Genuity

BMO Global Asset Management

Earnings reporting day hasn’t been that pleasurable an experience for Canaccord Genuity for a number of years now, but in 2017, it appears the tide has turned – the firm most recently posted a net income of $4.5 million. A major part of the turnaround has been recruiting top talent such as Mike Shuh, who left CIBC last September to head Canaccord Genuity’s financial institutions group, where he has been tasked with keeping Canaccord Genuity’s recent resurgence firmly on track.

As head of product for ETFs and mutual funds since 2009, Mark Raes has watched BMO GAM massively expand its presence in the ETF space. Today, BMO accounts for $37.8 billion in ETF assets in Canada, putting it in second place next to global kingpin BlackRock – but is the undisputed leader when it comes to net creations over the past year, with a total of $8 billion for 2016. Raes, a graduate of Wilfrid Laurier University, has been instrumental in driving that growth, building one of Canada’s most accomplished teams as the ETF industry continues to rapidly expand worldwide.

HANIF MAMDANI RBC Global Asset Management

As the head of alternative invest­ ments for RBC Global Asset Management, Hanif Mamdani’s job is to think outside the box when it comes to his funds. As such, the oil shock of 2015 saw him increase his exposure to energy companies. Buying at that time meant some real bargains, and he was able to record gains of more than $1 billion as the sector recovered in 2016. The PH&N Absolute Return Fund Mamdani manages has a one-year rate of return of 31.3%, which stands far and above its peers and led Mamdani to win an award for the best combined 10-year return and Sharpe ratio at the 2016 Canadian Hedge Fund Awards.


In choosing its Fund Manager of the Year for 2016, Morningstar went with the duo of Stephen Arpin and William Otton of Beutel Goodman. A lot of equity funds tasted success last year as markets here and in the US rallied strongly, but it was the performance of Arpin and Otton’s Small Cap Fund in the down times – delivering returns almost double that of their peers over the past two years, including 21% last year – that separated them from their competitors. As vice-president of Canadian equities at Beutel Goodman, Arpin also oversees technology, consumer discretionary and energy stocks for the firm. Otton, meanwhile, has excelled in the Canadian small-cap space, with particular focus on metals, minerals, golds, printing, steel and fertilizer.



THANE STENNER StennerZohny Group

So far, 2017 has been a year of great change for Thane Stenner, the co-founder of StennerZohny Investment Partners+. In March, his team moved from Richardson GMP to the Graystone Consulting group of American banking monolith Morgan Stanley International. The switch also necessitated a change in surroundings – the team will now be based in the heart of Silicon Valley. By moving under the Morgan Stanley umbrella, Stenner – who retains control of the group as managing director – hopes to expand the team’s international footprint, catering to high-networth individuals, institutions and foundations.



Goldman Sachs

In appointing Jocelyne Bourgon as the new chair of its board of directors, iA Financial chose someone with pristine credentials. The first woman ever to serve as clerk of the Privy Council, Bourgon’s work with the public service over decades resulted in her being named an officer of the Order of Canada. Her influence has been felt on the international stage, too – from 2003 to 2007, Bourgon was ambassador to the Organization for Economic Cooperation and Development [OECD]. A member of the Industrial Alliance board of directors since 2014 and its vice-chair since May 2016, Bourgon was the natural choice to succeed outgoing chair John LeBoutillier when he retired in May.

iA Financial Group

Having joined Goldman Sachs in 2000, Ian Taylor has distinguished himself across various continents in the years since. After successful stints in Hong Kong, Sydney and New York, Taylor was recently appointed as Goldman’s head of equity capital markets [ECM] for Canada. Taylor previously held the same role for Goldman’s Latin America operation, excluding Brazil, and will combine his ECM responsibilities with overseeing the firm’s real estate, lodging and gaming business for the Americas.



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Bank of Canada


As monetary policy shifts in the US, all eyes were on Bank of Canada governor Stephen Poloz for his April report. Known for his caution, Poloz announced that the Canadian central bank would not follow the same path as its US counterpart – at least not yet. The bank did increase its growth outlook to 2.6%, up from its 2.1% forecast in January, but an interest rate hike isn’t likely until 2018 at the earliest. However, the fact that a rate hike is on the table at all marks a considerable shift in BoC policy.

As head of Canada’s largest bank, David McKay has influence that stretches far beyond the corridors of power at RBC. The bank is not just the biggest of the Big Five, it is getting considerably bigger. RBC’s latest earnings results reported net income of $3.02 billion for the first quarter, up $580 million (or 24%) from a year ago. The sale of the US operation of Moneris Solutions Corporation contributed $212 million to that amount, but a 15% increase of $368 million is still pretty impressive. McKay has been a part of RBC since starting his career in 1998 and has overseen the bank, moving from strength to strength, since becoming CEO in 2014.

MARK MACHIN Canada Pension Plan Investment Board

Installed as CEO of Canada’s largest pension fund last June, Mark Machin now has the task of safeguarding the assets of some 19 million Canadians. The CPPIB’s investment strategy has become increasingly global in recent years, an approach that has served it well – in the past five years, managed assets have doubled to more than $300 billion. Prior to joining the CPPIB in 2012, Machin spent more than two decades in Asia with Goldman Sachs’ capital markets, financing and investment banking divisions. As such, he has the experience required to lead the CPPIB as it expands its reach worldwide.

PAT DUNWOODY Canadian ETF Association

As head of the industry body for ETFs in Canada, Pat Dunwoody has seen the organization grow in size as more and more providers have entered the space. Canada now has 24 different ETF providers, and that number is likely to grow in the months ahead. CETFA’s recent Q1 report revealed that ETFs ended March 2017 at a new record level ¬of $122.9 billion. This was achieved by inflows of $6.5 billion – so the asset managers that haven’t yet jumped on the ETF bandwagon might be reconsidering their position in the months ahead.




Caisse de dépôt et placement du Quebec


Appointed as president and CEO of CDPQ in 2009, Michael Sabia had his term renewed until 2021 earlier this year. The former head of BCE was regarded as a safe pair of hands for the pension fund when he came into the role, and that has proven the case – the institution has shown consistent growth under his tenure. Its most recent results showed asset growth of $111.7 billion over the past five years, for an annualized return of 10.2%. The fund’s assets now stand at $270.7 billion, and Sabia is striving to build on that number, putting a particular focus on Quebec’s digital economy.

