Description
With this particular brief description in relation to the ages of 25 and 35 are the most active early stage entrepreneurs.
14 / November 2015 • Bene?tsCanada
201 5 TOP 40 MONEY MANAGERS REPORT
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BREAKDOWN
|
DB FUND ASSETS
UNDER MANAGEMENT
ASSETS AS OF JUNE 30, 2015
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
Canadian Equity
Canadian Bonds
U.S. Equity
Global Equity
International (non-N.A. Equity)
U.S. Bonds
88.5% 11.5%
73.7% 26.3%
46.9% 53.1%
96.4% 3.6%
41.9% 58.1%
64.5% 35.5%
Active Passive
Mutual Fund (Individual/
Retail Investors)
$811,380.6
Pension Segregated Fund $487,284.0
Pension Pooled Fund $396,910.3
High Net Worth $259,144.9
Sub-advised $243,279.9
Insurance Company $157,065.7
Corporate $96,063.6
Other $82,384.4
ETFs $74,252.3
Insurance Segregated Fund $65,954.9
Wrap/Third Party $32,922.1
Foundation $32,487.7
Endowment $26,632.5
Trust Fund $11,575.9
First Nations $1,777.8
Government $1,358.7
Total: $2,780,475.2
BREAKDOWN
|
CANADIAN ASSETS
UNDER MANAGEMENT
ASSETS (MILLIONS) AS OF JUNE 30, 2015
Note: Canadian-domiciled clients only
By
Yaldaz
Sadakova
he past two years—rather than the 1990s or early
2000s—will go down in history as the time when
the Internet fnally started disrupting the asset
management industry.
No, really. Te industry is 20 years late.
When it comes to tracking portfolio performance
and making investment decisions, at least some
16 / November 2015 • Bene?tsCanada
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
TOP 10
|
POOLED FUND MANAGERS
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA
1| BlackRock Asset Management Canada Ltd. $63,353.2
2| TD Asset Management $41,609.6
3| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $21,509.4
4| Brook?eld Asset Management $17,433.0
5| MFS Investment Management Canada Ltd. $14,518.2
6| Connor, Clark & Lunn Financial Group $13,796.6
7| GLC Asset Management Group Ltd. $12,941.5
8| Beutel, Goodman & Company Ltd. $12,539.0
9| State Street Global Advisors, Ltd. $11,409.8
10| Pyramis Global Advisors (a Fidelity Investments Company) $11,157.2
Top 10 Total: $220,267.5
TOP 10
|
CAP INVESTMENT MANAGERS
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CAP CPA
1| BlackRock Asset Management Canada Ltd. $25,399.0
2| TD Asset Management $11,730.3
3| GLC Asset Management Group Ltd. $11,065.0
4| Beutel, Goodman & Company Ltd.* $10,608.0
5| MFS Investment Management Canada Ltd. $9,481.0
6| Sun Life Global Investments $8,458.9
7| Pyramis Global Advisors (a Fidelity Investments Company) $7,177.9
8| Connor, Clark & Lunn Financial Group $6,512.4
9| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $4,735.4
10| Franklin Templeton Institutional $4,671.0
Top 10 Total: $99,838.9
players in fnance—including institutional
investors and asset management frms—
still party like it’s 1995. Tey use siloed
data that lives in Excel spreadsheets and
on shared drives. Aggregating and
standardizing data remains a tedious,
unglamorous, back-ofce task.
But now, techies are building fnancial
technology startups ofering easily
searchable, cloud-based data platforms
aimed at improving portfolio
management.
“Disruptive companies compete along
an angle that the established companies
dismiss as a toy,” says David Teten, a
partner at New York City-based
f Venture Capital. “When [Vanguard]
was frst launched, people said, ‘Tis is
totally ridiculous: who’s going to pay
money to someone to just match the
market?’ ” And we all know what
happened next.
Powered by Excel
But the Internet still hasn’t transformed
all aspects of asset management.
“Portfolios are becoming more
complex, and technology has not kept
up. It’s quite discouraging if you’re a
technologist coming in and seeing the
state of the infrastructure powering all
this complexity,” says Joel Beal, a
vice-president at Addepar, a Silicon
Valley startup.
Addepar, in which f Venture Capital
is an investor, sells cloud-based software,
allowing portfolio managers to see all
their holdings data—including
transactions, exposures and net-of-fee
returns—across all asset classes in one
place. It even displays alternatives data,
something some systems can’t handle.
A lot of Addepar’s customers—
including endowments, foundations,
funds of funds, advisors and family
ofces—were dependent on Excel.
“A lot of people have built their own
custom solutions, and usually there’s tons
of work in Excel,” Beal explains. “We did
201 5 TOP 40 MONEY MANAGERS REPORT
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Note: * Did not report CAP assets last year
All over the world, people between
the ages of 25 and 35 are the most
active early-stage entrepreneurs
— Global Entrepreneurship Monitor
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20 / November 2015 • Bene?tsCanada
MONEY MANAGERS
1 TD ASSET MANAGEMENT
Rank 2014: 1
?
2.9%
2015 CPA: $81,978.9
2014 CPA: $79,650.4
Total Assets 2015: $251,046.1
6 STATE STREET GLOBAL
ADVISORS, LTD.*
Rank 2014: 5
?
4.5%
2015 CPA: $32,507.4
2014 CPA: $31,101.9
Total Assets 2015: $49,927.6
16 FRANKLIN TEMPLETON
INSTITUTIONAL
Rank 2014: 15
?
2.7%
2015 CPA: $15,675.0
2014 CPA: $15,263.7
Total Assets 2015: $49,775.0
11 GREYSTONE MANAGED
INVESTMENTS INC.
Rank 2014: 9 ä-3.6%
2015 CPA: $20,836.5
2014 CPA: $21,617.7
Total Assets 2015: $32,554.2
3 PHILLIPS, HAGER & NORTH
INVESTMENT MANAGEMENT
(RBC Global Asset Management)
Rank 2014: 3
?
14.2%
2015 CPA: $57,496.1
2014 CPA: $50,333.6
Total Assets 2015: $261,087.0
8 CONNOR, CLARK & LUNN
FINANCIAL GROUP
Rank 2014: 7
?
15.9%
2015 CPA: $27,277.6
2014 CPA: $23,541.6
Total Assets 2015: $57,401.0
18 BENTALL KENNEDY
(CANADA) LP
Rank 2014: 21
?
2.0%
2015 CPA: $13,942.0
2014 CPA: $13,665.0
Total Assets 2015: $23,535.0
13 MFS INVESTMENT
MANAGEMENT
CANADA LTD.
Rank 2014: 11 ä-2.7%
2015 CPA: $17,909.0
2014 CPA: $18,406.1
Total Assets 2015: $26,579.0
2 BLACKROCK ASSET
MANAGEMENT CANADA LTD.
Rank 2014: 2
?
9.7%
2015 CPA: $80,440.5
2014 CPA: $73,345.9
Total Assets 2015: $148,637.9
7 FIERA CAPITAL CORP.
Rank 2014: 6
?
