Wealth Professional 7.04

WWW.WEALTHPROFESSIONAL.CA ISSUE 7.04 | $12.95

YOUNG GUNS 20 of Canadian wealth management’s most promising young superstars

TAX-EFFICIENT CHARITABLE GIVING

How to help clients donate publicly traded securities instead of cash

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AVENUES FOR GLOBAL DIVERSIFICATION Discover new opportunities in technology, healthcare, commodities and more

INSIGHT INTO COMMODITIES

What’s on the horizon for precious metals and Canadian oil?

5/04/2019 2:58:02 AM

DYNAMIC’S SUITE OF

ACTIVE ALTERNATIVES

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

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5/04/2019 4:41:13 AM

ISSUE 7.04

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

CONTENTS

@WealthProCA facebook.com/WealthProCA

WEALTH PROFESSIONAL AWARDS FINALISTS, P 52

22

40

UPFRONT 02 Editorial

Why tracking digital assets is crucial

04 Head to head

How to approach responsible investing

06 Statistics

A look at precious metal performance

08 News analysis

Is recovery in the cards for Canadian oil?

FEATURES

EXPOSURE TO CHINA

Horizons ETFs’ China-focused fund opens up the benefits of the Chinese economy to Canadian investors

48 SPECIAL REPORT

YOUNG GUNS 2019

INDUSTRY ICON

Sun Life Financial Canada president Jacques Goulet is on a mission to ensure that every Sun Life client has a great experience

18

This month’s big movers and shakers

12 Alternative investment update Tackling gender diversity in the alternative space

14 ETF update

Are ETF providers upholding their stewardship responsibilities?

16 Opinion

It’s time to take a global outlook on commodities

FEATURES

These 20 young professionals are quickly climbing to the top of Canada’s wealth management industry

PEOPLE

10 Intelligence

FEATURES

44 Better technology equals more value

THE HEALTHCARE SECTOR

60 It pays to give

BMO GAM’s new version of its healthcare ETF provides access to a complex and lucrative industry

62

How to use the latest tech tools to improve the client experience The ins and outs of helping clients donate publicly traded securities

PEOPLE 46 Advisor profile

At the Shinder Tremblay Group, wealth management is a team sport

70 Career path

Paul McKenna has always gone his own way

72 Other life FEATURES

BEYOND NORTH AMERICA

Why Canadians need to look abroad to diversify into growing industries

In the trenches in Ecuador with the Nicola Wealth team

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

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5/04/2019 4:41:32 AM

UPFRONT

EDITORIAL

Time to track digital assets

T

he untimely death of Quadriga CX founder Gerry Cotten in December has put a new spotlight on an area that all investors and advisors should be aware of: digital assets. Quadriga, a digital asset exchange based in Vancouver, was apparently run by Cotten exclusively off his laptop, and he kept no known record of the password to access it. Now, close to $190 million remains locked up, and investors have been left wondering how, when and if they will ever see their cryptocurrency investments again.

Quadriga’s chaos brings to light a new issue that will undoubtedly become even more prevalent in estate planning in the future. Digital assets might seem like common knowledge to their owner, but for anyone who doesn’t have access to that individual’s personal devices, there is little way of knowing what digital assets have been accumulated.

For anyone who doesn’t have access to an individual’s personal devices, there is little way of knowing what digital assets have been accumulated Cryptocurrency is the most obvious digital asset, but there are multiple others one can accumulate. Just think about what’s currently on your phone, tablet, laptop or e-reader, or the services you use, such as PayPal, where money can be stored for online purchases. A recent report from Deloitte estimates that the average Canadian will have nearly $10,000 in digital assets by 2020. That’s a huge number – and if anything can be learned from the Quadriga case, it’s the importance of accounting for and having a plan to access those assets in relation to estate planning.

As an advisor, you probably don’t need to know how many V-Bucks your client has accumulated in Fortnite, but keeping a tally on some of the larger assets, along with a plan of action to access them in the event of your client’s sudden death, could be beneficial in estate planning and if any legal disputes arise. It’s important to talk to clients about their digital activity and formulate a plan before it’s too late.

The team at Wealth Professional Canada

wealthprofessional.ca ISSUE 7.04 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 Brian de Haaff Aytekin Tank

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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SUBSCRIPTION INQUIRIES

tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca

ADVERTISING INQUIRIES dane.taylor@keymedia.com

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, Seoul

Wealth Professional Canada is part of an international family of B2B publications, websites and events for the finance and insurance industries LIFE HEALTH PROFESSIONAL joe.rosengarten@keymedia.com T +1 416 644 874O

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INSURANCE BUSINESS AMERICA cathy.masek@keymedia.com T +1 720 316 0154

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

5/04/2019 2:58:47 AM

iA Clarington spring roadshow

Active insights for complex markets Join us in a city near you for insight-packed presentations and interactive panel discussions with our active portfolio managers.

Burlington May 1

Thornhill May 6

Waterloo May 7

London May 8

Ottawa May 14

Halifax May 15

Vancouver May 22

Calgary May 23

Montreal June 5

Quebec City June 6

Learn more at iaclarington.com/roadshow

INVESTED IN YOU. Attendance is restricted to registered advisors of participating dealer firms. Please note that space is limited and registration requests will be accepted in the order in which they are received.

Commissions, trailing commissions, management fees, brokerage fees and expenses all may be associated with mutual fund investments, including investments in exchange-traded series of mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The iA Clarington Funds are managed by IA Clarington Investments Inc. iA Clarington and the iA Clarington logo are trademarks of Industrial Alliance Insurance and Financial Services Inc. and are used under license.

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5/04/2019 2:58:50 AM

UPFRONT

HEAD TO HEAD

What do you say to clients who are pushing for SRI? Socially responsible investing isn’t a new concept, but its recent popularity has forced advisors to re-examine their approach

Barry McInerney

Andrew Vincent Khawam Investment advisor Industrial Alliance Securities

Associate investment advisor Alexandra Horwood & Partners Richardson GMP

“Aligning investment decisions with values is not new – Canadians have been doing it for decades, but SRI has taken off recently. Canadians have more than $11.3 billion invested in SRI funds, and we believe this trend will continue.

Mackenzie has three SRI-focused funds launched to date, including one that invests in companies that promote gender diversity within their executive leadership. We’re also a signatory to the UN-supported Principles for Responsible Investment, which is a network of international investors that are putting ESG principles into practice, and the UN Women’s Empowerment Principles, which promote gender equality in the workplace.”

“Clients who want to align their personal beliefs with their investments should be made aware of the pros and cons of socially responsible investing. Themed investing can have a negative impact on a portfolio’s performance, as the screening process associated with SRI is of primary importance in the investment decisionmaking process.

If costs are of concern to the client, they should be aware of the higher costs they will pay for this actively managed portfolio expertise. Clients who invest in SRI get a great feeling of accomplishment, and if properly guided, they will also better their financial future.”

“I always start out by asking, ‘What do you hope to accomplish with this style of investing?’ to get an understanding behind their push for socially responsible investing. SRI is a great opportunity for those who are looking to merge the gap between wealth, values and impact while still having the opportunity to generate growth.

With that being said, I often shift my clients’ focus to impact investing, which has much of the same appeal of balancing investable wealth with compassion and giving. Taking a socially responsible approach to investing provides a much broader opportunity to create value and excitement for my clients.”

President and CEO Mackenzie Investments

Ghinel Bozek

PUTTING THEIR MONEY WHERE THEIR MOUTHS ARE Socially responsible investing has gained traction in recent years and now encompasses $26 trillion in AUM, according to a 2018 study from Harvard University’s Kennedy School of Government. Thanks to a rising cohort of millennial investors with a preference for SRI, one out of every four dollars under professional management worldwide is now being invested into projects or products that in some way further the greater good. The avenues for SRI-focused investors have also increased: As of late 2017, Morningstar reported that there were 234 ETFs and mutual funds claiming to invest in a socially responsible manner – twice the amount available in 2012.

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5/04/2019 2:59:31 AM

YOU’VE BUILT YOUR BUSINESS ON RELATIONSHIPS. SO HAVE WE.

At iA Securities, we believe helping you invest in your clients begins and ends with investing in you.

Because, like you, we understand the importance of personal relationships – and how fundamental they are to your business. It’s why we offer advisors more autonomy and control, so you can continue doing right by your clients everyday.

Greater freedom. Better support. More rewards. joiniasecurities.com

INVESTED IN YOU. Industrial Alliance Securities Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Securities is a trademark and business name under which Industrial Alliance Securities Inc. operates.

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5/04/2019 2:59:31 AM

UPFRONT

STATISTICS

Heavy metals

PALLADIUM’S RISE AND FALL

Is the recent spike in palladium’s price a sign of things to come for precious metals?

GOLD’S RECENT performance has been well documented as investors increasingly look to alternative commodity investments not correlated to the volatile equity market. But what about other precious metals?

At the end of February, palladium, which is used to make white gold and in catalytic converters for automobiles, reached a new high at close to $1,500 an ounce. That number continued to grow throughout the month of March before the metal suffered a signifi-

$1,613.30

All-time high price per ounce of palladium (on March 21, 2019)

cant drop at the end of the month. Palladium still finds itself with a historically high value, but compared to other precious metals, it continues to rank low in terms of assets under management.

A look at palladium’s rise so far this year, along with the ups and downs of other precious metals outside of gold, provides some insight about whether it’s time to add these commodities to portfolios or if the past few months were too good to be true.

$78.25

All-time low price of palladium (in August 1991)

$1,266.80

Driven largely by supply-and-demand issues, the price of palladium soared to record highs in February, reaching close to $1,500 per ounce. After continuing to climb for most of March, the metal experienced a significant drop at the end of the month, but had begun to inch back up again by the beginning of April.

$872.66

Highest price of palladium in 2018 (on December 18)

Lowest price of palladium in 2018 (on July 20)

Sources: XE Currency Charts, Trading Economics; all figures in US$

THE BIGGEST PRECIOUS METALS ETFS While palladium has seen the steepest increase in value in 2019, in terms of major ETFs, it still has the fewest net assets of any of the precious metals.

SILVER ON THE REBOUND?

SPDR Gold Shares (GLD)

$17

After a strong showing last spring, the price per ounce of silver fell in the summer before regaining momentum late in 2018 and continuing its rise into 2019. However, it did take a bit of a step back at the beginning of March. $18

$16.10

$15.94

$16.32

$16

iShares Silver Trust (SLV)

$16.44

$16.36

$33.25 billion

$15.49

$15.52

$4.89 billion

$15.14 $15.21

$15

$14.66

Aberdeen Standard Physical Platinum Shares ETF (PPLT) $14.53

$605.91 million

$14.28

$14

$14.17

Aberdeen Standard Physical Palladium Shares ETF (PALL)

$255.74 million

$13 Source: Yahoo Finance, as of April 2, 2019

6

Apr 2018

May 2018

Jun 2018

Jul 2018

Aug 2018

Sep 2018

Oct 2018

Nov 2018

Dec 2018

Jan 2019

Feb 2019

Mar 2019

Apr 2019

Source: XE Currency Charts, as of April 2, 2019; all figures in US$

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$1,600 $1,546.49

$1,543.73 $1,557.70

$1,500 $1,424.20

$1,400

$1,430.95 $1,324.88 $1,356.46

$1,300

$1,352.73

$1,243.07 $1,264.00

$1,185.66

$1,200 $1,117.49 $1,082.37

$1,084.69

$1,100

$1,086.20

$1,000

$955.40

In the span of two trading days, palladium shaved an eye-popping $191 off its price per ounce

$977.05 $939.36 $934.93

$979.29

$900 $897.72

$800

Jul 1

Jul 15

Aug 1

Aug 15

Sep 1

Sep 15

Oct 1

Oct 15

Nov 1

Nov 15

Dec 1

Dec 15

Jan 1

Jan 15

Feb 1

Feb 15

Mar 1

Mar 15

Mar 27 (open)

Mar 28 (close)

Apr 1

Source: XE Currency Charts, as of April 1, 2019; all figures in US$

PLATINUM THE ANOMALY

WHAT ABOUT RETURNS?

The outlier among precious metals has been platinum. Much like silver, it began 2018 with a strong spring performance before dropping in the summer. But last autumn, its performance diverged from the other precious metals; platinum has been on an up-and-down course throughout the end of 2018 and into 2019.

Even with its drop in late March, palladium has shown the highest YTD return among the precious metals ETFs, while the strong start to 2019 witnessed in gold and silver has tapered off.

1000

12% 10%

$931.77 $909.61

900

7.27%

8%

$905.80

$870.55

6%

$838.58

$838.54 $852.96

$822.08

$819.66

$850.10

4% 2%

800 $785.93

$800.47

$794.41

0% -2%

700

10.92%

Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019 Mar 2019 Apr 2019 Source: XE Currency Charts, as of April 1, 2019; all figures in US$

-4%

0.82%

-2.68%

SPDR Gold Shares (GLD) iShares Silver Trust (SLV)

Aberdeen Standard Physical Platinum Shares ETF (PPLT)

Aberdeen Standard Physical Palladium Shares ETF (PALL)

Source: Yahoo Finance, as of April 1, 2019

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5/04/2019 3:00:39 AM

UPFRONT

NEWS ANALYSIS

Relief for Canadian oil?

Recent OPEC developments and political turmoil in Venezuela could be positive signs for Canadian oil – but are they enough to overcome its domestic roadblocks?

AS CANADIAN oil has slumped over the last four years, many investors have turned away from the commodity and the companies that produce it. The problem was put into stark relief last October, when the discount between Western Canadian Select [WCS] and West Texas Intermediate [WTI] reached its largest gap at US$52 a barrel.

Meanwhile, pipeline capacity and the further development of projects such as the Trans Mountain expansion and Enbridge Line 3 remain points of debate, forcing the government of Alberta to impose production cuts and purchase rail cars to transport oil.

of heavy oil to the US, curbed its oil exports due to political turmoil. These two global situations have helped WCS close the gap on WTI; so far in 2019, the discount has been closer to US$10 to US$13 a barrel.

“Venezuela is important because they supply a significant amount of heavy oil, which is what the US is looking for,” says Tim Pickering, founder, president and CIO of Auspice Capital. “The US is a net exporter of light oil, but they are a net importer of heavy oil. That is significant because refineries have been created or retooled for it. With Venezuela in shambles, that has decreased

“With Venezuela in shambles, that has decreased production, and the replacement is Canada” Tim Pickering, Auspice Capital While these measures have provided shortterm relief, they are not long-term solutions to get Canadian oil back on track.

However, at the beginning of 2019, oil started to rally on the back of international events. The first major shift happened when OPEC+ outlined production cuts in January.

Meanwhile, Venezuela, the largest exporter

8

production, and the replacement is Canada.”

Because Canada produces the heavy oil US refineries are looking for, Pickering feels the industry is in a good position. However, it is also stuck because of the transportation issue. While Pickering feels the curtailment imposed by the Alberta government needed to happen, he says it might have brought the

discount too far, noting that the economics of shipping by rail don’t make sense.

“Canada is in this position of having the right type of oil, but are not able to get it to market,” he says. “The long-term average looks to widen out, hopefully not drastically, but at a level that makes sense for the economics of the current transportation system.”

That said, Pickering believes there is opportunity for investors in the space. “The Canadian Crude Index ETF gives access to the heavy market oil – the only way to access heavy oil globally, unless you are a physical market participant,” he says.

For Pickering, the discount is the advantage to heavy oil. “If an investor has a view on oil, since there is a discount, if it goes up, you should get a better return than on WTI,” he says. “The risk is if the differential blows up, it would negate

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5/04/2019 3:03:09 AM

WESTERN CANADA SELECT VERSUS WEST TEXAS INTERMEDIATE Western Canada Select price per barrel West Texas Intermediate price per barrel $80 $70 $60 $50 $40 $30 $20 $10 $0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 18 18 18 18 18 18 18 18 18 19 19 19 Source: OilPrice.com; all figures in US$

that gain. However, we don’t think it will blow out to those differentials because the producer community is being proactive.

when it turns around – most people thought it would be a two-year timeframe, but we are four years in.”

“Things are in a deep value situation.

Oil companies, especially in Canada, are trading at significant discounts” Chris Rawles, RT Mosaic Wealth Management Looking down the line, we also think we will get solutions in terms of pipelines.”

Chris Rawles, a portfolio manager with RT Mosaic Wealth Management, is still seeing caution in the sector, even with the recent Canadian rally. “People are cautious because there has a been a lot of capital that flowed out of Canada,” he says. “There will be a day

Rawles does see a contrarian opportunity but believes it depends on the timeframe of the investment. “Things are in a deep value situation,” he says. “Oil companies, especially in Canada, are trading at significant discounts.”

Pickering believes the best approach to the sector is through the commodity itself.

He says Canadian oil should be a small part of every Canadian’s portfolio because of the longer commodity cycle, which means it still has time to appreciate.

Rawles notes that oil exposure should be dependent on an individual’s specific situation. He says many of his clients working for oil companies tend to be overexposed, and while he tries to get them to diversify their portfolios, if they have a certain view toward either the commodity or a company, they will add it. Otherwise, they will buy an energy index.

For now, while international events have had an impact on WCS, Rawles is more interested to see how domestic affairs such as the Alberta and federal elections play out.