In 2014, Kathleen Taylor became the first woman to lead the board of a major Canadian bank. She has excelled in the role since then, winning the Governance Achievement Award at the Excellence in Governance Awards this past November. Although Taylor began her career on Bay Street, her leadership abilities were honed as CEO of Four Seasons Hotels, a company she worked for 23 years until becoming chair of RBC. Now that RBC is firmly installed as the premier bank in Canada, it will be Taylor’s role to ensure the institution’s governance reflects its lofty position.


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In January, AGF Management became the latest asset manager to enter the ETF space in Canada when it launched its quantitative investment platform, AGFiQ Asset Management. The new entity is a collaboration between AGF and its affiliates from Highstreet Asset Management and FFCM, and the firm’s new head of ETF strategy, Jay Bhutani, believes it’s a development likely to find favour among investors in Canada. “To ensure we develop unique solutions and avoid what could be considered ‘me too’ products that are all too prevalent in our industry, we approach our development process with patience and discipline that most firms don’t have,” Bhutani says. “When we have a new investment thesis, we don’t just bring it to market. We incubate it internally and test the thesis with real dollars to ensure the product delivers the way we expect.” Bhutani has worked with AGF for more than 10 years now, occupying various roles with the company, including head of product, interim head of marketing and vice-president of business solutions. His latest role is an important one for a company that is going through a transition period as it celebrates its 60th anniversary this year. The company and its founder, Warren Goldring, were pioneers of the mutual fund business in Canada, so active management is at the core of AGF’s business. Now it’s bringing that same approach to the ETF space, which Bhutani believes will set it apart from the rest. “Our goal is to provide investors with solutions that deliver higher risk-adjusted returns by assessing and targeting the factors that drive market returns,” he says. “Our multi-factor approach allows for intelligent portfolio construction that provides opportunities for total return while also actively managing risk and the potential for losses.” After launching AGFiQ in the Canadian marketplace in January, AGF made the leap into the much bigger and potentially more lucrative US market in April, a move the company celebrated by ringing the opening bell at the New York Stock Exchange. It was a development years in the making, but it really gathered momentum with the acquisition of a majority stake in FFCM in 2015. Combining the expertise of the FFCM team with the existing quantitative investment knowledge of Highstreet Asset Management, AGF was ready to launch AGFiQ and enter a new phase. “Our goal at AGFiQ is to provide better outcomes by focusing on factor-based quantitative strategies that provide better risk-adjusted returns,” Bhutani says. “That is how we will continue to differentiate ourselves as a firm.”






OMERS Ventures


As CEO of OMERS Ventures, it’s John Ruffolo’s job to find investment opportunities for the Ontario Municipal Employees Retirement System. In recent years that has meant a focus on the nation’s burgeoning tech sector – the fund has injected capital into startups such as Hootsuite and D2L Corp, companies where Ruffolo also occupies a board seat. Prior to coming on board with OMERS, Ruffolo was a partner with Deloitte and is a member of the Canadian Institute of Chartered Accountants – so he knows a thing or two about making sure the books at OMERS Ventures stay in check.


Like many Canadians, Scotiabank CEO Brain Porter has been concerned about the intentions of the capricious head of state south of the border. Specifically, he wonders where the Trump administration might be headed in terms of trade agreements, a topic that was a key part of Porter’s address to shareholders at Scotia’s recent AGM. “As Canada’s international bank, we have always been strong proponents of the free movement of goods and services,” he said. “After all, Canadians benefit from a vast network of trade agreements that have helped to accelerate economic growth, create jobs and boost living standards.”

Ontario Securities Commission

Maureen Jensen has had a busy first year as chair and CEO of the OSC as the rules governing the wealth management industry are analyzed and debated at length. The regulator also made headlines recently after instigating proceedings against Home Capital and three of its executives for allegedly breaching Ontario securities law by misleading investors in 2015. The share price for the alternative mortgage lender subsequently tanked, and as deposits flooded out, the firm was forced to secure a $2 billion line of credit from the Healthcare of Ontario Pension Plan.


While drafting a budget that makes everyone happy is pretty much impossible, there was one section of the 2017 Ontario budget that pleased Advocis CEO Greg Pollock. The head of Canada’s main advisory association welcomed the government’s commitment to work with regulators to ensure certain standards for the profession. “Advocis is fully supportive of initiatives that promote consumers’ welfare and best interest, as well as access to professional financial advice,” he said. This means tightening rules so financial planners cannot operate without regulatory oversight or professional proficiency requirements, a development Pollock believes is long overdue.



This is a milestone year for BMO – its 200th anniversary – and one where the levers of power will change. Darryl White will replace Bill Downe as CEO of the bank on November 1, having been installed as COO last year. White has been with BMO for the past 23 years, building his reputation as an investment banker before becoming head of BMO Capital Markets in 2014. His success in that role earmarked him for greater things; as COO, he oversaw personal and commercial banking, wealth management and marketing for the bank. Now he assumes the massive responsibility of the top job as BMO repositions its banking business for the digital age.

JEREMY RUDIN Office of the Superintendent of Financial Institutions

Appointed superintendent of the OSFI in 2014 for a seven-year term, Jeremy Rudin’s job is to make sure Canada’s banks are not forgetting any of the harsh lessons from the financial crisis. Speaking at the C.D. Howe Institute recently, Rudin outlined his intention to tighten solvency rules, even if the Basel Committee remains deadlocked in its efforts to stem risky banking practices internationally. “Canada is preparing to move ahead on its own with a Canada-specific plan for improving our capital regime,” he said. Accordingly, the OFSI will formulate a plan governing variations in risk weights on different assets across Canadian banks that use their own internal rating system.


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MELISSA KENNEDY Sun Life Financial

Melissa Kennedy is no stranger to awards. The Sun Life EVP recently received a distinguished alumnus award from the University of Toronto for her public service work and commitment to the community. She also won the Women of Influence Canadian Diversity Champion Award in 2012; equality in the workplace is something she takes very seriously. The financial services industry is not the most enlightened when it comes to equal representation, especially in executive positions, but that is slowly changing. “I think progress is being made, but like most industries, more can be done,” Kennedy says. “There has been a lot of debate in Canada about the idea of gender quotas on boards. Sun Life has made a target of one-third of its board being women – I think companies in general are stepping up.” When it comes to huge companies like Sun Life, environmental, social and governance factors are becoming increasingly important. As a publicly traded company, Sun Life’s senior management needs to ensure that operations are running to a standard that will satisfy current and potential shareholders. “I’m the executive sponsor of our sustainability program, and our platform is actually quite unique,” Kennedy says. “We have the usual ESG, but we have a fourth pillar in our sustainability platform that includes ‘organizational resilience.’ Within that organizational resilience pillar are our diversity commitments at Sun Life.” Part of Kennedy’s remit at Sun Life is heading the company’s compliance department. It’s a considerable responsibility – Sun Life is a global enterprise with three major lines of business encompassing insurance, wealth and asset management. Given the fact that regulators have been busy reshaping these industries, overseeing compliance is a monumental task. “What I appreciate about Sun Life since I joined three years ago is the commitment to compliance,” Kennedy says. “The compliance function is really important, so there is regular board reporting and accountability. We are in seven countries in Asia: China, India, Hong Kong, the Philippines, Indonesia, Malaysia and Vietnam. There are different legal regimes in those countries; many have common law, but some do not. It is always a challenge.”