6.6%
2015 CPA: $27,962.1
2014 CPA: $26,223.6
Total Assets 2015: $75,473.4
17 WELLINGTON
MANAGEMENT GROUP LLP
Rank 2014: 22
?
7.1%
2015 CPA: $14,525.0
2014 CPA: $13,562.0
Total Assets 2015: $19,595.0
12 PYRAMIS GLOBAL
ADVISORS (a Fidelity
Investments Company)
Rank 2014: 13
?
6.2%
2015 CPA: $18,285.8
2014 CPA: $17,223.9
Total Assets 2015: $107,012.7
4 MANULIFE ASSET
MANAGEMENT****
Rank 2014: 18
?
130.1%
2015 CPA: $33,661.9
2014 CPA: $14,628.0
Total Assets 2015: $94,919.7
9 J.P. MORGAN
ASSET MANAGEMENT
(CANADA) INC.
Rank 2014: 8 ä-0.4%
2015 CPA: $21,819.8
2014 CPA: $21,898.6
Total Assets 2015: $24,837.3
19 PIMCO CANADA CORP.
Rank 2014: 24
?
14.2%
2015 CPA: $13,555.0
2014 CPA: $11,867.0
Total Assets 2015: $25,776.0
14 LETKO, BROSSEAU &
ASSOCIATES INC.
Rank 2014: 12
?
1.0%
2015 CPA: $17,814.3
2014 CPA: $17,631.7
Total Assets 2015: $28,968.1
5 BEUTEL, GOODMAN &
COMPANY LTD.
Rank 2014: 4 ä-7.9%
2015 CPA: $32,533.8
2014 CPA: $35,330.0
Total Assets 2015: $39,697.0
10 CIBC ASSET
MANAGEMENT INC.***
Rank 2014: 14
?
4.7%
2015 CPA: $21,124.3
2014 CPA: $20,168.7
Total Assets 2015: $129,013.0
20 JARISLOWSKY,
FRASER LTD.
Rank 2014: 17 ä-9.1%
2015 CPA: $13,480.0
2014 CPA: $14,833.0
Total Assets 2015: $32,754.0
15 BROOKFIELD ASSET
MANAGEMENT
Rank 2014: 20
?
26.8%
2015 CPA: $17,433.0
2014 CPA: $13,752.0
Total Assets 2015: $49,777.0
TOP 40
TOP 40
“Portfolios are becoming more complex, and technology
has not kept up”
— Joel Beal, vice-president, Addepar
Bene?tsCanada • November 2015 / 21
MONEY MANAGERS
21 BNY/MELLON ASSET
MANAGEMENT LTD.
Rank 2014: 19 ä-4.7%
2015 CPA: $13,195.1
2014 CPA: $13,849.7
Total Assets 2015: $18,986.7
2015 Top 40 Total: $751,281.6
2014 Top 40 Total: $696,490.0
% Variance:
?
7.9%
26 ADDENDA CAPITAL INC.
Rank 2014: 26 ä-0.6%
2015 CPA: $10,450.7
2014 CPA: $10,514.5
Total Assets 2015: $25,367.7
36 ALLIANCEBERNSTEIN
CANADA INSTITUTIONAL
INVESTMENTS*
Rank 2014: n/a
?
29.7%
2015 CPA: $5,993.0
2014 CPA: $4,622.3
Total Assets 2015: $11,903.0
31 BURGUNDY ASSET
MANAGEMENT LTD.
Rank 2014: 35
?
27.9%
2015 CPA: $8,014.9
2014 CPA: $6,265.3
Total Assets 2015: $19,495.7
23 LEITH WHEELER
INVESTMENT COUNSEL LTD.
Rank 2014: 23 ä0.0%
2015 CPA: $12,858.9
2014 CPA: $12,863.6
Total Assets 2015: $17,348.4
28 SPRUCEGROVE
INVESTMENT
MANAGEMENT LTD.
Rank 2014: 28 ä-5.4%
2015 CPA: $9,106.3
2014 CPA: $9,623.8
Total Assets 2015: $13,417.8
38 INVESCO
Rank 2014: 38
?
6.1%
2015 CPA: $5,678.3
2014 CPA: $5,352.3
Total Assets 2015: $35,221.7
33 INDUSTRIAL
ALLIANCE GROUP**
Rank 2014: 32
?
9.5%
2015 CPA: $7,240.1
2014 CPA: $6,610.8
Total Assets 2015: $78,192.9
22 GLC ASSET
MANAGEMENT GROUP LTD.
Rank 2014: 16 ä-14.1%
2015 CPA: $12,941.5
2014 CPA: $15,069.9
Total Assets 2015: $35,957.5
27 MERCER GLOBAL
INVESTMENTS
CANADA LTD.**
Rank 2014: 37
?
55.6%
2015 CPA: $9,504.3
2014 CPA: $6,107.3
Total Assets 2015: $9,629.0
37 FOYSTON, GORDON &
PAYNE INC.
Rank 2014: 36 ä-7.3%
2015 CPA: $5,761.0
2014 CPA: $6,214.0
Total Assets 2015: $13,464.0
32 MAWER INVESTMENT
MANAGEMENT LTD.
Rank 2014: 34
?
16.5%
2015 CPA: $7,320.6
2014 CPA: $6,286.4
Total Assets 2015: $30,810.8
24 ABERDEEN ASSET
MANAGEMENT PLC
Rank 2014: 27
?
13.4%
2015 CPA: $11,000.5
2014 CPA: $9,703.2
Total Assets 2015: $15,896.1
29 BAILLIE GIFFORD
OVERSEAS LTD.
Rank 2014: 29
?
4.7%
2015 CPA: $8,550.0
2014 CPA: $8,168.0
Total Assets 2015: $12,563.0
39 BMO GLOBAL ASSET
MANAGEMENT
Rank 2014: 39
?
4.7%
2015 CPA: $5,394.3
2014 CPA: $5,153.6
Total Assets 2015: $93,351.3
34 GUARDIAN CAPITAL LP
Rank 2014: 31 ä-1.6%
2015 CPA: $6,946.1
2014 CPA: $7,060.4
Total Assets 2015: $22,132.6
25 MORGUARD
INVESTMENTS LTD.
Rank 2014: 25
?
0.8%
2015 CPA: $10,890.5
2014 CPA: $10,807.8
Total Assets 2015: $14,316.4
30 SUN LIFE GLOBAL
INVESTMENTS
Rank 2014: 30
?
16.4%
2015 CPA: $8,458.9
2014 CPA: $7,270.0
Total Assets 2015: $10,857.6
40 CANSO INVESTMENT
COUNSEL, LTD.
Rank 2014: n/a
?
13.6%
2015 CPA: $4,964.7
2014 CPA: $4,372.0
Total Assets 2015: $16,900.9
35 HEXAVEST INC.
Rank 2014: 33
?
3.4%
2015 CPA: $6,754.3
2014 CPA: $6,530.7
Total Assets 2015: $7,929.7
CANADIAN ASSETS (MILLIONS) UNDER MANAGEMENT AS OF JUNE 30, 2015
CPA = CANADIAN PENSION ASSETS
?
