Wealth Professional 7.01

Page 1

WHAT’S IN STORE FOR THE YEAR AHEAD?

As stocks fall and interest rates rise, what might 2019 hold?

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ISSUE 7.01

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

CONTENTS

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44

THE TOP

UPFRONT 02 Editorial

Can Canada’s oil sector bounce back?

04 Head to head

Advisors on the issues they’re monitoring for the year ahead

06 Statistics

SPECIAL REPORT

24

PEOPLE

A look at the recent performance of the classic safe haven: gold

ADVISOR PROFILE

08 Opinion

William Frenn explains how drawing on his engineering background has helped him take a more analytical approach to client relationships

PEOPLE

INDUSTRY ICON

Horizons ETFs CEO Steve Hawkins on how his firm is shaking up the ETF industry with its innovative offerings

18

10 News analysis

What key themes will define investing in 2019?

12 Intelligence

This month’s big movers and shakers

14 ETF update

TOP 50 ADVISORS

This year’s crop of the most successful advisors in Canada includes both perennial favourites and fresh faces. Discover who earned the coveted honour

As volatility increases, gold might be your clients’ best bet

FEATURES

46

BECOME THE CLIENT’S SOLUTION

How portfolio managers can use momentum investing to offer more value to clients

48

Can ETFs continue their growth trajectory in the year ahead?

16 Alternative investment update Demand remains high for Canadian commercial real estate

FEATURES 50 Don’t let sloppy emails ruin productivity

Inbox raging out of control? Here are three ways to get on top of it

52 Be an inspiring manager

Five ways to inspire – and motivate – your employees

PEOPLE 55 Career path

It took a life-altering event to lead Vanessa Flockton to financial planning FEATURES

PERFORMANCE IN A ROUGH MARKET

Why private REITs are an effective cushion against market volatility

56 Other life

Hitting the links (for a good cause) with Colleen O’Connell Campbell

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

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11/01/2019 4:59:09 AM


UPFRONT

EDITORIAL

Can oil get back on track?

A

fter the oil price volatility that marked the end of 2018, many are wondering what’s in store for the sector in the new year. After reaching US$58.49 a barrel in May, the price of Western Canadian Select [WCS] began a free fall in September, hitting a low of US$11.43 in November, the lowest since Bloomberg started tracking it in 2008. At one point, WCS was trading at a discount of $52.40 compared to West Texas Intermediate [WTI], another historical low. Alberta Premier Rachel Notley commented in November that the gap between WCS and WTI was costing the Canadian economy $80 million a day. Given that oil represents roughly 10% of the Canadian economy, the hit prompted many experts to call on the federal government to react to the issue so that the pains of 2018 wouldn’t spill over into 2019.

With Keystone XL and Trans Mountain oil pipeline projects still facing challenges, the sector could be in trouble unless the issues can be resolved Worldwide, the issue of oversupply has hit all major benchmarks, including WTI and Brent crude, but at home, the issue is compounded by pipelines that are at capacity and projects for further pipelines that have been delayed. Some point to pipelines as a viable investment opportunity, but currently these projects are in a state of ‘wait and see’ until they get the green light. It seems the frustration is also extending into the energy company side. An analyst with Capital Group, one of the largest foreign holders of Canadian energy stocks, warned in a letter to Prime Minister Justin Trudeau that investors and companies will continue to avoid the Canadian energy sector unless more is done to improve market access. With Keystone XL and Trans Mountain oil pipeline projects still facing challenges, the sector could be in trouble unless the issues can be resolved and Canada can start exporting some of its oil so it can once again trade at a relative price. Unless the industry can garner some type of support, the trends that defined the end of 2018 will surely continue into 2019. Without a strong oil industry, the question of foreign investment into Canada will linger, and the larger economy will feel the ramifications. The team at Wealth Professional Canada

wealthprofessional.ca ISSUE 7.01 EDITORIAL

SALES & MARKETING

Managing Editor Joe Rosengarten

Director, Client Strategy Dane Taylor

Editor Darren Matte Writers Libby MacDonald Leo Almazora James Burton Executive Editor Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Michael Yeung

ART & PRODUCTION Designer Marla Morelos Production Manager Alicia Chin Traffic Manager Ella Dayandante

Sales Executive Alan Stewart Vice President, Sales John Mackenzie Project Coordinator Jessica Duce

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

EDITORIAL INQUIRIES

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KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, London, Sydney, Denver, Auckland, Manila, Singapore, Bengaluru, Seoul

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11/01/2019 5:34:28 AM


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11/01/2019 5:34:30 AM


UPFRONT

HEAD TO HEAD

What investment stories will dominate headlines in 2019? From struggling tech stocks to plummeting oil prices, 2018 had no shortage of investment-related news. What’s next?

Craig Fehr

Principal, investment strategist Edward Jones “Central banks progressing down the path of tightening monetary policy will be a major theme for 2019. The backdrop of central bank stimulus has supported the market; now this safety net is being slowly withdrawn. We are 10 years into this bull market; we have entered the latter stages of the cycle. We expect positive, but slower, economic and earnings growth, which offers ongoing support for market performance. However, the accompanying reduction in central bank stimulus means market swings will be more prevalent. We think 2019 can be a positive year for stocks, but the path will be rockier.”

Gerald L. Goertsen

Financial planner De Thomas Wealth Management “The Canadian oil industry has been struggling for several years; however, the global demand for the fossil fuel continues to rise, and eventually the market will experience a shortage. Almost everything we purchase or consume is affected by oil in some way. There are some people who think that oil should be left in the ground and are opposed to pipelines to get it to market; however, these same people often have such things as natural gas furnaces, hot water tanks and fireplaces in their homes – and of course, natural gas uses a pipeline to get to their homes.”

John Fisher

President and chief investment officer Bridgeport Asset Management “After several years of very low market volatility, 2018 has been sobering for investors who thought that markets move higher in a smooth and orderly fashion. So far, the S&P 500 has seen price movements of greater than +1% or less than -1% on 51 trading days – this is more than six times the amount we saw during 2017. In 2019, we think ‘accessible alternatives’ will be a hot topic as individual investors begin to look for ways to supplement their traditional investments with alternative private investments that have more stable returns and lower correlation to public capital markets.”

LOOKING BACK ON 2018 Resources had a hard 2018; in the latter half of the year, the price of gold hit a five-year low. The lingering sceptre of a trade war between China and the US left an impact on other commodities; metals and energy markets both experienced deep losses. Automakers, too, have already felt the impact of the trade war, as tariffs have resulted in more burdensome costs, increased prices and weakened demand. Tech stocks also marked an inglorious end to the year, plagued by both the tariffs imposed on goods made in China and brewing consumer displeasure with the privacy and security practices of industry behemoths like Facebook and Google.

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UPFRONT

STATISTICS

Will 2019 be a golden year? The markets ended 2018 with tremendous volatility – so could gold investing be the trend in 2019? FOR MOST of 2018, the bull market was riding high, until a correction in October curbed its momentum. As equities continued to slide in November and December, fears mounted that this could be the end of the bull market’s run. With that fear has come a resurgence of one of the oldest investments: gold. Many analysts believe that if the US economy heads into a

$1,362.40

recession, gold investments could increase. Gold began 2018 on a strong note but was impacted by the October correction. However, the strength of the precious metal was on full display when it rebounded in November and retained its stability to close out the year. This could signal that gold is poised for a big year in 2019.

$1,176.20

The highest price of gold per ounce in 2018

The lowest price of gold per ounce in 2018

$1,889.70 The all-time high price per ounce of gold

END-OF-YEAR BOUNCEBACK The S&P/TSX Global Gold Index – the major index that tracks global gold – began the year on a high note and experienced mostly minor fluctuations through the first half of the year. While not immune to the October correction, the precious metal began trending upwards again the following month. As of early January, the index’s price is back up to nearly $180.

$64.95

The all-time low price per ounce of gold

Source: Goldprice.org, as of December 3, 2018; all figures in US $

CANADA’S TOP 10

WHAT’S HAPPENING IN GOLD TRADING?

On the resource-heavy TSX, gold is a prominent player. The top 10 gold mining companies in the S&P/TSX Global Gold Index have a combined market cap of $91.3 billion.

Much of the world’s physical gold is held and settled in London via a clearing system known as LMPCL, which is owned and operated by HSBC, ICBC Standard Bank, Scotiabank, JP Morgan and UBS. The number and volume of gold trades among the five LMPCL members fell slowly throughout 2018, but stabilized in the latter months of the year. January 2018

Number of transfers: 3,215 Total ounces: 22.3 million

February 2018

Number of transfers: 2,729 Total ounces: 19.0 million

March 2018

Number of transfers: 2,704 Total ounces: 18.7 million

April 2018

Number of transfers: 2,986 Total ounces: 20.5 million

May 2018

Number of transfers: 2,733 Total ounces: 17.9 million

June 2018

Number of transfers: 2,618 Total ounces: 20.0 million

$7.55 billion

July 2018

Number of transfers: 2,851 Total ounces: 19.2 million

RGLD

$5.75 billion

August 2018

Number of transfers: 2,906 Total ounces: 18.9 million

$22.8 billion

AngloGold Ashanti

AU

$3.91 billion

September 2018 Number of transfers: 2,662 Total ounces: 18.9 million

$22.6 billion

Kirkland Lake Gold

KL

$3.62 billion

October 2018

Number of transfers: 2,985 Total ounces: 18.7 million

$22.7 billion

Kinross Gold Corp.

K

$3.23 billion

November 2018 Number of transfers: 2,809 Total ounces: 18.4 million

$22.5 billion

Name

Ticker symbol

Market cap

Newmont Mining Corp.

NEM

$17.02 billion

Franco-Nevada Corp.

FNV

$16.6 billion

Barrick Gold Corp.

ABX

$14.87 billion

Agnico Eagle Mines

AEM

$10.64 billion

G

$8.14 billion

Randgold Resources

GOLD

Royal Gold

Goldcorp

Sources: SPIndicies.com, Reuters.com

6

$29.8 billion $25.3 billion $24.8 billion $27.4 billion $23.4 billion $25.6 billion $23.8 billion

Source: London Bullion Market Association

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S&P/TSX GLOBAL GOLD INDEX 2018 PERFORMANCE $200 $199.34

$194.03

$189.54

$189.46

$189.09

$194.64

$181.10

$179.74

$150

$153.41

$153.91

Sept 4

Oct 1

$166.30

$166.82

Nov 2

Dec 3

$100

$50

$0

Jan 2

Feb 1

Mar 1

Apr 2

May 1

Jun 1

Jul 3

Aug 1

Source: SPIndicies.com, as of December 3, 2018

WORTH ITS WEIGHT

THE ETF PICTURE

A historical look at gold shows minor losses in its short-term performance. Yet over a long period of time, the value of the precious metal has delivered an impressive return.

Gold ETFs provide an easier way to invest in the precious metal. The top 5 gold ETFs are all down around 2% to start the year, but that trend could reverse if 2019 sees greater demand for gold.

GOLD PRICE (SPOT) PERFORMANCE 300%

278.42%

CURRENT VALUES OF THE TOP 5 GOLD ETFs SPDR Gold Trust (GLD)

250%

$122.31

YTD return: -1.94%

200%

iShares Gold Trust (IAU) $12.39 YTD return: -1.76%

150%

Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL) $124.60 YTD return: -1.94%

100% 50%

-0.78%

-6.04%

-3.28%

0% -50%

SPDR Gold MiniShares Trust (GLDM) $12.93 YTD return: N/A (launched in June 2018) GraniteShares Gold Trust (BAR)

-1.05% 30 days

6 months

1 year

5 years

16 years Source: Goldprice.org, as of December 3, 2018

$129.03

YTD return: -1.87% $0

$30

$60

$90

$120

$150

Source: Yahoo Finance, ETFdb.com, as of January 10, 2019

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11/01/2019 5:35:42 AM


UPFRONT

OPINION

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

All that glitters As market volatility looms, there might be no time like the present to buy gold, writes Michael Yeung

GOLD HAS long been held as a safeguard against financial and economic disaster. Look to the years immediately before and after the 2008 financial collapse to see this in action. In the buildup to the crisis, there was a steady incline in gold prices as more investors flocked toward time-tested and safe investments. Then again in 2007–08, in the midst of the crisis, even more investors turned toward gold in an attempt to limit their losses. In the years immediately following, gold prices skyrocketed, hitting an all-time high of nearly $1,900 an ounce in 2011. Gold has been the go-to investment in times of economic uncertainty – and ongoing political tensions, the rise of protectionism and the lingering thought that the current record-setting bull market is going to come to an end sooner rather than later have made uncertainty is the word of the day. And with gold prices loitering at near two-year lows, now might just be a good time to buy. The correlation between gold and the US dollar is historically negative: If the US dollar is strong, gold is weak and vice versa. This has certainly been the case recently, with the greenback continuing a strong upward trend and the gold market on its way down. That said, any one of the issues mentioned above could cause real damage to the American dollar, and it seems more than likely that some or all of them could start to negatively affect the dollar soon. Furthermore, Fed chairman Jerome

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Powell has suggested that he expects a slow but steady rise in interest rates in an attempt to find harmony between supporting growth and controlling excesses; however, this move will slow the dollar down over time and could get in the way of the longest bull run in history. It looks as if all signs are pointing to some devaluation in the US dollar, and if history repeats itself as it so often does, this could likely boost gold prices. Global

Investing in gold is not limited to just buying physical gold bars. Investors can also take advantage of particular gold mining companies that are performing strongly, regardless of overall gold prices. Gold derivative products and contracts for difference [CFDs] are also popular ways for investors to speculate on the yellow metal without ever having to take ownership of physical gold. Derivatives and CFDs work by providing investors leveraged access to gold and allowing them to speculate on both the potential gains or losses in its price. Whether investors are bullish or bearish on gold, CFDs and derivative products provide them with more ways to capitalize on the precious metal. Warren Buffett famously dubbed gold an investment that does nothing but “look back at you,” but in a period when stocks and securities are either overpriced or staring volatility risk in the face, an asset that “does nothing” might just be the safest bet. In a time when Bitcoin can go from $1,400 to $20,000 and then back down to

“In a time when Bitcoin can go from $1,400 to $20,000 and then back down to $6,000 all in the span of a calendar year, gold’s slow-moving existence as a solid store of value should be an attractive concept to investors” volatility in the face of trade and political turmoil, as well as the looming threat of a market correction, will likely start to weigh on global currencies soon, which should give gold a boost. Furthermore, because gold is a finite resource, while demand for the precious metal may inevitably increase, production levels will start to plateau – many experts expect them to drop in the near future. As new discoveries of gold dwindle, mining companies will be forced to dig deeper, invariably raising operating costs, which will likely be reflected in the price of the precious metal.