“It’s going be an interesting couple of years,” he says. “Energy is important economically to Canada. I know there are environmental issues, but people are going to need this resource for the next 50 years. You can’t just turn the tap off on oil.”

www.wealthprofessional.ca

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5/04/2019 3:03:13 AM

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Brookfield Asset Management

Oaktree Capital Management

Brookfield has agreed to acquire 62% of Oaktree’s business to form one of the world’s leading alternative asset managers

Canaccord Genuity Group

Thomas Miller Wealth Management

Canaccord has acquired the London-based integrated wealth manager through its UK wealth management operations

Fiera Capital

Integrated Asset Management

The deal will expand the depth of strategies offered within Fiera Capital's private alternative investments platform

PARTNER ONE

PARTNER TWO

COMMENTS

Gluskin Sheff + Associates

Broadridge Financial Solutions

Broadridge has brought its comprehensive investment management technology to Gluskin Sheff

Monarch Wealth Systems

Nest Wealth

Monarch is adopting Nest Wealth Pro’s digital wealth platform to onboard, engage and manage clients more effectively

Empire Life rolls out retirement savings tool

Empire Life has developed a new interactive tool for consumers saving for retirement. The Empire Life Retirement and Savings Tool asks users a series of questions to determine whether they’re on track to meet their desired retirement income or savings goals. To help users achieve their retirement goals, the tool projects how savings will accumulate until retirement and confirms if the individual’s nest egg will be enough for their desired income and expected lifespan. It also illustrates how Empire Life’s segregated fund products can help satisfy their retirement objectives.

Brookfield expands alternative asset expertise

Brookfield Asset Management has entered into an agreement to acquire 62% of the business of Oaktree Capital Group, a global investment manager specializing in alternative investments. Together, the two companies have some $475 billion in assets under management and $2.5 billion in annual feerelated revenues. Their merger will create one of the world’s leading alternative asset managers and one of the most comprehensive suites of alternative investment products.

“As we continue to strategically grow Brookfield, we are thrilled to be partnering with Oaktree and with its exceptional management team, whose credit business is second to none,” said Brookfield CEO Bruce Flatt. “This transaction enables us to broaden our product offering to include one of the finest credit platforms in the world, which has a value-driven, contrarian investment style, consistent with ours.”

The transaction is expected to close in the third quarter of 2019. Both businesses will continue to operate independently, each remaining under its current brand and led by its existing management and investment teams.

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Wealthsimple unveils zerocommission trading app

Wealthsimple has introduced Canada’s first no-commission trading app. Wealthsimple Trade allows Canadians to buy and sell thousands of Canadian and US-listed stocks and ETFs without paying trading commissions. The app also doesn’t impose a minimum account size and promises a paperwork- and jargon-free experience. The accountopening process takes only a few minutes for new clients, while existing Wealthsimple clients can start using it with just one tap. “We saw an opportunity to take the simple, human approach we’re known for and apply it to the trading experience,” said Wealthsimple co-founder and CEO Mike Katchen.

www.wealthprofessional.ca

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5/04/2019 5:01:39 AM

PEOPLE Desjardins plants new green ETFs

Desjardins Global Asset Management has added two ETFs to its responsible investment lineup. The Desjardins RI Emerging Markets Multifactor Low CO2 ETF (DRFE) is designed to significantly reduce carbon intensity relative to traditional equity indexes.

The Desjardins RI Global Multifactor Fossil Fuel Reserves Free ETF (DRFG) gives investors the opportunity to invest with zero exposure to coal, gas or oil companies. Both funds will invest in large- and mid-cap companies from the Scientific Beta Emerging Markets Universe, while making significant reductions in carbon intensity and carbon asset stranding risk compared to the universe’s cap-weighted index.

ScotiaFunds looks to merge international funds

ScotiaFunds trustee and manager 1832 Asset Management has proposed a merger of the Scotia Latin American Fund and the Scotia Pacific Rim Fund into the Scotia International Equity Fund.

At the same time, 1832 is looking to lower the fixed administration fee of the international equity fund by 10 basis points. The proposal is scheduled for a vote by unitholders of the terminating and continuing funds on or around June 14. The firm noted that those holding the terminating funds in non-registered accounts might experience tax consequences from the mergers.

Ninepoint fund maximizes yields on cash balances

Ninepoint Partners has relaunched its Ninepoint Short Term Bond Fund as the Ninepoint High Interest Savings Fund with a goal of maximizing yields on cash balances while providing easy access to investments with daily liquidity. Structured to look for reasonable short-term returns and offer daily liquidity without redemption penalties, the fund invests in high-interest savings accounts at Schedule I Canadian banks. Ninepoint’s James Fox said the fund responds to “a need for high-quality, short-term vehicles for investors and advisors to earn higher returns on cash balances being set aside for new investments, purchases or expenses.”

NAME

LEAVING

JOINING

NEW POSITION

Scott Caffrey

N/A

Laurus Investment Counsel

Vice president, marketing and client services

Christian Hensley

CPPIB

Investment Management Corporation of Ontario

Senior managing director, public equities

Larry Richman

N/A

CIBC Bank USA

Chair, US region

Scott White

N/A

Invesque

Chairman of the board

Lawrence Xing

N/A

Gravitas Financial

Member, board of directors

Invesque names new board chair

Invesque has appointed its CEO, Scott White, as chairman of the board of directors. White has been CEO of Invesque since 2017; over that time, the firm has seen its asset size grow to nearly triple the amount it had at inception. White’s appointment follows the resignation of Rick Turner, the previous board chairman; Lis Wigmore, another board member, also resigned.

“I truly appreciate all the work and guidance Rick and Lis have contributed in the boardroom,” White said. “I look forward to joining the board and moving forward to execute on our strategy.”

Invesque also announced Charles Herman as its lead independent director.

Herman previously spent 15 years in various roles at Welltower, formerly known as Health Care REIT.

IMCO taps senior managing director

The Investment Management Corporation of Ontario [IMCO] has named Christian Hensley as senior managing director of its public equities and credit team. Hensley was formerly an executive with CPPIB, where he held various senior roles; most recently, he was managing director and head of relationship investments. Prior to that, he spent 11 years in private equity and growth capital at Charterhouse Group and Planier Capital.

“Christian brings deep experience across the investing spectrum, including oversight for active mandates and nurturing shareholder value through relationship investing,” said IMCO chief investment officer Jean Michel.

“His focus on enabling essential partnerships, creating long-term value in our public equity portfolios, building the credit portfolio and sourcing new opportunities will help to meet our clients’ investing goals.”

www.wealthprofessional.ca

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5/04/2019 5:01:41 AM

UPFRONT

ALTERNATIVE INVESTMENT UPDATE NEWS BRIEFS iA Clarington dives into the liquid alternatives space

iA Clarington has launched a new long/short active US equity mandate.

Subadvised by MacKay Shields, the IA Clarington US Equity Opportunities Fund seeks broad exposure to the US equity market that’s diversified by sector, industry, style and market capitalization.

It follows a 130/30 approach to long/ short investing, with a long-only sleeve that aims for market-like returns and a long/short market-neutral sleeve for pure alpha generation. It also features highconviction, rules-based security selection and comprehensive risk controls to minimize downside potential.

Canadian green bond issuance remained strong in 2018

According to a recent report from the Smart Prosperity Institute, Canada issued a total of $5.5 billion in green bonds last year, just shy of the 2017 total of $5.6 billion. That figure was driven largely by local governments, which contributed 42% of issues; almost half of that total came from Ontario.

Among the different impact areas, clean energy got the largest share of proceeds (32%), followed by transport (30%) and low-carbon buildings (22%). Notable developments in the space included CPPIB’s inaugural $1.5 billion green bond issue, which is the largest to date in Canada.

Mackenzie goes global with three liquid alternative funds

Mackenzie Investments has expanded its lineup of alternative mutual funds with three global-focused solutions. The Mackenzie Credit Absolute Return Fund seeks to deliver a positive total return over a rolling five-year period through investments in fixed-income securities.

12

The Mackenzie Global Macro Fund seeks strong and diversified returns through long and short positions in equity securities, fixed-income securities, commodities and/or currencies.

Finally, the Mackenzie Global Long/ Short Equity Alpha Fund takes long and short positions in equities from issuers anywhere in the world.

Franklin Templeton unveils multi-strategy alternative fund

Franklin Templeton Investments Canada has entered the burgeoning Canadian liquid alternative space with its Franklin K2 Alternatives Fund. The fund uses an array of non-correlated alternative investment strategies, including replicating returns produced by highconviction hedge funds, using equity premium alpha to capture above-market returns produced by skilled hedgefund managers while shorting crowded hedge-fund strategies, and employing a risk premia strategy to take advantage of behavioural and structural market anomalies. Depending on market conditions, the fund’s subadvisor might also apply a conditional risk overlay to hedge against negative events.

Regulators call for consultation on cryptocurrency platform

The Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada have published a joint paper proposing a regulatory framework for crypto-asset trading platforms that builds on the existing regulatory regime applicable to marketplaces and dealers. The CRA and IIROC are now seeking feedback from the fintech community, market participants and other stakeholders on key areas, including custody and verification of assets, price determination, surveillance of trading activities, and conflicts of interest, among others.

Gender diversity still a problem Investors are looking to close the persistent gap in female representation at alternative investment companies Like many financial sectors, the alternative investment industry is notorious for having a male-dominated workforce. There have been calls for change, but has the needle truly moved?

According to KPMG’s latest survey on female representation in alternative investments, it hasn’t. KPMG found that 65% of women thought the alternative investment sector isn’t doing enough to advance the careers of women; 48% thought the same about their own firm. And only half of women believe their firm’s leadership sees diversity as an important part of its business strategy.

When men were asked the same questions, the responses were a bit different, revealing an industry-wide disconnect. Just 45% of men agreed that the alternative investment industry isn’t doing enough to promote women, and only 30% perceived a shortfall in their own firm. Meanwhile, 65% of men said their firm’s leadership believes that diversity is an important component of business strategy.

Numbers from Preqin support the women’s perspective. “Just one of every five alternative assets professionals is female, with this proportion even lower at the senior level,” the firm said in its own recent report on women in alternatives. Preqin found that only 19.3% of hedge fund employees worldwide are

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women, up slightly from 18.6% in 2017. The venture capital space saw a similarly modest increase in female representation from 20.5% to 21.1%, while representation in private equity remained flat at 17.9%.

Women tend to have a greater presence in investor relations than portfolio management.

“Just one of every five alternative assets professionals is female” Preqin reported that women made up 53% of private equity firms’ investor relations or marketing teams, but only 21% of their portfolio management teams. In the hedge fund space, the contrast was equally stark: Women accounted for 48% of investor relations teams but just 10% of portfolio managers.

And in terms of senior advancement, the evidence suggests a winnowing at the expense of women. Female employees at private equity firms represent 31% of all junior employees but just 18% at the senior level, and a similar picture emerged at hedge funds (29% versus 11%).

The good news is that investors are dialling up their support for greater equality.

When KPMG asked investment teams about their firm’s diversity efforts, it found that 75% are planning to push for diversity in the coming year, as opposed to just 60% the year prior. More teams are also planning to require disclosure of diversity statistics for all potential investments (37% versus 16%), as well as improved diversity from the firms currently in their portfolio (42% versus 11%). KPMG noted that “increased investor efforts like these have the potential to bring about significant change in the industry.”

Q&A

David Dattels President and portfolio manager NEWGEN ASSET MANAGEMENT

Years in the industry 17 Fast fact NewGen’s Alternative Income Fund follows an opportunistic, multistrategy approach in pursuit of yield and enhanced alpha

Tapping Canada’s alpha potential What do you think the new liquid alts regulations will mean for Canada’s hedge fund industry?

Raising capital is very challenging for hedge funds in Canada, so there’s a huge opportunity to tap into a new pool of investors. Yes, there will be new competition from the mutual fund companies, but some of the more specialized niche funds should be able to differentiate themselves pretty quickly. For example, shorting is more than just hiring an analyst to identify expensive stocks to bet against; it’s a very unique field of expertise, which we think we’ve done a very good job demonstrating at NewGen.

Part of your fund’s multi-strategy approach involves pursuing short-term trading opportunities, which some say can never beat betting on the market. What would you say to those critics?

Perhaps that’s true in the US and other more competitive markets, but Canada’s hedge fund industry is very small relative to other major global financial centres. Almost all of Canada’s institutional AUM is in the hands of slow-moving, long-biased mutual funds and pension funds, which tend to crowd into the most liquid large-caps and adopt a very long-term focus. Add in the major adoption of passive strategies as well as ETFs, and you have an environment where very few care about the short term. That very unique structural market imbalance in Canada creates a huge amount of alpha potential from short-term trading.

What impact has the return of volatility had on shortselling strategies?

It hasn’t really impacted our short strategy. We think Canada is ripe for shorting for a few reasons. First, there are very few institutions that focus on shorts. Second, there is a considerable bias in equity research because of the competitive banking nature of our capital markets. And third, there is the crowded positioning I mentioned because of the lack of depth in Canada. That creates a great setup, which doesn’t change with volatility.

Can you talk about the investment opportunities and benefits developing in Canada’s dividend space?

After reaching our AUM capacity in our first fund, we began evaluating other segments within the Canadian market that offer the same inefficiencies and opportunities for alpha. We gravitated toward yield because it is such an important component of a balanced portfolio. Historically, the big mutual fund companies have dominated the space, but there’s considerable overlap among the top holdings of the products they offer. Meanwhile, we see a huge opportunity in the more overlooked small- and mid-cap yield space, which offers more income and greater alpha potential when combined with a disciplined stock-picking approach.

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UPFRONT

ETF UPDATE

ETF providers lacking in stewardship Although they represent large amounts of investor assets, ETF providers are doing little to hold companies to account

an external proxy voting service, while two preferred to use their internal staff. Ten said they used an external proxy voting advisor only for research purposes, while three employed a combination of internal and external research and recommendations.

Only one firm relied solely on an external proxy voting advisor for recommendations.

In terms of corporate engagement, the ETF providers focused on a range of topics

“Unfortunately, 36% of the respondents ... achieved weak, subpar assessments”

ETF sponsors need to do a better job of being stewards of their clients’ assets. That’s the conclusion of Sage Advisory Services’ latest ETF Sponsor Stewardship Survey, which evaluated 14 US-based ETF providers on areas such as corporate governance and ESG policies, firm-wide proxy voting practices, and corporate engagement efforts.

“Our survey found that 50% of the sponsors scored well on most of the stewardship issues and achieved a solid overall grade of A,” Sage wrote in its report. “Unfortunately,

NEWS BRIEFS

36% of the respondents did not score well and achieved weak, subpar assessments of D.” In terms of general stewardship policies, an overwhelming majority of firms (93%) had corporate governance policies in force, and 86% said they integrate ESG-related evaluations of their ETF portfolio companies.

However, the responses on proxy voting practices were varied. While all respondents had uniform firm-wide independent voting policies, they varied in how they satisfied their voting responsibilities. Twelve used

Horizons ETFs broadens taxefficient lineup

Horizons ETFs has expanded its total return index ETF lineup with the Horizons Laddered Canadian Preferred Share Index ETF (HLPR). The fund seeks to replicate the performance of the Solactive Laddered Canadian Preferred Share Index, which is composed entirely of Canadian preferred shares that generally have an adjustable dividend rate. In addition to its total return swap structure and tax-efficient access to preferred shares, HLPR includes an automatic reinvestment feature for index constituent distributions.

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and issues, including board composition and competency, carbon emissions data, geopolitical issues, management succession planning, and workforce diversity. Out of the 14 firms, eight had a firm-wide engagement policy, four did not, and two addressed issues on a situational basis.

When it came to disclosure, 12 out of the 14 providers surveyed said they voluntarily disclose all or most of their proxy voting records, but corporate engagement disclosures were more mixed. Eight firms said they don’t share information on their engagement activities with investors, four said they offer anonymous examples of their corporate engagement research, and only two had policies to provide full disclosure of their corporate engagement efforts.

Franklin Templeton enters the ETF portfolio fray

Franklin Templeton has launched three new active ETF portfolios offering access to active, smart beta and passive ETFs that span multiple asset classes and geographies. The Franklin Conservative Income ETF Portfolio seeks high current income with some long-term capital appreciation, the Franklin Core ETF Portfolio targets a balance between long-term capital appreciation and income, and the Franklin Growth ETF Portfolio provides long-term capital appreciation with additional stability from income.

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Q&A

Julian Klymochko

Endowment-style investing for the masses

CEO and chief investment officer ACCELERATE FINANCIAL TECHNOLOGIES

Years in the industry 10+ Fast fact Accelerate’s recently launched suite of alternative ETFs includes Canada’s first performance-fee-only ETF products

What sets your long/short equity strategies apart from other long/short mandates?

What led you to pursue your performance-only pricing model?

Accelerate’s long/short equity strategies are driven by proprietary multi-factor models developed over the past decade. Unlike most long/short mandates, they are systematic strategies, eliminating potential cognitive biases that can detract from investment returns. Our Accelerate Absolute Return Hedge Fund strategy is the first true equity hedge fund in an ETF wrapper. We also have the first alternative ETFs with a 0% management, performance-only fee.

We strive to be the most innovative financial services firm in the industry. From our leading effort to democratize alternative investments, we’re now bringing exchange-traded alternative funds to the market as a new asset class, bridging the gap between endowment-style asset allocation and everyday investors. Because innovation is in Accelerate’s DNA, we insisted that our fee model be highly disruptive.

That’s why we’re rolling out the first 0% management fee alternative ETFs. We’re aligning the interests of the investor and manager for the first time, and we believe this will really resonate with investors who are tired of paying fees to underperforming managers.

What advantages can investors gain from alternative ETFs over alternative mutual funds?

Alternative ETFs offer intra-day liquidity; they can be bought or sold as long as the stock market is open, as opposed to only daily or monthly for some alternative mutual funds. We also offer radically increased transparency by showing investors daily net asset values and displaying all long and short positions within a given strategy.