ä
Indicates an increase or decrease in variance from 2014 to 2015
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
Notes: * 2014 number restated ** Offers delegated services/implemented consulting *** 2014 number restated to
include currency overlays **** Manulife acquired Standard Life in January 2015
Figures in this report are based on responses provided by the survey participants. Bene?ts Canada assumes no
responsibility for the accuracy of the data provided. All totals are subject to a +/- variance due to rounding.
24 / November 2015 • Bene?tsCanada
TOP 5
|
FASTEST GROWING (%) - LESS THAN $1.0 BILLION
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA 2014 CPA % Variance
1| Acorn Global Investments Inc. $5.0 $3.5 43.5%
2| American Century Investment Management, Inc. $931.0 $705.9 31.9%
3| Unigestion SA $801.7 $608.5 31.7%
4| Morneau Shepell Asset & Risk Management Ltd.* $922.0 $739.5 24.7%
5| Monegy** $344.4 $300.1 14.8%
TOP 5
|
FASTEST GROWING (%) - $1.0 BILLION TO $10.0 BILLION
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA 2014 CPA Variance %
1| NISA Investment Advisors, LLC $1,005.0 $398.5 152.2%
2| Janus Capital Group $1,001.8 $402.5 148.9%
3| Neuberger Berman LLC $2,762.8 $1,435.0 92.5%
4| Innocap Investment Management Inc. $2,059.0 $1,276.5 61.3%
5| Mercer Global Investments Canada Ltd.* $9,504.3 $6,107.3 55.6%
Note: * Offers delegated services/implemented consulting ** Restated 2014 number
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
TOP 5
|
FASTEST GROWING (%) - GREATER THAN $10.0 BILLION
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA 2014 CPA Variance %
1| Brook?eld Asset Management $17,433.0 $13,752.0 26.8%
2| Connor, Clark & Lunn Financial Group $27,277.6 $23,541.6 15.9%
3| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $57,496.1 $50,333.6 14.2%
4| PIMCO Canada Corp. $13,555.0 $11,867.0 14.2%
5| Aberdeen Asset Management PLC $11,000.5 $9,703.2 13.4%
201 5 TOP 40 MONEY MANAGERS REPORT
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Worldwide, more men perform early-stage
entrepreneurial activity. Starting business
ventures out of necessity is more common
among women. — Global Entrepreneurship Monitor
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TOP 10
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TOTAL CANADIAN ASSETS UNDER MANAGEMENT
ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CDN AUM
1| Phillips, Hager & North Investment Management (RBC Global Asset Management) $261,087.0
2| TD Asset Management $251,046.1
3| BlackRock Asset Management Canada Ltd. $148,637.9
4| CIBC Asset Management Inc. $129,013.0
5| CI Investments Inc. (including CI Institutional Asset Management) $108,839.0
6| Pyramis Global Advisors (a Fidelity Investments Company) $107,012.7
7| BMO Global Asset Management $93,351.3
8| Industrial Alliance Group** $78,192.9
9| Fiera Capital Corp. $75,473.4
10| Mackenzie Investments $62,560.3
Top 10 Total: $1,315,213.5
Note: ** Offers delegated services/implemented consulting
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
TOP 10
|
DB INVESTMENT MANAGERS
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 DB CPA
1| TD Asset Management $70,248.6
2| BlackRock Asset Management Canada Ltd. $54,034.3
3| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $52,760.7
4| State Street Global Advisors, Ltd. $30,453.3
5| Fiera Capital Corp. $23,561.9
6| J.P. Morgan Asset Management (Canada) Inc. $22,057.3
7| Beutel, Goodman & Company Ltd. $21,926.0
8| Connor, Clark & Lunn Financial Group $21,225.6
9| CIBC Asset Management Inc. $21,047.4
10| Greystone Managed Investments Inc. $18,361.0
Top 10 Total: $335,676
a survey of our client base, and the most
frequent product they were moving of
of was Excel.”
Justin Zhen discovered a similar
reliance on spreadsheets when he started
working on Wall Street a few years ago.
As a hedge fund analyst, he found
valuing companies involved updating
data manually and emailing spreadsheets
back and forth. A friend who worked at
Goldman Sachs at the time noticed
the same furry of Excel update emails
during earnings seasons.
So, in 2013, the two started
Tinknum, a data platform for valuing
companies. Today, Tinknum’s customers
include asset management frms, pension
funds and other institutional and retail
investors.
Te platform lets portfolio managers
test how diferent scenarios, such as
extreme weather or volatile oil prices,
could afect company stocks, Zhen
201 5 TOP 40 MONEY MANAGERS REPORT
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Youth around the world are 1.6 times
more likely to want to start a business
than the rest of the population
— Global Entrepreneurship Monitor
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28 / November 2015 • Bene?tsCanada
BREAKDOWN
|
PENSION ASSET BY CLASS
Assets as of June 30, 2015
Canadian Bonds Active 22.7%
Canadian Equity Active 15.3%
Global Equity Active 10.7%
Balance 10.4%
Canadian Bonds Index 8.9%
Real Estate Equity 5.4%
EAFE Equity 4.5%
U.S. Equity Index 3.7%
U.S. Equity Active 2.7%
Other 2.6%
Canadian Equity Index 2.2%
Emerging Markets Equity 2.2%
International Equity Index 2.1%
Hedge Funds 1.3%
International Equity Active 1.0%
Real Return Bond 0.9%
Money Markets 0.8%
Canadian Equity Small Cap 0.7%
Global Bonds 0.7%
Asian Equity 0.3%
Global Equity Index 0.3%
Cash 0.3%
Target Date Risk 0.3%
Commodities 0.2%
U.S. Bonds Active 0.1%
Mortgages 0.1%
Source: Firms participating in the Canadian Institutional Investment
Network Spring 2015 Top 40 Money Managers Survey
explains. And it does it without the use
of spreadsheets. Plus, since the platform’s
in the cloud, multiple users can work on
the same fnancial model without having
to email one another updates.
Tinknum also pulls non-fnancial
information, such as the number of
social media followers and Facebook
check-ins a company gets within a
certain period. Zhen says this data can
be important for assessing companies
because there’s a big correlation between
social media presence and revenue,
especially for consumer companies.
“Right now, investors try to look at
fnancial data to see whether a company
is cheap,” he says. “On the Internet,
there’s data that lets you think about
companies on a diferent level.”
Digital Dinosaurs
Zhen and his partner aren’t alone in
what they discovered while working in
fnance.
Te international State Street 2014
Data and Analytics Survey—which polled
400 senior executives at pension funds,
endowments, foundations, sovereign
wealth funds, funds of funds, insurance
companies, central banks and
supranational institutions—classifed
almost a third (27%) of respondents as
data starters, organizations that didn’t
take sufcient advantage of emerging
data management technologies.
Tese organizations had siloed
portfolio information and used separate
platforms to track diferent asset classes.