$6,000 all in the span of a calendar year, gold’s slow-moving existence as a solid store of value should be an attractive concept to investors. This editorial is provided for informational purposes only and should not to be construed as investment advice. As with all alternative investment strategies, there are risks involved with trading CFDs. CMC Markets Canada is an execution-only provider and does not provide advice or recommendations regarding the purchase or sale of any CFD.

Michael Yeung is head of CMC Markets Canada. He has more than 12 years of experience within the self-directed investment industry and 10-plus years of experience working with CFDs specifically.

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11/01/2019 5:36:02 AM


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11/01/2019 5:36:05 AM


UPFRONT

NEWS ANALYSIS

What to look out for in 2019 Industry experts weigh in on the themes investors and advisors should keep an eye on in the new year

WITH A new year comes new challenges for the financial industry. Numerous ups and downs in the markets were a hallmark of 2018, which makes predicting what might happen in the coming year even more difficult. Yet those in the industry have their eyes squarely on a range of issues that could impact investors and advisors. One issue that remains at the forefront is interest rates in Canada and the US. “There has been a lot of debate specifically with the Federal Open Market Committee [FOMC] outlining a dot plot for another three or four rate increases,” says Dean Orrico, president and CIO of Middlefield Group. “I think that might have spooked the market in October. There is a view that the FOMC should not be raising three times next year, but maybe only two. I think that’s an important thing to follow

hot as it once was and that global growth may be slowing. He also wonders how the rate increases in the US will trickle down to Canada. “How does the Bank of Canada respond?” he says. “Canada hasn’t benefited from the same growth stocks as the US.” Volatility in the markets is another trend that seems likely to spill over into 2019. “Volatility comes in spurts – you can have a year that is calm and then, for whatever reason, there is volatility,” says Brian Burlacoff, an advisor with Sun Life Financial. “The most important piece of work an advisor can do for their clients is coach them through times when volatility is high.” Burlacoff does note, however, that volatility goes hand-in-hand with outsized returns. “Once you educate clients,” he says, “they understand that if they want outsized returns

“I believe rate increases should be dialled back somewhat in 2019. It seems aggressive, in the US, to have one in December and three next year” Dean Orrico, Middlefield Group as we move into 2019. I believe rate increases should be dialled back somewhat in 2019. It seems aggressive, in the US, to have one in December and three next year.” Orrico believes the market isn’t quite as

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that typically protect against inflation, they have to put up with volatility.” Another area Burlacoff is focusing on is the impact of inflation. He’s currently preparing his clients’ portfolios to protect them if infla-

tion continues to rise. “Inflation has started to heighten in the last year or so,” he says. “It’s important to make sure you have an appropriate portfolio that can potentially beat inflation. To do that, you need a diversified stocks portfolio, which, depending on the client and situation, can be 50%, 60% or even 70% to protect over a long period of time.” However, Orrico notes that if global growth is slowing, so will inflation. “Two per cent might be where you are for the near future, so interest rates won’t need to be higher to combat higher inflation.” In terms of sectors to watch, Orrico believes energy is one of great interest. With Canadian oil facing a crisis, he says the Bank of Canada needs to realize there are “chinks in the armour”. However, he’s also optimistic about Canada’s production of natural gas and

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11/01/2019 5:36:36 AM


THE INTEREST RATE EFFECT One key issue that will likely continue to have an impact in 2019 is interest rates. The Bank of Canada has increased rates five times since July 2017, landing at 1.75% on October 24. Meanwhile, in the US, the Federal Reserve began raising rates again in 2015 and most recently hit 2.5%. BANK OF CANADA TARGET RATE

1.75% 1.5% 1.25% 1%

0.75%

Jul 12, 2017

Sep 6, 2017

Jan 17, 2018

Jul 11, 2018

Oct 24, 2018

US FEDERAL RESERVE TARGET RATE

2.5% 2.25% 2% 1.75% 1.5%

1.25% 1% 0.75%

Dec 15, Mar 16, Jun 15, Dec 14, Mar 22, Jun 13, Sep 26, Dec 19, 2016 2017 2017 2017 2018 2018 2018 2018 Source: Bank of Canada, US Federal Reserve

the outlook for its potential to be exported to Asian markets. Outside of Canada, eyes remain on the US tariff situation, Brexit and leadership issues

of asset classes in Canada can do well,” he says. “Commercial real estate markets – our REITs – are a great source of stable returns. While additional pipelines haven’t been built,

“Inflation has started to heighten in the last year or so. It’s important to make sure you have an appropriate portfolio that can potentially beat inflation” Brian Burlacoff, Sun Life Financial in Europe. Given the current landscape, Orrico identifies a few areas for investors to look at in 2019, including REITs, pipelines and healthcare. “There is a good argument that a number

the current ones are at capacity, so it is also a good place to be. The other area, primarily in the US, is healthcare. It is deemed to be defensive because companies have significant revenue, are cash-flow generators and

sell needs-based products.” Burlacoff notes that the only thing that can really be predicted is unpredictability, and that’s why he’s focusing on constructing defensive portfolios and managing client behaviour. “Behavioural management of clients is something advisors need to be doing more,” he says. “It comes back to focusing holistically long-term and on eliminating noise. Educate clients and give them the right information to make well informed decisions. By properly diversifying over a long period of time, you will probably get better returns and a smoother ride.” While Orrico and Burlacoff have their eyes on different things in 2019, the common theme for both is tilting portfolios in a defensive manner – something all advisors should consider as the new year begins.

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11/01/2019 5:36:41 AM


UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

CI Financial

WealthBar Financial Services

The acquisition of the robo-advisor will allow CI to broaden the services and platforms it offers to advisors and their clients

Echelon Wealth Partners

Dundee Securities

The acquisition by its parent holding company brings Echelon Wealth Partners’ AUM to more than $5 billion

PARTNER ONE

PARTNER TWO

COMMENTS

BlackRock Canada

RBC Global Asset Management

The two industry heavyweights have partnered to create Canada’s biggest ETF brand

Freedom 55 Financial

Canadian Football League Players’ Association

The financial institution will work with the CFLPA’s Career Academy to offer retired players the chance to become financial advisors

Montreal Exchange

Montreal Institute for Data Valorization

The three-year joint initiative will use data from the exchange to uncover new ways to detect and address negative marketplace behaviours

Capital Group offers income builder strategy

Capital Group has launched a globally diversified equity income portfolio for investors seeking growing income and lower volatility. Based on a concept that Capital Group has used in the US for more than 30 years, the Capital Income Builder strategy applies a stringent eligibility process to evaluate companies that pay a dividend and can potentially increase it over time, while providing a cushion in down markets. The strategy is managed by 12 portfolio managers who look for companies that have strong management, good business models and the ability to grow earnings and dividends.

CI Financial takes majority stake in WealthBar

CI Financial has agreed to acquire a majority stake in online wealth management platform WealthBar with the aim of bolstering its position in the independent wealth management space. CI CEO Peter Anderson noted that WealthBar’s technology and expertise will spur the development of CI’s comprehensive digital strategy. By providing advisors with a digital platform, the firm hopes to keep clients engaged at all stages of their wealth management journey, resulting in “a relationship that grows as the investor’s need for advice grows,” Anderson said. WealthBar will continue to operate as a stand-alone business under the leadership of co-founder and CEO Tea Nicola, co-founder and chief technology officer Chris Nicola, and chief investment officer and chief compliance officer Neville Joanes. “CI’s independence and objectivity were important reasons for our decision to choose [it] as a partner,” Tea Nicola said. “WealthBar has achieved rapid growth since our launch in 2014, and CI Financial’s backing and resources will put us on a new growth trajectory as we build on our success in technology, client experience and products.”

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iA Financial launches new global seg funds

iA Financial Group has introduced three new global managed solutions to its segregated fund shelf, designed to offer increased exposure to global markets and alternative asset classes. The three strategies – Global Asset Allocation Security (iAIM), Global Asset Allocation (iAIM) and Global Asset Allocation Opportunity (iAIM) – cover three investor risk tolerance profiles, from conservative to aggressive. Fund manager Clément Gignac noted that the funds give “regular investors direct access to private alternative and real asset classes like real estate, mortgage loans, infrastructure, private equity and private debt, which are normally reserved for institutions and large pension funds.”

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PEOPLE London Life and Mackenzie partner on managed portfolios

London Life, in partnership with Mackenzie Investments, has launched the London Life Constellation Manged Portfolios, a goals-based managed asset program for Freedom 55 Financial advisors and their clients. The new program provides a customer-focused digital tool to help advisors manage the risk assessment process and set up goal portfolios, see a consolidated view of customers’ household assets, and offer clients real-time online reporting access. Initially launched in select markets, the program will expand across Canada in 2019.

Empire Life introduces no-load option

Empire Life has enhanced its range of choices for investors by adding a no-load purchase option to its segregated fund product line, allowing clients to access their funds at any time without incurring withdrawal fees. Empire Life has also expanded its Class Plus 3.0 product lineup with four new global funds: the Emblem Global Conservative Portfolio GIF, Emblem Global Balanced Portfolio GIF, Emblem Global Moderate Growth Portfolio GIF and Global Asset Allocation GIF, all of which aim to take advantage of global markets to provide a higher potential return with lower volatility.

NAME

LEAVING

JOINING

NEW POSITION

Brenda Bartlett

N/A

PWL Capital

CEO

Tim Buckley

N/A

Vanguard

Chairman

Paul Finkbeiner

GWL Realty Advisors

Great-West Lifeco

Executive vice-president and global head of real estate

Nicole Musicco

Ontario Teachers’ Pension Plan

IMCO

Senior managing director, private markets

Robert Sankey

N/A

Burgundy Asset Management

CEO

Jim Virtue

N/A

PPI Management

President and COO

PWL Capital names new CEO

PWL Capital has appointed Brenda Bartlett as its new CEO, replacing Anthony Layton, who continues to play an important role as chairman of the board. Bartlett has more than 25 years of industry experience as a senior executive, including serving as PWL’s president and COO for the past 12 years. Bartlett is also an experienced corporate director and mentors female entrepreneurs through SheEO. “[Brenda] brings a breadth and depth of experience … a clear focus and an ever-renewed passion to deliver results for our firm to achieve its full potential,” Layton said. “Importantly, her personal values of integrity and transparency are the essence of the PWL culture.”

IMCO appoints private markets chief Franklin Templeton gets active on currency hedging

Franklin Templeton has shifted its Franklin High Income Fund from a passive currency hedge overlay to a more active approach. The firm has reduced the hedge to a base ratio of 75% hedged and 25% unhedged; from there, the fixed-income team can adjust the hedge up or down by 25%, based on their outlook for the Canadian dollar against the US dollar. “Many Canadians are looking for yield in their fixed-income portfolios but also want to have flexible currency management to help navigate currency risks and opportunities,” said Franklin Templeton president and CEO Duane Green, adding that “the fund now provides Canadian investors currency exposure managed from a Canadian perspective.”

The Investment Management Corporation of Ontario [IMCO] has named Nicole Musicco as senior managing director of private markets. A former executive at the Ontario Teachers’ Pension Plan, Musicco was most recently vice-president of Teachers’ Private Capital, where she oversaw externally managed private equity and venture capital fund positions, as well as emerging market co-investment and underwriting activities. She also led expansions into investing in new sectors. Previously, Musicco served as OTPP’s managing director for Asia-Pacific and senior managing director of the Ontario Teachers’ Public Equities group. “[Nicole’s] deep investing background and experience in structuring complex transactions will be invaluable as we establish essential strategic partnerships and continue to source investment opportunities that will enable us to meet our clients’ investing goals,” said IMCO chief investment officer Jean Michel.

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UPFRONT

ETF UPDATE NEWS BRIEFS Horizons launches new product focused on industry 4.0

Horizons ETFs has launched the Horizons Industry 4.0 Index ETF (FOUR) on the TSX. Focused on new technology, the fund will invest in sectors that are crucial to the Fourth Industrial Revolution, including advanced robotics, the Internet of Things, the cloud and Big Data, cybersecurity, augmented reality, and 3D printing. FOUR tracks the performance of the Solactive Industry 4.0 Index, which captures exchange-listed companies in developed countries with a minimum market cap of US$200 million and a minimum average daily trade value of US$2 million.

First Asset merges funds into convertible bond ETF

First Asset has merged the First Asset Diversified Convertible Debenture Fund, First Asset Canadian Convertibles Fund and First Asset North American Convertibles Fund into the First Asset Canadian Convertible Bond ETF (CSF), which has a similar mandate to the terminated funds. The mergers, approved during securityholder meetings in October, are expected to benefit investors by offering greater market liquidity and a lower management fee.

Hamilton Capital targets Australian financial market with new ETF

Hamilton Capital has introduced the Hamilton Capital Australian Financials Yield ETF (HFA) on the TSX. The active, currency-hedged strategy invests in high-dividend-yielding, Australia-listed financial services stocks, which Hamilton Capital considers to be well suited for investors who need attractive monthly dividends and portfolio diversification. The fund will rely on a covered-call strategy, subadvised by Horizons ETFs,

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to help drive additional income and help mitigate downside risk. “[HFA] is intended to provide investors with exposure to a world-class financial services sector with a history of longterm outperformance versus the Canadian financials,” said Rob Wessel, managing partner at Hamilton Capital.

Canadian ETF assets get a boost in November

According to the latest figures from the Canadian ETF Association [CETFA], assets under management in Canada’s ETF space grew to $160.9 billion in November 2018. That represents a respectable 10.4% year-over-year increase, though it doesn’t represent peak AUM for 2018 – that was reached in August, when total industry AUM hit $163.7 billion. From that point, Canadian ETFs saw two months of declines, slipping to $163 billion in September and then to $157.4 billion in October before bouncing back in November.

BMO adds two high-conviction funds to its ETF lineup

BMO Investments has launched two high-conviction funds, both subadvised by SIA Wealth Management. The BMO SIA Focused Canadian Equity Fund provides access to a concentrated portfolio of Canadian equities that are selected based on relative strength, while the BMO SIA Focused North American Equity Fund offers access to a concentrated portfolio of North American equities selected based on relative strength. “Highconviction portfolios – concentrated in fewer stocks than traditional funds – are increasingly in demand,” noted BMO Global Asset Management’s Mark Raes. The two new funds are available as Series A, Series F, Series D, Series I and Advisor Series mutual funds, or as ETFs on the TSX under the symbols ZFC and ZFN.