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Capital Markets Regulatory Authority


In April, IIROC released a review of how investment firms are meeting the requirement to manage compensationrelated conflicts in the best interest of the client. The findings showed a number of areas where the industry needs to improve, including insufficient disclosure, a lack of oversight on conflicts and inadequate management of the shift to fee-based and managed accounts. The association’s president and CEO, Andrew Kriegler, was clear on what needs to be done. “As a result of these findings,” he said, “IIROC is immediately taking a number of important steps to make it clear that our rules and guidance put the best interest of the client ahead of the interests of IIROC-regulated firms and their representatives.”

A joint initiative between the federal government and BC, Ontario, New Brunswick, Saskatchewan, PEI and Yukon, the Capital Markets Regulatory Authority is expected to come to fruition next year. In the meantime, the Capital Markets Authority Implementation Organization is laying the groundwork for the new watchdog, including the appointment of its chief regulator, Kevin Cowan. A former president of TSX Markets and the TSX Venture Exchange, Cowan’s background is in corporate and securities law, making him an ideal choice to lead the new regulatory body. It will be his responsibility to make sure the CMRA is able to carry out its remit of streamlining the capital markets regulatory framework while preserving the strengths of the current system.

While it’s not apparent yet what effect the new CRM2-mandated reporting standard will actually have, what is crystal clear is that advisors in 2017 need to be much more transparent. That’s why the MFDA released its Investor Guide last winter to help the public figure out what the new reporting standard actually means. “This initiative is part of the MFDA’s commitment to provide plain-language materials to investors in order to assist them in understanding products, performance, cost and the advisory process,” MFDA CEO Mark Gordon said at the time. As head of the association, it’s Gordon’s responsibility to ensure that mutual fund dealers across Canada are providing the right information to their clients before they invest.

DAVID TAYLOR Taylor Asset Management

The president and CIO of Taylor Asset Management, David Taylor has become a regular voice in the investment media, and for good reason. As the portfolio manager for the IA Clarington Focused Canadian Equity Class, his strategy led to returns of 35.5% for the fund in 2016. Performance like that tends to attract attention, and Taylor is candid about his investment philosophy – he took advantage of the oil shock in 2015 to increase the fund’s Canadian weighting, and his expectations for a turnaround ultimately came to fruition. Taylor is not afraid to take a risk if he sees inherent value – he recently bought a 4% stake in the embattled Home Capital Group when its shares sank.



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SANDY SANDERS Manulife Financial

The Manulife Strategic Balanced Yield Fund, managed by the Manulife US Core Value Equity team, celebrates its fifth anniversary this year. The fund combines global equity and fixed-income securities; Sandy Sanders leads the team alongside Michael Mattioli. In constructing the $2.2 billion fund, value is at the forefront of Sanders’ mind. “When do we buy? When the market allows us to purchase an equity that is trading at or below 70% of its intrinsic value estimate,” he says. “By attempting to buy dollars for 70 cents or less, we think it provides a wide enough margin of safety.” This approach doesn’t shift depending on market cycles. It is a longterm strategy that has served Sanders and his team well – the one-year return on the fund is 14.32%. “Our strategy is to pay less for businesses than what they are worth,” Sanders says. “We do not attempt to guess where the market will trade equity in any short-term time period. Rather, our focus is on estimating the intrinsic value of a business. We are looking to own businesses for less than their worth. If not, we will look at other opportunities, no matter how solid a business is.”


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It has been a meteoric rise for Wealthsimple and its founder and CEO, Michael Katchen. There aren’t many CEOs in Canada – or anywhere else – overseeing a business with more than $1 billion in AuM while still in their 20s, which was why Toronto Life saw fit to name Katchen one of its 50 Most Influential People last year. Katchen has certainly made waves in the investment industry – Wealthsimple and its robo-advice platform expanded into the US earlier this year and was named Best Financial Services/Banking Website at the recent Webby Awards.

PAUL BOURQUE Investment Funds Institute of Canada

When the Investment Funds Institute of Canada appointed Paul Bourque as its new president and CEO last year, it got a leader who would have little trouble navigating the group through a new regulatory environment. Bourque was previously executive director of the BC Securities Commission and a partner at Deloitte, where he specialized in securities and regulatory investigation. Most recently, he welcomed the Ontario government’s move to restrict the title of financial planner to only those who are qualified and overseen by a professional body – a long-held goal of the IFIC.


To turn the Big Five banks into the Big Six, National Bank has had to acquire the kind of talent that goes along with that status. In that respect, the bank hasn’t been found wanting, especially with its wealth management division. At the end of December, it added the advisory team of Joseph Guagliano Sr., Joseph Guagliano Jr., Gerald Hedgcock and Ross Wigle to its ranks. Previously with BMO Nesbitt Burns, the senior Guagliano brings more than four decades of wealth management experience to the fold, and his appointment will allow National Bank to expand its footprint outside of its Quebec stronghold and into Ontario.



Elected as the new chair, president and CEO of Desjardins Group last March, Guy Cormier has ambitious plans for North America’s largest financial co-operative. Desjardins wants to expand beyond its Quebec base and hopes to achieve that aim through an acquisition program targeting wealth managers and payments firms. Outlining the strategy recently to Bloomberg, Cormier revealed that all options were on the table in terms of partnerships. “We’re open for business, open to increase our revenues and focus on these three targets,” he said. “We’ll be really open to any kind of transaction and acquisition, especially in property & casualty insurance.”


As chief information officer of the TMX Group, Jay Rajarathinam has the responsibility of overseeing the exchanges’ technology operations. The TSX is still top dog when it comes to securities in this country, but new entrants like Nasdaq and the NEO Exchange have challenged its position. The TMX Group therefore needs to ensure it stays at the forefront of technological innovation in the industry, which is why it brought in Rajarathinam, who previously distinguished himself as SVP and global head of infrastructure at the NYSE/Intercontinental Exchange.