Tis process gave them a fragmented
view of their portfolio holdings and
limited their ability to analyze
performance and risk. All of this meant
they had a difcult time changing
investment strategies.
201 5 TOP 40 MONEY MANAGERS REPORT
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In Canada, the ratio of opportunity-driven
entrepreneurship (where people pursue
opportunities) to necessity-driven entrepreneurship
(where people lack other work options) is 7:1
— Global Entrepreneurship Monitor
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30 / November 2015 • Bene?tsCanada
Another 36% of respondents were
categorized as data movers. While they
still had data gaps and errors, they’d
made some upgrades, such as data
visualization and improved data
integration across diferent asset classes.
Te upgrades allowed them to perform
partially integrated performance and risk
analysis in individual asset classes.
Te third group (37%) were data
innovators. Teir data was integrated,
high-quality and traceable-back-to-
source. Tis gave them a complete view
of risk and performance across diferent
asset classes, as well as the ability to
stress-test their portfolios and more
easily change investment strategies.
Te survey showed asset managers
were more likely to be data innovators
than asset owners such as pension funds.
In fact, almost half (41%) of the
participating pension funds were
classifed as data starters, whereas 38%
were classed as data movers and only
22% were deemed data innovators.
$379 Tip for a $70 Meal
So why is the industry disruption
happening now?
First, thanks to tech solutions that
lower administrative and overhead costs,
it’s cheaper and easier to start a company.
And, in some sectors, venture capital
dollars are fowing—U.S. fnancial
technology startups attracted $12 billion
in investments last year, compared with
just $4 billion the year before.
Further, says Teten, the asset
management industry is ripe for
disruption. He points to unhappy
investment customers who complain
about paying high fees for which they
don’t believe they get enough value.
Of course, it’s hard for money
managers to consistently beat the
markets, which means they underperform
quite often. When those managers
201 5 TOP 40 MONEY MANAGERS REPORT
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Canada’s women are starting
businesses at a rate amounting
to two-thirds that of men
— Global Entrepreneurship Monitor
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© Copyright 2015 Toron AMI
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Here and around the world
• Proven investment processes based on
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Bene?tsCanada • November 2015 / 31
outperform, they collect a base fee plus a
performance fee; but when they
underperform, they still collect the base
fee. In a 2013 article he wrote for Forbes,
Teten likened this reward structure to
receiving a “$379 tip for a $70 meal.”
New Competition
Asset managers, of course, know their
customers are unhappy with paying high
fees. Tey also know their privileged
position isn’t as strong as it used to be.
A diferent State Street poll—the 2015
Asset Manager Survey of 400 senior
executives in asset management frms
worldwide—fnds 79% of money
managers expect new competition from
non-traditional market entrants such as
technology frms.
Still, money managers remain focused
mostly on their traditional rivals,
explains Rob Baillie, CEO of State
Street Trust Company Canada. “It’s
more of an emerging risk,” he says,
adding it’s early to talk about disruption.
Tat might explain why, when
discussing how they’ll respond to the
changing competitive landscape, none
of the Asset Manager Survey participants
voiced plans to invest in technology
upgrades.
Instead, they said they’d mainly
expand distribution networks and launch
new products, such as liquid alternatives
and multi-asset solutions.
And 46% said they were evaluating
acquisition targets. For example,
BlackRock recently bought robo advice
frm Future Advisor for an undisclosed
sum. (BlackRock didn’t respond to an
interview request.)
“Te trick is what happens post-
acquisition,” Teten says of the deal,
explaining established companies can
fnd it hard to incorporate disruption.
“It’s difcult for a large company to
acquire a disruptive company and let it
13% of American adults
start and run new
businesses every year
— Global Entrepreneurship Monitor
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TOP 10
|
ENDOWMENT & FOUNDATION
FUND MANAGERS
ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CDN E&F AUM
1| Fiera Capital Corp. $6,374.4
2| TD Asset Management $4,949.3
3| Mawer Investment Management Ltd. $3,370.5
4| Jarislowsky, Fraser Ltd. $2,872.0
5| Connor, Clark & Lunn Financial Group $2,820.7
6| Burgundy Asset Management Ltd. $2,651.7
7| Letko, Brosseau & Associates Inc. $2,589.9
8| State Street Global Advisors, Ltd. $2,567.5
9| BlackRock Asset Management Canada Ltd. $2,417.2
10| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $2,138.4
Top 10 Total: $32,751.6
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
fourish with a diferent business model.”
Barry Benjamin, a Baltimore-based
global asset management leader at
PwC, expects more consolidations. In
the short term, that could reduce
options available to institutional
investors in certain investment skill
categories, he says. “If that happens, my
guess is there will be new entrants that
will fll those gaps.”
As more new entrants crop up
worldwide, it will be harder for asset
managers to justify their performance
and fees, Benjamin explains.
Plus, greater availability of portfolio
management data might make even
institutional investors lose some of the
patience they’re known for. “I could see
clearly where some [pension] trustees
may look for more performance in the
short term than what they’ve been willing
to accept in the past,” he says.
Yaldaz Sadakova is associate editor of Bene?ts
Canada. [email protected]
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
Bene?tsCanada • November 2015 / 33
THE NUMBERS
? At the end of June 30, 2015, Canadian pension assets for the Top 40
money managers totalled $751,281.6 million, compared with
$696,490 million the year prior. That’s an increase of 7.9%.
? Manulife Asset Management had the biggest jump from No. 18 to
No. 4 as a result of its acquisition of Standard Life in January 2015.
? Twenty-eight of the Top 40 money managers reported an increase in
pension assets, while 12 reported a decrease.
? Twelve of the Top 40 money managers reported double-digit increases
in assets under management, down from 32 managers in last year’s
report.
? Two managers are new to this year’s list: AllianceBernstein Canada
Institutional Investments (No. 36) and Canso Investment Counsel,
Ltd. (No. 40).
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015
Top 40 Money Managers Survey
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Great-West Life’s
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PHRA third layout.indd 1 2015-10-19 3:25 PM
doc_192719873.pdf
With this particular brief description in relation to the ages of 25 and 35 are the most active early stage entrepreneurs.
14 / November 2015 • Bene?tsCanada
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
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BREAKDOWN
|
DB FUND ASSETS
UNDER MANAGEMENT
ASSETS AS OF JUNE 30, 2015
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
Canadian Equity
Canadian Bonds
U.S. Equity
Global Equity
International (non-N.A. Equity)
U.S. Bonds
88.5% 11.5%
73.7% 26.3%
46.9% 53.1%
96.4% 3.6%
41.9% 58.1%
64.5% 35.5%
Active Passive
Mutual Fund (Individual/
Retail Investors)
$811,380.6
Pension Segregated Fund $487,284.0
Pension Pooled Fund $396,910.3
High Net Worth $259,144.9
Sub-advised $243,279.9
Insurance Company $157,065.7
Corporate $96,063.6
Other $82,384.4
ETFs $74,252.3
Insurance Segregated Fund $65,954.9
Wrap/Third Party $32,922.1
Foundation $32,487.7
Endowment $26,632.5
Trust Fund $11,575.9
First Nations $1,777.8
Government $1,358.7
Total: $2,780,475.2
BREAKDOWN
|
CANADIAN ASSETS
UNDER MANAGEMENT
ASSETS (MILLIONS) AS OF JUNE 30, 2015
Note: Canadian-domiciled clients only
By
Yaldaz
Sadakova
he past two years—rather than the 1990s or early
2000s—will go down in history as the time when
the Internet fnally started disrupting the asset
management industry.