What does 2019 hold for ETFs? One investment firm predicts even more growth and innovation for Canadian ETFs in the year ahead Despite some volatility in the markets, Canada’s ETF industry grew to more than $160 billion in AUM in 2018 as investors poured more than $15.9 billion into the space. That translated into a 10% year-overyear increase in assets under management, which, while respectable, is well short of the 30% growth seen from 2016 to 2017. But according to WisdomTree’s 2019 ETF Industry and Market Outlook, Canada’s ETF growth story isn’t ending; it’s only changing. The firm noted that the space continues to attract new entrants – there are now 33 fund providers, up from 27 at the end of 2017. There has also been an ongoing shift of assets from mutual funds to ETFs. And the top three providers’ stranglehold on the industry has loosened; the next 10 firms have increased their market share to 20.1% worth of industrywide AUM as of the third quarter of 2018, a steady increase from 17.4% at the end of 2017 and 14.1% from the year before. “This year we’ve seen the continued evolution of the ETF industry, and what stands out the most is the steady erosion of the oligopolistic power among the major providers in Canada,” said Jeff Weniger, asset allocation strategist for WisdomTree. Looking at the year ahead, WisdomTree predicts an accelerated shift from mutual funds to ETFs, with a potential bear market or correction serving as a catalyst for

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investors to move toward minimizing capital gains. Innovation is also likely to continue, driven by investor demand for low-cost alpha through products such as thematic funds. Expecting the Bank of Canada to continue along its path of normalizing interest rates, WisdomTree also forecast an increase in ‘rising rate’ solutions, notably short-duration

“What stands out the most is the steady erosion of the oligopolistic power among the major [ETF] providers in Canada” strategies, as investors position their portfolios more defensively. It also suggested the increased likelihood of a ‘barbell’ approach, which combines short-duration instruments with longer-duration ones to balance investors’ rate-protection and income needs. The report also raised the possibility of headwinds for Canadian banks in 2019, assuming BoC Governor Stephen Poloz goes into the year with a more aggressive tack. WisdomTree also believes the Canadian dollar could see modest strength relative to the greenback, as well as potentially considerable appreciation relative to the euro. In addition, the report said 2019 could be the time for emerging market equities to shine relative to Canadian stocks, given EM valuation metrics that rival what was witnessed amid the fallout from the global financial crisis.

Q&A

Bruce Cooper

TD takes on active ETFs

CEO and CIO TD ASSET MANAGEMENT

Years in the industry 27 Fast fact TD Asset Management recently entered Canada’s active ETF space with three new listings on the TSX: the TD Active Preferred Share ETF (TPRF), TD Select Short-Term Corporate Bond Ladder ETF (TCSB) and TD Select US Short-Term Corporate Bond Ladder ETF (TUSB/TUSB.U)

What factors did you consider when launching your new active ETF suite? The fixed income and preferred share categories are very interesting for us. Interest rates remain low, and actually went lower from September to November. Products with attractive yields continue to be interesting to the marketplace, and we think both the corporate bond ETFs as well as the preferred share ETF will have quite attractive yields on an after-fee basis. They just fit with the overall investment environment. They also benefit from deep expertise here at TD Asset Management. If you think about the corporate bond side, we manage around $160 billion in fixed-income assets, and within that, we have a strong credit orientation that’s been cultivated here for 25 years. On the preferred share side, we manage well over $1 billion, including very large portfolios for institutional clients, and the lead manager for the preferred share ETF has been handling that sort of portfolio for 25 years as well.

What investor challenges do you hope to address with your actively managed ETFs? One of the biggest challenges today is generating yield in a low interest rate environment. To put it in a more nuanced way, we’re aiming for yield that’s attractive on a risk-adjusted basis. It’s obviously getting late in this economic cycle, and we are seeing some stresses build up in the fixed-income credit market. We believe credit analysis is very important at this stage, which is where our fixed income and preferred share teams’ analysis of company balance sheets and cash flows comes in. That informs the selection for our laddered corporate bond ETFs, which focus on Canadian and US issues with one- to five-year durations, as well as the preferred share ETF, which focuses mainly on Canadian-listed issues. And while Europe is also a big market, we think yields there are unattractive, as interest rates remain low, partly because of the European Central Bank’s quantitative easing.

What steps have you taken to ensure that your ETFs are competitive compared to similar products in the market? We have the ability to potentially enhance yield in our corporate bond ETFs with some exposure to non-investment-grade credit. Yields in this area have increased quite a bit in the last couple of months, so we believe there are some opportunities there. And we’d argue that active fixed-income strategies make more sense than passive mandates, where generally the biggest exposures go to the companies with the most debt. We’ve also priced all three active ETFs competitively compared to the passive ETFs in the market, with a fee of 25 basis points for the fixed-income products and 45 basis points for the preferred share product.

www.wealthprofessional.ca

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UPFRONT

ALTERNATIVE INVESTMENT UPDATE

Hunger for commercial real estate grows Consumer interest in Canada’s commercial real estate segment shows no signs of slowing

country will support positive income performance characteristics.” These market fundamentals resulted in strong investment performance: Properties tracked in the MSCI Index achieved a fiveyear high, with an annual average total return of 11.4% as of June 2018. Investor appetite for core and core-plus properties was strong across Canada, translating into a modestly attractive investment return of 7.3% as of June 30.

“Rental demand will remain robust through to at least the end of 2019”

In the face of rising interest rates, Canada’s commercial real estate space has proven attractive to investors – and that trend will persist next year, according to Morguard’s 2019 Canadian Economic Outlook and Market Fundamentals Report. “Over the past 18 months, investors placed capital into the market with confidence, resulting in record high sales volume,” said Keith Reading, director of research at Morguard. “The market shows no signs of slowing.”

NEWS BRIEFS

The firm reported a record $6.3 billion of multi-suite residential rental investment property sales in 2017, followed by $3.6 billion in the first six months of 2018. Demand has kept cap rates low and values high over the past 12 to 18 months. In addition, rental growth over the past year grew as demand outpaced supply, a trend that’s expected to continue in 2019. “Rental demand will remain robust through to at least the end of 2019,” the report said. “This growth and the continued strength of leasing fundamentals across much of the

Sustainalytics unveils ESG intelligence tool

Sustainalytics has launched its Sustainable Products Research resource, which allows investors to identify companies that derive revenue from sustainable products and services. From a pool of more than 10,000 companies, Sustainalytics pinpoints those that derive more than 5% of revenue from sustainable products and services by examining 35 product involvement categories under 12 responsible investing areas, including renewable energy, energy efficiency, water, affordable housing, education and financial inclusion.

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While Toronto and Vancouver were the most attractive markets, Morguard noted that investors have been forced to look elsewhere, given the limited opportunities in those jurisdictions. Key business sectors driving demand across Canada include technology, professional services, education and healthcare. Morguard predicted continued moderation for retail real estate throughout much of 2019. The first six months of 2018 saw a total of $5.5 billion in the sector, extending the previous year’s pace, which produced a record high of $9.2 billion. While retail properties in the MSCI Index still saw a fairly attractive 5.7% year-over-year return as of June 30, it was the lowest on record since the most recent recession. Canada’s retail leasing market was also somewhat mixed as rising vacancy rates collided with varying degrees of downward rent pressure across much of the market.

CI Investments launches liquid alternative funds

CI Investments has entered the liquid-alternative mutual fund space with a set of three funds that seek to provide capital preservation and a low correlation to equity and fixed-income markets. The Lawrence Park Alternative Investment Grade Credit Fund invests mainly in investment-grade corporate debt from developed markets, while the Marret Alternative Absolute Return Bond invests in debt instruments across the credit spectrum, and the Munro Alternative Global Growth Fund targets global growth equities over the medium to long term.

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Q&A

Paul Finkbeiner

Grand designs for global real estate

Executive vice-president and global head of real estate GREAT-WEST LIFECO

Years in the industry 30+ Fast fact In his newly created role, Finkbeiner will work with regional leaders to build out the life insurance company’s global real estate investment business

Can you shed some light on Great-West Life’s plans to establish a global real estate platform?

What benefits do you expect this expansion will provide to both new and existing investors?

We currently manage about $17 billion in real estate assets in North America, $4 billion in the UK and $4 billion in Ireland and Europe. We believe that establishing a global real estate platform will strengthen collaboration across regions and maximize our scale and access to investments. By establishing a global real estate division with strong regional capabilities and focus, we can develop and implement a comprehensive global vision on Great-West Life’s overall real estate strategy. It can also facilitate the sharing of best practices, including sourcing and property management, across regional teams. In building this platform, we’ll strive to attract top-tier talent, as well as support internal succession planning to create a global pool of experts. We also hope to improve the cross-regional allocation available to our general account and third-party clients and provide them with more options on where to invest in real estate.

For years, we have successfully allocated capital to real estate investments for the benefit of our insurance company balance sheet. With this expansion, we aim to continue to offer the best possible investments that we see on a global basis, leveraging our expertise to provide comprehensive real estate investment solutions to our clients. Having additional resources at the global level will, in our view, facilitate a more cohesive sharing of investment ideas, information, strategy, best practices and data across all regions. We also believe this new global real estate division will allow us to be more competitive in the marketplace. We envision that the new structure will enable a more unified approach and philosophy around our decisionmaking process, as well as create a standardized and systematized reporting mechanism across regions.

Do you plan to focus on developing any particular real estate fund or create new ones as part of the expansion?

When there’s volatility in the equity markets, usually people go to the hard assets for diversification. Shifting investment capital into assets like real estate can be an attractive option for some investors.

As of now, we want to continue to follow capital flows and create products that make sense for each region.

Greypoint closes second private debt fund

Toronto-based alternative lender Greypoint Capital has closed its second private debt fund. Greypoint received a significant amount of the fund’s $200 million target from existing investors, primarily Canadian family offices. Replicating the mandate of Greypoint’s first fund, which delivered above-market returns, the new fund will provide financing for middle-market Canadian businesses and real estate. The firm lends to businesses through a variety of flexible loan products that range in size from $10 million to $50 million.

Any thoughts on the case for exposure real estate funds, given the recent bouts of volatility in the financial markets?

Venture capital deals down in third quarter

According to PwC, Canadian venture-capital-backed companies closed 87 deals in the third quarter of 2018, down from 127 the previous quarter, and total venture capital funding declined by 42% to US$541 million. “While overall funding and deal activity among Canadian startups fell this quarter, there were bright spots like digital health and fintech,” said Anand Sanwal of CB Insights. Investment in digital health jumped 170% to $83 million, while Canadian fintechs saw funding increase to $115 million in the third quarter.

Goldman Sachs bullish on gold for 2019

In a report published in November, Goldman Sachs predicted that slowing growth in the US economy will prompt investors to diversify their portfolios, resulting in increased interest and prices for gold. “We see diversification value in adding gold to portfolios,” the investment giant said, adding that the defensive appeal of long-term bonds may be hurt by an upside surprise in US inflation. The firm also cited demand from central banks as a factor; some are buying gold for the first time since 2012.

www.wealthprofessional.ca

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PEOPLE

INDUSTRY ICON

DOING THINGS DIFFERENTLY Horizons ETFs president and CEO Steve Hawkins has found success in asset management by taking a pioneering approach

HORIZONS ETFS has become one of the key players in the ETF industry, due in no small part to its current president and CEO, Steve Hawkins. Hawkins has taken the lessons he’s learned over his 36 years in the financial industry and carved out a niche by building first-to-market products that have attracted investors to Horizons’ ETF lineup. Hawkins traces his roots in investing back to his teenage years. “My father was in the industry, so I really grew up on Bay Street,” he says. “I started at just 15 years old as a runner, delivering securities by hand.” Once Hawkins got a taste for the industry, he was hooked. After his brokerage experience, he moved into sales with Altamira Capital in 1993. He began working in compliance and earned his portfolio manager certification. He then held senior management positions at First Asset Investment Management and Fairway Capital Management before landing at Horizons in 2007. “Fairway Capital was sold to Jovian Capital, and that was right around when they started the ETF business, Horizons BetaPro,” Hawkins explains. “That gave me a chance to get involved in ETFs, and I became their chief compliance officer. My role evolved to chief product and investment officer, and from there, I never looked back.” As Horizons’ CIO, Hawkins enjoyed taking a hands-on approach to every aspect of fund

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development. When he was named CEO in 2015, he brought the same style to his new role. “I wanted to know about everything, everyone and what they did,” he says. “I think it’s important from a connection perspective because it creates loyalty. I take pride in the fact that we have one of the lowest staff turnovers in the ETF industry.”

Hawkins because of their disruptive nature. “ETFs are opening the door for more innovation,” he says. “I take pride that we have been the first to market on numerous strategies.” One of those products was Canada’s very first marijuana ETF (HMMJ), which launched in April 2017. By September 2018, HMMJ had hit more than $1 billion in AUM.

“Horizons stands for innovation, and I’m really proud of what we have built as a company … We have always pushed the boundaries and been at the forefront of innovation. We look at a space and see if there is a need for product, and then we bring that product to market” The drive to innovate Now at the head of Horizons, Hawkins is revolutionizing the ETF industry. “Horizons stands for innovation,” he says, “and I’m really proud of what we have built as a company, especially over the nine-plus years I have been with it. We have always pushed the boundaries and been at the forefront of innovation. We look at a space and see if there is a need for product, and then we bring that product to market.” ETFs have been considerably appealing to

“The worldwide recognition of HMMJ has been a career highlight,” Hawkins says. “Thanks to its launch, it created a worldwide brand for Horizons and myself.” That brand has led to increased recognition for Horizons as an authority on cannabis investing, something Hawkins feels will keep his company top of mind. “People want to talk to us and ask questions,” he says. “When we started investing in cannabis, there were only about a dozen

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PROFILE Name: Steve Hawkins Title: President and CEO Company: Horizons ETFs Based in: Toronto Years in the industry: 36 Fast fact: Hawkins was named CEO of the Year at the 2018 Wealth Professional Awards

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PEOPLE

INDUSTRY ICON

companies; now there are over 120. We invest in 60 companies, and I have met with senior leadership at many of them. They also want to talk to us because HMMJ changed the way cannabis companies look at investors.” Hawkins feels HMMJ has brought in a new group of investors, not only to that particular fund, but to the ETF industry as a whole. That plays into another role Hawkins sees for Horizons: as an educator on what ETFs can do for investors. “Creating awareness and educating the

and remain a key player in the ETF industry.” When it comes to the funds themselves, Hawkins considers himself a product engineer who takes ideas off a blackboard and makes them something the public can invest in. But he acknowledges that he couldn’t do this without the rest of his team at Horizons. He says some of the best advice he received was from Philip Armstrong, the CEO at Altamira and Jovian, whom Hawkins worked alongside. Armstrong taught Hawkins to surround himself with the best people – people he liked working with and

“I believe ETFs will become the bread and butter of Canadians’ investment portfolios. From the start, we have really tried to educate investors that ETFs can be different and increase exposure to different asset classes and strategies” next generation of investors is critical,” he says. “I believe ETFs will become the bread and butter of Canadians’ investment portfolios. From the start, we have really tried to educate investors that ETFs can be different and increase exposure to different asset classes and strategies.”