From what we see, clients prefer ETFs because they’re dramatically easier to use than mutual funds, which haven’t been seeing growth in terms of fund flows. ETFs allow practically one-click buying and selling without having to deal with proprietary platforms, lengthy redemption processes and other realities of mutual fund investing. Lastly, we believe our fee structures are much more attractive for investors than those offered by alternative mutual funds.

Industry player advises caution on zero-fee ETFs

Against a backdrop of ongoing fee-slashing by US-based ETF providers, Hector McNeil, co-CEO of London-based white-label ETF platform HANetf, is arguing that zero-fee products are a gimmick.

Speaking with the website ETF Strategy, McNeil said “it’s worth remembering zero fund fees are a misnomer,” noting that while a fund might appear to be free for investors, it might require them to shift their assets onto a specific platform, which he said could cost them more money and leave them out of the market for a significant period.

How do you intend to compete with other providers who have launched their own alternative ETFs? We view Accelerate’s products as the only institutionalquality alternative ETFs – true long/short equity hedge funds run by hedge fund managers with a track record of success. We also aim to become a thought leader in Canadian alternatives with a digital-first marketing strategy that includes publicizing our thoughts and analyses through a podcast, blog and other social media channels. Our attitude is that quarterly letters and newsletters to investors just don’t cut it anymore – investors want real-time thoughts and insights from their managers, and we’re providing that.

Middlefield Group eyes ETF platform expansion

Middlefield Group is continuing to expand its ETF offerings with proposals to convert two more of its actively managed funds into ETFs. The Middlefield Healthcare and Wellness Dividend Fund focuses on companies in the healthcare, wellness and related industries, while the American Core Sectors Dividend Fund provides a diversified, active portfolio of dividendpaying securities within core US sectors, including consumer, financial, industrial and IT. The proposed conversions will be put to a shareholder vote on May 17.

Time to review emerging market indexes?

According to a recent analysis in the Wall Street Journal, emerging market ETF indexes are in need of review, as countries that were originally small but growing, such as Taiwan and South Korea, have become as prosperous as some developed markets. China, which currently makes up less than 40% of the MSCI Emerging Markets Index despite its massive market cap, is similarly problematic. These issues, the report said, call the ‘developed’ versus ‘emerging’ system of sorting assets into question.

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UPFRONT

OPINION

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

Taking a wider view Global awareness is growing in commodities trading – and now advisors need to leverage it to help Canadian investors move beyond their home bias, writes Michael Yeung CANADIANS MIGHT be used to wild winter weather, but even the most resilient among us felt the effects of January’s frigid temperatures brought on by the polar vortex. In the weeks leading up to the near-record-low temperatures, Canadians and Americans stocked up on supplies and cranked up the heat, using record amounts of natural gas. Commodities traders, meanwhile, prepared by speculating on short-term natural gas futures.

During the week of January 13, when reports of the polar vortex’s imminent arrival made national news across the US and Canada, our firm noticed an increase of as much as 200% in trading volume on natural gas futures. On the week the vortex actually struck, there was another spike of up to 150% of short trades on natural gas.

While nearly every November, we see a big spike in trading volume as Canada prepares for several months of sub-zero temperatures, spikes like this one make it clear that traders are watching the weather forecast and using it to determine which trades to make.

If traders are using the weather forecast to inform their trades in natural gas, how else are they using the news to guide their trading strategy? The weather, trade and major events in politics all have an impact on trading volumes.

For example, during the 2016 election, as rhetoric surrounding the US-Mexico border heated up and talks of a border wall gained more and more attention, trading activity on the Mexican peso spiked. As NAFTA talks

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escalated, so did another spike in activity on the peso. On the other side of the Atlantic, activity on the British pound ebbs and flows alongside each vote in parliament and as each new deadline concerning Brexit is set and then passes.

It seems obvious that traders would watch the news surrounding the commodities and currencies they are trading in. But today,

seem like a minor export, relatively speaking, but it’s still a $1.4 billion industry. There is money to be made in orange juice if you know where to look.

For Canadians, who can be guilty of home bias geared towards the oil and gas, lumber, and even canola industries, this type of global awareness, which takes in the events affecting other countries – whether political, weatherrelated or anything else – can give investors a real leg up.

The advent of online trading platforms, not to mention online news, has made it much easier to trade in natural gas, orange juice or any other commodity. It can be difficult for the average investor to get their hands on some of these commodities and currencies, but with futures and derivative products, they can leverage what they are seeing on the TV, in the newspaper and online to capitalize on moves in the commodities space.

There’s always news, and volatility is only rising; it’s becoming more important for Canadian investors to find a way to diversify their exposure and use the news flow to continue to make money when equities

“This type of global awareness, which takes in the events affecting other countries – whether political, weather-related or anything else – can give investors a real leg up” being a commodities trader in Canada requires a high level of global awareness.

Many Canadians tend to stick close to home when they invest in commodities; after all, Canada is a country rich in natural resources. But what this data tells us is that a globally aware investor can reap the benefits of that knowledge, especially when it comes to commodities that might not immediately come to mind.

Take orange juice, for example. Up until recently, Florida was the orange juice king.

Brazil, however, has recently dethroned the US state and become the runaway leader in orange juice production, now producing roughly 50% of the orange juice bottled by major companies such as Tropicana. It may

are crashing. As the world becomes more connected, Canadians will gain access to information on commodities that previously would have been outside their realm of expertise. With it, they’ll be able to diversify their commodities exposure away from the traditional heavy focus on oil and gas and into a much more global range of products.

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 working with contracts for difference products in Canada.

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ADV

Be of two minds.

MARK SCHMEHL • STEVE MACMILLAN

ALL-NEW

Fidelity CanAm Opportunities Class

onlyatfidelity.com Ask your Fidelity representative.

Read a fund’s prospectus and consult your financial advisor before investing. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Investors will pay management fees and expenses, may pay commissions or trailing commissions and may experience a gain or loss.

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5/04/2019 5:33:43 AMAM 2019-03-25 9:52

PEOPLE

INDUSTRY ICON

CLIENTS AT THE CENTRE Sun Life Financial Canada president Jacques Goulet is drawing on his varied background to help create a better experience for clients

WHEN MANY people hear the name Sun Life, they think insurance. But the company is trying to get the word out that it’s about more than just insurance. Sun Life has an impressive global investment offering that now includes more than 70 mutual funds and more than $23 billion in AUM. From group retirement services to its advisor network, Sun Life’s overarching goal is to help clients achieve lifetime financial security and live healthier lives. At the heart of those efforts is Jacques Goulet, who took over as president of Sun Life Financial Canada in 2018.

“When I joined Sun Life just over a year ago, I instantly saw the passion that employees and advisors have for our clients,” Goulet says. “We put clients at the centre of everything we do. We recently aligned the retail division of our business to be closer to our Canadian executive team. This allows the leadership to focus on the advisor, who is at the core of our client experience and the growth engine for the organization.”

Goulet believes Sun Life’s advisors, who provide holistic advice to Canadians, are critical to the client experience. “This ties in nicely with our newly created client experience office,” he says, “which focuses on helping the organization deliver a great client experience, regardless of where and how clients interact with us.”

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At home and abroad Goulet’s view of the relationship between advisors and their clients traces back to his roots in Shawinigan, Quebec, where his family still operates a plumbing business. Clients were always at the centre of his family’s business, and that’s something Goulet was keen to bring to his current role.

“This mindset is also shared by our

Concordia University and is a fellow of both the Society of Actuaries and the Canadian Institute of Actuaries. He spent 29 years working for Mercer, where he held a variety of leadership positions in Canada, the US and Europe. As president of health and wealth at Mercer, he oversaw the firm’s global retirement, health, investment consulting and investment management business.

“Driving business and strong performance is essential to any organization. What sets you apart is how you treat your clients, and more importantly, how your clients feel at the end of the day” network of financial advisors across Canada, who embrace an entrepreneurial mindset and adopt new technology while focusing on each individual’s needs,” he says. “Driving business and strong performance is essential to any organization. What sets you apart is how you treat your clients, and more importantly, how your clients feel at the end of the day.”

Professionally, Goulet’s background is in actuarial science. He earned his degree from

“After studying actuarial science, my career started to take shape going in one of two directions: consulting or insurance,” he says. “I jumped at the opportunity to enter the world of consulting, and as they say, the rest was history. It was an interesting time, given the pension industry was booming. It gave many people, including myself, an exciting career path with diverse opportunity.”

Perhaps the greatest impact on Goulet’s career was his role spearheading Mercer’s

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PROFILE Name: Jacques Goulet Title: President Company: Sun Life Financial Canada Based in: Toronto Years in the industry: 31 Career highlight: Having the opportunity to work in four different countries, overseeing teams in more than 40 countries

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PEOPLE

INDUSTRY ICON

Toronto office, which led to an opportunity to be CEO of Mercer France. That resulted in numerous global opportunities, which Goulet credits for shaping him into who he is today.

“Working around the world has given me the opportunity to experience diversity in so many ways, and it’s something that I’m truly passionate about and continue to focus on in my role at Sun Life,” he says. “Having a diverse and inclusive company is a key to business success.”

Now he’s putting that notion of diversity to

tion, Goulet says the company is continuing to develop its insurance and investment solutions and invest in new technology to not only offer an omni-channel experience, but also help advisors grow business. This commitment to technology can already be seen with Sun Life’s app, which is the number-one client-rated app among financial institutions.

“We are in a unique position to help Canadians with the two things that matter most in their lives – their health and their wealth,” Goulet says. “Through our top talent, we’ll continue to deliver meaningful products

“The most challenging times of my career have been the moments when I forced myself to step outside of my comfort zone … Don’t be afraid to travel into the unknown. Be curious and show a vested interested in the things around you” work within Sun Life. Goulet says he’s focused on building diverse teams – the company has made organizational commitments to address areas of gender equality and visible minorities at the leadership level.

“Women, for example, represent a dominant share of the financially active population in Canada, and we know that they are more likely to work with female advisors,” Goulet says. “We also know that by 2028, figures show women are expected to control close to $4 trillion in financial assets. It’s not just the right thing to do – it’s the smart thing.”

Supporting advisors Sun Life is also committed to helping its advisors succeed by creating platforms, infrastructure, tools and resources to help them provide holistic advice to their clients. In addi-

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and services to Canadians. We will do all of this while accelerating our digital journey and making sure we deliver on our purpose for our clients.”

For those just entering the investment industry, Goulet has a couple of pieces of advice. “The most challenging times of my career have been the moments when I forced myself to step outside of my comfort zone,” he says. “I’d recommend to anyone to step out of your comfort zone and take risks. Don’t be afraid to travel into the unknown. Be curious and show a vested interested in the things around you.

“The other thing is don’t wait,” he adds.

“If you want something, go for it. Raise your hand and ask. You need to be your biggest advocate. Having supportive mentors to lean on along the way will also help.”

SUN LIFE FINANCIAL AT A GLANCE

1865 Year Sun Life was founded

12 Number of countries where Sun Life is active

$951 billion Sun Life Financial’s global wealth management AUM as of December 31, 2018

70+ Number of mutual funds Sun Life offers

$23 billion Sun Life’s mutual fund assets under management

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SPECIAL REPORT

YOUNG GUNS 2019

YOUNG GUNS 2019 Wealth Professional Canada shines the spotlight on 20 rising stars in the wealth management industry

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WHAT MAKES a wealth professional a Young Gun? It is their contributions to the industry at a young age, the products they’ve developed, the leadership roles they’ve taken on, the awards they’ve won? The answer is all of the above – and then some.

The 2019 Wealth Professional Canada Young Guns list aims to capture a selection of the most promising young stars in the industry.

The list is not a ranking because, with so many variables, it would be like comparing apples

to oranges. The reality is that there are many superb young professionals in the industry, and they all have different qualities that make them stand out.

After reviewing numerous nominations from advisors, clients and industry professionals for this year’s Young Guns list, one thing is clear: These emerging stars have identified the challenges facing them and are addressing them head-on to ensure the stability and growth of the industry well into the future.

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YOUNG GUNS INDEX NAME

PRACTICE

COMPANY

Alfie, Joseph

Myriad Private Wealth

HollisWealth, a division of Industrial Alliance Securities

37

Arnold, Aaron

Luft Financial

HollisWealth, a division of Industrial Alliance Securities

25

Ben-Haim, Emily

Gluskin Sheff

Gluskin Sheff

34

Bozek, Ghinel

Alexandra Horwood & Partners

Richardson GMP

29

PAGE

Chartren, Chelsey

The McClelland Financial Group

Assante Capital Management

24

Currin, Ashley

Evans Wealth Management Team

Richardson GMP

26

Evans, Matt

Westmount Wealth Management

HollisWealth, a division of Industrial Alliance Securities

33

Farrow, Jillian

Sun Life Financial

Sun Life Financial

38

Garabedian, Dillon

Industrial Alliance Securities

Industrial Alliance Securities

28

Hector, Aaron

Doherty & Bryant Financial Strategists

iA Investment Counsel

24

Jang, Ben

Nicola Wealth Management

Nicola Wealth Management

30

Kardash, Krista

LCU Financial

Lakeland Credit Union and Credential Asset Management

32

Kuntzevitsky, Victor

Northland Wealth Management

Northland Wealth Management

36

Lad, Deven

Mangrove Wealth Group

HollisWealth, a division of Industrial Alliance Securities

30

Legare, Devan

Western Wealth Builders

Manulife Securities

26

Nicastri, Iwona

Precision Wealth Management

Precision Wealth Management

32

Olfert, Josh

Haven Wealth Management

Haven Wealth Management

28

Rathwell, Brianna

Rathwell Financial

HollisWealth, a division of Industrial Alliance Securities

23

Vandemark, Mitch

Rubbix Risk & Wealth Management

Rubbix Risk & Wealth Management

36

White, Grant

Endeavour Wealth Management

Industrial Alliance Securities

34

BRIANNA RATHWELL Associate investment advisor RATHWELL FINANCIAL HOLLISWEALTH, A DIVISION OF INDUSTRIAL ALLIANCE SECURITIES Age: 25

Brianna Rathwell is making her second consecutive appearance on the Young Guns list. Following in the footsteps of her father, John (who came in at number 27 on WPC’s Top 50 Advisors list this year), Rathwell has benefited from the wisdom he has passed on. Now she’s hoping to spread that recipe for success to other young advisors.

“To be a successful advisor, you need to be proactive, not reactive,” Rathwell says.

“In other words, you should always be planning for the client’s future, whether that means being prepared for upcoming life events, adjusting for possible obstacles or helping the client reach their retirement and estate goals.”

Rathwell believes the biggest challenge facing young advisors is their ability to instill confidence in their clients that they’re knowledgeable enough to be entrusted with their savings. That idea underlies the structure of Rathwell’s practice, which focuses on holistic and personalized financial planning. “It’s important to consider every aspect of each individual’s financial situation in order to truly work in their best interest,” she says.

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SPECIAL REPORT

YOUNG GUNS 2019

AARON HECTOR Vice-president and financial consultant DOHERTY & BRYANT FINANCIAL STRATEGISTS IA INVESTMENT COUNSEL Age: 33

A finalist for the Young Gun of the Year at the 2017 Wealth Professional Awards, Aaron Hector serves as a vice-president and financial consultant at Doherty & Bryant Financial Strategists. As a dual citizen of Canada and the US, Hector takes pride in his cross-border financial planning services, helping Canadian snowbirds spend the winter in the US and assisting US residents who want to spend time in Canada.

For Hector, the opportunity to work with people and apply his investment knowledge to his own life were the main draws of a career in wealth management.

“I liked the idea of being in this industry because you get to meet and establish strong relationships with people, make an impact in their lives and help them meet their goals,” he says. “I also really liked the idea that you can take what you learn and apply it to your own life. There aren’t many career paths where your work knowledge can directly tie into your personal plans, but financial planning is one of them.”

After 11 years as an advisor, Hector has

found a combination of technical knowledge and strong interpersonal skills to be the recipe for success.

“We are in a privileged position to be able to talk to our clients about their family, careers and estate plans, as it relates to their past, present and future,” he says.

“These conversations can be difficult, and they sometimes trigger an emotional response. The best advisors are able to be supportive of the emotional side of the conversation while providing sound advice.”

While Hector has found numerous successes so far, he says his greatest is being able to identify and tackle his own weaknesses. “Years ago, I wasn’t fully comfortable talking about trust structures,” he says. “I recognized this, so I became a member of STEP [Society of Trust and Estate Practitioners] Canada,” he says.

“Now I am within months of completing my TEP designation and am well versed in having these conversations with clients. I have taken a weakness and turned it into a strength.”

CHELSEY CHARTREN

the biggest challenge for young advisors.

“Young advisors are required to prove their knowledge and abilities at a higher level than an older or more seasoned advisor,” she says. “The competition is high, so young advisors need to be able to set themselves apart while maintaining their credibility.”

Chartren believes success lies in striking a balance between being professional and personable. “Being able to connect with clients on a personal level while staying professional is very important, especially in our highly competitive industry,” she says.

“I believe this helps to make your client relationships long-lasting, as well as a memorable experience for them.”

She credits her team for helping her to check off those boxes. “Having a great support system on a client service, sales and marketing, and management level allows me to service my clients every day to the best of my ability,” she says.

Financial advisor THE MCCLELLAND FINANCIAL GROUP ASSANTE CAPITAL MANAGEMENT Age: 26

After moving to the McClelland Financial Group in 2015, Chelsey Chartren hit the ground running, targeting young professionals to build a client base. Her efforts earned her the Rising Star Award at the 2018 Wealth Professional Awards.

Chartren was inspired to enter the wealth management industry after working part-time at a TD bank branch while in school. She found gratification in working with clients face-to-face and assisting them with their financial needs. “This is when I knew that my career in the financial industry was going to be a lasting one,” she says.