No, really. Te industry is 20 years late.
When it comes to tracking portfolio performance
and making investment decisions, at least some
16 / November 2015 • Bene?tsCanada
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
TOP 10
|
POOLED FUND MANAGERS
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA
1| BlackRock Asset Management Canada Ltd. $63,353.2
2| TD Asset Management $41,609.6
3| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $21,509.4
4| Brook?eld Asset Management $17,433.0
5| MFS Investment Management Canada Ltd. $14,518.2
6| Connor, Clark & Lunn Financial Group $13,796.6
7| GLC Asset Management Group Ltd. $12,941.5
8| Beutel, Goodman & Company Ltd. $12,539.0
9| State Street Global Advisors, Ltd. $11,409.8
10| Pyramis Global Advisors (a Fidelity Investments Company) $11,157.2
Top 10 Total: $220,267.5
TOP 10
|
CAP INVESTMENT MANAGERS
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CAP CPA
1| BlackRock Asset Management Canada Ltd. $25,399.0
2| TD Asset Management $11,730.3
3| GLC Asset Management Group Ltd. $11,065.0
4| Beutel, Goodman & Company Ltd.* $10,608.0
5| MFS Investment Management Canada Ltd. $9,481.0
6| Sun Life Global Investments $8,458.9
7| Pyramis Global Advisors (a Fidelity Investments Company) $7,177.9
8| Connor, Clark & Lunn Financial Group $6,512.4
9| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $4,735.4
10| Franklin Templeton Institutional $4,671.0
Top 10 Total: $99,838.9
players in fnance—including institutional
investors and asset management frms—
still party like it’s 1995. Tey use siloed
data that lives in Excel spreadsheets and
on shared drives. Aggregating and
standardizing data remains a tedious,
unglamorous, back-ofce task.
But now, techies are building fnancial
technology startups ofering easily
searchable, cloud-based data platforms
aimed at improving portfolio
management.
“Disruptive companies compete along
an angle that the established companies
dismiss as a toy,” says David Teten, a
partner at New York City-based
f Venture Capital. “When [Vanguard]
was frst launched, people said, ‘Tis is
totally ridiculous: who’s going to pay
money to someone to just match the
market?’ ” And we all know what
happened next.
Powered by Excel
But the Internet still hasn’t transformed
all aspects of asset management.
“Portfolios are becoming more
complex, and technology has not kept
up. It’s quite discouraging if you’re a
technologist coming in and seeing the
state of the infrastructure powering all
this complexity,” says Joel Beal, a
vice-president at Addepar, a Silicon
Valley startup.
Addepar, in which f Venture Capital
is an investor, sells cloud-based software,
allowing portfolio managers to see all
their holdings data—including
transactions, exposures and net-of-fee
returns—across all asset classes in one
place. It even displays alternatives data,
something some systems can’t handle.
A lot of Addepar’s customers—
including endowments, foundations,
funds of funds, advisors and family
ofces—were dependent on Excel.
“A lot of people have built their own
custom solutions, and usually there’s tons
of work in Excel,” Beal explains. “We did
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
Note: * Did not report CAP assets last year
All over the world, people between
the ages of 25 and 35 are the most
active early-stage entrepreneurs
— Global Entrepreneurship Monitor
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20 / November 2015 • Bene?tsCanada
MONEY MANAGERS
1 TD ASSET MANAGEMENT
Rank 2014: 1
?
2.9%
2015 CPA: $81,978.9
2014 CPA: $79,650.4
Total Assets 2015: $251,046.1
6 STATE STREET GLOBAL
ADVISORS, LTD.*
Rank 2014: 5
?
4.5%
2015 CPA: $32,507.4
2014 CPA: $31,101.9
Total Assets 2015: $49,927.6
16 FRANKLIN TEMPLETON
INSTITUTIONAL
Rank 2014: 15
?
2.7%
2015 CPA: $15,675.0
2014 CPA: $15,263.7
Total Assets 2015: $49,775.0
11 GREYSTONE MANAGED
INVESTMENTS INC.
Rank 2014: 9 ä-3.6%
2015 CPA: $20,836.5
2014 CPA: $21,617.7
Total Assets 2015: $32,554.2
3 PHILLIPS, HAGER & NORTH
INVESTMENT MANAGEMENT
(RBC Global Asset Management)
Rank 2014: 3
?
14.2%
2015 CPA: $57,496.1
2014 CPA: $50,333.6
Total Assets 2015: $261,087.0
8 CONNOR, CLARK & LUNN
FINANCIAL GROUP
Rank 2014: 7
?
15.9%
2015 CPA: $27,277.6
2014 CPA: $23,541.6
Total Assets 2015: $57,401.0
18 BENTALL KENNEDY
(CANADA) LP
Rank 2014: 21
?
2.0%
2015 CPA: $13,942.0
2014 CPA: $13,665.0
Total Assets 2015: $23,535.0
13 MFS INVESTMENT
MANAGEMENT
CANADA LTD.
Rank 2014: 11 ä-2.7%
2015 CPA: $17,909.0
2014 CPA: $18,406.1
Total Assets 2015: $26,579.0
2 BLACKROCK ASSET
MANAGEMENT CANADA LTD.
Rank 2014: 2
?
9.7%
2015 CPA: $80,440.5
2014 CPA: $73,345.9
Total Assets 2015: $148,637.9
7 FIERA CAPITAL CORP.
Rank 2014: 6
?
6.6%
2015 CPA: $27,962.1
2014 CPA: $26,223.6
Total Assets 2015: $75,473.4
17 WELLINGTON
MANAGEMENT GROUP LLP
Rank 2014: 22
?
7.1%
2015 CPA: $14,525.0
2014 CPA: $13,562.0
Total Assets 2015: $19,595.0
12 PYRAMIS GLOBAL
ADVISORS (a Fidelity
Investments Company)
Rank 2014: 13
?
6.2%
2015 CPA: $18,285.8
2014 CPA: $17,223.9
Total Assets 2015: $107,012.7
4 MANULIFE ASSET
MANAGEMENT****
Rank 2014: 18
?
130.1%
2015 CPA: $33,661.9
2014 CPA: $14,628.0
Total Assets 2015: $94,919.7
9 J.P. MORGAN
ASSET MANAGEMENT
(CANADA) INC.
Rank 2014: 8 ä-0.4%
2015 CPA: $21,819.8
2014 CPA: $21,898.6
Total Assets 2015: $24,837.3
19 PIMCO CANADA CORP.
Rank 2014: 24
?