Standing out One of the big challenges for Hawkins and Horizons has been keeping pace with the major banks and US investment companies as they enter the Canadian ETF marketplace. For Hawkins, the key has been creating products that differentiate Horizons from the rest of the pack. “It’s difficult to compete with them on plain vanilla offerings because they can use all of their resources to control the distribution network,” he says. “I feel there is a place for niche asset management companies. Having a different type of product has allowed us to grow

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who liked working with him. “I really took that to heart,” he says. “I have always loved coming to work here and the people I get to work with. I have a great rapport with our senior leadership team.” Horizons has launched numerous products in the last three years, and Hawkins now plans to let the market digest them. But Horizons isn’t done developing innovative products: It recently launched the Horizons Global Sustainability Leaders Index ETF (ETHI), its first SRI fund, as well as the Horizons Industry 4.0 Index ETF (FOUR), a fund that’s focused on future technologies such as robotics, Big Data and the Internet of Things. Hawkins believes the ETF industry still has room to grow, even if it’s not at the same pace as in recent years. He thinks mutual funds will fade and more players will enter the ETF landscape. “I think we will continue to see new innovations in ETFs,” he says, “and I know that Horizons will remain at the forefront.”

HORIZONS ETFS BY THE NUMBERS

2005

Year the firm was established

$10 billion

Horizons’ approximate AUM

2007

Year Horizons launched its first ETF

85

Number of ETFs in Horizons’ product lineup

$1 billion

AUM of HMMJ as of September 2018 (the first cannabis ETF to reach this milestone)

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MAY 30, 2019 | THE LIBERTY GRAND TORONTO

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SPECIAL THANKS TO OUR AWARD SPONSORS

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WPA 19 Nominate DPS Ad.indd 22-23_WP Awards DPS.indd 22 All Pages

11/01/2019 2:40:29 AM


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SPECIAL REPORT

TOP 50 ADVISORS

THE TOP

Wealth Professional Canada spotlights 50 of the best advisors working in the Canadian wealth management industry today WEALTH PROFESSIONAL CANADA is proud to present the sixth annual Top 50 Advisors List. Once again, this year’s list contains representatives from across the country, although Ontario laid claim to the largest proportion (40%). In total, this year’s Top 50 Advisors are managing approximately $10.3 billion worth of assets – a number that likely would have been considerably higher had the markets not experienced a slide in the latter half of 2018. While there are some familiar faces among 2019’s best and brightest advisors, several up-and-coming advisors also earned spots

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on the list (the years of experience amassed by this year’s Top 50 Advisors ranges from four to 52), highlighting the strong future of wealth management in Canada. Given the

large transfer of wealth from baby boomers to millennials that’s set to occur in the near future, it’s clear that tomorrow’s investors will be able to access a strong pool of knowledge.

METHODOLOGY To determine who made the cut as one of Wealth Professional Canada’s Top 50 Advisors for 2019, multiple factors were taken into account, including overall AUM, AUM growth, number of clients and number of new clients added. Each factor was given specific weighting and entered into an equation that produced a score for each advisor; the final ranking was determine by that score. While these factors alone don’t measure an advisor’s overall abilities, in combination, they can provide analytical insight as to an advisor’s performance and effectiveness.

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Top 50 Advisors RANK

NAME

PRACTICE

BROKERAGE/DEALER GROUP

LOCATION

YEARS IN THE INDUSTRY

AUM GROWTHâ€

AUM*

TOTAL CLIENTS*

1

Kyle Richie

Richie Group

Investors Group Private Wealth Management

Toronto, ON

20

$440,000,000

16%

440

2

Nader Hamid

Total Wealth Management

HollisWealth, a division of Industrial Alliance Securities

Montreal, QC

17

$265,000,000

77%

280

3

Todd Degelman

Wellington Altus Private Wealth

Wellington Altus Private Wealth

Saskatoon, SK

26

$392,081,678

13%

740

4

Faisal Karmali

Popowich Karmali Advisory Group

CIBC Wood Gundy

Calgary, AB

10

$500,000,000

11%

456

5

Gerald L. Goertsen

DeThomas Wealth Management

De Thomas Wealth Management

Kelowna, BC

17

$228,503,601

21%

1,723

6

Kevin Hegedus

PWM Private Wealth Counsel

HollisWealth, a division of Industrial Alliance Securities

Saskatoon, SK

26

$440,000,000

6%

874

7

Jamie Townsend

Lawton Partners

Lawton Partners Financial Planning Services

Winnipeg, MB

10

$310,853,348

17%

499

8

Bart Hunter

The Hunter Financial Group

ScotiaMcLeod

Saskatoon, SK

10

$267,971,484

13%

337

9

Robert Luft

Luft Financial

HollisWealth, a division of Industrial Alliance Securities

Vancouver, BC

20

$248,279,059

12%

530

10

Wes Ashton

Popescu Ashton Group

Harbourfront Wealth Management

Vancouver, BC

17

$334,973,000

8%

315

11

Colin Ryan

Colin Ryan Wealth Management

BMO Nesbitt Burns

Winnipeg, MB

26

$286,000,000

14%

180

12

Reg Jackson

JMRD Wealth Management Team

National Bank Financial

London, ON

22

$500,000,000

5%

225

13

Alexandra Horwood

Alexandra Horwood & Partners

Richardson GMP

Toronto, ON

8

$246,157,433

19%

189

14

Chad Larson

MLD Wealth Management Group

Canaccord Genuity Wealth Management

Calgary, AB

15

$610,000,000

2%

320

15

Lyle Rouleau

Rouleau Investment Group

CIBC Wood Gundy

Edmonton, AB

20

$413,418,200

5%

160

16

Elie Nour

Nour Private Wealth

Nour Private Wealth

Oakville, ON

12

$266,000,000

15%

170

17

Colin White

White Leblanc Wealth Planners

HollisWealth, a division of Industrial Alliance Securities

Dartmouth, NS

26

$140,000,000

47%

500

18

Rona Birenbaum

Caring for Clients

Queensbury Strategies

Toronto, ON

23

$200,000,000

13%

350

19

Rob McClelland

The McClelland Financial Group

Assante Capital Management

Thornhill, ON

27

$446,000,000

0%

757

20

Wolfgang Klein

The Wolf of Bay Street

Canaccord Genuity Wealth Management

Toronto, ON

16

$197,845,000

8%

261

21

Kevin Haakensen

PWM Private Wealth Counsel

HollisWealth, a division of Industrial Alliance Securities

Saskatoon, SK

21

$166,000,000

24%

291

22

Brad Jardine

CIC Financial Group

Aligned Capital Partners

Ancaster, ON

32

$181,000,000

21%

377

23

Nicholas Shinder

Shinder Tremblay Group

Echelon Wealth Partners

Montreal, QC

19

$120,000,000

98%

75

24

Thierry Tremblay

Shinder Tremblay Group

Echelon Wealth Partners

Montreal, QC

17

$120,000,000

98%

75

25

Cory Garlock

TD Wealth Private Investment Advice

TD Wealth Private Investment Advice

Ottawa, ON

15

$97,000,000

52%

163

26

Paul Green

Green Private Wealth Counsel

Harbourfront Wealth Management

Woodstock, ON

25

$187,500,000

4%

402

27

John Rathwell

Rathwell Financial

HollisWealth, a division of Industrial Alliance Securities

Red Deer, AB

30

$153,000,000

7%

457

28

Simon Partington

Partington Wealth Management

Richardson GMP

Toronto, ON

12

$185,000,000

6%

165

29

Nick Bakish

Bakish Wealth

Richardson GMP

Montreal, QC

16

$133,410,817

9%

408

30

Sonny Goldstein

Goldstein Financial Consultants

Goldstein Financial Investments

Toronto, ON

52

$169,362,945

3%

784

31

Angelo Manzo

Manzo and Associates

Investors Group Private Wealth Management

Montreal, QC

21

$180,000,000

6%

460

32

Jason De Thomasis

De Thomas Wealth Management

De Thomas Wealth Management

Richmond Hill, ON

12

$80,860,362

65%

200

33

William Frenn

William Frenn Wealth Management

Manulife Securities

Montreal, QC

6

$80,000,000

57%

190

34

Maurice Pallone

Rothenberg Capital Management

Rothenberg Capital Management

Montreal, QC

30

$250,000,000

0%

636

35

-

-

-

-

-

-

-

-

36

Sean Ryder

Loreto Ryder & Associates Private Wealth Management

Investors Group Private Wealth Management

Toronto, ON

11

$226,602,266

1%

959

37

Christopher Rawles

RT Mosaic Wealth Management

RT Mosaic Wealth Management

Calgary, AB

14

$85,000,000

37%

142

38

Gary Berardinelli

Group Berardinelli

Investors Group Private Wealth Management

Montreal, QC

25

$130,000,000

8%

360

39

Ed Bootle

Bootle & Associates

Investors Group Private Wealth Management

Edmonton, AB

20

$126,000,000

15%

300

40

Kelvin Rampersad

K and V Rampersad Financial Services

Carte Wealth

Mississauga, ON

27

$61,000,000

24%

499

41

Laurie Bonten

Bonten Wealth Management

Wellington-Altus Private Wealth

Winnipeg, MB

32

$111,681,614

4%

240

42

Travis Forman

Forman & Associates Financial Planning

Harbourfront Wealth Management

Surrey, BC

20

$70,000,000

23%

238

43

Michael Zagari

Zagari Simpson & Associates

Peak Financial Group

Montreal, QC

16

$46,000,000

33%

143

44

Rosemary Horwood

Rosemary Horwood Wealth

Richardson GMP

Toronto, ON

5

$134,386,101

2%

100

45

Edward Simpson

Zagari Simpson & Associates

Peak Financial Group

Montreal, QC

10

$46,000,000

33%

143

46

Karl Abdel Nour

Nour Private Wealth

Nour Private Wealth

Oakville, ON

4

$32,000,000

68%

169

47

George Halkidis

The James Dennis Group

Richardson GMP

Toronto, ON

7

$72,000,000

60%

140

48

Adam Pulla

Northstone Wealth and Estate

Northstone Wealth and Estate

Toronto, ON

8

$31,300,000

23%

900

49

Steve Booker

Milestone Asset Management

Canaccord Genuity Wealth Management

Calgary, AB

20

$114,654,869

1%

288

50

Jamie Suprun

Suprun Wealth Management

HollisWealth, a division of Industrial Alliance Securities

Simcoe, ON

16

$97,500,000

2%

240 *As of October 31, 2018

†Between October 31, 2017 and October 31, 2018

www.wealthprofessional.ca

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11/02/2019 9:31:22 PM


SPECIAL REPORT

TOP 50 ADVISORS STEVE BOOKER

49

Milestone Asset Management Canaccord Genuity Wealth Management Calgary, AB

A lifelong entrepreneur, Steve Booker originally became a financial advisor as a way to satisfy his desire to run his own business while offering value to individuals. “As a financial advisor, I could see how I could build a business while bringing bespoke financial solutions to clients,” he says. “That was 20 years ago, and I haven’t looked back.” Booker’s AUM remained fairly steady in 2018 at just under $115 million. He continues to add to his client base, which now stands at 288. Thanks to its consistent revenue generation, even through the ebbs and flows of the market, Booker’s practice has been part of Canaccord Genuity Wealth Management’s Leaders Council since 2010. “We have been reorganizing and reinvesting in order to put a greater focus on serving family offices,” Booker says. “The increasing sophistication of our business owners has necessitated that we increase our skill set in this capacity. I would like to see our practice’s family office being fully developed in 10 years, but if we can meet our internal objectives, we are optimistic of seeing that outcome in half the time.”

JAMIE SUPRUN Suprun Wealth Management HollisWealth, a division of Industrial Alliance Securities Simcoe, ON

For the second year in a row, Jamie Suprun took the number 50 spot on the Top 50 Advisors list. Suprun saw modest AUM growth over the course of the year and now manages $97.5 million for his 240 clients. Suprun was drawn to the industry by a passion for helping people and solving problems. Now, with 16 years of experience behind him, he’s looking to continue helping his clients by bringing them new and innovative ideas. In addition to making a repeat appearance on the Top 50 Advisors list, Suprun was also a finalist for Best Advisor (Alternative Investments) at the 2018 Wealth Professional Awards. As the recognition floods in, it appears that Suprun has picked the right career. “I love this job,” he says. “I have a hard time seeing myself doing anything else. It’s not work when you love it.”

26

ADAM PULLA

48

Northstone Wealth and Estate Toronto, ON

Thanks to one of the highest client totals (900) and the highest client growth rate of any advisor, Adam Pulla earned the number 48 spot on this year’s Top 50 Advisors list. In addition to helping all of those clients, Pulla also saw his AUM grow by 23% last year to $31 million. After working as an advisor at one of the major banks, Pulla wanted to build a brand of his own with his own approach to client service, needs-based advice and growth. Now a partner with Northstone Wealth and Estate, he’s firmly focused on the future. “I want to grow my AUM by 30% with my documented needs-based process, which not only adds value to Canadians’ financial lives, but also gives me a personal sense of satisfaction,” he says. “We need more financial literacy, transparency and advice to live a comfortable life in an economy with ever-increasing costs. My goal is to continually assist individuals, families and small businesses to not only get by, but also get ahead.”

www.wealthprofessional.ca

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11/01/2019 5:39:49 AM


GEORGE HALKIDIS

47

The James Dennis Group Richardson GMP Toronto, ON

A former professional hockey player and Memorial Cup champion with the Kitchener Rangers in 2003, George Halkidis made a career change seven years ago and has found a new calling as an advisor and portfolio manager. Obtaining his PM designation is something Halkidis points to as one of his proudest moments. In his short time in the business, Halkidis has managed to grow his AUM to $72 million, a 60% year-over-year growth. Now he hopes to continue growing AUM while improving his clients’ financial plan reports and obtaining his insurance license.

EDWARD SIMPSON

45

Zagari Simpson & Associates Peak Financial Group Montreal, QC

Edward Simpson originally became an advisor because he was interested in investing, but his reason for remaining in the industry has changed over the last decade. “What has kept me engaged and excited is the relationship and the peace of mind I provide clients,” he says. “Helping people make sense of what they feel is a complicated issue provides me with great satisfaction.” Simpson, who saw his AUM rise to $46 million in 2018, is now focused on helping train the next generation of advisors. “Part of my job is mentoring and training younger advisors on our team,” he says. “Seeing our younger advisors implement strategies that add value to their clients gives me tremendous pride and satisfaction.”

ROSEMARY HORWOOD

44

Rosemary Horwood Wealth Richardson GMP Toronto, ON

Despite only being in the business for five years, Rosemary Horwood is making her second appearance on the WPC Top 50 Advisors list. Horwood, whose AUM climbed above $134 million in 2018, has family history in the industry; she originally joined her parents’ team before breaking out on her own. Since then, she has realized this is truly the industry she wants to be in. Horwood has set several goals for the coming year, both personally and for her practice. “On top of advising my clients to achieve their financial goals, I’ll be improving my client service offering by completing my portfolio management designation,” she says. “Creating model portfolios to improve the investment outcomes of my clients’ wealth will be my priority goal for client service improvement in 2019.”