Chartren sees establishing credibility as

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AARON ARNOLD Investment advisor LUFT FINANCIAL HOLLISWEALTH, A DIVISION OF INDUSTRIAL ALLIANCE SECURITIES Age: 35

Making his third appearance on the WPC Young Guns list, Aaron Arnold was also the recipient of the 2018 IIAC Top Under 40 Award, which recognizes highly motivated and talented young professionals whose drive, dedication, personal and professional qualities, and accomplishments have brought distinction to the investment industry.

In addition to his personal success, Arnold makes an effort to give back to his community, holding educational seminars for organizations such as the City of Vancouver, Vancouver Police Department, Vancouver Fire Department and the Prince George Fire Department, as well as local private businesses.

“On average, I teach one retirement planning or financial planning seminar a month,” he says. “I feel most people are under-educated when it comes to their finances, and I believe that this is a key component to their financial health. I feel the more they understand the reason for doing something, the better they will do.”

Financial education has become a key component of Arnold’s practice as well. “It’s not enough to just have an investment plan or strategy,” he says. “You also need a financial plan and need to understand the plan to increase your chances of success.”

Arnold has been able to grow his AUM by $10 million in each of the last five years and attributes most of that success to the strong team around him. “This is only possible with the help of a great team,” he says. “One of the things I am most proud of is the team we have built and the service we provide all our clients.

That’s the most important part – ensuring our clients’ needs and goals are being met.”

www.wealthprofessional.ca

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SPECIAL REPORT

YOUNG GUNS 2019

ASHLEY CURRIN Associate investment advisor EVANS WEALTH MANAGEMENT TEAM RICHARDSON GMP Age: 34

In her 15 years in wealth management – the most of any member of this year’s Young Guns list – Ashley Currin

has successfully achieved multiple certifications, including CFP, CIM, EPC, CLU and CEA. Currin is the co-founder of the LifeWealth Advantage, a customized approach that starts with what matters most to client, aiming to answer the question ‘Am I going to be OK?’ Recently, Currin was recognized for her achievements by being named a finalist for Young Gun of the Year at WPC’s inaugural Women in Wealth Management Awards.

“I take a deeply holistic approach to wealth management,” Currin says. “I take the time to really get to know my clients and what matters most to them. I bring a financial planning specialty to my practice by developing highly customized LifeWealth Plans for my clients’ unique and ever-changing needs. Their customized plan becomes the baseline of our relationship and is adjusted as their evolving needs change and mature.”

Currin has seen her own career evolve tremendously throughout the years, but

she realized she was on the right path back when she was working as an assistant at a life insurance practice.

“It was there that I started on my path to becoming a wealth advisor,” she says.

“I love working directly with clients and find it fascinating to create a plan that is tailored to a client’s unique situation. No two clients’ needs are exactly the same, and this provides a lot of variety. I find it incredibly rewarding to make a meaningful impact on their lives.”

During her decade and a half in the industry, Currin has never stopped learning. “My greatest success as an advisor has been building the foundation of my career on education,” she says. “I have focused countless hours, resources and energy on earning specialized designations in a well-rounded array of disciplines.

Earning these specialized accreditations has provided me with an in-depth knowledge and expertise that allows me to advise my clients on a deeper level.”

DEVAN LEGARE

young advisors as one that’s industry-wide: being recognized as a professional.

“Lawyers, accountants and doctors all have a level of prestige about them in the general public,” he says. “Unfortunately, as a generation, we have inherited titles like ‘stockbroker’ or ‘investment person,’ and our predecessors have trained people to seek out maximum returns and excitement over prudence and rationality. Our value-add has to come from a holistic practice of incorporating more than just returns for our clients, and in doing so, elevate our professional status to where it belongs.”

In addition to dismantling those misconceptions, Legare also puts a priority on reaching out to millennials. “I foresee that the millennial generation will end up being the ‘forgotten’ generation with all of the changes in the financial services industry,” he says, “and I am working hard to engage with younger clients. The younger generations need practical advice on the ‘why’ and ‘how’ of investing, not on the ‘what’ to invest in.”

Investment advisor WESTERN WEALTH BUILDERS MANULIFE SECURITIES Age: 33

Boasting multiple certifications and a decade of experience, Devan Legare has already created an impressive legacy and is now focused on creating financial plans and optimizing tax strategies for his clients.

“The ability to marry taxes and investments and still be able to explain information in a way people can understand defines a successful advisor to me,” he says. “I am extremely passionate about the success of my clients and their ability to achieve their goals, and I know that it comes through in each of my interactions with my clients. I also really tend to focus people’s attention on why they are saving money and how the recommendations I make help them achieve their goals, rather than befuddling them with jargon and numbers.”

Legare sees the biggest challenge for

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SPECIAL REPORT

YOUNG GUNS 2019

JOSH OLFERT Founder HAVEN WEALTH MANAGEMENT Age: 28

The youngest of this year’s Young Guns, Josh Olfert has already made his mark on the wealth management industry at just 23 years old. Two years ago, he founded Haven Wealth Management. Olfert and his team have leveraged technology to create a human/robo financial advisor hybrid that reduces the cost of financial planning and investing while maintaining access to human advice.

It’s little surprise that Olfert has already found tremendous success in his early 20s, as he’s had an interest in the investment industry from a very young age.

“When I saw an open outcry exchange floor for the first time on TV as a kid, I was immediately curious,” he says. “The world of investments seemed to be a place of mass confusion, and I felt inspired to be a light of competence in the industry. A few years later, at the age of 14, I picked up Rich Dad, Poor Dad and The Wealthy Barber. I began trading stocks in my bedroom and in spares at school. I grew up

DILLON GARABEDIAN Senior investment advisor INDUSTRIAL ALLIANCE SECURITIES Age: 26

Growing up just outside of Manhattan with parents who worked in foreign exchange, Dillon Garabedian developed an early love for finance.

“I really didn’t decide to get into the finance industry at any one point in time; it always felt like a bit of a given,” he says.

“What has really kept me in the business for the past six years is the connection I feel with my clients while helping them through all of life’s stages, whether it’s helping younger clients save for their first home or focusing on capital preservation for clients in the later stages of retirement. I find these relationships immensely rewarding.”

Where many young advisors see their

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wanting to be a hedge fund manager.

“As I matured, I came to realize my personality would be better equipped to find meaning in a client-facing role as opposed to a Bloomberg terminal,” he continues. “Sitting across the table from people, helping them solve personal problems is where I needed to be. Wealth management was the perfect fit.”

That foundation can now be seen in Olfert’s approach to working with his clients.

“My motto has always been ‘educate, don’t sell,’” he says. “With very few exceptions, we take the time with every single client to discuss how finance works from A to Z. Our initial meetings aren’t ‘fact finds,’ they are learning sessions. We prefer to explain the world of capital from end to end and then let them decide. We assume every client has a baseline knowledge of zero. By building up their understanding of personal finance, we find that our clients end up much more clear in our discussions and decision-making.”

lack of time in the industry as a barrier, Garabedian uses it to his advantage.

“In a way, I believe that being a young advisor has more advantages than challenges,” he says. “Younger advisors are starting out in a finance world that is more transparent, more client-oriented and, in my opinion, much more mutually beneficial to both client and advisor. While it’s true that you may not land your ideal client the minute you start off, this will force you to strive to better yourself and your clientele.”

Now, as a partner, Garabedian is on track to continue helping his clients reach their financial goals.

“Our office truly embodies the meaning of putting your client first,” he says. “We have a strong centre of influence, which allows our clients to work with like-minded professionals such as lawyers, accountants and mortgage specialists whose ethics, values and commitment to their clients’ best interests mirror ours.”

www.wealthprofessional.ca

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2/05/2019 10:05:02 PM

GHINEL BOZEK Associate investment advisor ALEXANDRA HORWOOD & PARTNERS RICHARDSON GMP Age: 30

In just seven years as an advisor, Ghinel Bozek has built a successful client base and now manages the financial affairs for many successful business owners, agricultural families, mining executives and entertainment professionals using her full-service wealth management approach. A two-time member of the Young Guns list, Bozek has continued to grow since her first appearance in 2016, gaining more than $20 million in new assets.

“I approach the management of my clients’ wealth much like a CEO approaches the management of a company,” she says. “Every day, there are new challenges and opportunities that require attention, strategy and planning. Think of it as a puzzle that has to be put together, except this puzzle requires deep insight into what clients would like to accomplish that will require planning, money and time.”

A former journalist, Bozek has quickly established herself in her second career. “I wouldn’t say I decided to be in this industry – it chose me,” she says. “I was blessed to have the opportunity to transition from journalism to finance seven years ago after a chance encounter with Richardson GMP. I was always intrigued by the world of finance growing up and took a leap of faith seven years ago to join the industry and have never looked back. I have the best clients, the best team, and I could not be happier.”

Bozek says her greatest success is having been recognized by her peers and clients as a leader in managing wealth for business owners, entrepreneurs and their families. “It is such a joy to see my valued clients’ wealth and businesses grow as a result of proper planning,” she says. “Seeing this growth is something I look forward to every day.”

www.wealthprofessional.ca

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SPECIAL REPORT

YOUNG GUNS 2019 DEVEN LAD Investment advisor MANGROVE WEALTH GROUP HOLLISWEALTH, A DIVISION OF INDUSTRIAL ALLIANCE SECURITIES Age: 28

Deven Lad might only be 28, but the hard work and dedication he has shown so far in his career inspired multiple industry professionals to nominate him for this year’s Young Guns list. Lad has grown his book of business to more than 70 clients over the past five years and has been proactive in implementing alternative investment strategies. He’s also been instrumental in helping his practice adopt technology by introducing a digital administrative structure that has resulted in more time to build stronger relationships with existing clients and meet more prospective investors.

BEN JANG Portfolio manager NICOLA WEALTH MANAGEMENT Age: 35

An experienced portfolio manager, Ben Jang has specialized in global equity, GTAA and market-neutral funds throughout his 12-year career. A member of the Vancouver chapter of the Professional Risk Managers’ International Association, Jang brought his experience to Nicola Wealth in 2012. He has since refined his focus to managing income, equity option strategies, preferred shares and hedge fund strategies.

For Jang, success in the industry is all about recognizing the current environment and using that knowledge to better position clients. “Our investment portfolios focus on cash-flow investing and embrace a diversified approach beyond stocks and bonds with unique opportunities that are not readily available to retail investors,” he says. “Advisors need to provide sophisticated advice to clients in a manner that is straightforward. The advice needs

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One of the keys to Lad’s impressive success in the industry has been his inquisitive nature. “I got to where I am today by asking questions, having a learner mindset and going into any meeting – whether it be with clients, portfolio managers, lawyers, accounts, etc. – always asking questions and wanting to challenge conventional wisdom.”

That trait has also helped Lad craft his approach to wealth management. “This is the same effort I take when working with my clients – it has helped me uncover their true ambitions with their wealth,” he says.

“Money, at the end of the day, is a means to an end. Everyone’s end goal is different, and everyone’s journey to that goal is different. No matter how good you are as a money manager, if you can’t walk a mile in a client’s shoes and understand their true meaning of wealth, I don’t think you should be advising them.”

to help clients achieve their own goals and realize their own legacies.”

Jang has always looked to challenge himself. He studied physics at the University of British Columbia to gain a better understanding of the world around him before discovering finance.

“I decided to get into the industry partially on the advice of one of my professors, who described that finance shares many similarities to traditional sciences but adds an additional element of complexity, as it incorporates a human component,” Jang says. “This dynamic environment requires one to constantly challenge themselves and to be continuously learning.”

Despite finding individual success in the industry, Jang says his greatest achievement has been what his firm has been able to accomplish.

“I’m most proud of the collective success we have enjoyed at Nicola Wealth,” he says. “Everyone is committed to working together and recognizing the benefits we can achieve by sharing our intellectual curiosity and integrity.”

www.wealthprofessional.ca

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SPECIAL REPORT

YOUNG GUNS 2019

IWONA NICASTRI Professional wealth advisor PRECISION WEALTH MANAGEMENT Age: 33

By the age of 32, many advisors are still trying to establish a basis for their practice, but Iwona Nicastri was already transitioning a successful business to a new firm. After a decade at a Richmondbased firm, Nicastri bought her mentor’s financial planning division in 2017 and moved to Precision Wealth Management in Parksville.

“I took a leap of faith when I purchased the financial planning division and moved my practice from Richmond to a small town on Vancouver Island,” she says.

“I successfully transitioned 99% of my clients – over 200 households – which included a dealer change, which was a paperwork nightmare. I moved most of my clients to a fee-based platform and ultimately saved them fees.”

By making the move, Nicastri has grown her practice and has been able to provide

more products and services. “Our team has big goals, and I’m looking forward to helping achieve them,” she says.

Nicastri believes there are multiple challenges confronting young advisors today, including “navigating through the different advisor channels – banks, brokerage firms, financial planning only, independent dealers versus MGAs – there are so many options. Where you hang your hat is critical, and it may take a few different tries to find the right fit.”

Her advice to other young advisors just starting out in the industry is to “take your time to choose the right channel for you. Find a mentor in the industry and do a lot of networking with other advisors in different distribution channels and firms.

It’s hard to survive on your own – find a good team that will help support your business and help you grow.”

KRISTA KARDASH

matters. The financial services industry often fails to cater to and engage women in meaningful ways. Wealth management is about enriching lives, not just wallets, and empowering my community with knowledge has been extremely rewarding.”

Kardash remembers getting interested in the industry at a young age, thanks to her father. “From the first time my father, a fire inspector, asked me to ‘invest’ my allowance at five years old, a passion for finance began,” she says. “Though I dabbled in other fields, I always came back to finance, opening pretend stock accounts in the seventh grade and opening my first RRSP by the age of 15.”

Today, Kardash views the ever-changing landscape of the financial industry as an opportunity. “Advisors need to view the regulatory, delivery channel and cultural changes that are rapidly occurring in our industry as opportunities, not threats,” she says. “Changes that bring wealth management services to more people, increased transparency, and non-traditional service and delivery methods will create new opportunities for advisors and elevate the trust in our industry as a whole.”

Financial planner LCU FINANCIAL LAKELAND CREDIT UNION AND CREDENTIAL ASSET MANAGEMENT Age: 30

Krista Kardash has taken her financial planning expertise and made a point to share it with her community. During her eight years in the industry, Kardash has worked to make financial knowledge more digestible through numerous education initiatives and speaking engagements. One area of focus has been women and wealth management. She has hosted two Women, Wine and Wealth events that cover a wide array of financial topics.

“I take great pride in supporting our community, alongside my credit union, in financial literacy initiatives,” Kardash says. “Truly elevating the understanding and engagement of finances with our members is a passion of mine. I have a deep passion for teaching and working with women in particular to elevate their confidence and competence in financial

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5/04/2019 3:44:16 AM

MATT EVANS Portfolio manager WESTMOUNT WEALTH GROUP HOLLISWEALTH, A DIVISION OF INDUSTRIAL ALLIANCE SECURITIES Age: 34

Matt Evans received an impressive 18 nominations from investment firms, major institutions, fund providers and clients for this year’s Young Guns list, making it clear that he has already established himself as a force to be reckoned with in the wealth management industry. Evans is the principal driver behind Westmount Wealth Group’s investment management, focusing on the design, execution and monitoring of model portfolios.

“Given that I am a fiduciary, my responsibility to my clients is no different than a doctor or lawyer,” Evans says. “I take an objective, analytical and fact-based approach to investing and finance. I try to remove all personal and emotional biases that

cloud judgment in making decisions with investing.”

Evans traces his desire to enter the industry back to his childhood, when he got his first taste of investing. “My father gave me some money to invest in a self-directed online account at an early age,” he says. “I tripled the account size within a year – through luck, not skill – only to lose all of it shortly thereafter.

In response, I signed up for a financial management program to learn how to not do that again.”

Recently, Evans transitioned his practiced to a fee-based model, which he describes as “an enormous and complex task” but also an overwhelming success. Now he’s hoping to put his skills to work to help clients take control of their financial lives.

“You need a good balance between two skill sets: competency in the technical aspects of finance, as well personable skills,” he says. “A lot of what you will be doing is taking a complex topic and making it simple for clients to understand.”

www.wealthprofessional.ca

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SPECIAL REPORT

YOUNG GUNS 2019

The reigning Wealth Professional Award winner for Young Gun of the Year and a member of the 2018 Top 50 Advisors list, Grant White already has 12 years in the industry under his belt. White was inspired to pursue a career as an advisor by his father, who spent 35 years in the business.

“He didn’t originally push me into it, though – he actually pushed me away, ironically,” White says. “However, I realized how much I enjoyed the market and investing in companies. It was a combination of two passions: working with people and helping them succeed.”

Despite following in his father’s footsteps, White wasn’t immune to the challenges all young advisors face. “My biggest challenge was picking up new clients as a young advisor and getting credibility in the industry,” he says.

Now White aims to help those just starting out through his own mentorship program. He regularly brings new advisors into his firm and encourages them to pick a strategy and keep working at the business.

White describes his approach to wealth management as being focused on planning. He specializes in working with small business owners, an area he’s intimately familiar with.

“My wealth management is a family business, but we have owned and operated a number of family businesses in Winnipeg for decades,” he says. “We work with a lot of small business owners and feel we can speak on the same level with them.”

As Gluskin Sheff’s VP of client wealth management, Emily Ben-Haim wears multiple hats. A registered portfolio manager and finalist for Young Gun of the Year at WPC’s 2018 Women in Wealth Management Awards, she leads Gluskin Sheff’s Women’s Events Series, is a member of the firm’s asset mix team and spearheads the centres of influence referral strategy. Over the last year, she has also led Gluskin Sheff’s rebranding strategy to reposition the firm’s brand in the evolving marketplace.