DAVID DURNO Canaccord Genuity Wealth Management

For the first time in years, Canaccord Genuity has genuine reasons for optimism. A major factor in the firm’s turnaround has been a greater commitment to its wealth management business, evidenced by its hiring of some top advisory talent. David Durno jumped ship from TD Wealth last September to join Canaccord’s Toronto office as senior vice-president and senior investment advisor. A 25-year veteran of the industry and a consistent member of TD’s Chairman’s Club, Durno’s hiring points to a new era for the firm.

DAVID RAWLINGS JPMorgan Chase Canada

Last year was one of the strongest on record for M&A activity, but if the first quarter is any indication, 2017 could surpass it. And when it comes to deal-making, JPMorgan has led the way, trailed by Goldman Sachs and RBC. As CEO for JPMorgan Chase in Canada, David Rawlings leads the banking giant’s corporate, commercial and investment bank, asset management, Chase Card, and merchant services. As such, he is tasked with keeping JPMorgan Chase at the pinnacle of major M&A activity for the remainder of 2017 and beyond.

BHIM D. ASDHIR Excel Funds

Since its founding in 1998, Excel Funds has been regarded as the preeminent asset manager for emerging market products in Canada. In the beginning, Excel was focused primarily on the home country of its founder, Bhim Asdhir: India. The subcontinent is the fastest-growing major economy in the world – economic expansion of 7.73% is predicted for this year – so naturally the India funds remain a key part of Excel’s business. There are many more strings to the firm’s bow today, however; fixed-income strategies in particular are becoming an increasingly important part of the lineup. The Excel High Income Fund is one such product. It won a Fundgrade A+ Award earlier this year, reflecting its impressive performance in the fixed-income space. “It consistently generates the best riskadjusted returns in Canada,” Asdhir says. “It invests primarily in investment-grade debt securities issued by emerging-market governments and corporations. It is the only fund in its category that invests in both local and hard currency emerging-market debt.” It is for its three India-focused funds that Excel is best known among the investment community in Canada. The second most populous country on earth has immense investment potential, as the performance of the Excel India Fund over the past year attests. For the one-year period ending March 31, 2017, the fund had a return of 31.53% – a number most mutual funds could only dream of. The fund’s performance has seen some pretty wild swings over the years but with economic reform taking hold across India, volatility shouldn’t be as much of a factor going forward. “Buoyed by Prime Minister Narendra Modi’s pro-growth policies, we believe India’s stock market is headed for one of its best years,” Asdhir says. “Strong demand for equities, reasonable valuations and steadily improving growth are expected to push equities higher, providing investors with the opportunity to potentially make substantial gains.” In the investment world, it’s often the case that retail follows institutional money. The CPPIB, Ontario Teachers’ Pension Fund, Caisse de dépôt et placement du Quebec and Brookfield Asset Management have all made inroads into India in recent years, and none of those institutions are known for making rash decisions. In Asdhir’s opinion, political stability means the time is right for Canadians to diversify their assets into the country. “Optimism towards India has increased in the wake of the recent landslide state elections victory by Modi’s Bharatiya Janata Party, providing a ringing endorsement of his leadership and paving the way for a second term at the helm,” he says. “This bodes well for uninterrupted growth in the world’s fastest-growing economy.” Last month, Excel Funds also entered the ETF space for the first time with two offerings: the Excel Global Balanced Asset Allocation ETF and the Excel Global Growth Asset Allocation ETF. The ETF marketplace in Canada has become pretty crowded, but Asdhir believes these products offer something new for investors. “I believe that in emerging markets, stock-picking is key to generating alpha, whereas in global markets, effective asset allocation is critical for maximizing returns – which is what our ETFs aim to do,” he says. “We will differentiate ourselves by creating unique products that are not index-based – our two ETFs incorporate a quant model in combination with a human element in the asset allocation process.”

MARK BRISLEY Dynamic Funds

With the rise in popularity of lower-cost investment options like ETFs, Canada’s mutual fund industry has responded by slashing fees – and firms like Dynamic Funds are leading the charge. Announcing details of a price cut on management and administration fees for 83 of its funds in March, the firm’s managing director, Mark Brisley, attributed the move to the underlying shifts in the industry. “Dynamic Funds has further improved its pricing to offer lower fees and expenses and automatic discounts,” he said. “No matter if an advisor works within a fee-based or traditional embedded-fee structure, their clients will receive the lowest offered fee level without the need to switch to a different series.”

RACHEL VOLYNSKY SEI Investments Canada

While SEI Investments Canada received Fundata’s FundGrade A+ Award for two of its funds in 2016, the firm isn’t resting on its laurels when it comes to its investment team. This was apparent in April when SEI brought in Rachel Volynsky to be its Canadian equity portfolio manager. Volynsky brings with her a great pedigree, having previously served as manager and head of fundamental research at Calvert Investment Management. She has also managed funds for industry heavyweights like Invesco Trimark and TD Asset Management, as well as spending time as a senior investment analyst at the Ontario Teachers’ Pension Plan Board. As such, she brings a wealth of experience to SEI as it sets its sights on further global expansion.






J2 Capital Management

National Exempt Market Association

Last year was certainly a memorable one for Gerard Ferguson. His two-year stint with Front Street Capital – including a brief period as CEO – ended when he decided to set up his own shop, J2 Capital Management. In doing so, he acquired Jemekk Capital Management and its two funds, which Ferguson himself launched in 2004. Alongside partner Rick Ummat, Ferguson will oversee the Jemekk Long/ Short Fund and Jemekk Total Return Fund under the J2 Capital banner. Coming off a year of seismic change, Ferguson’s focus for 2017 will be on establishing the new firm and its two flagship funds.

With the adoption of the offering memo­ randum exemption in Ontario last year, more Canadians can now access the private markets. That means the National Exempt Market Association [NEMA] will likely have a lot more on its plate, as will its new president, Cora Pettipas. Previously a VP and director with the association, Pettipas replaced outgoing president Craig Skauge last November. In her current position, as well as in her previous role as editor of Exempt Edge magazine (since renamed Private Investor), Pettipas has been a noted advocate of allowing ordinary people the chance to invest in private businesses.




Genus Capital

In its most recent earnings report, CIBC posted a net income of $1.2 billion, which represented a year-over-year climb of 43.4%. That growth was the highest of any of the big banks, and now the institution is thinking expansion. In particular, CIBC has set its sights on expanding its US footprint – after upping its cash position, the bank’s US$4.9 billion deal for Chicago-based commercial bank PrivateBancorp was finally accepted in May. The takeover represents a real coup for CEO Victor Dodig, who believes PrivateBancorp will thrive under the CIBC banner.