46 KARL ABDEL NOUR Nour Private Wealth Oakville, ON

After following his brother, Elie Nour, into the wealth management industry, Karl Nour has followed him onto the WPC Top 50 Advisors list. In only his fourth year as an advisor, Nour is already managing $32 million, and he also saw one of the highest AUM growth rates (68%) of all the advisors on this year’s list. Nour is keeping several personal and professional goals top of mind for 2019 and beyond. “I would like to continue expanding my practice and learn from my peers to become a better advisor and person in order to further enhance my clients’ experience,” he says. “It is very important for me to spend more time volunteering as well.” Nour believes younger advisors like him have an important role to play in the future of wealth management. “I see myself working as an advisor for the next 40 years,” he says. “The industry needs young, driven advisors who will be the voice of the industry going forward.”

www.wealthprofessional.ca

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11/01/2019 5:39:58 AM


SPECIAL REPORT

TOP 50 ADVISORS

43 MICHAEL ZAGARI

42

Zagari Simpson & Associates Peak Financial Group Montreal, QC

TRAVIS FORMAN

After starting his career as a telemarketer at the age of 18, Michael Zagari has come a long way to earn his spot on this year’s Top 50 Advisors list. “By 19, I was a licensed mutual funds representative,” Zagari says. “I absolutely love this industry.” Now, 16 years into his career, Zagari is managing $46 million and sees himself remaining in the industry for a few more decades. “I am 35 years old and started my career at 19 years old at Investors Group,” he says. “During a recent team meeting, I looked around our boardroom and noticed how large our team has become over the years. We are now 23 attached advisors to Zagari, Simpson & Associates.” For the coming year, Zagari says his focus will be on integrating more technology into his practice to help scale the business.

LAURIE BONTEN

41

Bonten Wealth Management Wellington-Altus Private Wealth Winnipeg, MB

Originally driven to enter the industry by a desire to help people with their finances, Laurie Bonten has been finding success as an advisor – including increases in both number of clients and AUM in 2018 – for 32 years. She’s now turning her attention to business development through referrals and adding new team members. Throughout her career, Bonten has had numerous highlights. “Making the WPC Hall of Fame with 10 men was amazing!” she says. “I have had many awards through the firms, but truthfully, helping a couple retire earlier than they expected and helping a lady who just lost her husband make me proud that I can be the person they come to for advice.”

28

Forman & Associates Financial Planning Harbourfront Wealth Management Surrey, BC

Travis Forman, who saw a 23% growth in AUM over the past year to $70 million, was inspired to become an advisor because he sensed the industry was everchanging. While he has some numerical goals in mind for 2019, Forman says his main focus will be on upping his financial planning service, which he admits could be tough in light of the increased volatility in the markets. “Helping clients remain focused on the fact that they’re still on track when faced with increasing volatility is a challenge,” he says. “With rising rates and increasing volatility, we’re looking to alternatives, specifically private debt, to reduce risk but maintain yield.” In addition to his duties as an advisor, Forman is also the portfolio manager of the Rockridge Private Debt and Real Estate Pool, which was launched last January. So far, it has raised more than $150 million in assets. “This is Canada’s first private debt and real estate alternative fund that is available for retail clients,” Forman says, “and while markets went down in October, Rockridge posted positive returns. Year to date, the fund is up 3.96% from February to the end of September.”

www.wealthprofessional.ca

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11/01/2019 5:39:56 AM


39

ED BOOTLE Bootle & Associates Investors Group Private Wealth Management Edmonton, AB

After a career in the military, Ed Bootle shifted his focus to becoming an advisor. Now, 20 years later, he continues to find success in his second career. He obtained his CFP, which he considers his proudest professional accomplishment, and in 2018, he grew his AUM by 15% to $126 million. While he has been working to pare down his client base, Bootle is still serving 300 clients. In 2019, he hopes to continue on that path while growing individual assets under management. He recognizes that it won’t be easy, especially given the challenges of team management, client servicing and differentiation. Still, his work so far has shown that he’s more than up to the task.

GARY BERARDINELLI

40 KELVIN RAMPERSAD K and V Rampersad Financial Services Carte Wealth Mississauga, ON

Thanks to his number of overall clients (499), AUM growth of 24% and total AUM of $61 million, Kelvin Rampersad earned the number 40 slot on WPC’s Top 50 Advisors list. Rampersad, who says he “fell into the industry by accident,” is now focused on continuing that growth. Over the course of this year, his goal is to add another $20 million in AUM. Rampersad feels the biggest challenge for advisors today is simply motivation – yet it appears he doesn’t lack it, as he sees himself remaining in the industry for years to come. As for what’s had the biggest impact on Rampersad over the course of his 27-year career, he says it’s “actually seeing clients retire in great financial shape after all these years.”

38

Group Berardinelli Investors Group Private Wealth Management Montreal, QC

A member of Investors Group’s Private Wealth Management division, Gary Berardinelli oversees $130 million for 360 clients, and he was quite proud let them know that he’d been selected to be part of Investors Group’s elite division. “Being able to announce it was an honour,” he says, “and also assured high-net-worth individuals that I have been doing things right.” Berardinelli stresses the importance of expertise to his clients. His approach has led him to work with numerous specialists in the industry to help clients with any issue they might face. “My primary goal is to continue to raise the bar on enhancing the overall client experience,” he says. “Relationships need to be the core value. Everyone has products, but what is important is the client experience and finding those little cracks and filling them in.”

www.wealthprofessional.ca

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11/01/2019 5:39:58 AM


SPECIAL REPORT

TOP 50 ADVISORS

36

37 CHRISTOPHER RAWLES

SEAN RYDER

RT Mosaic Wealth Management Calgary, AB

Loreto Ryder & Associates Private Wealth Management Investors Group Private Wealth Management Toronto, ON

For Christopher Rawles, earning a spot on this year’s Top 50 Advisors list was validation of the risk he took when starting RT Mosaic Wealth Management as an independent firm. “I used to work at a bank-owned firm, and I had a mentor who told me I was crazy to start my own independent practice,” Rawles says. “She told me clients want security and they only deal with big banks. She was wrong.” Since opening his own firm, Rawles has grown his AUM from zero to $85 million, motivated by a desire to help individuals retire successfully. “I want to give superior service to existing clients,” he says. “I am currently focusing on rebalancing portfolios and asset preservation. Coaching clients through volatile periods is paramount.” As for his biggest challenge, Rawles’ answer is the same as many others in the industry today: compliance. “Keeping up with the ever-changing compliance regime is always a challenge,” he says. “Being cost-efficient and adding value to clients is a priority.”

30

Sean Ryder found the financial industry as a second career. “I was in the pharmaceutical industry for eight years,” he says. “I was always giving advice to my colleagues and friends to optimize their financial situation. I got laid off and decided to enter this industry because I had a passion for providing advice and helping families do better.” Now Ryder, who saw his AUM grow to more than $226 million in the last year, is focused on protecting his current clients’ money while adding new high-net-worth clients. However, he acknowledges that the industry is facing multiple challenges. “Market volatility is scaring clients to make rash decisions that can negatively impact their financial future,” he says. “I would also say the tightening of fees is putting downward pressure on compensation, which can affect your practice, from earning less to decreasing the size of your team.”

www.wealthprofessional.ca

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11/02/2019 9:31:28 PM


MAURICE PALLONE

34

Rothenberg Capital Management Montreal, QC

Maurice Pallone has always been fascinated with investments, even at a young age, and he celebrated his 30th year in wealth management in 2018. He’s hardly slowing down, though – while his AUM stayed consistent from 2017 to 2018, he managed to grow his client base to 636 clients over the course of the year. For 2019, he’s working toward obtaining his CIM designation and sees at least another decade ahead of him as an advisor. “I absolutely love this job, more than I ever could have imagined,” he says. That love hasn’t wavered through tough times, even the financial crisis. “In 2008, when the markets were in distress, none of my clients panicked and sold,” he says. “Everyone stayed the course, which thankfully ended up being the right decision. Our goal is to always make our clients ‘professional investors,’ and I was so proud of them.”

32 WILLIAM FRENN

33

William Frenn Wealth Management Manulife Securities Montreal, QC

Despite being one of the newer advisors among the Top 50, William Frenn has proved his worth in a relatively short time in the industry. In the last year, he saw his AUM grow by 57% and added 70 new clients. Trained as a civil engineer, Frenn has an interesting approach to the industry and recognizes that his success is ultimately tied to the success of his clients. For the year ahead, he’s focused on growing his business and “investing in processes to increase the quality of client experience.” “Every time clients thank me for advice that had a tangible impact on their lives, that is rewarding,” he says. “I recently helped a client identify opportunities to reduce his tax burden by reviewing his corporate structure and the management of assets held within. It was a special moment when he realized that the savings were so significant, he could pay off his mortgage.”

JASON DE THOMASIS De Thomas Wealth Management Richmond Hill, ON

One of the biggest jumps in AUM on this year’s list belongs to Jason De Thomasis of De Thomas Wealth Management, who grew his assets under management by 65%. De Thomasis says he’s always been fascinated by the stock market, particularly the ability to analyze a company’s fundamentals and determine whether it’s a good investment. “As soon as I was 18, I purchased my first stock,” he says. “From that moment, I was hooked. While in university, I worked part-time preparing personal income taxes. I started with students and later expanded to a broader base. I would come across countless individuals who were aimlessly buying stocks or funds without a plan or purpose. This really troubled me. I treat investing like a business – you need a solid business plan in order to be successful. This notion led me to the wealth management business and financial planning.” De Thomasis, who won the Young Gun of the Year Award at the 2017 Wealth Professional Awards, says he can’t see himself doing anything else and now has the goal of transitioning his entire book of business to fee-based to continually provide innovative and enhanced wealth management services to clients.

www.wealthprofessional.ca

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11/01/2019 5:40:07 AM


SPECIAL REPORT

TOP 50 ADVISORS

ANGELO MANZO

31

Manzo and Associates Investors Group Private Wealth Management Montreal, QC

Angelo Manzo is making his debut on WPC’s Top 50 Advisors list at number 31. Originally an accountant, Manzo seized the opportunity to become a financial planner, thinking it would be a great fit with his experience. Twenty-one years later, “I enjoy being able to make a difference in my clients’ lives,” he

32

says. “Clients need someone to help direct them and give them financial planning advice, not only investment advice.” That approach has helped Manzo grow his AUM to $180 million and amass a book of 460 clients. His practice’s success led it to be selected by Investors Group for its exclusive Private Wealth Management division. “My proudest professional moment was when I was named to the IG Private Wealth Management division,” Manzo says. “Out of more than 4,000 advisors in Canada, only 185 are under this division. This was a confirmation to my clients that they are dealing with a top advisor in the country.”

www.wealthprofessional.ca

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11/01/2019 11:27:30 PM


SONNY GOLDSTEIN

30

Goldstein Financial Consultants Goldstein Financial Investments Toronto, ON

Sonny Goldstein has the distinction of being the most experienced advisor among this year’s Top 50. Goldstein, who has been working as an advisor for 52 years, says that as long as he stays in excellent health, he can see himself doing this job for another decade. Watching his AUM grow to just over $169 million was one highlight of 2018, but Goldstein says proudest accomplishment has been establishing a charity, Care For Kids (Toronto), which has raised more than $1 million to help the families of children with terminal illnesses. Philanthropy will continue to be a major area of focus for Goldstein in 2019, as he plans to increase both his own personal charitable giving and his clients’.

28 29 NICK BAKISH Bakish Wealth Richardson GMP Montreal, QC

Nick Bakish earned a spot on this year’s list after seeing his AUM grow by 9% to just over $133 million in 2018. Bakish, currently in his 16th year as an advisor, says a desire to help others inspired him to join the field. Moving forward, he’s hoping to further entrench himself into niche markets, increase his average household AUM and “incorporate more complex corporate tax planning.” Still, at the end of the day, helping people with their financial affairs is what brings Bakish the most joy. “Every day, we help someone with their estate, house purchase or just navigating financial challenges,” he says.

SIMON PARTINGTON Partington Wealth Management Richardson GMP Toronto, ON

With an AUM of $185 million and 165 clients, Simon Partington landed the number 28 spot among this year’s Top 50 Advisors. Twelve years into his career, Partington is focused on building efficiencies in his business with new clients, better investments and the creation of wealth plans – all of which, he notes, can be challenging in the current landscape. “Client expectations with past returns remain high,” he says, “as we are coming in on the longest bull market in history.” Still, Partington believes that if he stays the course, he will find success. “I continue to achieve great results for clients, and when you can see that you make an actual difference in their lives, it is inspiring to continue to help new families.”

www.wealthprofessional.ca

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11/01/2019 11:27:36 PM


SPECIAL REPORT

TOP 50 ADVISORS JOHN RATHWELL

27

Rathwell Financial HollisWealth, a division of Industrial Alliance Securities Red Deer, AB

Currently celebrating 30 years in the wealth management industry, John Rathwell moved up 10 places on the Top 50 Advisors list, from number 37 last year to number 27 this year, thanks in part to 7% growth of his AUM to $153 million. Becoming a portfolio manager is one of Rathwell’s many goals for 2019. “I also want to grow our business, hire a tax preparer to complete tax returns for our clients and have our clients become raving fans and be confident in referring us to their friends and family,” he says. And while he plans to be in the industry for the next decade, Rathwell already has his eye on training the next generation. “My main goal is to mentor my three kids in becoming well established financial planners in Central Alberta,” he says.

PAUL GREEN

25 CORY GARLOCK TD Private Wealth Investment Advice Ottawa, ON

Cory Garlock saw his AUM grow by 52% in 2018, putting his total just shy of $100 million. Garlock originally entered the industry after participating in a stock challenge back in high school. Now, after witnessing such impressive growth, he’s laser-focused on reaching new heights. Although he’s already been nominated for Young Gun of the Year at the 2017 Wealth Professional Awards, Garlock believes he won’t truly reach the pinnacle of his career until the next decade.

34

Green Private Wealth Counsel Harbourfront Wealth Management Woodstock, ON

Thanks to steady growth in both his AUM and client base over the past year, Paul Green earned a place on this year’s Top 50 Advisors list. Green, who has been in the business for 25 years, is currently focused on expanding family-office offerings to his clients. In doing so, he’ll have to navigate the many challenges that are top of mind for advisors today, including “volatile markets, fee compression, aging client demographics and technology.” Outside of his role as an advisor, Green is a proud supporter of the Youth for Christ Foundation.

www.wealthprofessional.ca

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11/01/2019 5:40:23 AM


THIERRY TREMBLAY

24

Shinder Tremblay Group Echelon Wealth Partners Montreal, QC

Thierry Tremblay originally entered the industry because of a love of the stock market. Now he’s focused on helping to improve his firm’s processes by integrating portfolio management software and optimizing reporting. Tremblay has a passion for education, something he hopes to continue in the next year. “I want to keep on learning and sharing relevant info with clients and incorporating the whole aspect of wealth planning,” he says, adding that his greatest joy comes when clients tell him, in tough times, that “they can always reach me for guidance.”