“When I joined Gluskin Sheff, I immediately identified an opportunity to challenge traditional methods by focusing on female clients and founded the exclusive Women’s Events Series, which was designed to engage, inform, inspire and empower female clients and to encourage women to become more involved in the management of their wealth,” Ben-Haim says. “Since our inaugural event, attendance for Gluskin Sheff’s women’s events has doubled to over 300 women. Furthermore, I spearheaded the expansion of Gluskin

Sheff’s NextGen program, which focuses on educating the future generation of clients to facilitate a smooth transition of wealth between generations.”

Prior to her current role, Ben-Haim held positions in New York and London. She began her career on the risk management side of the industry with Morgan Stanley during the 2008 financial crisis, where she soon realized how much she enjoyed working with people.

“I joined J.P. Morgan’s wealth management team, and now as a vice-president at Gluskin Sheff, I have the privilege of helping families manage their financial well-being,” she says.

For Ben-Haim, being successful in the industry comes down to a combination of results and relationships. “In addition to delivering strong investment results, I firmly believe that providing exceptional client service is fundamental to forming and maintaining long-term trusted relationships,” she says. “My clients know that I deeply and genuinely care about them and their family’s success, peace of mind and well-being.”

GRANT WHITE Portfolio manager/financial planner ENDEAVOUR WEALTH MANAGEMENT INDUSTRIAL ALLIANCE SECURITIES Age: 34

EMILY BEN-HAIM Vice-president, client wealth management GLUSKIN SHEFF Age: 35

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SPECIAL REPORT

YOUNG GUNS 2019 MITCH VANDEMARK Vice-president RUBBIX RISK & WEALTH MANAGEMENT Age: 31

At just 31 years of age, Mitch Vandemark has quickly risen through the ranks in the wealth management industry and has been recognized as a finalist for both the Young Gun of the Year Award and the Rising Star Award at the Wealth Professional Awards.

Vandemark’s entry into the industry was in due part to one of his greatest influences, his mother, who had a background in finance. “She taught me at a young age the importance of understanding money management,” Vandemark says.

Those early lessons continue to inform how Vandemark approaches his clients.

“I would say my biggest success is my work ethic and ability to educate my clients in a way they can understand,”

VICTOR KUNTZEVITSKY Vice-president, investment and portfolio strategy NORTHLAND WEALTH MANAGEMENT Age: 28

After making his first Young Guns appearance in 2016, Victor Kuntzevitsky has continually added to his impressive résumé. A finalist for the Rising Star Award and Young Gun of the Year at the Wealth Professional Awards, Kuntzevitsky has worked his way up to VP at Northland Wealth Management after starting as an associate six years ago. Now he shares his extensive experience in portfolio management, alternative investments and public equities with his clients.

“Everything starts and ends with the client’s unique risk and return objectives,” Kuntzevitsky says. “Once those goals are clearly articulated, they need to be paired with best-in-class investment solutions. These solutions must generate

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he says. “It’s extremely important to me that my clients understand what we are doing and the reasons why. My approach is quite simple – I go through the same motions as everyone in understanding the client’s goals, concerns, risk tolerance and timeframe. Then, with feedback from various investment specialists, I present three or more options from three or more different companies and let the client make a decision on what’s best for them.”

That knowledge of his clients is key for Vandemark, who says managing their behaviours and emotions can be one of the main challenges for an advisor. “To be in constant contact with them, especially when the markets are down, is key,” he says. “Reminding them of their objectives, to trust that the investments we chose fit their objective and that it’s normal to see things fluctuate is important. I think the biggest key to wealth management, aside from being educated, is communication and managing clients’ emotions.”

real alpha and be free of bias and conflict.

At Northland Wealth Management, we emphasize alternative investments, which are meant to provide diversifying returns from public equities and fixed income.”

Kuntzevitsky believes one of the major challenges facing young advisors is the changing landscape of compensation models. “The industry is moving toward a fee-base model with a fiduciary focus that frowns upon trailer fees and commissions generated by selling new issues,” he says.

“Today’s young advisors need a larger book of business to become self-sustainable, which often takes years to accomplish.”

By meeting those challenges head-on, Kuntzevitsky has been able to find success early in his career. “My greatest success is being recognized for my contributions and being elevated to a role that sets portfolio strategy across the firm, leads manager research and interacts with clients on a daily basis,” he says. “There are many personal client stories where I’ve been able to deliver real change and benefit that I’m proud of.”

www.wealthprofessional.ca

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5/04/2019 3:44:27 AM

JOSEPH ALFIE Investment advisor MYRIAD PRIVATE WEALTH HOLLISWEALTH, A DIVISION OF INDUSTRIAL ALLIANCE SECURITIES Age: 31

Joseph Alfie’s two appearances on Wealth Professional Canada’s Young Guns list represent just a fraction of his industry accolades. In 2017, he received the Knowledge Bureau Distinguished Advisor Conference Young Advisor Award, which recognizes young advisors who demonstrate outstanding achievements in knowledge and skills, referability, industrial collaboration, professional development, community leadership, business leadership, innovation, and business growth and retention.

But Alfie counts his greatest achievement so far as the

office he opened in Old Montreal with his partners in 2016. He’s now focused on building his client base, something he sees as a challenge for young advisors. “Growing a client base while managing portfolios and staying on top of all the changes in the financial landscape is the biggest challenge today,” he says.

Alfie tackles this challenge by keeping his investment approach as simple as possible: “Little to no speculative positions; blue-chip, dividend-paying stocks; actively managed fixed income for our defensive sleeve; and an allocation to growth for clients who have a higher tolerance for risk.”

Alfie believes that success as an advisor comes down to knowing your clients. “A successful advisor should know his clients’ goals just as well as he knows every aspect of their finances,” he says. “Continuing education is also a key component of staying ahead of the curve and providing clients with the best and most up-to-date advice possible.”

www.wealthprofessional.ca

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SPECIAL REPORT

YOUNG GUNS 2019

JILLIAN FARROW Director, strategic business development SUN LIFE FINANCIAL Age: 34

As Sun Life Financial’s director of strategic business development, Jillian Farrow provides thought leadership and business development training for investment and insurance advisors across Canada. Farrow originally planned to be a teacher, but after a placement at a major bank, she was hooked on the financial industry. Still, she never fully abandoned her teaching background.

“Through the placement and subsequent roles, I was able to find a way to use my education and training and passion for helping people grow within the wealth management industry,” she says. “I’ve spent 12 years working with advisors of all levels, from chairman’s club to new investment advisors, helping them grow their businesses and attract and service different target markets.”

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Through her work with advisors, Farrow has noticed that the best ones are those who operate as a business. “They partner with their clients to help them achieve their goals; they establish trusted relationships with not only the client, but their family members as well; and they invest in their practice, their team and their own professional growth,” she says. “These advisors put their clients first and have mapped a client journey and process that firmly plants the client at the centre of it.”

Farrow has taken a leadership role in trying to get more women into the industry, something she feels is happening.

“It’s no secret that this is a male-dominated industry,” she says.

“It’s still the norm to be one of a handful of women at advisor events and even more common to be the only female speaking at conferences. That being said, I am pleased to say that I have seen progress since when I first started in the industry. I think that more work can be done to evolve the way that women view the financial services industry and finances in general. That should start at the earliest ages and be supported at home, school and culturally.”

www.wealthprofessional.ca

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equiton.com • inquiries@equiton.com • 905-635-1381 IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an investment with Equiton Capital Inc., nor shall it form the basis of, or be relied on in connection with, or act as an inducement to enter into, any contract or commitment whatsoever. Individuals who are considering making an investment in a specific securities offering are reminded that they must not make any decision on the basis of information contained in this advertisement/promotion but, rather, only on the confidential offering memorandum relating to that particular securities offering. A copy of the Offering Memorandum may be obtained upon request made to the attention of Equiton Capital Inc. All information contained herein, while obtained from sources which are believed to be reliable, is not guaranteed as to its accuracy or completeness. Past performance is not an indicator of future performance.

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SPONSORED PROMOTIONAL FEATURE

EXPERT ADVICE

Offering exposure to China Horizons’ HCN ETF gives Canadian investors exposure to the world’s second largest economy

THERE’S NO denying that China’s economy has become a major player in the global equity market. Yet it’s likely that very few Canadians have significant investment exposure to the country, given that many Canadian portfolios tend to have a home bias. According to Mark Noble, senior vice-president of ETF Strategy at Horizons ETFs, as the Chinese economy grows, the most efficient way for investors to take advantage is by gaining exposure to the Chinese companies that are directly fuelling that growth.

consumer base that will come out of Asia for the next 50 years, it stands to reason that you should consider gaining exposure to that equity market.”

Noble adds that many investors and their advisors are not investing directly in emerging markets and only have exposure through commodities. He stresses that as China transitions from industrial expansion into consumer goods and services, there is a greater need to tap into companies supplying the Chinese marketplace.

“Most investors can get their head around the fact that China will ascend to bigger prominence on the global equity market” Mark Noble, Horizons ETFs “If you look at the average Canadian portfolio, it is typically highly overweight in Canadian equities, which only represent 3% of the global market,” Noble says. “If you want exposure to the full growth of the global equity market, considering the growing

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To address this issue, Horizons created the China High Dividend Yield Index ETF (“HCN” or “the ETF”). The ETF seeks to replicate, to the extent possible, the performance of the Hang Seng High Dividend Yield Index (the “underlying index”), net of expenses,

by investing primarily in the underlying ETF. The underlying index is designed to measure the performance of Hong Konglisted equity securities characterized by high dividend yield. The underlying ETF is a Hong Kong-domiciled and listed exchange-traded fund. The underlying ETF seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the underlying index.

While HCN tracks the Hong Kong-listed equity securities of its underlying index, Noble notes that more than 50% of the companies listed are actually in mainland China. To be listed on the Hong Kong exchange, companies face higher standards, making HCN a lowerrisk investment option than securities listed on mainland exchanges since it has exposure to blue-chip companies and a play towards long-term Chinese growth.

“During a downturn, the equity securities in which HCN invests, as defined above, tend

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HCN’S PERFORMANCE 20% to perform better than the Chinese 300 Index [CSI 300 Index],” Noble says. “The reason we like the Hong Kong listing is because it has a well-established securities market that is on par with markets like those in Canada and the US. Companies need to go through a more in-depth due diligence process than on the mainland exchanges, so you are getting more blue-chip companies with positive cash flows and balance sheets. They don’t offer the same torque on the upside, but they offer a less volatile return and take advantage of a big movement in the Chinese equity market.”

While the Chinese market is up by double digits year-to-date, Noble notes that HCN is up 7.1% as of February 28, so it is still capitalizing on this uptick.

“The other thing that is very attractive about Hong Kong-listed securities is that this ETF has exposure to the 50 largest dividendpaying stocks in China, and the dividends being paid are quite attractive,” Noble says. “It

17.01% 14.13%

15%

10%

5%

8.06%

8.59%

7.11%

4.54% 1.85%

0%

1 month

3 months

6 months

YTD

1 year

3 years

Since inception (January 11, 2016)

Source: Morningstar Direct, as of February 28, 2019

is about 6%, so roughly double what you get with developed market equities in Canada. It has been a strong source of dividend income for investors.”

For Noble, the advantages of the ETF come down to a pair of factors: lower volatility and exposure to the long-term Chinese

growth story. “Most investors can get their head around the fact that China will ascend to bigger prominence on the global equity market. Currently, it is underweight compared to global equity exposure, so you will only see the global weighting increase.”

There’s also the fact that Chinese

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5/04/2019 3:07:02 AM

SPONSORED PROMOTIONAL FEATURE

EXPERT ADVICE

TOP 10 HOLDINGS IN HCN

1 Lenovo Group 2 Yue Yuen Industries 3 Sinopec Corp.

4 PCCW 5 Zhejiang Express 6 Yuexiu REIT 7 Fortune REIT 8 China Zhongwang 9 Bankcomm 10_Shenzhen International Source: Horizons ETFs

consumers are showing trends of purchasing Chinese-made goods. “When you look at some of the large companies like Google and Apple, they want to have penetration in China,” Noble says. “But instead of using Google in China, they use Baidu. Instead of Facebook, it’s WeChat. Instead of Amazon, it’s Alibaba, and so on. So you have large regional champion companies tapping into the other 30% of the world’s population. To capture that growth, investors need to gain exposure to Chinese regional equities.”

While there are still risks that come with investing in China, HCN tries to offset them while still providing exposure to the country.

“There are risks from growing pains in regulation, concerns such as zombie financial

“There is volatility in some of these stocks because there are still unknowns … but there is potentially a big risk/return trade-off” Mark Noble, Horizons ETFs institutions and shadow banking that can scare away foreign investment dollars,” Noble says. “Hong Kong is a nice go-between because the companies meet strict standards.”

He adds that while investors need to be aware of the economic risks, there can be a greater return trade-off.

“There is a lot of leverage in debt still in the Chinese marketplace, and there will probably be more over the next couple years as they invoke more stimulus measures to get the economy going,” Noble says. “That continues to be a risk. In the short term, you could potentially see a significant economic slowdown – not that I am predicting it. There is volatility in some of these stocks because there are still unknowns, such as where they get their earnings, how large their markets are and questions around accounting. You could have some companies where regulatory oversight isn’t quite the same as in North

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America. and fraudulent equity practices could exist. It is a volatile equity space, but there is potentially a big risk/return trade-off.”

While China experienced headwinds last year due to an economic slowdown and the impact of US tariffs on exports, Noble believes the market has priced in such factors. He feels that things are improving, based on signs that China and the Trump administration are making progress on a trade deal. “I think both economies recognize they are integrated, and there are serious issues they want to work out,” he says.

He adds that if a deal is reached, the stocks of certain Chinese companies could potentially take off. As the Chinese economy transitions more toward goods and services,

sectors such as financials, consumer staples and technology should see growth. Even if GDP appears to drop during this transition, Noble says this isn’t reflective of the big picture, which will likely result in China becoming the most important and potentially the most influential economy in the world – all the more reason Canadian investors should have some exposure to this market.

The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the Horizons China High Dividend Yield Index ETF (the “ETF”) or returns on investment in the ETF. Horizons ETFs is a Member of Mirae Asset Global Investments. Commissions, management fees and expenses all may be associated with an investment in the Horizons China High Dividend Yield Index ETF (the “ETF”) managed by Horizons ETFs Management (Canada) Inc. (the “ETF”). The ETF is not guaranteed, its value changes frequently and past performance may not be repeated.

The prospectus contains important detailed information about the ETF. Please read the prospectus before investing.

The views/opinions expressed herein may not necessarily be the views of Horizons ETFs Management (Canada) Inc. All comments, opinions and views expressed are of a general nature and should not be considered as advice to purchase or to sell mentioned securities. Before making any investment decision, please consult your investment advisor or advisors.

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WP al

CANADA

MAGAZINE The leading business magazine for financial planning professionals

WEBSITE Breaking news, in-depth profiles, features, online forum and opinion and analysis

ENEWSLETTER Daily news service delivered straight to your inbox every morning

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14/03/2018 5/04/2019 11:06:04 3:07:09 PM AM

SPECIAL PROMOTIONAL FEATURE

TECHNOLOGY

Better technology equals more value Jean-Philippe Doré of Croesus explains how advisors can use technology to simplify data and improve their value proposition to clients

THERE ARE certain areas that advisors and wealth management firms always want to improve, such as increasing efficiency and knowing their clients better. Clients pose challenges as well, with a preference for omnichannel experiences and access to up-to-date information anywhere and anytime. JeanPhilippe Doré, product owner with business intelligence at Croesus, explains that technology can provide the answer by helping wealth management firms gain an edge, increase efficiency and remain relevant to their customers.

“These new technologies are not designed to replace human contact,” he says. “Advisors should not fear them, but rather embrace the tools that enhance the human connection between the professionals and clients. With these technologies, advisors can synthesize, analyze and organize data to make recommendations in a fraction of the time. These tools will help them, not replace them.”

Doré notes that there are many ways new technologies have impacted wealth management, but the main one is addressing client expectations. “Firms need to deliver a better customer experience,” he says. “Many of them need a significant culture change to embrace this new digital business model. Those who do create a better digital journey for their clients and will have an edge.”

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Because clients’ lives are shaped by all kinds of technology, he adds, they have come to expect real-time access from their investment firms. “A simple investment in a technology upgrade isn’t enough to meet those demands,” Doré says. “Tech is playing an increased role at the operational and service levels. You need to be able to guide the business through this new digital reality. A large proportion of these organizations tend to

says. “It is translated by offering access to portfolio data and a client’s profile on multiple devices and channels. It’s all about improving how advice is delivered.”

Other areas of interest outlined by EY included artificial intelligence and APIs, which help integrate different technologies. “The industry is going to evolve to a new service offering in an open platform as existing platforms start to merge,” Doré says.

“Advisors can synthesize, analyze and organize data to make recommendations in a fraction of the time. These tools will help them, not replace them” Jean-Philippe Doré, Croesus consider tech as a factor that supports the business, rather than placing it in a central role that drives the business.”

The customer experience is something that EY identified as a key trend in a 2017 report on digital disruption in wealth management – all the more reason why incorporating technology is crucial for advisors.

“A better customer experience comes with the integration of multi-channel access,” Doré

“These new partnerships will build a more complementary service. One way to achieve this is through APIs. Using them in wealth provides access to financial data and facilitates communication between firms and other stakeholders.”