As ESG becomes a guiding principle across the investment spectrum, Genus Capital and its founder, Wayne Wachell, can safely claim to have been at the forefront of this paradigm shift. A major part of Genus’ business is devoted to its fossil-fuel-free funds. In 2013 the firm created Genus Fossil Free, a division that now accounts for more than $225 million worth of assets across a suite of six mutual funds. Wachell was an early convert to the value of responsible investing, and now it seems the rest of the industry is following suit.

CATHERINE WOOD Qtrade Financial

Wealth management has traditionally not been well regarded for embracing gender diversity in the upper echelons of the industry. That reputation is slowly shifting, thanks to women like Catherine Wood. As Qtrade Financial’s senior vice-president and head of online brokerage, insurance, product and marketing, Wood has been instrumental in the success of the firm’s flagship offering, Qtrade Investor, as well as the launch of the new VirtualWealth robo-advice solution. Her success in this role led to her being named one of Canada’s Most Powerful Women for 2016 by the Women’s Executive Network.



Starting your own stock exchange is a daunting prospect, but Jos Schmitt never wavered in his believe that Canadian investors were not being best served by the status quo. The NEO Exchange launched in 2015, and two years in, Schmitt’s brainchild is really starting to take shape. BlackRock and Invesco were the first industry giants to dip their toes in the NEO pool, and BMO and Redwood Asset Management have since followed suit. The most recent addition was the Mackenzie Global High Yield Fixed Income ETF, which brought the total listings on the exchange to 14.


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There is an alternative Award-winning fund manager James Cole explains how to navigate through periods of market volatility

LOOKING AT the performance of the S&P/ TSX Composite Total Return Index since 2014, there have been lots of opportunities to gain substantial returns, but also plenty of potential for investors to lose their shirts. Consistency is a valuable commodity in the asset management business, and in recent years, there haven’t been many more consistent fund managers than James Cole of Portland Investment Counsel. GlobeInvestor.com ranked Cole’s Portland Focused Plus Fund LP the top-performing alternative strategies fund in Canada out of 497 funds for the three years ending April 30, 2017. The recognition was well earned – series F of the LP had an annualized return of 23% since inception and a cumulative return of 155%. The Focused Plus mandate comes in two structures: the Portland Focused Plus Fund, a trust available for purchase by registered plans, and the Portland Focused Plus Fund LP, which is a limited partnership intended for non-registered assets. Aside from the impressive returns, Portland Investment Counsel’s Focused Plus lineup is also differentiated by its compensation model. “One of the innovative things we did with this mandate is create two series for highernet-worth investors,” Cole says. “If they invest at least $1 million in the LP (or $500,000 in the fund), there are substantially lower fees. In fact, we have one series, Series P, which has no management fee at all. So we only make money if the fund and LP perform. It aligns our interests with those of the investors.”


Achieving above-average returns each year, despite some wild swings in the markets, doesn’t come easy. In his decades as a portfolio manager specializing in Canadian and US equities, Cole has developed strict criteria for his funds. It’s an approach that has served him well over the years, and it can be broken down into two central pillars. “One of the key strategies is prudent use of a variable amount of leverage,” he says. “I never know what equity markets are going to do, but I’ve been at this business for over 30 years, so I have a pretty good sense of when stocks are getting more expensive in terms of valuations. When things decline and valuations become more attractive, which was the case in early 2016, we added a lot to the funds’ investments using leverage, borrowing at today’s really cheap interest rates.” The opposite is true when Cole believes stocks are overpriced, which is why he’s holding large cash positions with his funds today. His second key strategy is something that makes his funds unique not just in Canada, but worldwide. “The other main factor is focus,” he says. “By focus we mean the number of holdings and percentage weight. To my knowledge, I run the most focused fund in the world. We typically have 150% invested, with that 150% being borrowed and spread over about six companies. Six companies with a 25% average weight – if there is a more focused fund than that, I would like to see it.” Of course, when holding a small amount of stocks, making the right choice is essential.

Cole looks for established names with a market cap above $10 billion that are diversified by customer base, sector and geography. These companies are less vulnerable if a major downturn should occur, and in Canada in 2017, he’s looking to one sector in particular. “At the beginning of 2016, the Canadian banks were way out of favour because of concerns about energy-related loan losses,” Cole says. “I did not share those concerns – the banks are cash-flow machines, and they can power through any loan losses likely to arise. So I bought Canadian banks and then subsequently US banks that also fell out of favour – JPMorgan Chase, Citigroup, Wells Fargo – and they have performed extremely well.” Nearly a decade away from the US subprime mortgage crisis, the Canadian real estate market currently appears to be similarly vulnerable. According to Cole, there are key differences between the US housing market in 2007 and Canada today – the presence of CMHC in particular – that make the banks a


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WHO IS JAMES COLE? Education: Graduated in 1983 from Trent University with a degree in economics before earning his CFA designation in 1986. Early years: After graduating, worked as a securities analyst for nine years at McCarthy Securities, then BBN James Capel. In 1992, he was named the top communications and media analyst in Canada by the Brendan Wood survey of institutional investors. Becoming a PM: Progressed from his analyst role to become a vice-president and portfolio manager with Beutel Goodman for four years, then moved on to a three-year stint with Gluskin Sheff + Associates. Award-winner: Cole joined Portland in 2000, where he managed a Canadian balanced fund that won the Lipper Award for best risk-adjusted returns in 2007.

safe bet heading forward. “They are more vulnerable in public perception than reality,” he says. “I look at those parts of the banks – their mortgage portfolios, their loan-to-values. If the market gets excited about real estate lending losses in Ontario, it would probably cause bank stocks to decline. I would be happy to add them to my portfolios should that occur.” Portland Investment Counsel, a member of global conglomerate Portland Holdings Group, is an asset management firm providing a differentiated approach to servicing the needs

of investors, alongside Mandeville Private Client, an investment dealer. The democratization of wealth is an article of faith for the group and its founder, Michael Lee-Chin. The Portland Focused Plus Fund LP and the Portland Focused Plus Fund are only available to accredited investors, including portfolio managers, which represents a tiny percentage of the population. As the manager, Cole is frustrated by the limits that have been put on everyday Canadians to prevent them from investing in private offerings. “Adult Canadians can vote, drink, drive,

“I never know what equity markets are going to do, but I’ve been at this business for over 30 years, so I have a pretty good sense of when stocks are getting more expensive in terms of valuations” James Cole, Portland Investment Counsel

In his own words: “I write an annual letter to investors that I try to model after Warren Buffet’s annual letters to shareholders of Berkshire Hathaway. For the last two years I have talked about the TINA factor – ‘there is no alternative.’ I think that is the primary driver why equity markets keep on going higher and higher.” soon smoke pot, die for their country, buy a million-dollar condo or start a business,” he says, “but they are not permitted to invest their own money as they see fit – it’s a disgrace, and it’s crazy.” Last year, Ontario’s prospectus exemption brought it in line with the rest of Canada when it comes to the private markets. Cole believes this was a step in the right direction, although he thinks a lot more can be done to create a fairer system for the majority of investors. “There have been rule changes such that clients can invest within certain limits – it has been a baby step,” he says. “Through our active involvement in the Private Capital Markets Association of Canada, we are trying our best to bring regulatory change to bear to enable all Canadians to participate in these opportunities, rather than just the 1%.”