NICHOLAS SHINDER

23

Shinder Tremblay Group Echelon Wealth Partners Montreal, QC

KEVIN HAAKENSEN

Nicholas Shinder earned a spot among 2019’s Top 50 Advisors after seeing his AUM rise significantly over the past year to $120 million. He, along with partner Thierry Tremblay, had the largest growth in AUM (98%) among any advisors on the list. Shinder, the son of an accountant and who earned an accounting degree himself, says he lives by and tries to spread the motto that “it’s not what you make, but what you keep.” That has served him well in his 19-year career as an advisor. Now he aims to share his ideas and strategies with his target market while also continuing to work closely with accountants, educating them on different tax strategies.

BRAD JARDINE

21

22

CIC Financial Group Aligned Capital Partners Ancaster, ON

A regular fixture on the Top 50 Advisors list and also one of Wealth Professional Canada’s Top Independent Offices, Brad Jardine saw his AUM grow 21% over the past year to $181 million, which helped him move up the list from number 32 in 2018 to number 22 this year. Jardine credits his entrepreneurial spirit for originally pushing him toward the industry and now has his sights on maintaining steady income for his existing clients. “In 2019, I would like to grow my assets by $25 to $35 million, reduce costs and finalize my CIM,” he says. As a 32-year veteran of the industry, Jardine recognizes that there are several obstacles for today’s advisors to overcome. “I think succession planning, compliance and media noise that causes client distraction from long-term goals are all challenges today,” he says.

PWM Private Wealth Counsel HollisWealth, a division of Industrial Alliance Securities Saskatoon, SK

Kevin Haakensen saw his AUM grow 24% to $166 million over the last year, moving him from the number 35 spot to number 21 on the Top 50 Advisors list. Haakensen initially entered the industry because of a passion for business, which hasn’t diminished over the years. “From a very young age, growing up on a farm and ranch, I was very interested in how businesses run and how business decisions were made,” he says. “As I grew older and went to business school, the thirst for the inter-workings of business, valuations and why people made the decisions that they made became even more interesting. What motivated me to enter the industry over 20 years ago still motivates me each and every day, which is a great feeling to have chosen the industry that suits my skill set and allows me to feel extremely proud and fulfilled.” Haakensen remains focused on his goal of helping others achieve their goals. “I am always striving to find ways to help our clients succeed and meet their goals, while balancing that with allowing our employees to have a good work-life balance, all while trying to run a profitable, successful business,” he says. “If you treat your employees well and give them a healthy and happy work environment, they will treat your clients well.”

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24/01/2019 11:08:00 PM


SPECIAL REPORT

TOP 50 ADVISORS WOLFGANG KLEIN

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

The Wolf of Bay Street, Wolfgang Klein, is a regular fixture on the Top 50 Advisors list – and given that his AUM is inching ever closer to the $200 million mark, that’s hardly a surprise. Klein says his motivations have always been helping clients reach both their life and financial goals. “My job is to keep my clients on track, minimize their taxes and ensure that money is put aside each year until they retire – and sometimes beyond retirement,” he says. “It isn’t about how much you earn; it is about how much you ultimately keep.” Klein, who made a career change in his mid-30s, moving from the media into wealth management, has been able to build a successful practice, largely due to his willingness to adapt. “The industry is always changing,” he says. “I think to run a successful practice, you have to be adaptable to the everevolving landscape and never take anything for granted. As Darwin said, ‘It is not the strongest of the species that survives, not the most intelligent that survives. It is the one that is the most adaptable to change.’”

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RONA BIRENBAUM Caring for Clients Queensbury Strategies Toronto, ON

In 2017, Rona Birenbaum’s firm, Caring for Clients, was named Best Independent Office (Fewer Than 10 Staff) at the Wealth Professional Awards. That seems to have generated momentum for Birenbaum, who saw her AUM grow by 13% to hit $200 million in 2018. Yet she says the real reward has always been enhancing the lives of others. Birenbaum’s goals for 2019 include hiring another CFP and further developing her team to deliver the highest-quality advice and service, despite the challenges of increasingly burdensome compliance requirements.

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

Rob McClelland has been featured on the Top 50 Advisors list every year since Wealth Professional Canada began compiling it. “It’s corny but true – winning a place on the Top 50 Advisors list for the first time in 2014 was a very proud moment,” McClelland says. While his AUM remained almost unchanged in 2018 at $446 million, McClelland did add 36 new clients this year, bringing his total to 757. “I have always enjoyed coaching people and helping them to make good financial decisions and generally improving their lives,” he says. For 2019, he’s setting his sights on adding $50 million in new assets, continuing to enhance client engagement and improving the technology in his operation.

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11/01/2019 5:40:35 AM


17

COLIN WHITE White Leblanc Wealth Planners HollisWealth, a division of Industrial Alliance Securities Dartmouth, NS

Nova Scotia-based Colin White saw impressive AUM growth of 47% over the past year, earning him the number 17 spot on the Top 50 Advisors list. White began his career as an advisor because he was looking for a challenge and thought he could help people deal with their own financial challenges. Twenty-six years later, he has done just that. “Every client meeting where I leave clients better off after spending time with them is what makes me proud,” he says. Moving forward, White hopes to continue evolving his team by adding new talent to help more clients. While doing that, he’ll also be tackling what he considers one of the industry’s greatest challenges: overcoming the negative perceptions many members of the public have about financial advisors.

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15

ELIE NOUR Nour Private Wealth Oakville, ON

Elie Nour has appeared on WPC’s Top 50 Advisors list every year since it was first published. After taking his practice private in 2018, Nour saw his AUM grow by 15% to $266 million. Throughout his 16-year career, Nour has remained passionate about learning. “I first got involved in the industry because I had a passion to invest, curiosity to learn more about the industry, the satisfaction from helping others and the hunger to succeed,” he says. Nour continues to be inspired by those original motivations and has incorporated them into his goals for the future. “Protecting my clients’ assets, growing my AUM, raising financial awareness to the public through seminars and media, practicing more gratitude, and giving back to the community are my goals for 2019,” he says, adding, “I will be working as an advisor until my last breath. I have a perfect harmony between my personal life and my professional life.”

LYLE ROULEAU Rouleau Investment Group CIBC Wood Gundy Edmonton, AB

A former commercial banker, Lyle Rouleau was inspired to become an advisor after noticing a need for personal financial planning. After 20-plus years in the role, he hasn’t looked back. He’s currently working on enhancing his service commitment and platform, as well as building his team. During his decades in the industry, Rouleau has had many proud moments. “The most fulfilling moments would probably be seeing clients’ long-term planning come to fruition,” he says. “Whether it’s sending children to post-secondary through a RESP or converting a RRSP into a RRIF to fund retirement years, it truly puts long-term planning into proper perspective versus the shortterm nature of the investment marketplace.”

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11/01/2019 5:40:35 AM


SPECIAL REPORT

TOP 50 ADVISORS REG JACKSON

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JMRD Wealth Management Team National Bank Financial London, ON

14 CHAD LARSON MLD Wealth Management Group Canaccord Genuity Wealth Management Calgary, AB

Last year’s number-one advisor, Chad Larson, finds himself back on the Top 50 list this year at number 14 – but he maintains the highest AUM on the list at $610 million. For Larson, 2018 was marked by the move of his firm to Canaccord Genuity Wealth Management. “Under the rules, we could not tell clients [about the move] beforehand,” he says. “It was a scary moment, but about 15 hours after leaving blindly, we had near unanimous support from our clients. It was a reminder and a testament to the value we provide our clients. It was the most validating feeling I have had in my career.” Larson is also pioneering change in the industry with the launch his own fund. “I launched a NI-81-102 compliant fund, fully prospectus cleared, available on Fundserv,” he says. “I want to grow the AUM of my core fund, MLD Core Fund, which is the first advisor-managed, prospectus-cleared fund in Canada. This has been astounding, and fund gathered $70 million [in AUM] in the first three months. The purpose of the fund is to provide a harmonized solution to clients across both core strategies and explore alpha opportunities.”

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Reg Jackson of JMRD Wealth Management crossed the $500 million threshold for AUM in 2018. He’s also been focused on growing his firm, something he hopes to do more of in 2019. “I want to continue to work on improving our industry-leading client service offerings,” he says, “and to continue to invest in and advance each and every team member within JMRD.” Jackson’s team mentality is significant a major component of one of his proudest moments. “Winning the 2013 National Award for Wealth Management Excellence at National Bank Financial was special because it was a team effort and team win,” he says. Implementing technology is another key focus for Jackson. “Keeping up with technology and communicating with clients how they want to be communicated with in an ever-changing compliance landscape is a challenge we embrace,” he says, “but it does take tremendous time and resources.”

COLIN RYAN

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Colin Ryan Wealth Management BMO Nesbitt Burns Winnipeg, MB

A steady year that saw him grow his AUM by 14% and client base to 180 landed Colin Ryan in the number 11 spot on the Top 50 Advisors List. Ryan has had a drive to help people with their finances since he was a teenager. “I grew up with a single mom and didn’t have much money and saw firsthand the struggles one can go through,” he says, “so I wanted to help other people reach financial independence.” Seeing other families flourish under his guidance has been one of the most rewarding parts of the job for Ryan, who points to one particular client as an example. “She was widowed 23 years ago with four young kids,” she says. “We worked hard for her over the years, and it is so gratifying 23 years later to see how all the kids have turned out great, are starting families, and everyone is doing so well. It just makes me so happy to have been a key part of her journey.” Despite having been in the industry for 26 years, Ryan feels he’s only in the “noon” of his career and still has many good years ahead of him. “This is a business that, if you enjoy it, you can do for a very long time,” he says.

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11/01/2019 11:28:03 PM


ALEXANDRA HORWOOD

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Alexandra Horwood & Partners Richardson GMP Toronto, ON

Growing up in a family of investment advisors, Alexandra Horwood has always been exposed to the business. However, it was her skill set, not her connection to the industry, that compelled her to become an advisor. “Math, sales, teaching and philanthropy – the wealth management business so nicely combines them, and it’s the first job I’ve had where I truly feel

like I can be myself,” she says. Horwood has some lofty goals for 2019, including adding $50 million in new assets, getting her client base to a median of $1 million per household, adding 15 new clients with $1 millionplus net worth and generating $3 million in recurring T12 revenue. “There is no other business I would want to work in,” Horwood says. “When my husband asks me about retirement, I tell him I’m never going to retire.” And why would she? A regular fixture on the Top 50 Advisors list – including being the top woman on the list in 2016 and 2018 – and the youngest director of wealth management in the history of Richardson GMP, Horwood has clearly found her calling.

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11/01/2019 5:40:50 AM


SPECIAL REPORT

TOP 50 ADVISORS 10

ROBERT 9 LUFT Luft Financial HollisWealth, a division of Industrial Alliance Securities Vancouver, BC

After making the Top 50 Advisors list at number 11 in 2017 and number 12 in 2018, Robert Luft finally cracked the top 10 this year with AUM growth of 12%, which brought his total to $248 million. A 20-year financial industry veteran, Luft is focused on continuing to grow his Vancouver-based business in 2019. “We would like to continue to grow the practice, specifically increasing the client bases of our associate advisors,” he says, adding that he plans to do so via “our ongoing teaching and seminar series provided by the team and implementing technology to better serve the client base.”

WES ASHTON Popescu Ashton Group Harbourfront Wealth Management Vancouver, BC

Wes Ashton earned a place in this year’s top 10 thanks in part to his overall AUM, which now sits at just under $335 million. For the year ahead, Ashton is focusing his attention on investor behaviour rather than the numbers. “Looking ahead to 2019, the biggest challenge would have to be the current state of the economy and markets,” he says. “Both are out of our control, so managing investor behaviour becomes that much more critical. We’re fortunate to have access to some unique investment solutions that will benefit our clients and their ability to stomach the ups and downs. Irrational decisions and behaviours are often the difference between good investment experiences and poor ones.” To manage his clients’ expectations, Ashton plans to rely on the solid relationships he has built, something he takes great pride in. “Looking back at my career, I’m most proud of the relationships I’ve built along the way, both personally and professionally,” he says. “From a client point of view, it’s been a privilege to have built the friendships over the years and share in their lifetime of milestones and memories. It’s been a truly humbling experience. As for the practice, it wouldn’t have been as successful and the size it is today without the help of others over the years. A little humility and a lot of hard work go a long way.”

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8 BART HUNTER The Hunter Financial Group ScotiaMcLeod Saskatoon, SK

Coming in at number eight among this year’s Top 50 Advisors, Saskatoon-based Bart Hunter saw increases in both his AUM and clients in the past year. He’s constantly looking for ways to add more value for clients and believes that relying on the diverse skills of his team is a great way to do it. “I view the world as one in which people need to have growth to be happy,” he says. “I am able to delegate to people on my team who have unique abilities in the areas that they work in, which frees me up to spend time on the areas that I love working in. I believe that the development and growth of my team is something I will always proud of. Personal production numbers are a by-product of doing good business.”

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11/01/2019 5:40:55 AM


7 JAMIE TOWNSEND

KEVIN HEGEDUS

Lawton Partners Lawton Partners Financial Planning Services Winnipeg, MB

PWM Private Wealth Counsel HollisWealth, a division of Industrial Alliance Securities Saskatoon, SK

In 2011, Jamie Townsend boosted his AUM by 16% to just under $311 million. But it’s not the numbers that drive him – it’s the positive impact his team has on their clients’ lives. “When you combine all the pieces of the puzzle together, from improved tax efficiency and dynamic withdrawals to total wealth accumulation, it is incredibly rewarding,” he says. Townsend credits his skilled team for being able to deliver that kind of impact. “We spent considerable time and resources building out our team and valuable tools to help our clients,” he says. “We will continue to focus on the relentless pursuit of value for our clients and continue to grow.” That’s something Lawton Partners has been doing for generations – Townsend is partners with his father, Wayne, and together they have seen the fruits of their labour pass from one generation to the next. “It’s been rewarding to see the impact of the decisions made by the first generation carried over to the second generation and the unique advantage that provides a family when it comes to being stewards of their wealth,” he says.

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After a consistent year (including steadily adding to his client base and growing his AUM to $440 million), Kevin Hegedus returns to the top 10 for 2019. He was also named Advisor of the Year at the 2018 Wealth Professional Awards, as well as Saskatoon Small Business of the Year. Yet what really motivates Hegedus are the deep relationships he has with his clients. “When I think about being truly proud of something on a deeper level, it really comes down to the significant moments that you have with clients every day,” he says. “These moments happen frequently, but the one that continues to stand out to me was a meeting I had with a client couple. The couple had been clients for a number of years. He had been battling cancer for some time, and at the end of our meeting, he gave me a hug and thanked me for the work I had done for him over the years. He then asked me to take good care of his wife. That was the last time I spoke to him; he passed away a few months later. Sometimes we forget the impact we have on people’s lives and the trust they put in us. These moments remind me of why I do what I do.”