EY also noted an industry trend toward data analytics. “Wealth managers are looking for more efficient ways to acquire insights from data so they can monitor the effective-

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THE DIGITAL REVOLUTION More than 70% of highnet-worth clients would consider robo-advice 59% of consumers said digital will be their preferred channel for receiving advice within the next two to three years 63% of wealth management firms said improving the customer experience is the most important area for digital investment ness of their products,” Doré says. “As a result, a good platform would be a useful tool to quickly assess assets, account roles and fund inflows/outflows across different time periods and accounts.”

Croesus provides a comprehensive tool kit for advisors, executives and practice managers, enabling them to create a clear value proposition for their clients and bring an edge to their practice by generating insights.

At the heart of the company’s efforts is the concept of business intelligence, something Doré feels can be overwhelming for advisors.

“How can wealth management firms gain a deeper understanding of their practice? The answer is by digging into data,” he says. “In order for advisors and firms to understand the core of their practice, they need to understand what data they have. When they have answered this, they can operate more efficiently, comply with regulations, mitigate risk and start making smarter business decisions.”

For advisors, the amount of data generated can be overwhelming, which why having technology in place to simplify it so they can make

quicker fact-based decisions is important.

“Croesus Data Analytics provides advisors with a suite of dashboards with key charts that will help them understand how their practice is doing,” Doré says.

The tool is divided into five views: My Book, an overview of key data; Trends, the relation of assets and revenue; Products, a view of the asset mix; Relationships and Clients, a segmentation of clients that reveals what portion of revenue is coming from different client tiers; and Securities, the top holdings and composition of the book. “It’s all about giving advisors intuitive data, making a seamless experience and accessing the data with only a few clicks,” Doré says.

Solutions like Croesus Data Analytics aren’t just for advisors – they also can help executives and practice managers. “Executives want to understand the workings of the firm at a macro level,” Doré says. “They want to see where the money comes from and understand the different profitability segments. For practice managers, it is extremely valuable because they can exploit data to provide holistic strat-

47% of wealth management firms have already incorporated data analytics Source: Digital Disruption in Wealth Management Survey, EY, 2017

egies to the advisor teams. They can really dig into data, analyze it and work on an optimization program for advisors.”

Ultimately, Doré believes the opportunity to know your clients better and improve efficiency makes incorporating a digital solution worthwhile for wealth managers.

“Digital tools should be embraced by advisors and the industry in general, as they add value to the human dimension,” he says.

“Advisors need to know their client well, understand their needs and build a personalized relationship with them. This means being digitally prepared to communicate with clients in channels they choose and offering them a tailored approach. Digital tools can help advisors rise to that challenge.”

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5/04/2019 4:20:27 AM

PEOPLE

ADVISOR PROFILE

Finding the right mix Nick Shinder and Thierry Tremblay’s complementary skill sets have helped them build a thriving practice

IN TODAY’S wealth management industry, no advisor can do everything on their own.

To accomplish more for clients, advisors need to surround themselves with talented individuals with different skill sets. That’s exactly what Nick Shinder and Thierry Tremblay, of the Shinder Tremblay Group with Echelon Wealth Partners, have done.

The two men had very different starts in the business. Shinder grew up around the industry, with a father who was a chartered accountant, and after graduating with a bachelor of commerce degree in accounting, he was poised to follow in his footsteps. At 23, Tremblay opened his own restaurant and soon became the president of the merchants’ association of Park Avenue, a busy commercial street in Montreal. Both eventually realized the paths they were on weren’t for them and found themselves working together at Canaccord Genuity.

“While at Canaccord, I had an opportunity to present my services to an accounting firm, and Nick said, ‘Why don’t you pitch them on a tax strategy?’” Tremblay recalls. “So that’s what we did, together. We started working on those new joint clients and eventually combined our businesses in 2003. We have been growing ever since.”

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The pair’s different backgrounds and skills have led to different roles at the practice. “I focus on macro analysis and asset allocation, determining how much we allocate towards fixed income, equities, alternative investments and cash,” says Tremblay, who earned an MBA in corporate finance after his restaurant days. “We run two multifactor portfolios on our custom platform called PADIS. The aim is less draw-down than the TSX and S&P 500. The long-term goal is beating the benchmark over a full business cycle. We recognize that we can’t do everything ourselves and will outsource when we need.”

Meanwhile, Shinder, who went on to earn a CIM certification, focuses on “thinking

beyond the portfolio and looking for solutions. One of my main focuses is naturally on tax mitigation strategies. Also, if we determine there is a need for a specialized external manager, I meet with the potential managers, and then we determine as a team if there is a fit.”

In addition to asset management, Shinder and Tremblay put an emphasis on financial planning and corporate services. “We pay attention to the risks on foreign exchange, provide cash and risk management services for companies and individuals,” Shinder says. “We manage clients’ assets, tailor smart withdrawal plans, and help clients define their life goals and manage their retirement funds.”

A PLATFORM FOR GROWTH Five years ago, Shinder and Tremblay developed a custom portfolio platform called PADIS [Portfolio Advised Disciplined Investment Strategies]. The platform removes emotion from the process of securities selection via a combination of macro analysis, technology and risk management. The duo starts with a macro view and selects sectors according to their views of where the business cycle is heading, while avoiding those they believe will underperform. From there, they apply factor filters and select stocks. After launching the Canadian version, Shinder and Tremblay rolled out a US version a year and a half ago. Currently, they are analyzing regulations and opportunities for further distribution.

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FAST FACTS: SHINDER TREMBLAY GROUP

FIRM Echelon Wealth Partners

LOCATION Montreal

“Our goal is to know our clients better because the more info we have, the better solutions we can provide” The duo points out that the majority of their clients are entrepreneurs, business owners and professionals. “The corporate service side began two years ago when a client, whose business ships vehicles to the US, needed to convert US dollars,” Tremblay says. “We started with spot transactions and built it up, expanding our services to eventually include multiple risk management strategies.”

While Tremblay and Shinder have encountered their fair share of challenges, including industry consolidation and ever-changing regulations, their biggest has been transferring the business from a transactional to a discretionary model. “After making the change, our clients have trusted us even more with their investments,” Tremblay says.

To provide their high-level services, Shinder and Tremblay rely on the great team around

them. “We have a team of professionals that help us with this,” Shinder says. “We have a financial planner from Chevron, an affiliate of Echelon, and a great group for operations. We would never be able to do it all ourselves. We have a great relationship with our in-house and outsourced professionals.”

Moving forward, Shinder and Tremblay would like to help more people and see their PADIS platform distributed on a larger scale.

In addition, they want to focus on getting to know their clients on a deeper level.

“By continually educating ourselves and sharing our knowledge with our clients, we aim to add more value and create long-term relationships,” Shinder says. “I think our goal is to know our clients better because the more info we have, the better solutions we can provide.”

EDUCATION Shinder has a bachelor of commerce in accounting from Concordia University and a CIM designation, while Tremblay has an MBA in corporate finance from Université du Québec à Montréal

YEARS IN THE INDUSTRY 20 for Shinder, 18 for Tremblay

SERVICES Tax strategies, portfolio management, financial planning, retirement planning, corporate services, private equity

CLIENT BASE Worldwide

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5/04/2019 3:46:14 AM

SPECIAL PROMOTIONAL FEATURE

HEALTHCARE

Accessing the healthcare sector BMO GAM’s US Health Care Index ETF is a low-cost way for Canadian investors to gain access to one of the smallest weighted sectors

HEALTHCARE MAKES up only 2% of the S&P/TSX Capped Composite Index, and because so many Canadians tend to have a home bias in their portfolios, they could be missing out on this mostly US-based sector.

According to Erika Toth, vice-president for Eastern Canada at BMO ETFs, that means they’re missing out on the healthcare sector’s many benefits.

the US market last year, a challenging year.

If you think about it, someone who needs an operation is going to have it, no matter the phase of the business cycle, so it is a defensive sector.”

The second reason is that healthcare provides a natural complement to Canadian portfolios, given the sector’s relatively small weight in our market.

“We built out our lineup with Canadian investors in mind ... It provides exposure to the different subsectors within the healthcare sector” Erika Toth, BMO ETFs “I think there are three main reasons why investors should include healthcare in their portfolios,” Toth says. “One, healthcare tends to remain steady in weak markets.

It was one of the top-performing sectors in

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The third reason is the current demographic trends. “The baby boomers, the largest generation right now, are an aging demographic,” Toth says. “They require more healthcare services, pharmaceuticals and

medical devices.”

Among Canadian ETF providers, BMO GAM offers some of the broadest choice in terms of sector exposures. BMO GAM launched the BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH) in 2010 and, in February, complemented it with the BMO Equal Weight US Health Care Index ETF (ZHU), which is unhedged.

“We built out our lineup with Canadian investors in mind,” Toth says. “The BMO Equal Weight US Health Care Index ETF is a low cost, well-diversified basket of 64 equally weighted US healthcare names. It provides exposure to the different subsectors within the healthcare sector – not just pharmaceuticals, but healthcare equipment, biotech, life sciences tools and services, and managed healthcare services and facilities.”

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5/04/2019 4:21:35 AM

SECTOR BREAKDOWN OF ZUH/ZHU 28.35% Healthcare equipment 23.45% Biotechnology

Toth believes the fund is one of the best ways to gain exposure to the healthcare sector because it provides access to a variety of companies, eliminating the company-specific risk that could occur if investors are forced to choose between individual companies.

“Company-specific risk in an area like pharmaceuticals can be significant because they depend on things like FDA approval,” Toth explains. “You might like a specific company, but the stock may have trouble if an FDA approval doesn’t go as expected.

That’s why we like to have a basket with exposure to different companies to diversify away the individual security risk.”

The fund is designed to replicate the performance of the Solactive Equal Weight US Health Care Index. Toth says that decision was driven by the low-cost aspect, as

14.71% Pharmaceuticals 12.16% Life sciences tools and services 7.16% Managed healthcare 5.98% Healthcare services 3.39% Healthcare facilities 4.82% Other Source: BMO ETFs, as of February 28, 2019

well as the diversification, of the index.

“The other key aspect is that it is equally weighted instead of market-cap weighted,” she says. “With a cap-weighted type of basket, you tend to be more concentrated in the larger names. In healthcare, that would mean pharmaceuticals specifically. Here, because it is equally weighted, you tend to be

more diversified on the subsector level.”

That means there’s more inclusion of mid-cap names: companies that have a US$2 billion to US$10 billion market cap.

Those companies provide more growth potential over the long term.

“Our US Health Care ETF is 36% to 37% mid-cap names,” Toth says. “For the Solactive

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5/04/2019 4:21:40 AM

SPECIAL PROMOTIONAL FEATURE

HEALTHCARE Client: Radius Financial Education Contact: Tony Sanfelice Phone: 416.407.1445

TOP 10 HOLDINGS IN ZHU

1 Cigna Corp.

TICKER: CI

2 Dentsply Sirona TICKER: XRAY

3 Incyte Corp.

TICKER: INCY

4 Waters Corp.

TICKER: WAT

5

Varian Medical Systems

6

Danaher Corp.

TICKER: VAR

TICKER: DHR

TICKER: EW

8 Hologic

TICKER: HOLX

9 Eli Lilly & Co. TICKER: LLY

Merck & Co. TICKER: MRK Source: BMO ETFs, as of February 28, 2019

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tends to do well when markets are volatile.”

Email: sanfelice@radiusfinancialeducation.com While ZHU is just a few months old, Publication: Wealth Professional the original hedged version (ZUH) has Ad Size: Full page 8.25” x 10.875” now amassed $395.5 million in net assets asFile ofdue March With healthcare needs date: 12.

Wednesday, March 27, 2019 and services anticipated to grow over the Issue date: April 11th & 18th next decade, options like these should only Art Director: Vic Finucci increase in popularity.

Phone: (416) to 605-7729 According the Centers for Medicare and Medicaid Services, “US healthcare Email: finucci@radiusfi nancialeducation.com spending is projected to grow at a faster rate than GDP over the next 10 years, versus what it did over the last 10,” Toth says. “In terms

“US healthcare spending is projected to grow at a faster rate than GDP over the next 10 years, versus what it did over the last 10” Erika Toth, BMO ETFs

7 Edwards Lifesciences Corp.

10

Index in particular, to make it into the index in the first place, the company’s market cap needs to be $10 billion. For a company already in the portfolio, it has to maintain a minimum of $7.5 billion. We also look at the average 30-day trading volume and are looking for minimum US$10 million for inclusion and $7.5 million to remain in the index. We look at market cap and liquidity as important factors in determining whether a company would make it into our version of the index.”

The equal weighting to include mid-cap companies is what differentiates the fund

from the broader healthcare index. “If you just look at the broad healthcare index, it is weighted by market capitalization and not equally weighted,” Toth says. “You tend to have more concentration in pharmaceuticals, and it tends to be top-heavy.”

The exposure to all subsectors in healthcare and the inclusion of mid-cap companies are just some of the benefits of BMO’s healthcare funds. Another, Toth points out, is that it is the lowest-cost option for Canadian investors.

“I really like the fund because it is low-cost, the best diversified and one of the most easily tradable options because it trades on the exchange and the underlying constituents are quite liquid,” she says.

The recent addition of the unhedged version was another way for BMO to offer more sector options to investors, as well as a way to combat volatile markets.

“Historically, having unhedged exposure to the US dollar is a good source of diversification for a Canadian investor’s portfolio,” Toth explains. “Over the long term, the US dollar

of demographics here in Canada, in 2016, over-65-year-olds outnumbered the under15-year-olds, and the US is moving to that as well. That turning point in the US will probably happen in the next 10 years or so. So the population is getting older and will need more healthcare services.”

The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.

Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus.

Commissions, management fees and expenses (if applicable) all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated. For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the prospectus. BMO ETFs and ETF series trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.

BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from Bank of Montreal. ®/™Registered trademarks/trademark of Bank of Montreal, used under license.

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5/04/2019 4:21:42 AM

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5/04/2019 4:21:44 AM

WEALTH PROFESSIONAL AWARDS FINALISTS 2O19

Thursday, May 30, 2019 The Liberty Grand | Toronto WPC presents all the finalists across 25 categories for the fifth annual Wealth Professional Awards Wealth Professional Canada received a record number of nominations from all over the nation in our quest to find the wealth management and financial advisory industry’s most dedicated, diligent and diverse organizations, teams and professionals – and now it’s time to reveal the finalists for the fifth annual Wealth Professional Awards, brought to you by Invesco Canada.

Wealth Professional Canada would like to thank the nominators who actively participate in setting the gold standard for excellence in the industry, as well as our fantastic sponsors, whose support in the pursuit of excellence continues to make this event a huge success every year.

Join 600 of the industry’s top stars and organizations at the awards gala itself on Thursday, May 30, 2019 at the Liberty Grand Toronto. The black-tie gala will be hosted by ET Canada’s Cheryl Hickey. Don’t miss out! Make a table reservation today at wpawards.ca or by contacting events@keymedia.com.

Wealth Professional Canada

@WealthProCA

Wealth Professional Canada Magazine

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5/04/2019 3:47:39 AM

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THE MANDEVILLE PRIVATE CLIENT INC. AWARD FOR

THE BLACKROCK AWARD FOR

CANADIAN ADVISOR OF THE YEAR

PORTFOLIO/ DISCRETIONARY MANAGER OF THE YEAR

yy C ory Garlock

yy Chris Rawles

yy E lie Nour

yy Colin Ryan

TD Wealth Private Investment Advice Nour Private Wealth

yy Faisal Karmali

Popowich Karmali Advisory Group (CIBC Wood Gundy)

yy Jamie Suprun

Suprun Wealth Management (HollisWealth)

yy J ason De Thomasis De Thomas Wealth Management

yy K yle Richie

Richie Group (IG Private Wealth)

yy N ader Hamid

Total Wealth Management Group

yy R ob McClelland

The McClelland Financial Group (Assante Capital Management)

yy S ean Mackenzie

National Bank Financial Wealth Management

yy T hierry Tremblay

Shinder Tremblay Group (Echelon Wealth Partners)

RT Mosaic Wealth Management

Colin Ryan Wealth Management Group (BMO Nesbitt Burns)

yy Francis Sabourin Richardson GMP

yy George Halkidis Richardson GMP

yy James Gauthier Justwealth

yy Jeet Dhillon

TD Wealth Private Investment Counsel

yy John (Jay) D. Nash Nash Family Wealth Management (National Bank Financial)

yy Martin Pelletier

TriVest Wealth Counsel

yy Susyn Wagner CIBC Wood Gundy

yy Vincent Tonietto

Fiduciary Trust Canada

yy T odd Degelman

THE MACKENZIE INVESTMENTS AWARD FOR

FEMALE TRAILBLAZER OF THE YEAR yy Diane Nash

Nash Family Wealth Management (National Bank Financial)

yy Jackie Porter

Carte Wealth Management

yy Jennifer Snyder Harbourfront Wealth Management

yy Julia Chung Spring Planning

yy Laurie Bonten

Wellington-Altus Private Wealth

yy Leony deGraaf

deGraaf Financial Strategies

yy Rona Birenbaum Caring for Clients

yy Shannon Lee Simmons

The New School of Finance

yy Silvana Rizzo

Rothenberg Capital Management

yy Susan Latremoille The Latremoille Group (Richardson GMP)

yy Tammy Cash

THE INVESCO CANADA AWARD FOR

LIFETIME ACHIEVEMENT IN THE FINANCIAL PLANNING INDUSTRY This is the highest honour at the Wealth Professional Awards. This award recognizes an individual who has made outstanding contributions to the industry throughout his or her career.

This award will acknowledge an industry icon with an established history of distinguished service to the wealth management profession and who has exhibited leadership and provided inspiration to others in the sector while putting the interests of the industry at the top of their priorities.

The award recipient will be revealed and celebrated during the awards gala on Thursday, May 30.