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Driven by data Simon Jochlin of StennerZohny Group outlines how he uses data analytics for better portfolio construction

SIMON JOCHLIN is still getting used to his new surroundings after his firm was acquired by Morgan Stanley back in March. You could find worse places to relocate than Palo Alto, California, and Jochlin is finding out there are plenty of other perks to being part of a huge financial services conglomerate too. “We are the first international group strictly servicing Canada within Morgan Stanley International Wealth Management,” he says. “Because the majority of our clients are transitioning with us, we continue to communicate with the administrative staff at Richardson GMP, and through Graystone Consulting of Morgan Stanley, we are able to advise on cross-border assets to create a consolidated picture for the client.” One of Wealth Professional’s 2017 Young Guns, Jochlin helped spearhead the concept of portfolio analytics at Richardson GMP, and he’s become a key part of the StennerZohny team since joining in 2012. Following the move to Morgan Stanley, his title has changed from associate portfolio manager to international country market specialist, but data analytics remain a key part of his job. “When I started as an advisor with Stenner­Zohny, we were looking to create a more consolidated experience for clients in terms of risk metrics,” he says. “A lot of that was making different financial ratios so you could have big-picture thinking for the client. Through that, you could tell them if it was an appropriate time to hedge their portfolios.” High-net-worth individuals expect


premium service, which is where extras like detailed analytics can make the difference. The markets in Canada have had a wild ride over the past three years, but that hasn’t been reflected in the books at StennerZohny, Jochlin says. “Our strategy hasn’t changed much from the beginning of 2015,” he says. “We have systematically used private equity [for] uncorrelated yield to generate cash flow for clients that is uncorrelated to the markets. In January 2016 our portfolios were up 8%, while the markets were down about 14%. We use private equity to hedge out a lot of the volatility and generate positive returns when the markets are down.” Such an approach entails using more alternatives than would be the norm in a typical portfolio, and one sector under that banner that’s giving investors cause for concern is Canadian real estate. Whether the Toronto market is indeed a bubble or not is debated constantly, but in Jochlin’s opinion, there are certainly signs that a correction could be looming. “We invest in the Libertas Real Asset

Opportunities Fund, and essentially that is a hedge against Canadian real estate, financials and alternative lenders,” he says. “So by design, it had a short position against Home Capital, and when Home Capital had its hiccup, the fund was up to the tune of 42% for the month of April.” Home Capital’s problems are well known, but Jochlin believes it’s far from the only alternative lender that could end up in trouble down the line. Canada is a nation swimming in debt, which leaves it highly vulnerable should the economy ever take a sustained turn for the worse. “The Canadian economy is 75% exposed directly or indirectly to real estate, loans and credit,” he says. “You look at that and you realize that there is way too much concentration risk in Canada. The alt lending space really depends on those deposits. As soon as deposits go away, then the foundations go away too.” Talk of a housing bubble and overleveraged lenders brings obvious comparisons to the US subprime crisis of 2008. Canada weathered that storm better than most and

CROSS-BORDER BENEFITS As the institutional consulting arm of banking monolith Morgan Stanley, Graystone Consulting has considerable reach, which is now being put to good use by StennerZohny team. “Graystone has a unique proprietary model – it does analytics on a consolidated client basis,” Jochlin says. “If a client has assets with RBC or Scotia or somewhere in the US, Graystone can pull in all data from all assets across all accounts and give us a full consolidated picture as to what the client’s total portfolio is.”


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In March, the former StennerZohny Investment Partners+ of Richardson GMP joined Morgan Stanley International as part of Graystone Consulting

StennerZohny was founded in 2011 and takes its name from managing director Thane Stenner and senior vice-president Youssef Zohny

“The Canadian economy is 75% exposed ... to real estate, loans and credit. You look at that and you realize that there is way too much concentration risk in Canada” developed a reputation for good governance and regulation of its financial services as a result. Whether that reputation is deserved or not will become more apparent in the coming years, Jochlin says. “A scenario like the US subprime crisis would take time to play out,” he says. “Along the way there will be companies getting in trouble, then a loan will come in to help

them. Banks will try to save themselves before they take write-downs. A lot of this is strapped to the Canadian consumer and economic growth. But when the economy slows down and people can’t pay back their loans, that’s when delinquencies and non-performing loans start to hit the books. It think it will be comparable to what happened in the US.”

Graystone Consulting provides investment consulting services to institutional names, including corporations, endowments and foundations, healthcare organizations, insurance entities, and state and local governments

Morgan Stanley Wealth Management has more than US$2 trillion in assets under management

Morgan Stanley International Wealth Management serves clients located outside of the US and has more than US$90 billion in assets under management


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Private placements: pushing boundaries in bonds Founded in 2015, Overbond is driving innovation in the fixed-income markets with its bond origination platform and new issue deal execution capabilities

STARTING A new business is always a risk. But calculated risks are what drives entrepreneurship. When Vuk Magdelinic founded Overbond in 2015, he was confident his product could make a real difference in the investment space. After stints at Deutsche Bank, BNY Mellon and the CIBC Fixed Income trading floor in Toronto, Magdelinic believed the bond markets badly needed to move with the times. A graduate of electrical engineering at the University of Toronto, Magdelinic saw an industry that was still analog in a digital age, where emails, spreadsheets and phone calls were still the main channels for information exchange. Overbond thus became the world’s first end-to-end platform for bond origination, connecting investors with issuers and dealers. It also digitizes and streamlines bond origination workflow, offering advanced data analytics and data visualization tools. Using market data by Thomson Reuters and DBRS, its clients include corporate powerhouses like Burger King, Molson Coors, Couche-Tard


and Bell, as well as Mackenzie Financial, Sprott Asset Management and CBC Pension on the investment side. “The bond markets are not technologyenabled,” Magdelinic explains. “It is not like equities where you have all sorts of analytics and benchmarking – it’s liquid and there are movements every second, so you can be confident it’s the best price. With bonds, it’s very hard to be confident of the best price.” Another problem with fixed income’s outdated approach is that advisors are often left in the dark when new issuances come to market. Bonds remain a key part of any portfolio, but with ultra-low interest rates, finding solid returns requires a lot more

legwork today. Inevitably, that means opportunities will be missed. “Before, everybody was running a penand-paper process,” Magdelinic says. “There wasn’t operational capacity to canvas every investment advisor in the country. As a matter of fact, entire chunks of the investment community had effectively been cut off as a buying power in primary bonds.” The Overbond platform seeks to address that, giving access to advisors, family offices, institutional investors, investment banks, corporations and governments. Such connectivity is now possible, given the vast advancements in technology over the past decade. A trained electrical engineer, Magdelinic puts