14.2%
2015 CPA: $13,555.0
2014 CPA: $11,867.0
Total Assets 2015: $25,776.0
14 LETKO, BROSSEAU &
ASSOCIATES INC.
Rank 2014: 12
?
1.0%
2015 CPA: $17,814.3
2014 CPA: $17,631.7
Total Assets 2015: $28,968.1
5 BEUTEL, GOODMAN &
COMPANY LTD.
Rank 2014: 4 ä-7.9%
2015 CPA: $32,533.8
2014 CPA: $35,330.0
Total Assets 2015: $39,697.0
10 CIBC ASSET
MANAGEMENT INC.***
Rank 2014: 14
?
4.7%
2015 CPA: $21,124.3
2014 CPA: $20,168.7
Total Assets 2015: $129,013.0
20 JARISLOWSKY,
FRASER LTD.
Rank 2014: 17 ä-9.1%
2015 CPA: $13,480.0
2014 CPA: $14,833.0
Total Assets 2015: $32,754.0
15 BROOKFIELD ASSET
MANAGEMENT
Rank 2014: 20
?
26.8%
2015 CPA: $17,433.0
2014 CPA: $13,752.0
Total Assets 2015: $49,777.0
TOP 40
TOP 40
“Portfolios are becoming more complex, and technology
has not kept up”
— Joel Beal, vice-president, Addepar
Bene?tsCanada • November 2015 / 21
MONEY MANAGERS
21 BNY/MELLON ASSET
MANAGEMENT LTD.
Rank 2014: 19 ä-4.7%
2015 CPA: $13,195.1
2014 CPA: $13,849.7
Total Assets 2015: $18,986.7
2015 Top 40 Total: $751,281.6
2014 Top 40 Total: $696,490.0
% Variance:
?
7.9%
26 ADDENDA CAPITAL INC.
Rank 2014: 26 ä-0.6%
2015 CPA: $10,450.7
2014 CPA: $10,514.5
Total Assets 2015: $25,367.7
36 ALLIANCEBERNSTEIN
CANADA INSTITUTIONAL
INVESTMENTS*
Rank 2014: n/a
?
29.7%
2015 CPA: $5,993.0
2014 CPA: $4,622.3
Total Assets 2015: $11,903.0
31 BURGUNDY ASSET
MANAGEMENT LTD.
Rank 2014: 35
?
27.9%
2015 CPA: $8,014.9
2014 CPA: $6,265.3
Total Assets 2015: $19,495.7
23 LEITH WHEELER
INVESTMENT COUNSEL LTD.
Rank 2014: 23 ä0.0%
2015 CPA: $12,858.9
2014 CPA: $12,863.6
Total Assets 2015: $17,348.4
28 SPRUCEGROVE
INVESTMENT
MANAGEMENT LTD.
Rank 2014: 28 ä-5.4%
2015 CPA: $9,106.3
2014 CPA: $9,623.8
Total Assets 2015: $13,417.8
38 INVESCO
Rank 2014: 38
?
6.1%
2015 CPA: $5,678.3
2014 CPA: $5,352.3
Total Assets 2015: $35,221.7
33 INDUSTRIAL
ALLIANCE GROUP**
Rank 2014: 32
?
9.5%
2015 CPA: $7,240.1
2014 CPA: $6,610.8
Total Assets 2015: $78,192.9
22 GLC ASSET
MANAGEMENT GROUP LTD.
Rank 2014: 16 ä-14.1%
2015 CPA: $12,941.5
2014 CPA: $15,069.9
Total Assets 2015: $35,957.5
27 MERCER GLOBAL
INVESTMENTS
CANADA LTD.**
Rank 2014: 37
?
55.6%
2015 CPA: $9,504.3
2014 CPA: $6,107.3
Total Assets 2015: $9,629.0
37 FOYSTON, GORDON &
PAYNE INC.
Rank 2014: 36 ä-7.3%
2015 CPA: $5,761.0
2014 CPA: $6,214.0
Total Assets 2015: $13,464.0
32 MAWER INVESTMENT
MANAGEMENT LTD.
Rank 2014: 34
?
16.5%
2015 CPA: $7,320.6
2014 CPA: $6,286.4
Total Assets 2015: $30,810.8
24 ABERDEEN ASSET
MANAGEMENT PLC
Rank 2014: 27
?
13.4%
2015 CPA: $11,000.5
2014 CPA: $9,703.2
Total Assets 2015: $15,896.1
29 BAILLIE GIFFORD
OVERSEAS LTD.
Rank 2014: 29
?
4.7%
2015 CPA: $8,550.0
2014 CPA: $8,168.0
Total Assets 2015: $12,563.0
39 BMO GLOBAL ASSET
MANAGEMENT
Rank 2014: 39
?
4.7%
2015 CPA: $5,394.3
2014 CPA: $5,153.6
Total Assets 2015: $93,351.3
34 GUARDIAN CAPITAL LP
Rank 2014: 31 ä-1.6%
2015 CPA: $6,946.1
2014 CPA: $7,060.4
Total Assets 2015: $22,132.6
25 MORGUARD
INVESTMENTS LTD.
Rank 2014: 25
?
0.8%
2015 CPA: $10,890.5
2014 CPA: $10,807.8
Total Assets 2015: $14,316.4
30 SUN LIFE GLOBAL
INVESTMENTS
Rank 2014: 30
?
16.4%
2015 CPA: $8,458.9
2014 CPA: $7,270.0
Total Assets 2015: $10,857.6
40 CANSO INVESTMENT
COUNSEL, LTD.
Rank 2014: n/a
?
13.6%
2015 CPA: $4,964.7
2014 CPA: $4,372.0
Total Assets 2015: $16,900.9
35 HEXAVEST INC.
Rank 2014: 33
?
3.4%
2015 CPA: $6,754.3
2014 CPA: $6,530.7
Total Assets 2015: $7,929.7
CANADIAN ASSETS (MILLIONS) UNDER MANAGEMENT AS OF JUNE 30, 2015
CPA = CANADIAN PENSION ASSETS
?
ä
Indicates an increase or decrease in variance from 2014 to 2015
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
Notes: * 2014 number restated ** Offers delegated services/implemented consulting *** 2014 number restated to
include currency overlays **** Manulife acquired Standard Life in January 2015
Figures in this report are based on responses provided by the survey participants. Bene?ts Canada assumes no
responsibility for the accuracy of the data provided. All totals are subject to a +/- variance due to rounding.