Horizons ETFs Management

Wellington-Altus Private Wealth

yy Wanda Butler

yy W es Ashton

Freedom 55 Financial

Harbourfront Wealth Management

AWARD SPONSOR

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Official Social Media Sponsor

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WEALTH PROFESSIONAL AWARDS FINALISTS 2O19 THE FRANKLIN TEMPLETON INVESTMENTS AWARD FOR

ADVISORY TEAM OF THE YEAR

THE CI INVESTMENTS AWARD FOR

ADVISORY TEAM OF THE YEAR (FEWER THAN 10 STAFF)

(10 STAFF OR MORE)

yy A llen Private Wealth Group (HollisWealth) yy H emmett Anseeuw Team (Harbourfront Wealth Management) yy N icola Wealth Management yy N orthland Wealth Management yy Nour Private Wealth yy P olson Bourbonniere Derby Wealth Management (HollisWealth) yy P opowich Karmali Advisory Group (CIBC Wood Gundy) yy RGF Integrated Wealth Management yy W hite Leblanc Wealth Planners (HollisWealth)

THE CI INVESTMENTS AWARD FOR

MULTI-SERVICE ADVISORY TEAM OF THE YEAR

yy Caring for Clients

yy CIC Financial Group

yy Chris Smela Team (Sun Life Financial)

yy Cresco Advisory Group (Scotia Wealth Management, ScotiaMcLeod)

yy Colin Ryan Wealth Management Group (BMO Nesbitt Burns) yy C WP Financial Services (Sun Life Financial)

yy First Avenue Investment Counsel

yy Kaspardlov & Associates (Manulife Securities)

yy Luft Financial (HollisWealth)

yy M LD Wealth Management Group (Canaccord Genuity Wealth Management)

yy Popowich Karmali Advisory Group (CIBC Wood Gundy)

yy Popescu Ashton Group (Harbourfront Wealth Management)

yy RT Mosaic Wealth Management

yy Richie Group (IG Private Wealth) yy R ouleau Investment Group (CIBC Wood Gundy) yy Shinder Tremblay Group (Echelon Wealth Partners)

yy Zagari, Simpson & Associates

yy WCBG Wealth Management and Planning Consultants

AWARD SPONSOR

AWARD SPONSOR

yy Shinder Tremblay Group (Echelon Wealth Partners) yy Sunny Shergill Team (CIBC Imperial Service)

THE AGF AWARD FOR

ENGAGEMENT, LOYALTY AND CLIENT CARE yy Bonten Wealth Management yy CIC Financial Group yy Coleman Group yy Cresco Advisory Group (Scotia Wealth Management, ScotiaMcLeod) yy Northland Wealth Management yy PWM Private Wealth Counsel (HollisWealth) yy Spring Planning yy The McClelland Financial Group (Assante Capital Management) yy The New School of Finance

yy Woodgate Financial yy Zagari, Simpson & Associates AWARD SPONSOR

AWARD SPONSOR

54 www.wpawards.ca

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THE IFSE INSTITUTE AWARD FOR

FINANCIAL LITERACY CHAMPION yy Alphil Guilaran

Financial Literacy Counsel

yy Blake Griffith

Griffith & Associates Financial & Estate Planning

yy Carl Spiess

Scotia Wealth Management

yy Dave Arabi Boushehri World Financial Group

yy Elizabeth Naumovski Caldwell Securities

yy Heather Holjevac

TriDelta Financial Partners

yy James Campbell

IIS Insurance and Risk Strategies

yy Jefferson Nillo

World System Builder

yy Joseph Bakish

Bakish Wealth (Richardson GMP)

yy Rod Burylo

RN Croft Financial Group

yy Seema Sharma

Wealth & Estate Financial Canada

yy Stephanie Vincec

Ten Toonies Financial Literacy for Kids

AWARD SPONSOR

THE NOUR PRIVATE WEALTH AWARD FOR

THE FIRST TRUST AWARD FOR

YOUNG GUN OF THE YEAR

RISING STAR ADVISOR OF THE YEAR

yy Adam Schacter

yy Charlotte Paul

Mandeville Private Client

yy Alexander Naish TD Wealth

Perspective Wealth Management (Raymond James)

yy Erika Friesen

yy Andrew Feindel

Gluskin Sheff & Associates

Richie Group (IG Private Wealth)

yy Ghinel Bozek

yy Cameron Hudson National Bank Financial Wealth Management

Richardson GMP

yy Jeff Letchford

Mandeville Private Client

yy Darius Muica

yy Kaif Lalani

National Bank Financial Wealth Management

Nour Private Wealth

yy Devin Cattelan

yy Sajjad Hussain

Cattelan Private Wealth Counsel (HollisWealth)

THE SUN LIFE GLOBAL INVESTMENTS AWARD FOR

GLOBAL ADVISOR OF THE YEAR yy Alexandra Horwood

Alexandra Horwood & Partners (Richardson GMP)

yy Charlotte Ma Brant Securities

yy David Esch

National Bank Financial

yy Francis Sabourin Richardson GMP

yy Himalaya Jain

The Rosedale Group (Scotia Wealth Management)

yy Leslie G. Cliff

Genus Capital Management

Allen Private Wealth Group (HollisWealth)

yy Emily Ben-Haim

yy Stephanie Schneider

Gluskin Sheff

Schneider Financial Group (National Bank Financial)

yy Filomena May Raymond James

yy Steven Furtado

yy Joshua Bacchus

Peak Financial Group

Canfin Financial Group

yy Karl Nour

Nour Private Wealth

yy Victor Kuntzevitsky Northland Wealth Management

AWARD SPONSOR

AWARD SPONSOR

AWARD SPONSOR

First Trust

Portfolios Canada

®

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WEALTH PROFESSIONAL AWARDS FINALISTS 2O19 THE ICM ASSET MANAGEMENT AWARD FOR

ADVISOR OF THE YEAR – ALTERNATIVE INVESTMENTS

THE NEI INVESTMENTS AWARD FOR

ADVISOR OF THE YEAR – RESPONSIBLE INVESTMENTS

yy Arthur C. Salzer

yy David Angas

yy Bart Hunter

yy Laurie Stephenson

Northland Wealth Management The Hunter Financial Group

yy David Little

Little Wealth Management Group; Retirement Income Planners of Canada

yy George Halkidis

The James Dennis Group (Richardson GMP)

yy Guido Camaiani

Mandeville Private Client

yy Jamie Suprun

Suprun Wealth Management

yy Kevin Haakensen

PWM Private Wealth Counsel (HollisWealth)

yy Mark Winson

Wise Riddell Financial Group

yy Neville Joanes WealthBar

yy Paul Tyers

Raymond James

Starboard Wealth Planners

yy Michael Silicz

The Silicz Birdsall Advisory Group (National Bank Financial)

yy Patti Dolan

SAGE Connected Investing

yy Ryan Colwell

C&C Planning Group (IPC Investment Corp.)

yy Stephen Whipp Leede Jones Gable

yy Thalia Kingsford

THE TMX GROUP AWARD FOR

BEST ACTIVE MANAGER – EXCHANGE-TRADED DERIVATIVES yy A vin Mehra

Mehra Wealth Management (CIBC Wood Gundy)

yy Drew Zimmerman Polar Futures Group (PI Financial)

yy Greg Flower

Leede Jones Gable

yy I dress Baksh

TD Wealth Private Investment Advice

yy Jillian Bryan

LTD Wealth Private Investment Advice

yy P eter Volpe

IC Wealth Management (ScotiaMcLeod)

Kingsford and Associates (BMO Nesbitt Burns)

THE EQUISOFT AWARD FOR

FUND PROVIDER OF THE YEAR

yy AGF Management yy BMO Global Asset Management yy CI Investments yy Dynamic Funds yy Evolve ETFs yy Fidelity Investments yy Horizons ETFs yy Invesco Canada yy Mackenzie Investments yy Purpose Investments yy Vanguard Group

yy Wolfgang Klein Canaccord Genuity Wealth Management

Portfolio Stewards

yy Travis Forman

Harbourfront Wealth Management; Willoughby Asset Management

AWARD SPONSOR

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56 www.wpawards.ca

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THE EQUITABLE BANK AWARD FOR

MULTI-OFFICE ADVISOR NETWORK/ BROKERAGE OF THE YEAR

THE WPC MAGAZINE READERS’ CHOICE AWARD FOR

INDUSTRY SERVICE PROVIDER OF THE YEAR

yy A ssante Wealth Management

yy Advicent

yy C anaccord Genuity Wealth Management

yy Aequitas NEO Exchange

yy Edward Jones

yy Broadridge Financial Solutions

yy i A Securities (iA Financial Group) yy M andeville Private Client yy Manulife Securities yy Raymond James

yy Advisor Websites

yy Canadian Securities Institute yy Croesus Finansoft

THE WPC MAGAZINE READERS’ CHOICE AWARD FOR

ADVERTISING CAMPAIGN OF THE YEAR yy A GF Management

yy Barry McInerney

yy D ynamic Funds

yy Blake Goldring

yy Fidelity Investments

yy Daniel Daviau

AGFiQ Momentum Active Alternatives

Great Minds Think Differently

yy H arvest ETFs Income Happens Here

yy Horizons ETFs Invest in Innovation

yy i A Clarington Investments

yy Equisoft yy Fundserv

Go Beyond campaign

yy Maximizer Services yy Sticky Advisor yy Univeris

yy M ackenzie Investments ETF Portfolios & Balanced Funds

AGF Management

Canaccord Genuity Group

yy Darcy Hulston Canoe Financial

yy Glen Gowland Dynamic Funds

yy Karen Adams Fundserv

yy Michael Katchen Wealthsimple

yy Peter W. Anderson CI Financial

yy Steve Hawkins

yy Tea Nicola

yy Wealthsimple

AWARD SPONSOR

Mackenzie Investments

Horizons ETFs Management

yy Wealth Dynamix

AWARD SPONSOR

CEO OF THE YEAR

Wealthbar

AWARD SPONSOR

CANADA

CANADA

www.wpawards.ca

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WEALTH PROFESSIONAL AWARDS FINALISTS 2O19

ETF CHAMPION OF THE YEAR

EXCELLENCE IN PHILANTHROPY & COMMUNITY SERVICE

EMPLOYER OF CHOICE

yy Brad MacAulay

yy Alfred Lee

yy A aron Ruston

yy AGF Management

yy Chantal McNeily

yy Atsuko (Annie)

yy Milestone Asset

yy Canaccord Genuity Wealth Management

BDM/ WHOLESALER OF THE YEAR

Ninepoint Partners

Sun Life Global Investments

yy Charlie Stratton

Mackenzie Investments

yy David Bear

Natixis Investment Managers

yy David Clarke

BMO Global Asset Management

yy Jennifer Boros

Natixis Investment Managers

yy John Teskey

Forstrong Global Asset Management

yy Nathan Amor

Sun Life Global Investments

yy Philip Douglas

Horizons ETFs Management

yy Tamar Kirakossian

iA Clarington Investments

BMO Asset Management

Hiraoka

Cougar Global Investments

yy Ken MacNeal Richardson GMP yy Laura Tase

BMO Global Asset Management

yy Mark Noble

Horizons ETFs Management

yy Mary Hagerman

Desjardins Wealth Management

yy Michael Cooke

Mackenzie Investments

yy Neville Joanes WealthBar yy Pat Dunwoody

Canadian ETF Association

yy Tyler Mordy

Purposed Financial

Management

yy Sonia LeRoy

LeRoy Wealth Management Group (IPC Securities)

yy Sonny Goldstein Goldstein Financial Investments

yy Stransky & Associates (IG Private Wealth Management)

yy Canoe Financial yy Invesco Canada yy Investors Group yy Manulife Securities yy TD Asset Management

yy Susan O’Brien BMO Nesbitt Burns

yy Tracey McGrath Richardson GMP

yy Yasmin Kanji

Echelon Wealth Partners

yy ZLC Financial

Forstrong Global Asset Management

yy Wolfgang Klein

Canaccord Genuity Wealth Management

58 www.wpawards.ca

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Brought to you by

DIGITAL INNOVATOR OF THE YEAR yy Mandeville Private Client yy Monarch Wealth Corporation yy Peter Watson Investments yy Provisus Wealth Management yy Sun Life Global Investments yy Tetrault Wealth Advisory Group (Canaccord Genuity Wealth Management)

The winners will be selected by our esteemed panel of judges: Camilla Sutton, President and CEO, Women in Capital Markets Daniel Collison, Managing partner, Advice2Advisors; instructor, Schulich School of Business Glenn Powers, Faculty advisor, Simon Fraser University Grant Hicks, President, Advisor Practice Management Greg Pollock, President and CEO, Advocis Judy Paradi, Partner, StrategyMarketing.ca Katie Walmsley, President, Portfolio Management Association of Canada Nancy Allan, Executive director, Independent Financial Brokers of Canada Paulette Filion, Partner, StrategyMarketing.ca Rod Burylo, Business development manager, RN Croft Financial Group; director, Foundation for the Advancement of Entrepreneurship; author, speaker and instructor Sangeeta Chopra-Charron, Management consultant, strategic marketing and operations, Jennings Consulting

Don’t miss the celebration and live reveal of winners at the stellar Wealth Professional Awards gala on Thursday, May 30, 2019 at the Liberty Grand Toronto.

Guarantee your place among 600 wealth professionals and organizations by reserving your table today at wpawards.ca or by contacting us at events@keymedia.com www.wpawards.ca 59

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SPECIAL PROMOTIONAL FEATURE

CHARITABLE GIVING

It pays to give Advisors have an increasingly crucial role to play in helping clients donate their wealth to charity in the most efficient way possible

CANADIANS ARE a generous bunch: In the 2016 World Giving Index, Canada was ranked sixth most generous out of 140 countries. However, savvy advisors need to let their clients know that handing over cash or making a bank transfer to the charity of their choice isn’t always the most efficient way of donating. As more Canadians choose to donate a portion of their wealth or income, they’re increasingly realizing the benefits associated with giving publicly traded securities rather than cash.

“Donating publicly traded securities that have increased in value since purchase is one of the most tax-efficient ways for clients to give,” says Brad Friesen, a gift planning consultant at Abundance Canada. “One of the main benefits is that transferring publicly traded securities in kind to a charity means you pay no tax on the capital gain.”

Clients who donate securities receive a donation receipt for the fair market value of the securities, which can also reduce income tax payable. However, the date on which the charitable receipt is issued is an important consideration for advisors, explains Sherri Grosz, another gift planning consultant at

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Abundance Canada.

“We issue a receipt based on the day the donor signs the transfer paperwork, which is different from many other charitable foundations, which issue a receipt on the day the securities land in the charity’s account,” Grosz says. “Our policy gives the advisor and their donor client the ability to make the gift when the stock price is most advantageous.

The distribution of the gift to charity can happen at a later date. This simplifies the process for the advisor and enables the donor to take some time to be strategic in their giving. It means they don’t need to be rushed into their decisions.”

Say, for example, a client wants to donate $50,000, which is currently held in a mix of mutual funds and bonds, to their favourite charity. The adjusted cost base of the shares is $10,000, and the selling price is $50,000.

If the client donates the $50,000 in securities as a gift in kind (rather than selling the securities and donating the cash), the client will save $8,000 in tax payable by avoiding the capital gains tax on 50% of $40,000. The $50,000 donation receipt can then be used to offset other income tax payable.

There are limits on the investments that can be donated. They need to be appreciated publicly traded securities on a CRA-recognized stock exchange, such as the Canadian Securities Exchange, the Toronto Stock Exchange, the TSX Venture, the Montreal Exchange and a handful of American and other foreign exchanges.

Stocks, bonds and mutual fund units are the most common form of donated security, and they must be in a non-registered account.

“A charitable donation of securities can feel complex for an advisor who has not dealt with this type of thing before, and that’s where a charitable foundation that deals with this type of thing every day can come onboard and lessen the burden on the advisor,” Friesen says. “We handle stock donations from all kinds of places: all sorts

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“Donating publicly traded securities that have increased in value since purchase is one of the most tax-efficient ways for clients to give” Brad Friesen, Abundance Canada of stocks, bonds and mutual funds, and we are happy to provide that level of expertise to advisors. Where necessary, we join conversations between the client and advisor and provide that extra level of expertise when it is required.”

Grosz and Friesen have noticed a steady increase in the number of Canadians looking to make charitable donations in recent years.

Gifts of securities, in particular, have seen steady year-over-year growth, and more than half of the donations Abundance Canada receives are now in the form of securities.

The process for donating securities is straightforward. The client first completes a transfer or charitable donation form, given to them either by a charitable foundation like Abundance Canada or their financial

institution. That form gives the authority for the transfer of shares from the client’s brokerage account to the foundation’s brokerage account, from which they are sold.

The funds received from the sale are put into a donor-advised gifting account; from there, the donor can distribute the funds to any registered Canadian charity in a timeframe that works for them.

“Sometimes, a donor will distribute the funds as a flow-through, directly to a charity or multiple charities right away,” Friesen says. “In other cases, the client will distribute funds over the course of months or even years, depending on their strategic giving plan. The donor can give funds anonymously, too. When we send the cheque to the charity, we simply state in an accompanying letter that this comes from a friend of Abundance Canada.”

Despite the ease of the process and the tangible benefits for clients, some advisors are still encouraging their clients to donate cash rather than securities, which Grosz attributes to a lack of awareness.

“Advisors don’t always recommend this right away to clients if they haven’t been through the process themselves; it may feel a bit uncomfortable for them, and they simply may not know the advantages,” she says. “It’s not that difficult at all, especially when working with a charitable foundation that can issue the receipt and handle all of the complex pieces in the background. We encourage advisors to give it a try. There is a wealth management firm here in Ontario that recommends all their clients to use us; we’ve become a partner in the process of making this as easy as possible for their clients. It ends up being a win for the donor and the advisor.”