“Entire chunks of the investment community had effectively been cut off as a buying power in primary bonds” Vuk Magdelinic, Overbond


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a lot of emphasis on Overbond being at the pinnacle of the industry in terms of its technical capabilities. “On the Overbond side, we pull in data in real time,” he says. “We have a global partnership with Thomson Reuters, but we also wire in a lot of other data sources. We have 7 million data points at any given second.

Data is becoming ubiquitous and commoditized, so it is more important how we put that data into play.” Overbond is far from the only financial services company harnessing data analytics; in fact, you would be hard pressed to find a firm not using the tool in 2017. If you really want to distinguish yourself in the current

environment, it means pushing the boundaries, Magdelinic says. “We are the only company in the world to price bonds algorithmically using machine learning technology,” he says. “We have something called Corporate Bond Intelligence that prices bonds; it is machine learning that is supervised by experts, and it is really bringing Big Data to the next level.” Another Overbond innovation is its Propensity to Issue algorithm. This algorithm incorporates various corporate actions in order to assess the likelihood of a bond issuance in the near future. This could be a merger or an international expansion, which would mean the platform analyzes balance sheets to identify the structural benefits of issuing debt. Magdelinic believes it’s a real game-changer. “We are the first company to have this level of capability and this kind of application,” he says. “Our proprietary technology is unique, but we want to stay relevant, so all our technology is patented globally. That’s the passive side – the active side is to really go to clients and have them use our technology in the largest scale possible, and as fast as possible.” The firm has had a busy few months so far in 2017. In January, it launched OverbondX, an integrated deal execution module for private placements inside its main platform. “The application of technology can remove structural barriers that limit connectivity between private markets dealers and investor advisors, thus allowing for more vibrant and diverse participation and deal flow with lower transaction costs,” Magdelinic says. “It is the access to a vast opportunity network that makes a significant impact here.” Given fintech’s success across the financial industry, particularly in small and medium-sized business loan origination, it seems a natural evolution to give investment advisors more access to private placements via this application.


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Bridging the information gap A new study from reinsurance giant Munich Re shows a large percentage of Canadians don’t have life insurance. So what can advisors do about it?

IN THE life insurance space, coverage rates have been on a downhill slide for some time now. LIMRA’s 2016 Trends in Life Insurance Ownership study revealed that 30% of US households are uninsured, representing a record low. The trend extends across the border too – a new survey commissioned by Munich Re showed that 40% of Canadians don’t have life insurance. That number can be explained in part by another interesting statistic: 70% of Canadians have never been approached or solicited by an insurance agent or broker; that number increases to 75% among those aged 25 to 35. There’s clearly an information gap among the general public when it comes to life insurance. The products can be complex and hard to understand, which means people often elect


to go without. That decision could have devastating implications for individuals and their families down the line, so the industry needs to find new ways to connect with consumers. According to Bernard Naumann, the newly appointed president and CEO of Munich Re Canada (Life), there is clearly an issue that providers need to address when it comes to connecting with the public. “We do see rates of decline across the board,” he says. “It is too expensive these days to sell insurance to the masses through the distribution channel of face-to-face. It’s not worth it for brokers to sell policies for $100 or $200 because of all the prospecting they have to do.” It’s an underserved market companies like Munich Re are very keen to tap into. In

response, insurance providers are enhancing their digital offerings with a streamlined underwriting process that makes life insurance more accessible. “We see technology being a game-changer on this,” Naumann says. “They call it a billiondollar baby – the mid-market that could be tapped here. We see that as a possibility, and technology will be the way to make this happen.”

Moving with the times Employing more than 43,000 workers globally, Munich Re is one of the world’s largest reinsurers. Canada is a key market


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for the company, which had an executive shakeup in May. Naumann was chosen to head the Canadian life business after distinguishing himself as SVP of reinsurance. Richard Letarte was selected as president and CEO of Munich Re’s New Ventures division, where he will be responsible for driving innovation through investment into new technologies. It’s no small task, and one that will ultimately determine if the company can maintain its position as a global leader in the life insurance space. With almost three decades of experience in group insurance, individual

“Cutting down on the process is one thing, but it means a paradigm shift from how we have been doing underwriting for the past 50 years” Richard Letarte, Munich Re life and living benefits, Letarte realizes that the next evolutionary stage of the industry is already underway. “Cutting down on the process is one thing, but it means a paradigm shift from how we have been doing underwriting for the past

50 years,” he says. “If you look at the marketplace, there are a lot more simplified-issue products being introduced. The whole underwriting process is going to change a lot over the next five years.” Before Munich Re can properly strategize,


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it needs to understand the reasons why 40% of Canadians don’t have life insurance – especially considering that the feedback the company has received from consumers shows that 87% of Canadians consider life insurance a necessity. These incongruous statistics suggest that insurers need to find new ways to connect with people. “You really need to understand the needs of the consumers and how they want to transact business,” Letarte says. “We did surveys to better understand what customers’ needs are and to better understand what the gaps in the industry are. What we want to do with New Ventures is basically bring end-to-end solutions to our clients – that can be from a technology, product or new process point of view.” In announcing the appointments of Naumann and Letarte last month, Mary Forrest, president and CEO of Munich Re North America (Life and Health), discussed how this transition period will necessitate fresh ideas in the boardroom. “Now more than ever, we are seeing dramatic changes in our industry,” she said. “It is a very exciting time to be part of this, and Munich Re is committed to being a leading player in the market.”