24 / November 2015 • Bene?tsCanada
TOP 5
|
FASTEST GROWING (%) - LESS THAN $1.0 BILLION
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA 2014 CPA % Variance
1| Acorn Global Investments Inc. $5.0 $3.5 43.5%
2| American Century Investment Management, Inc. $931.0 $705.9 31.9%
3| Unigestion SA $801.7 $608.5 31.7%
4| Morneau Shepell Asset & Risk Management Ltd.* $922.0 $739.5 24.7%
5| Monegy** $344.4 $300.1 14.8%
TOP 5
|
FASTEST GROWING (%) - $1.0 BILLION TO $10.0 BILLION
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA 2014 CPA Variance %
1| NISA Investment Advisors, LLC $1,005.0 $398.5 152.2%
2| Janus Capital Group $1,001.8 $402.5 148.9%
3| Neuberger Berman LLC $2,762.8 $1,435.0 92.5%
4| Innocap Investment Management Inc. $2,059.0 $1,276.5 61.3%
5| Mercer Global Investments Canada Ltd.* $9,504.3 $6,107.3 55.6%
Note: * Offers delegated services/implemented consulting ** Restated 2014 number
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
TOP 5
|
FASTEST GROWING (%) - GREATER THAN $10.0 BILLION
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CPA 2014 CPA Variance %
1| Brook?eld Asset Management $17,433.0 $13,752.0 26.8%
2| Connor, Clark & Lunn Financial Group $27,277.6 $23,541.6 15.9%
3| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $57,496.1 $50,333.6 14.2%
4| PIMCO Canada Corp. $13,555.0 $11,867.0 14.2%
5| Aberdeen Asset Management PLC $11,000.5 $9,703.2 13.4%
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
Worldwide, more men perform early-stage
entrepreneurial activity. Starting business
ventures out of necessity is more common
among women. — Global Entrepreneurship Monitor
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Bene?tsCanada • November 2015 / 27
TOP 10
|
TOTAL CANADIAN ASSETS UNDER MANAGEMENT
ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CDN AUM
1| Phillips, Hager & North Investment Management (RBC Global Asset Management) $261,087.0
2| TD Asset Management $251,046.1
3| BlackRock Asset Management Canada Ltd. $148,637.9
4| CIBC Asset Management Inc. $129,013.0
5| CI Investments Inc. (including CI Institutional Asset Management) $108,839.0
6| Pyramis Global Advisors (a Fidelity Investments Company) $107,012.7
7| BMO Global Asset Management $93,351.3
8| Industrial Alliance Group** $78,192.9
9| Fiera Capital Corp. $75,473.4
10| Mackenzie Investments $62,560.3
Top 10 Total: $1,315,213.5
Note: ** Offers delegated services/implemented consulting
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
TOP 10
|
DB INVESTMENT MANAGERS
CPA = CANADIAN PENSION ASSETS; ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 DB CPA
1| TD Asset Management $70,248.6
2| BlackRock Asset Management Canada Ltd. $54,034.3
3| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $52,760.7
4| State Street Global Advisors, Ltd. $30,453.3
5| Fiera Capital Corp. $23,561.9
6| J.P. Morgan Asset Management (Canada) Inc. $22,057.3
7| Beutel, Goodman & Company Ltd. $21,926.0
8| Connor, Clark & Lunn Financial Group $21,225.6
9| CIBC Asset Management Inc. $21,047.4
10| Greystone Managed Investments Inc. $18,361.0
Top 10 Total: $335,676
a survey of our client base, and the most
frequent product they were moving of
of was Excel.”
Justin Zhen discovered a similar
reliance on spreadsheets when he started
working on Wall Street a few years ago.
As a hedge fund analyst, he found
valuing companies involved updating
data manually and emailing spreadsheets
back and forth. A friend who worked at
Goldman Sachs at the time noticed
the same furry of Excel update emails
during earnings seasons.
So, in 2013, the two started
Tinknum, a data platform for valuing
companies. Today, Tinknum’s customers
include asset management frms, pension
funds and other institutional and retail
investors.
Te platform lets portfolio managers
test how diferent scenarios, such as
extreme weather or volatile oil prices,
could afect company stocks, Zhen
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
Youth around the world are 1.6 times
more likely to want to start a business
than the rest of the population
— Global Entrepreneurship Monitor
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28 / November 2015 • Bene?tsCanada
BREAKDOWN
|
PENSION ASSET BY CLASS
Assets as of June 30, 2015
Canadian Bonds Active 22.7%
Canadian Equity Active 15.3%
Global Equity Active 10.7%
Balance 10.4%
Canadian Bonds Index 8.9%
Real Estate Equity 5.4%
EAFE Equity 4.5%
U.S. Equity Index 3.7%
U.S. Equity Active 2.7%
Other 2.6%
Canadian Equity Index 2.2%
Emerging Markets Equity 2.2%
International Equity Index 2.1%
Hedge Funds 1.3%
International Equity Active 1.0%
Real Return Bond 0.9%
Money Markets 0.8%
Canadian Equity Small Cap 0.7%
Global Bonds 0.7%
Asian Equity 0.3%
Global Equity Index 0.3%
Cash 0.3%
Target Date Risk 0.3%
Commodities 0.2%
U.S. Bonds Active 0.1%
Mortgages 0.1%
Source: Firms participating in the Canadian Institutional Investment
Network Spring 2015 Top 40 Money Managers Survey
explains. And it does it without the use
of spreadsheets. Plus, since the platform’s
in the cloud, multiple users can work on
the same fnancial model without having
to email one another updates.
Tinknum also pulls non-fnancial
information, such as the number of
social media followers and Facebook
check-ins a company gets within a
certain period. Zhen says this data can
be important for assessing companies
because there’s a big correlation between
social media presence and revenue,
especially for consumer companies.
“Right now, investors try to look at
fnancial data to see whether a company
is cheap,” he says. “On the Internet,
there’s data that lets you think about
companies on a diferent level.”
Digital Dinosaurs
Zhen and his partner aren’t alone in
what they discovered while working in
fnance.
Te international State Street 2014
Data and Analytics Survey—which polled
400 senior executives at pension funds,
endowments, foundations, sovereign
wealth funds, funds of funds, insurance
companies, central banks and
supranational institutions—classifed
almost a third (27%) of respondents as
data starters, organizations that didn’t
take sufcient advantage of emerging
data management technologies.
Tese organizations had siloed
portfolio information and used separate
platforms to track diferent asset classes.
Tis process gave them a fragmented
view of their portfolio holdings and
limited their ability to analyze
performance and risk. All of this meant
they had a difcult time changing
investment strategies.
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
In Canada, the ratio of opportunity-driven
entrepreneurship (where people pursue
opportunities) to necessity-driven entrepreneurship
(where people lack other work options) is 7:1
— Global Entrepreneurship Monitor
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30 / November 2015 • Bene?tsCanada
Another 36% of respondents were
categorized as data movers. While they
still had data gaps and errors, they’d
made some upgrades, such as data
visualization and improved data
integration across diferent asset classes.
Te upgrades allowed them to perform
partially integrated performance and risk
analysis in individual asset classes.
Te third group (37%) were data
innovators. Teir data was integrated,
high-quality and traceable-back-to-
source. Tis gave them a complete view
of risk and performance across diferent
asset classes, as well as the ability to
stress-test their portfolios and more
easily change investment strategies.
Te survey showed asset managers
were more likely to be data innovators
than asset owners such as pension funds.
In fact, almost half (41%) of the
participating pension funds were
classifed as data starters, whereas 38%
were classed as data movers and only
22% were deemed data innovators.
$379 Tip for a $70 Meal
So why is the industry disruption
happening now?