With regional offices in Abbottsford, Calgary, Winnipeg and Kitchener, Abundance Canada is a public foundation registered with the CRA. Since 1974, Abundance Canada has assisted individuals with their charitable giving during their lifetime and through their estate. To learn more, visit abundance.ca.

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SPECIAL PROMOTIONAL FEATURE

INTERNATIONAL EQUITIES

Beyond North America Middlefield Group’s Dean Orrico explains why Canadians need to look past their own borders for opportunities to gain exposure to different sectors

THE CANADIAN market is highly concentrated in financials, energy, mining and materials – and that means investors with a home bias tend to miss out on huge opportunities. Areas such as technology and healthcare, which have been large drivers in the US, are underrepresented in Canada. Dean Orrico, president and CIO of Middlefield Group, believes investors need to look beyond North America to fully take advantage of diverse opportunities.

“The Canadian market can be attractive, but it is fairly concentrated,” Orrico says. “As we look outside of Canada, we still think US equities are the best positioned compared to other developed markets. However, what goes hand-in-hand is that they are also the most expensive.”

In light of that, Orrico recognizes that select European equities can offer better value. While he admits there has been a lot of noise emanating from Europe, from the financial-crisis-era economic struggles of Greece and Portugal to current situations in Italy, a slowdown in Germany and of course Brexit, he believes opportunities still exist.

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“While the European market is less expensive,” he says, “it also has a greater focus on dividends relative to the US, and there are better valuations that pay a pretty good dividend.”

In countries like Germany that have seen an influx of new immigrants, Orrico says the REIT sector tends to be attractive.

In the UK, the uncertainty surrounding Brexit has investors to proceed with caution.

However, Orrico says opportunities can be

“While the European market is less expensive, it also has a greater focus on dividends relative to the US, and there are better valuations that pay a pretty good dividend” Dean Orrico, Middlefield Group “Significant immigration leads to a trend of renting,” he says, “so investing in the public apartment sector provides great returns for our real estate portfolios, as well as local dividend portfolios.”

found in areas like healthcare.

“Healthcare and pharmaceuticals are needs-based, so those companies will do well no matter the outcome of Brexit. It is similar in the European healthcare sector because

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GEOGRAPHIC ALLOCATION OF MIDDLEFIELD FUNDS Middlefield Global Infrastructure Fund

43.3% US

31.4% Canada 25.3% Rest of

the world

Middlefield Global Health Care Dividend Fund

76.6% US

7.4% Canada those companies are also well-positioned and growing.”

Branching out into different geographic areas and sectors creates critical diversification for Canadian investors. “To generate good risk-adjusted returns, you need a global view in building your portfolio,” Orrico says. “It’s difficult to do that if you are just focused on Canada. That’s why, five years ago, we decided to launch dedicated healthcare funds. It’s a sector we think should be part of any portfolio – the same with technology – but you won’t get that exposure with a home bias.”

Middlefield prioritizes that emphasis on diversification when building its portfolios, which typically have 40 to 50 issuers broken down into two categories: core names and periphery companies.

“Core names are those you have high confidence in and know intimately,” Orrico says. “Their weighting may vary, but there

is a high likelihood they will always be in your portfolio. At the periphery, you have exposure to companies with a more modest weight per issuer. If you are looking at Asian equities, they might be attractively valued, but because you don’t have that intimate knowledge, because they’re not highconviction, they have a lower weight.”

Core names tend to get weighted at 2% to 5% in Middlefield portfolios, while peripheral companies get 1% to 2%. “We think that’s a good way to construct portfolios so you have diversification and exposure to areas with opportunities, and you’re also controlling risk through sector and company weights,” Orrico says.

“Exposure and diversification are the main reasons to look at different geographic areas,” he adds. “Companies may carry more risk, but the difference can come with a greater return.”

16.0% Rest of

the world

Middlefield Global Dividend Growers Class

53.9% US

16% Canada 30.1% Rest of

the world

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FEATURES

WORK-LIFE BALANCE

Busy is not a badge of honour Being busy isn’t the same as doing meaningful work. Brian de Haaff explains how to do less of the former and more of the latter

THE PERSON in the grocery store tapping out messages between two cell phones at once. The jogger whose eyes keep darting to the notifications blipping on their smartwatch. The dinner party conversation that turns into a one-upping competition over who has less free time. Calendars doublebooked! Overwhelmed at work!

I get it – we’re all busy. I often tell people who ask for some of my time that I am, unfortunately, oversubscribed. But is all this activity leading to anything real? Are we actually doing anything meaningful?

There is a difference between busy work and meaningful work. As Thomas Edison once wisely put it, “seeming to do is not doing.” You need to check in with yourself and see which one you’re giving your time to – that is, unless you want to claim an overinflated sense of importance as an achievement.

Let me explain. Research from Columbia

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Business School shows that busy-ness is often perceived as a status symbol. The key word here is ‘perceive’. That’s because the findings have everything to do with the image of being busy and nothing to do with the results.

Busy is not a badge of honour. It only leads to greatness if you are working for a purpose and making progress towards goals that serve it.

Of course, projecting the appearance of being out of time might be coming from a place of self-preservation rather than selfaggrandizement. It may be that people are afraid of not looking busy. In the absence of solid direction, they scramble to fill the day with tasks and meetings: “What would happen if people actually knew how little I have to do? Or worse, if they knew how little I have to do and how little I actually accomplish?”

There’s only so much time – it’s a precious

resource, and we can’t buy more of it. So it would behove us all to use our time as efficiently as possible, giving it to what matters most. This is especially important if you are a leader, in title or in action, at your company.

However, this concept applies to all of us, regardless of our specific profession or title.

Here’s what I have found is essential to create an environment for doing meaningful work each day:

Show purpose Busy work happens when people don’t have clear goals. Eliminate the waste by giving work purpose. Create a clear visualization of the goal and plan – one that’s accessible to everyone – and meet regularly to discuss how you’re progressing against your goals. This should be an active document that is shown and referred to often, not something that’s seen once at a kick-off meeting and quickly forgotten.

Prioritize value Check in often. Are there tasks that are taking too much time (and not adding much value)? Is meaningful work getting pushed aside in favour of easy to-dos with no impact? Prioritize the team’s workflow so they are focused on what will deliver the most value. And don’t be afraid to set aggressive deadlines for that work. Keep everyone zeroed in on meaningful achievement.

Create transparency One way we do this at Aha! is by having teammates document their “progress, planned and problems” each week. Not only does it keep people accountable for what they’re working on, but it also provides total transparency. By adopting this in your own organization, you can create an environment where people really are busy

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There’s only so much time – it’s a precious resource, and we can’t buy more of it. So it would behove us all to use our time as efficiently as possible, giving it to what matters most doing meaningful work, not just cultivating perception.

Let go Sometimes the need to be busy stems from a need for control: do all the work (and get all the credit). But

remember that being a leader is not about grandeur – it’s about helping others grow.

Delegate when you can and give people meaningful opportunities that will grow their responsibilities and skills.

If you want to be a great leader, you need to create an environment that is buzzing with

purpose. When you fall back on ‘busy’ as your go-to status, it signals to your team that they should do the same – and, worse yet, that you’re too busy to guide and provide input into their work. Distracted bosses are some of the most frustrating ones to work with.

So take steps to reject busy-ness as badge of honour. Choose real purpose instead, and it will be clear where to invest your time.

Brian de Haaff is the co-founder and CEO of Aha! and the author of Lovability. His two previous companies were acquired by well-known public corporations. De Haaff writes and speaks about product and company growth and the adventure of living a meaningful life. For more information, visit aha.io.

Author photo by Chris Yeh

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FEATURES

FEEDBACK

How to give feedback effectively Are your employees too sensitive to negative feedback, or have you just been delivering it poorly? Aytekin Tank outlines five ways to ensure feedback is well received

PAUL GREEN and his colleagues at Harvard Business School believe negative feedback – on its own – rarely leads to improvement. Instead, it spurs us to remove ourselves from the partner or group where we’ve received the feedback and ‘shop’ for confirmation among new social circles.

At work, that means we will seek out a new arrangement for our next project. If stuck with a certain partner or in a specific department, we might feel the urge to form relationships with people in other departments – anything to confirm the positive view of our actions and values within the company.

When we can’t maintain that positive confirmation, it isn’t pretty. Physical consequences like anxiety and depression can threaten to pull us deeper into a spiral of poor behaviour and, in turn, negative feedback. This need to protect our psyche is how and why we end up creating – and subconsciously locking ourselves into – our own echo chambers.

Yes, feedback is a necessary evil – and

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there aren’t many things I’d say that about.

Feedback is a multi-faceted concept that’s vital to the way many of us work and live. So I thought I’d dig into just why feedback is such a hard pill to swallow and a few ways I’ve learned to deliver it effectively over the years.

Setting the stage for feedback delivery Delivering feedback, especially negative, is far more complex than telling an employee what they need to fix and expecting them to scamper off and focus on those items in a vacuum devoid of their own emotions. The tactical tricks that I’ll get into here won’t prove effective without setting the stage with an affirmative work environment in which opportunities for positive confirmation and supportive relationships flourish.

Think of your relationship with your partner or a longtime friend. A single discomfiting remark from one of them certainly wouldn’t send you running for the hills, would it? Negative feedback can lead to improve-

ment when given in a confirming environment where the receiver feels supported and valued.

When it comes to the workplace, there are many systems in place that erode the sense of value employees feel they offer the organization. Competition for promotions, commission-based salaries and poorly executed peer reviews can certainly degrade any positive confirmation and lead to feedback falling on deaf ears.

Once you’re able to create an environment in which your workers feel valued and confirmed in their positive attributes, you can try these five methods I’ve used to deliver feedback they can actually act on.

1. Encourage continued conversation with subjective feedback It’s tough to give feedback that people don’t want to run screaming from.

And it can be even more challenging when it comes to giving feedback for creative work.

On JotForm, our users use our online form

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Unless your comments can be tied directly to organizational goals, they really are just personal judgments, which have a way of putting their receiver into a defensive and combative mood – and rightly so builder to collect feedback, and a big part of that feedback involves creative input.

One thing I’ve noticed is that, much like creativity itself, feedback about creativity is highly subjective. If you’re able to frame it as such, you’re much more likely to start a

discussion about where the design or feature can go next instead of shaming and shutting down its creator.

For example, I might say, “Personally, I gravitate towards this bigger, brighter button than towards the main action you want me

to take on the page” instead of a definitive, objective statement like “This design is wrong.”

It’s not about control. It’s not even about being right. It’s about providing constructive feedback in a way that encourages the creative process to continue.

2. Speak in patterns rather than specifics Duration neglect dictates that we’re more likely to remember peak moments (good or bad) and the most recent moments in any event. It is this, along with tons of other fascinating and confusing tricks the brain plays with memory, that makes it all too easy to provide biased feed-

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FEATURES

FEEDBACK

back. And people who sense unfairness aren’t likely to take positive action.

Instead of relying on one particular recent example, it’s important to collect data from different sources over time to find patterns in behaviour. I personally like to use a simple evaluation form template to collect anonymous feedback on how my team feels a certain design or feature came out. By combining this information with my own observations of specific examples, I’m able to provide unbiased feedback on areas where a certain design is excelling, as well as areas where it could improve.

The knowledge that I’ve taken the time to identify real patterns goes a long way in negative feedback being received as supportive

praise or by explaining how acting on this feedback will reinforce their positive values.

It will take more than a sandwich to create a workplace in which feedback isn’t perceived as a threat and employees don’t feel the need to shop for confirmation. But this method is effective for times when you haven’t had a chance to establish good rapport with the receiver or have to deliver quick feedback.

4. Tie feedback directly to organizational goals We often hear the phrase “it’s nothing personal” when it comes to giving and receiving feedback.

However, unless your comments can be tied directly to organizational goals, they really

The knowledge that I’ve taken the time to identify real patterns goes a long way toward negative feedback being received as supportive rather than a threat to the employee’s well-being and job security rather than a threat to the employee’s wellbeing and job security.

3. Whip up a delicious feedback sandwich A quick way to help create an environment that confirms an employee’s value before delivering negative feedback is to deliver it stacked like a sandwich – otherwise known as the PIP (praiseimprove-praise) method.

The process is as easy, and tasty, as it sounds: First, deliver praise that confirms the positive values a person has about themselves and their place in the organization. Sandwich feedback that could be taken as negative in the middle. Top it off by reiterating the earlier

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are just personal judgments, which have a way of putting their receiver into a defensive and combative mood – and rightly so.

In order to deliver effective feedback that helps an employee better align with organizational goals, you’ve got to make sure those goals are clear to begin with. It wouldn’t be fair for me to deliver negative feedback solely because I don’t personally align with someone’s management style. In the same vein, it also wouldn’t be fair to critique an employee for not hitting certain organizational goals if they’ve never been told what those are.

That’s why I strive to make sure my leadership team, as well as every single employee, is on the same page when it comes to organizational goals. And when it comes time for

me personally to deliver feedback, I always make sure to first revisit our organizational goals right there in the meeting to make sure my comments are aligned and actionable — not emotional.

5. Encourage the employee to walk a mile in your shoes Feedback can be especially frustrating to hear when you don’t understand what’s motivating it. So it can really help an employee by inviting them to walk a mile in your shoes, as the saying goes.

Right there in the feedback session, encourage them to role-play as if they were in your management position. After describing the situation, you can tell your employee that you find it challenging to address the issue, and ask how she would handle the matter if she were managing the group.

By stepping away from the threatening feelings for a second and viewing things from your perspective, your colleague can better understand that negative feedback is not meant as a personal attack, but as a way to help them better serve their team and grow their own development. This tactic can also help managers see how their team members personally process feedback and provide great insight into the management strategies they respond well to. Employees who understand management’s motivation are more likely to view negative feedback as a tool for growing their professional development rather than a threat.

Aytekin Tank is founder and CEO of JotForm, an online form creation software with four million users worldwide and more than 100 employees. A developer by trade but writer by heart, Tank shares stories about how he exponentially grew his company without any outside funding. For more information, visit jotform.com.

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PEOPLE

CAREER PATH

THE ROAD LESS TRAVELLED Paul McKenna is a great believer in controlling his own destiny – especially when it means going where others won’t As a teenager, McKenna worked part-time after school, signing for courier packages at the front desk of MD Management. This introduction to the world of finance eventually led to a full-time position at MD after McKenna finished his business degree at St. Francis Xavier University.

“I got to know the professionals there and learned about the business. It totally shaped my career; I never really thought about doing anything else.”

1987 LANDS HIS FIRST JOB

1998 DISCOVERS WHOLESALING A casual chat with a colleague whose husband was a fund wholesaler opened up a world of opportunity for McKenna.

“She connected me with a headhunter for fund company wholesalers – I knew an opening was available and immediately submitted my résumé. That job was with an established fund company just getting into external distribution; I was the first wholesaler hired and covered half of Canada.”

2005 MAKES HIS WAY BACK Having wound down SciVest’s Canadian operations, McKenna headed back to traditional wholesaling in a position with AGF Funds.

“I joined AGF at a tough time; however, they were about to turn the corner.

After a great five-year run at AGF, I had my next plan in mind: a return to the advisory side, partnering with a retiring advisor looking for a succession plan.

I just needed to find the right advisor.”

2014 HITS $100 MILLION Upon returning to an advisor role, McKenna set a goal of reaching $100 million in AUM, which he hit in just five years.

“The more success you have, the more you want to succeed and help your clients succeed. You have to push yourself and get into a role that challenges you but is also rewarding. I’m now where I want to be” 70

1994

MOVES TO TORONTO While at the Ottawa head office of MD Financial, McKenna found himself wishing for a role where he could interact with clients. He decided to apply to the next internal job posting thumbtacked to the kitchen bulletin board; as luck would have it, the job was based in Toronto.

“I thought, ‘I don’t care where it is; I want a job meeting with clients.’ I was too young to fully appreciate what an opportunity Toronto was.”

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GOES OUT ON HIS OWN Approximately a year after the company McKenna worked for was rolled into Mackenzie Financial, he opted to leave to start a small hedge fund company, SciVest, with several partners.

“It was a fun experience, and we got to a pretty good size and scale, but it was always a grind. We had great periods and slow periods; it was never easy. I found it exciting to own something.”

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2009

COMES FULL CIRCLE McKenna found the perfect opportunity to get back into a client-facing position with Richardson GMP, where he could take advantage of the back-end resources and structure of an established team to help him build his advisory practice.

“I knew I would go full circle. I wanted this to be my last major career move, so the circumstances had to be just right.”

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PEOPLE

OTHER LIFE

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

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Number of families who will now have access to clean water

FORGING CONNECTIONS Nicola Wealth’s commitment to volunteering took its team members all the way to a remote village in Ecuador THE CULTURE at Nicola Wealth emphasizes working together – and that includes year-round volunteering, says investment services manager Jennifer Keates, who also leads the Vancouverbased company’s charitable committee.

However, the team’s week-long ‘insight visit’ to a remote Ecuadorean village last October was out of the ordinary even by

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Nicola Wealth standards.

The village of Kanambu, accessible by outrigger, is the subject of a fiveyear commitment from Nicola Wealth through its partnership with WE Charity to provide ‘pillars of sustainability’ to the community, including education and access to clean water. In pursuit of the latter, the team spent two memorable

half-days digging a base for a water tower in 90% humidity.

“This is where you gain insight; it’s very powerful seeing it firsthand,” Keates says. “We visited the farmer instrumental in fighting for sources of safe water – his daughter had died from drinking the river water. That kind of experience connected us to the people and the project.”

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