Changing consumer attitudes In Munich Re’s survey, 23% of respondents said they intended to buy insurance online over the next five years. That number will only increase in the years ahead, so it’s something providers need to be on top of. “If you look at life insurance in particular, it takes about 30 days to issue a policy, so that is ripe for innovation to make it more consumer-friendly,” Naumann says. “We see the whole industry being ready for a change like this. We want to be part of this change, but we want to make sure that our clients are prepared for this change too.” Making life insurance products more attractive to younger Canadians is clearly a priority. The big insurance brands in this


“It is too expensive these days to sell insurance to the masses through the distribution channel of face-to-face. It’s not worth it for brokers to sell policies for $100 or $200 because of all the prospecting they have to do” Bernard Naumann, Munich Re country have history dating back to the 19th century, but if they plan on being around for the next 100 years, they need to start cultivating millennial clients. “The attitude of millennials is quite different than what we seen with gen x-ers,” Naumann

says. “They want to conduct their business quickly and a lot of the time online. That’s somewhere we need to see if we can assess risk in a different way than we did in the past. What once took 30 days, they now want to be able to assess in 30 seconds or less.”


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For someone who stumbled into the wealth management industry, Ryan Colwell has carved out an enviable niche His heart set on a career as an artist, Colwell entered a program run jointly between the University of Toronto and Sheridan College with a concentration on art and art history. His studies involved sculpting, painting and a brief obsession with folk art that included chainsaw carving “I did not do a B.Comm or business school. I spent most of my university career sculpting junk out of wood and painting”



FALLS INTO THE INDUSTRY After university came a pivotal moment for Colwell – his wife decided to go to grad school, and he suddenly had to support them both. Hired as an administrative assistant at Financial Concept Group, he studied for his new job by reading a copy of Personal Finance for Dummies cover to cover



FAKES IT ‘TIL HE MAKES IT On Colwell’s second day at his new job, his boss informed him he would have to take the Canadian Securities Course. To his surprise, Colwell found the course resonated with him “I loved it! Suddenly I could read the business section of the Globe and Mail and know what it meant. I was always good at logical thinking and predisposed to saving money”


WORKS HIMSELF OUT OF A JOB A crossroads presented itself as Colwell contemplated the choice between a limited career path as a branch manager or a return to the head office. His boss had another idea, which culminated in Colwell going out on his own “My boss allowed me to work myself out of a job – he let me work half the time for him and half the time for myself. Ultimately, I cut ties with my part-time salaried position”


WINS AWARD FOR SOCIALLY RESPONSIBLE INVESTING Focused on responsible investing since 1997, Colwell was thrilled to be awarded the Wealth Professional Award for Responsible Investing. He went on to win the same prize the following year “It blew my mind to win – I was just blown away. I always like the combination of making or saving money while doing something good”

“I decided I’d work for one year doing anything that would support us. I was going to fake it for a year and move on” 1999

BECOMES A BRANCH MANAGER Fired up by his newfound love of financial topics and with a lengthy commute to fill, Colwell signed up for several more courses. These qualifications stood him in good stead after he realized he hated the head office position he had taken on to try a different milieu. An MGA looking to satisfy compliance requirements provided an opportunity to move on “They were frugal enough to hire me – because I had the right licence and I fulfilled the compliance needs”


STRIKES THE PERFECT WORK-LIFE BALANCE Colwell’s wife, Darlene, eventually joined his practice. The two walk or cycle the two kilometres to the office, usually accompanied by their dog, and their children often drop in after school. Perhaps best of all, the family is able to undertake lengthy road trips, like the two-month crosscountry adventure they embarked on a few summers ago “It was one of the greatest things I’ve ever done – it really hit home for me that this business allows freedom”


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

HEAD OF THE CLASS In her off-hours, there’s nowhere Cherise Dacquay would rather be than leading a group fitness class IT WAS her upbeat attitude that made Cherise Dacquay stand out as fitness teacher material. Dacquay, who started taking fitness classes in 1997, responded to the group atmosphere and found that camaraderie integral in maintaining her motivation. “You always knew what to expect and which spot was yours – everybody was accountable to everyone else on their journey.” Hence in 2009, after years of devoted practice, the Winnipeg-based advisor was encouraged by her own group leader to attain the necessary certifications to become an instructor herself. “She said, ‘You’re at class all the time and other people feel motivated by you – why not share that?’” Dacquay recalls. The eight months it took her to work through the theory textbook and put together a routine was nothing compared to the year it took to get over her stage fright. But whichever side of the class she finds herself on, Dacquay always ends up feeling “regenerated, alive and happy” – it’s little wonder that she took classes up until three weeks before giving birth earlier this year. “I’ve been in the financial industry for 26 years, and exercise class gave me something to look forward to after a very long day,” she says. “I’d see friends, work out, have fun and clear my head. It really lowers my stress.”


Number of students in the biggest class Dacquay has ever taught


50 to 75 Moves in a one-hour fitness class


Age of the oldest person Dacquay has ever taught


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MACKENZIE MUTUAL FUNDS MACKENZIE ETFs Morningstar Star Ratings reflect performance of Series F as of April 30, 2017 and are subject to change monthly. The ratings are an objective, quantitative measure of a fund’s historical risk-adjusted performance relative to other funds in its category. Only funds with at least a three-year track record are considered. The overall star rating for a fund is a weighted combination calculated from a fund’s 3, 5, and 10-year returns, as available, measured against the 91-day treasury bill and peer group returns. A fund can only be rated if there are a sufficient number of funds in its peer group to allow comparison for at least three years. If a fund scores in the top 10% of its fund category, it gets 5 stars; if it falls in the next 22.5%, it receives 4 stars; a place in the middle 35% earns a fund 3 stars; those in the next 22.5% receive 2 stars; and the lowest 10% receive 1 star. For more details on the calculation of Morningstar Star Ratings, see www.morningstar.ca. Quartile rankings and peers beaten are calculated by Mackenzie Investments based on the fund series-level data Morningstar provides. The CIFSC categories, Star Ratings, number of funds in each category, and annual compounded performance for the standard periods are: Mackenzie Global Strategic Income Fund Series F, Global Neutral Balanced category: 1 year - n/a stars 15.2% (1,259 funds), 3 years - 5 stars (891 funds) 9.2%, 5 years - 5 stars (597 funds) 11.1%, 10 years - 5 stars (169 funds) 6.3%. Mackenzie Income Fund Series F, Canadian Fixed Income Balanced category: 1 year - n/a stars 9.9% (505 funds), 3 years - 5 stars (399 funds) 5.8%, 5 years - 5 stars (289 funds) 6.8%, 10 years - 4 stars (136 funds) 4.9%. Mackenzie Strategic Income Fund Series F, Canadian Neutral Balanced category: 1 year - n/a stars 16.9%, 3 years - 4 stars (495 funds) 6.3%, 5 years - 4 stars (360 funds) 8.3%, 10 years - 5 stars (148 funds) 6.4%. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns as of April 30, 2017 including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

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