GERALD L. GOERTSEN

5

De Thomas Wealth Management Kelowna, BC

Moving up from number 24 in 2018 to number five on this year’s Top 50 Advisors list, Gerald Goertsen of DeThomas Wealth Management has 17 years in the financial industry behind him, but he plans to keep going strong for years to come. “I see myself working in the industry for another 22 years,” he says. Goertsen originally entered wealth management so he could help others avoid the financial pitfalls he experienced. Now he’s doing just that for a whopping 1,723 clients (the highest number on this year’s list), including 270 new clients added over the past year. Even with such a high number of clients, Goertsen is focused on exceeding all of their expectations. “My proudest moments are when I am able to let a client know that they can spend more money,” he says, “ because their retirement accounts have more than they will need.” Goertsen places a great deal of importance on relationships and believes they’re the key to success for advisors in the current environment. “Advisors today need to make sure that they are adding value to all of their relationships,” he says. “If they are just selling products, they will be replaced by a robo.”

www.wealthprofessional.ca

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11/01/2019 5:40:59 AM


SPECIAL REPORT

TOP 50 ADVISORS FAISAL KARMALI

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2

Popowich Karmali Advisory Group CIBC Wood Gundy Calgary, AB

From 2017 to 2018, Faisal Karmali saw his AUM grow by 11% from $450 million to $500 million. While that 11% growth is a highlight in its own, Karmali says his team isn’t stopping there. “Our primary goal for the coming year is to enhance our services in tax, retirement planning and detailed lifestyle planning,” he says. “We plan to grow by 15% in revenue and assets.” The ability to provide those services is what Karmali enjoys most about his job. “When we help clients reach their retirement lifestyle goals, that is my proudest moment,” he says. “Solving this issue brings the most joy to me and my team. This is the best career to have.”

3 TODD DEGELMAN Wellington Altus Private Wealth Saskatoon, SK

Todd Degelman, who founded and is currently the vice-chair of Wellington Altus Private Wealth, saw nice growth in his AUM over the last year and is now just under the $400 million mark. Degelman attributes his success to having great mentors along the way. “One of those individuals was Charlie Spiring, who was the founder of Wellington West and is an accomplished and distinguished businessman,” he says. “Charlie mentored me while at the same time treated me as his partner. To this day, Charlie is still my partner and one of my closest friends.” Looking at the year ahead, Degelman wants to continue being his clients’ CFO and assist them in making sense of their wealth. “I employ a consultative process to identify their situations and challenges, and then work with a team of experts to design solutions,” he says. “I am committed to continually improving and developing my proprietary processes.” Degelman adds that there’s no business he’d rather be a part of. “This business is incredible, scalable and conducive to having balance in both my professional and personal life,” he says. “I have an incredible team that is very experienced and knowledgeable.”

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NADER HAMID Total Wealth Management IA Securities Montreal, QC

Montreal advisor Nader Hamid can thank his impressive growth over the last year for landing him in the runner-up spot on this year’s Top 50 Advisors list. He added $115 million in AUM – the most, by dollar amount, of any advisor on the list – to sit at $265 million. Hamid also managed to double his client base over the last year, bringing his total number of clients to 280. Yet Hamid has even more impressive numbers in mind for the future: His ultimate goal is “to integrate and build a team that can handle $1 billion [in AUM].” He also acknowledges that this goal will be his greatest challenge as an advisor – but with 17 years already under his belt and decades more in front of him, he has both the time and the drive to make it happen.

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11/01/2019 5:41:12 AM


KYLE RICHIE

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Richie Group Investors Group Private Wealth Management Toronto, ON

After landing at number 10 on the 2018 Top 50 Advisors list, Kyle Richie nabbed the top spot for 2019. Richie saw solid 16% growth in his AUM, bringing him to $440 million, and also added 40 new clients, bringing his client base to 440. With a “burning desire and passion to help doctors achieve their financial goals,” Richie has amassed plenty of accolades from Investors Group during his 20 years in the business. In addition to being named Investors Group’s top advisor for 10 consecutive years, he has earned the President’s Club Award, President’s Elite Award and the Chairman’s Club Award. Richie now has his sights set on growing his book beyond

$500 million and “[setting] the standard in true financial planning.” He recognizes that he can’t do it alone, though. “Working with my business partner/associate, Andrew Feindel, reminds me of what Warren Buffett likely felt working with Charlie Munger. I have the number-one business partner in the financial planning industry. We have fun and truly care about what we do.” While working to grow his business, Richie is also focused on combating what he sees as the greatest challenge for advisors: misinformation. “We are in a new world where people rely on information on social media forums, where never before have there been so many misleading and misguided opinions out there,” he says. Yet he perseveres, because the value he has added to his clients’ lives over the years provides an enduring reward. “Hearing ‘thank you for being the number-one game-changing professional in my life’ from clients after 20 years of working together is my proudest moment,” he says.

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11/01/2019 5:41:21 AM


PEOPLE

ADVISOR PROFILE

Engineering his own path Based on his past interactions with financial advisors, Manulife Securities advisor William Frenn has created his own view on how to help clients

THE IMPRESSIONS we form early in life can stick with us for a long time. In the case of Manulife Securities senior investment advisor William Frenn, the interactions he witnessed between his father and his financial advisor soured him on the profession. But years later, Frenn has come full circle by learning the right way to work in the industry and teaching that ideology to others. “I never wanted to be a financial advisor because I had seen a negative side to it,” he says. “My father lost a lot with an advisor who was merely selling him products but not providing any advice. He was the victim of fraud and was not protected. It left a sour taste in my mouth because I didn’t know there was another way to do it.” Instead, Frenn set off down a different path, earning a degree in civil engineering from Concordia University in Montreal. However, he soon realized he didn’t want to be an engineer and still had an interest in the financial industry. After completing an MBA at the University of Montreal’s business school, Frenn looked for another opportunity in the industry. “One day I was approached, at church of all places, by the co-founder of a Manulife

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Securities office here in Montreal,” he says. “He explained his approach, and I fell in love with the idea. He showed me that good advisors can be a key resource for all of an investor’s financial matters and provide holistic advice on a wide range of subjects.” Now in his seventh year as an advisor, Frenn has embraced that approach and bolstered it with some of the skills he learned from engineering. “Training as an engineer taught me to think in variables and particulars – it’s all very structured, and I brought that diligence with me,” he says. “The one difference is that engineering is very scientific – there is always a right and wrong; it is non-negotiable. In finance, there are different philosophies; you are dealing with numbers but also people.

I feel like I brought the analytical approach to my practice. The numbers don’t lie – they speak to clients and can be worthwhile.” Frenn’s analytical approach has helped shape how he views his role in relation to his clients. “My vision of what good financial management should be is a family office,” he says. “I try to say we have a virtual family office. We are not just a broker; technology can do that. Today, it’s not enough to merely manage a portfolio – you have to be a key resource.” One of the ways Frenn acts as that key resource is by providing access to different experts for his clients to help them integrate portfolio, tax and retirement planning. “Wealth management, to me, is integrating advisors with professionals and having the

THE ROLE OF TECHNOLOGY Drawing on his engineering background, Frenn puts a major emphasis on using technology to help him run his practice. He is currently investing in a CRM system and incorporates financial planning and research tools. Through that tech integration, Frenn is able to provide even greater transparency to his clients. “I want to be able to have even better client management to improve on relationships with clients so they know exactly what we are doing,” he says.

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11/01/2019 5:41:42 AM


FAST FACTS: WILLIAM FRENN

FIRM Manulife Securities

LOCATION Montreal

EDUCATION Bachelor’s degree in civil engineering from Concordia University and an MBA in finance from the University of Montreal

CERTIFICATION Financial Planning Designation (IQPF)

“We are not just a broker; technology can do that. Today, it’s not enough to merely manage a portfolio – you have to be a key resource” network to refer clients to those professionals when they need a question answered,” he says. “I try to be my clients’ chief financial officer, understanding their objectives and giving them the tools to make decisions.” So far, the results have spoken for themselves. Frenn says one of his biggest highlights is when he gets referrals from his clients who

say that he fulfills that role of a personal CFO. Now, Frenn is focused on passing on his philosophy by training other advisors. “Showing them this same ideology and helping them develop their own practices has been very rewarding,” he says. One of the key things Frenn tries to impart is some valuable advice he received

AWARDS Manulife Securities’ Circle of Excellence, Top Regional Builder, Top Work Ethic and Outstanding Achievement of Growth when he started. “The best piece of advice I received is that the business will teach you what to do if you put clients first,” he says. “You will develop skills and resources if you spend the time to find out what is important to each individual client. That’s something I try to pass on to all the others I train – take it one client at a time.”

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11/01/2019 5:41:51 AM


FEATURES

MOMENTUM INVESTING

Become the client’s solution Author and portfolio manager Ken MacNeal explains how portfolio managers can use momentum and expertise to add value for clients in ETF investing

PORTFOLIO MANAGERS and advisors are always looking for ways to enhance their value proposition to clients. In the age of robo-advisors, that can be a challenge, especially when it comes to ETFs. However, Ken MacNeal, portfolio manager and author of Momentum Investing in the Internet Age, believes that a portfolio manager’s expertise

environment can go in many different directions. Knowing what to take advantage of and what to avoid is our value. We are there to be the solution for clients. The knowledge we have on what to buy and avoid is an expertise, and that knowledge is what clients need.” MacNeal believes that the old days of a 60/40 stocks-to-bonds split in a portfolio

“Momentum simply guides an investor to those areas that are doing best and, almost more importantly, avoids the worst” Ken MacNeal, author of Momentum Investing in the Internet Age is exactly what clients need and what gives portfolio managers their value. “Proactive and tactical use of ETFs by portfolio managers makes the manager’s expertise the investment solution,” he says. “The economy and business cycles are more intense, needing active attention to reduce risk and take advantage when needed. The

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won’t cut it in the future. Today, it takes expertise and guidance to properly balance a portfolio, and he believes ETFs can be the solution. He bases his view around a momentum-style investment strategy that mainly relies on ETFs. “First, recognize when something is outperforming, then buy when you agree

with why it is outperforming,” MacNeal explains. “Momentum is not just stocks – it could be anything that you think is a good idea to own. Combining momentum with expert opinion to confirm signals, and by using ETFs by sector, you create the portfolio solution.” However, MacNeal explains that momentum investing isn’t about investing in risky sectors that have gone up, which is a major misconception. “Often, when markets are sideways to down, momentum-style investing using ETFs swings away from sectors like technology to owning defensive sectors like utilities and healthcare,” he says. “Momentum simply points you towards buying those sectors that have performed best recently.” A long-time supporter of ETFs, MacNeal sees them as an easy way to combat volatility in the market by making it easier to adjust portfolios. When markets become volatile, MacNeal believes that’s the best time to use moving average crossover strategies with ETFs to safely participate in equity markets. “ETFs can reduce portfolio risk by selling equities and adding fixed income when risk is high in the stock markets,” he says. “It’s easier to sell an ETF of a sector than 10 stocks that all have a different story behind them. Plus, ETFs are inherently less risky than a given stock. Momentum investing strategies for fixed-income ETFs profit from interest-rate swings and reduce risk by being out of those areas of the fixed income markets that are being negatively affected.” One area that has been of recent interest, not only to MacNeal but to many in the industry, is alternative ETFs. MacNeal believes this brand of ETFs can provide downside protection during volatile times. “Alternatives can be an extremely good solution,” he says. “When you look at the market in a rough patch, alternatives don’t have market-dependent strategies. So if the market does go through a rough patch, alter-

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MOMENTUM INVESTING IN EMERGING MARKETS MacNeal uses momentum-style thinking to compare how individual emerging market countries compare to an emerging market index, such as the MSCI Emerging Market Index, to determine if it’s better to own an ETF that focuses on an individual country or the index itself.

Performance of the MSCI Emerging Market Index in 2018 $1,500

$1,200

$900

$600

$300

$0 January 1, 2018

February 1, 2018

March 1, 2018

April 2, 2018

May 1, 2018

June 1, 2018

July 2, 2018

August 1, 2018

September 3, 2018

October 1, 2018

November 1, 2018

December 3, 2018 Source: Investing.com

natives aren’t affected.” In addition, he looks to liquid alternative products for that protection. “Liquid alternatives use a long/short structure, where they own half the portfolio in a highperforming strategy and short expected low-performing stocks in the other half,” he explains. “That can do well when the market is doing well or falling.” MacNeal has also used ETFs to invest in foreign countries, including emerging markets. He believes that if the Canadian economy is set for many years of underperformance due to rising interest rates hurting consumer spending, investing in other countries via ETFs is the way to go. Despite the tremendous volatility in emerging markets as of late, MacNeal has a simple philosophy.

“When looking at the general emerging markets sector, I want to see if it is outperforming,” he says. “That is momentum-style thinking. If it’s outperforming Canada and the US, then I’ll take it and own it. This is not the case right now, so I’ve avoided this big recent downswing. If I’m looking at an individual emerging country, if it isn’t outperforming the overall sector, I’ll own the sector because it will be safer. Why own an individual country if the whole emerging ETF is doing better?” Using momentum ETFs in these areas is just one of the ways MacNeal believes portfolio managers can add value to their clients. Ultimately, he says, one of a portfolio manager’s greatest advantages is using their expertise to educate clients to help them navigate

through market noise. “Often, there is too much noise to truly know what’s going on when trends are changing,” he says. “Momentum simply guides an investor to those areas that are doing best and, almost more importantly, avoids the worst. Being a discretionary portfolio manager, my clients leave the decisions to me. When something happens, I make sure to send communications to them. But now, for example, with the market being weaker, we already prepared for that with a lower stock-to-bond ratio. They understand why that was done and how it has improved their performance. I have become the solution for my clients and prepared them. Helping them through these situations is the key to being their solution.”

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SPECIAL PROMOTIONAL FEATURE

PRIVATE REITs

Positive performance in a rough market Equiton Partners CEO Jason Roque explains how private REITs can generate revenue for portfolios even in volatile markets

THE MARKETS closed out 2018 in a state of volatility, and many experts believe that could spill over into the new year. That means more and more advisors are looking for ways to supplement portfolios with options that continue to generate revenue for their clients. Jason Roque, CEO of Equiton Partners, believes private REITs can be the answer. “We feel the private REIT structure is best and most consistent at representing the performance of the underlying assets,” Roque says. “We’re not impacted by the emotional volatility in other markets. If we bought a building for $10 million and the stock market has a downturn, it doesn’t really impact us. Our building is likely worth what we paid or more and still generates revenue. The top needs in life are food and shelter, and we’re in the shelter business.” While Equiton isn’t the only firm exploring private REIT options, Roque believes its approach helps set it apart. “Our approach is unique because of our experience,” he says. “There’s a lot of fragmentation in this space, with most apartments owned

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by individuals who are not professional operators. Many operate their properties inefficiently and leave money on the table. We know how to consolidate ownership, buy below replacement cost and unlock the intrinsic value in properties through our active management process, which results in increased income and property value.”