First, thanks to tech solutions that
lower administrative and overhead costs,
it’s cheaper and easier to start a company.
And, in some sectors, venture capital
dollars are fowing—U.S. fnancial
technology startups attracted $12 billion
in investments last year, compared with
just $4 billion the year before.
Further, says Teten, the asset
management industry is ripe for
disruption. He points to unhappy
investment customers who complain
about paying high fees for which they
don’t believe they get enough value.
Of course, it’s hard for money
managers to consistently beat the
markets, which means they underperform
quite often. When those managers
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
Canada’s women are starting
businesses at a rate amounting
to two-thirds that of men
— Global Entrepreneurship Monitor
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© Copyright 2015 Toron AMI
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133-03-002_ToronAMI Ad Sept 2015 BPM_HALF_FINAL_pub.indd 1 2015-04-15 10:48 AM
Bene?tsCanada • November 2015 / 31
outperform, they collect a base fee plus a
performance fee; but when they
underperform, they still collect the base
fee. In a 2013 article he wrote for Forbes,
Teten likened this reward structure to
receiving a “$379 tip for a $70 meal.”
New Competition
Asset managers, of course, know their
customers are unhappy with paying high
fees. Tey also know their privileged
position isn’t as strong as it used to be.
A diferent State Street poll—the 2015
Asset Manager Survey of 400 senior
executives in asset management frms
worldwide—fnds 79% of money
managers expect new competition from
non-traditional market entrants such as
technology frms.
Still, money managers remain focused
mostly on their traditional rivals,
explains Rob Baillie, CEO of State
Street Trust Company Canada. “It’s
more of an emerging risk,” he says,
adding it’s early to talk about disruption.
Tat might explain why, when
discussing how they’ll respond to the
changing competitive landscape, none
of the Asset Manager Survey participants
voiced plans to invest in technology
upgrades.
Instead, they said they’d mainly
expand distribution networks and launch
new products, such as liquid alternatives
and multi-asset solutions.
And 46% said they were evaluating
acquisition targets. For example,
BlackRock recently bought robo advice
frm Future Advisor for an undisclosed
sum. (BlackRock didn’t respond to an
interview request.)
“Te trick is what happens post-
acquisition,” Teten says of the deal,
explaining established companies can
fnd it hard to incorporate disruption.
“It’s difcult for a large company to
acquire a disruptive company and let it
13% of American adults
start and run new
businesses every year
— Global Entrepreneurship Monitor
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Derisking With Stable Returns
“During our 33
years of servicing
institutional
clients, buying
excellent
companies at
a discount has
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capital and
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FOUR SIMPLE RULES = PROVEN SUCCESS
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VALUATION
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Find great companies with sound management at
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LONG TERM PERSPECTIVE
Allow the market to recognize the value
in your investments
This information is not an offering of, nor advertisement for, any securities. Past performance is not a reliable indicator of future
performance and should not be relied on to make investment decisions. Lincluden’s Stable Income Equity returns refect the Canadian
equity component of the Lincluden Income Plus Pooled Fund and do not include cash. Comparative performance and risk characteristics
data is sourced from Mercer Manager Performance Analytics (Mercer MPA). The Lincluden series is not part of the Mercer MPA Universe
and has been included for presentation purposes only. Returns are in Canadian dollars and are gross of fees.
CONTACT: Wayne Wilson, Vice President
Tel: 905.825.3543 email: [email protected]
www.lincluden.com
LINCLUDENX
SPTSX O
Median
Rate of Return for 8 Years (%)
Substantially Lower Risk
Lincluden Stable Return Equity Strategy
Comparison with the Pooled – Canadian Equities (PFS) universe (Percentile Ranking)
Performance characteristics vs. S&P/TSX Composite in C$ (before fees) over 8 yrs ending March 2015 (monthly calculations)
Return (%pa)
9.7
(0)
4.6
5.5
(75)
Standard Deviation (%pa)
10.3
14.5
14.6
(100)
(56)
Downside Capture %
68.4
100.00
98.0
(100)
(32)
9.0
10.0
8.0
6.0
5.0
4.0
7.0
3.0
2.0
X
O
17.0
14.0
15.0
16.0
13.0
11.0
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10.0
X
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100.0
110.0
90.0
70.0
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60.0
X
O
9120_Lincluden_RE_June2015.indd 1 2015-06-01 8:43 PM
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RxD_6291_BenefitsCanadaCampaign_BLUE_PRESS.pdf 1 2015-03-18 9:51 AM
TOP 10
|
ENDOWMENT & FOUNDATION
FUND MANAGERS
ASSETS (MILLIONS) AS OF JUNE 30, 2015
Company 2015 CDN E&F AUM
1| Fiera Capital Corp. $6,374.4
2| TD Asset Management $4,949.3
3| Mawer Investment Management Ltd. $3,370.5
4| Jarislowsky, Fraser Ltd. $2,872.0
5| Connor, Clark & Lunn Financial Group $2,820.7
6| Burgundy Asset Management Ltd. $2,651.7
7| Letko, Brosseau & Associates Inc. $2,589.9
8| State Street Global Advisors, Ltd. $2,567.5
9| BlackRock Asset Management Canada Ltd. $2,417.2
10| Phillips, Hager & North Investment Management
(RBC Global Asset Management) $2,138.4
Top 10 Total: $32,751.6
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015 Top 40 Money Managers Survey
fourish with a diferent business model.”
Barry Benjamin, a Baltimore-based
global asset management leader at
PwC, expects more consolidations. In
the short term, that could reduce
options available to institutional
investors in certain investment skill
categories, he says. “If that happens, my
guess is there will be new entrants that
will fll those gaps.”
As more new entrants crop up
worldwide, it will be harder for asset
managers to justify their performance
and fees, Benjamin explains.
Plus, greater availability of portfolio
management data might make even
institutional investors lose some of the
patience they’re known for. “I could see
clearly where some [pension] trustees
may look for more performance in the
short term than what they’ve been willing
to accept in the past,” he says.
Yaldaz Sadakova is associate editor of Bene?ts
Canada. [email protected]
201 5 TOP 40 MONEY MANAGERS REPORT
I NV E ST ME NTS
Bene?tsCanada • November 2015 / 33
THE NUMBERS
? At the end of June 30, 2015, Canadian pension assets for the Top 40
money managers totalled $751,281.6 million, compared with
$696,490 million the year prior. That’s an increase of 7.9%.
? Manulife Asset Management had the biggest jump from No. 18 to
No. 4 as a result of its acquisition of Standard Life in January 2015.
? Twenty-eight of the Top 40 money managers reported an increase in
pension assets, while 12 reported a decrease.
? Twelve of the Top 40 money managers reported double-digit increases
in assets under management, down from 32 managers in last year’s
report.
? Two managers are new to this year’s list: AllianceBernstein Canada
Institutional Investments (No. 36) and Canso Investment Counsel,
Ltd. (No. 40).
Source: Firms participating in the Canadian Institutional Investment Network Spring 2015
Top 40 Money Managers Survey
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doc_192719873.pdf