The trend of advisors adding private REITs to portfolios continues to grow, and Roque believes there are multiple factors driving it. He points to private REITs’ history of positive performance, even during times of crisis, as well as their low correlation to the markets, excellent risk-adjusted returns, conservative access to real estate investing

ASSETS UNDER MANAGEMENT IN THE EQUITON RESIDENTIAL INCOME FUND TRUST Since its inception, the Equiton Residential Income Fund Trust has continued to grow its AUM. The number shot up significantly in July 2018, and Equiton CEO Jason Roque is optimistic that AUM will continue to grow. EQUITON RESIDENTIAL INCOME FUND TRUST AUM DECEMBER 2016

$20.8 million DECEMBER 2017

$28.1 million JULY 2018

$51.1 million

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and the positive long-term outlook on the apartment space. “Once we’re able to educate someone on the space and the potential for profit, they’re often excited about the opportunity, even if they have never invested in private equity real estate,” Roque says. Equiton’s main fund is the Equiton Residential Income Fund Trust (ERIFT), which invests in multi-residential housing throughout Canada. It’s an equity investment, not debt, which make a big difference. The fund provides investors with via a highly tax-efficient distribution, as well as growth in the value of the properties over time. “One of the advantages of our fund is that the properties have yet to be fully optimized,” Roque explains, “so there is a lot of upside potential. That will continue as we grow and add new properties.” Investing in private REITs takes a lot of due diligence, something Roque and his team

“We’re not impacted by the emotional volatility in other markets … The top needs in life are food and shelter, and we’re in the shelter business” Jason Roque, Equiton Partners embrace. “At Equiton, we focus on what we know, and that’s real estate,” he says. “For us, conservative underwriting and extensive due diligence are critical. After completing due diligence on a property, it’s not uncommon for us to have a better understanding of it than the owners. They are often surprised at what we discover.” Following a successful year for the fund, in which it doubled in size and increased both its distribution and unit price, Roque has a positive outlook for 2019 and expects

the upward trajectory to continue. Equiton plans to increase the frequency of reviewing both the unit price and distribution amounts from quarterly to monthly; Roque says the main focus moving forward is to continue growing the fund. “Given our experience and the opportunities we see in the space, combined with our unique ability to find and extract value, we believe it will become an industry-leading investment option for the advisor community,” he says.

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11/01/2019 5:45:18 AM


FEATURES

PRODUCTIVITY

RE: RE FWD: FWD: Re Bill K TX The big event is approaching. Contract attached. (No subject)

Don’t let sloppy emails ruin productivity Is email taking up too much of your time? Carson Tate explains how to regain control 50

Wait a minute – what? These emails were just sent to me, and I have no idea what any of it means. To make matters even worse, these are just a few of the daily examples of friends and colleagues not using email effectively. And almost immediately upon arrival, they turn my inbox into a slovenly mess. In writing my book, Work Simply, I did a lot of work to understand how we are using email effectively – or not. I discovered that we’re all bogged down by the sheer volume of email. And it takes a lot of time for us to slough through that volume because these emails are unclear, ambiguous and flat-out sloppy. Discerning exactly what we need to know or do and determining if a response is needed requires a lot of our attention and focus. These sloppy emails waste your time. And they cost you hours each week. Which means they’re also costing you money. When you feel like you’re drowning in a sea of sloppy, thick mud in your inbox, how do you begin to clean up the mess – and then how do you prevent it from reoccurring?

Automate your responses to unclear messages When you receive an email message that is unclear, vague or just causes you to say “What?”, send a response asking for additional information or clarification. To do this quickly, use a text expander software app like FastFox for PCs or Text Expander for

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Mac. A text expander works in any program, including your email platform, and allows you to insert commonly used text with just a keyboard shortcut. No longer will you waste your precious time typing out a response – you can reply automatically within seconds.

Craft more effective email messages Dramatically reduce the volume of emails you receive by crafting more effective messages that are understood upon opening and do not require multiple back-and-forth emails asking clarifying questions. To craft more effective emails, answer four key questions in every single email you send: who, why, what and how.

you were sitting across a table from them and discussing the topic in person. WHAT? Ask yourself a series of ‘what’ questions to help shape the content of your email. What is the purpose of the email? What are the main points to be communicated in this email? What are the key facts? What references or research data need to be included? What must everyone know? Do not hit the send button until you have included every piece of detail required. HOW? Ask yourself how you want recipients to respond. Describe this explicitly in your email. If there’s a deadline, say so. If

To craft more effective emails, answer four key questions in every single email you send: who, why, what and how WHO? This breaks down into two sub-questions: Who needs to respond to, take action on or make a decision about this information? Put their name(s) on the ‘to’ line. Who needs to know this information? Put their name(s) on the ‘cc’ line. WHY? Look back at the names on the ‘to’ and ‘cc’ lines. For each name, ask yourself: Why is this person involved in the project? Why am I emailing them? Why do they need to know? Why does this information matter to them? Why does it matter to the broader organization? Then think about what you know about those individuals – their interests, needs, backgrounds and communication styles. Make sure the tone, style and content of your email matches up – just as you would choose appropriate words, tone and body language if

you want an email response, say that. If you need suggested dates for a meeting, names of possible project participants, a list of questions or key ideas to be considered, or any other specific input, describe it. Never assume that people will understand what you want – tell them as straightforwardly as possible.

Use the subject line to improve email response time Please, never let yourself hit the send button while the subject line of your email reads ‘RE:RE’ or ‘FWD:FWD,’ or some cryptic phrase that relates to a prior email message. Why? Because when you send an email like this, you’re sending a message into the world with an unclear purpose. Do not be part of creating the email pigsty we have come to expect and accept.

The subject line of your email message is your topic sentence. It clearly states the topic of the email. A clear subject line is essential if you want to communicate effectively and improve both the quality and response time on the email messages you send. Make sure the subject lines on your email messages reflect the current topic, purpose or desired outcome. When you respond to an email you’ve received, change the subject line to make it current and clear. Consider using some of the following standard email subject lines: Action required – DATE FYI – 3rd paragraph client X mention Update: TOPIC Reply by – DATE NRN – No response needed EOM – End of message The last subject line above, EOM, is an especially powerful one. Here’s how it works: when you have a short, simple message to convey, type the entire email in the subject line of the email, and put EOM at the end. (For example, “Tuesday marketing meeting moved to 2 p.m. EOM.”) Now your recipient doesn’t have to open the email message, saving them precious minutes. It’s time to take back control and clean up the pigsty that’s disguising itself as your inbox. Carson Tate serves as a consultant and coach to executives at Fortune 500 companies, including AbbVie, Deloitte, EY, FedEx and Wells Fargo. The author of Work Simply: Embracing the Power of Your Personal Productivity Style, her views have been included several publications, including Fast Company, Forbes, the Harvard Business Review blog, The New York Times and more. For more information, visit workingsimply.com.

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FEATURES

MANAGEMENT

Five ways to become an inspirational manager Inspired employees are productive employees. Aaron Hurst offers five tips for spurring your team to greatness

WE HAVE known for a long time that having engaged team members is better than having people who are simply satisfied. Engaged employees are 44% more productive – that’s like adding a part-time person to your team at no additional cost. According to Bain & Company, however, it looks like engagement is too low a bar. It turns out that inspired employees are 125% more productive than satisfied ones. That’s like adding more than one full-time person to your team. Why is inspiration so powerful? When we are inspired, we are releasing serotonin and dopamine, two of the most critical neurochemicals. They are deeply connected to our well-being and energy. Serotonin makes us feel significant and important, while dopamine motivates us to act to achieve goals and gain a sense of progress.

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They are the fuel behind the fire that boosts productivity by an incredible amount. My grandfather, JE Slater, intuitively understood the power of inspiration. His advice to us growing up was to “always keep exhilaration in front of exhaustion.” I can remember very few moments with him where he wasn’t in a state of inspiration. He was always full of joy, wonder, momentum and energy. Like my grandfather, I am nearly always exhilarated at work. I wasn’t always that way – it was something I had to learn and develop. I have been researching and experimenting with it for more than 20 years. Here’s what I’ve learned about how to help people be inspired:

1

the destination may be far away, if we believe in it and want it, we can be exhilarated by making measurable progress toward it.

2

See the superhero in people

3

Let people grow and fail

My friend Tara Russell is an inspiring manager. When I see her working with her team, you can feel the energy and exhilaration. She takes the time to see the potential in people and to help them see it. When you’re around someone who sees you for who you are and who you can become, it is inspiring. It gives you a sense of significance, which produces serotonin, but also gives you a sense of hope and anticipation for the future (our friend dopamine again).

Define a shared purpose

While we gain meaning from the journey, what inspires us is usually the dopamine-producing pleasure of seeing ourselves make progress toward a goal. While

It’s a cliché at this point, but it’s an important one: Give people permission to fail. This isn’t just to drive innovation, but also the

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When we are inspired, we are releasing serotonin and dopamine, two of the most critical neurochemicals. They are deeply connected to our well-being and energy experience of taking risks, which is thrilling and inspiring. When you ask people about the manager who most consistently inspired them, they almost always point to the one who believed in them enough to push them out of their comfort zone.

4

Cultivate curiosity

Most of my inspiration comes from being curious. It isn’t doing anything or making any impact. It is self-generated and is 100% in my head. I just love asking “What if?” all the time.

I read for at least an hour every day and am always looking to uncover new research and then spend days playing with possible implications and applications. I learn about business models and wonder what it would look like to superimpose that model on a totally different business in a different industry. What if what we assume is true isn’t? As managers, we can encourage building habits that provoke curiosity. The trick is to find out what triggers curiosity for each person. It is usually ultimately tied to the person’s psychological purpose drivers.

5

Celebrate inspiration

In my book, The Purpose Economy, I share the nightly practice that Jennifer McCrae has built with her family. At dinner, rather than ask her kids what they learned at school, she asks them to share one thing that moved or inspired them. I have adopted this practice in my office during our team meetings. It helps us to see the abundance of sources for inspiration all around us if we are just open to it.

Aaron Hurst is the foremost expert on the science of purpose at work. In 2014, he brought global awareness to the rise of the fourth economic era in history, the purpose economy. He is the author of The Purpose Economy: How Your Desire for Impact, Personal Growth and Community Is Changing the World and the co-founder and CEO of Imperative, the technology platform for leaders in the new economy. For more information, visit imperative.com.

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S

23 AM

PEOPLE

CAREER PATH

ALWAYS MOVING FORWARD From studying in China to dabbling in HR, Vanessa Flockton is constantly looking ahead to the next challenge

Raised by parents who owned a small business in a tiny community where children were expected to contribute, Flockton took to business early, studying commerce at McGill, but already her interests were more global. “I studied Chinese language and literature. As part of my undergraduate degree, I did a summer study in China; it was a lot less developed and less comfortable then. It continued to be an area of interest – and ultimately got me to move to BC.”

1989

GAINS A GLOBAL PERSPECTIVE

1999

SAMPLES HR The opportunity to take on human resources responsibility as part of her management program turned out to be a beneficial one for Flockton. “It was an opportunity to experience a different part of the bank. There are lots of different aspects of head office, and I like working with people. Understanding how to manage people became very important. Those skills have served me well.”

2006 GAINS PERSPECTIVE Having stayed at home with her first child, Flockton was out of the workforce when her second child was born with challenges and passed away the following year. “We as a family went through a horrendous time. It made me realize the strength of the human spirit. It gave me a whole different perspective on life. I started retraining to become a financial planner. I liked planning and working with people.”

2016 MAKES A PLAN Taking her place in the rapidly growing company, Flockton leveraged her HR skills to help out with hiring before being asked to join the Advisory Services Leadership Team.

“What motivates me is being part of building something. We are an organization that is on the precipice of the next level of growth; we’re looking for people who want to be part of the team that creates something. We still have a small-company culture and a very big focus”

1993

RELOCATES TO VANCOUVER The opportunity to use her degree, coupled with her interest in the Pacific Rim, led Flockton to relocate to Vancouver, where she was hired into HSBC’s management training program. “I had the idea that moving locations was not a big deal, and the economy in BC was better. It was a year-long program in commercial banking; I did three years as a commercial account manager. They saw me as having potential, and I was interested in being exposed to different things.”

2001

MOVES INTO BRANCH MANAGEMENT Her interest in commercial banking and head office culminated in Flockton being promoted to a retail branch, although the experience ultimately led her to re-evaluate what she wanted. “I thought it would be like running my own business, and once I realized it wasn’t, I left the bank and took an operations job managing 80 people. I realized I didn’t like being in a big institution; in a smaller organization, it’s possible to be nimble and part of driving the organization’s success.”

2010

JOINS NICOLA WEALTH Friends who were clients of Nicola Wealth suggested Flockton contact John Nicola to discuss where she might fit in the organization. “He said he didn’t need anyone but was always looking for good people, as the firm was growing. They made a position for me; it was the start of my career in financial planning. I was employee 60; now we’re at about 200.”

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PEOPLE

OTHER LIFE

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

TEE TIME Colleen O’ConnellCampbell has made it her mission to give back while getting more women involved in golf COLLEEN O’CONNELL-CAMPBELL has been giving back to the community for as long as she can remember and has a lengthy philanthropic resume to her credit. Her crowning achievement, however, is her golfing event, Fore-Play for Charity, which is now in its fourth year. The idea for the event came about when O’Connell-Campbell realized how under-represented women were out on the green. “A lot of business is done on the golf course – and there still tend to be more men golfing than women,” she says. “I wanted to create something that could expose women to that environment but also be fun.” Fun is indeed a major part of the day – each of the nine holes in the tournament comes with a different activity, be it a mini-triathlon or a selfie photo booth. The event makes for a long day for its founder, but O’Connell-Campbell is motivated by a desire to do good – and keeping busy is in her nature. “It feels good to make a difference,” she says. “Some people binge-watch Netflix. I get involved.”

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O’Connell-Ca mpbell’s volu nteer work centres primarily arou nd mental health advocacy, promoting women in business a nd Celtic music (in me mory of her deceased brother, a passionate fiddle player)

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Number of golfers who take part in O’Connell-Campbell’s annual Fore-Play event

$7,500

Amount this year’s event raised for the Royal Ottawa Foundation for Mental Health

14

Hours O’ConnellCampbell spends working on the day of the Fore-Play event

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