According to Shaun Hauser, co-founder and president of Wellington-Altus, the firm established a plan at the board level about 18 months ago to actively look for minority partners that could help strengthen the company’s balance sheet and allow the firm to grow at an even quicker pace.
The new investments from JFI and Cynosure will go toward advisor incentive offers and potential acquisitions, Hauser said.
Wellington-Altus projects to grow its assets under management (AUM) for fiscal 2021 by roughly $6 billion “primarily driven through recruitment,” Hauser said. The firm currently has about $20 billion in assets under management.
“Our incentive offers are a mix of cash and shares. We think we can attract even more advisors going forward if we have more flexibility to offer more cash than shares for very large teams,” he said.
With new capital for advisor incentive offers, “we think we can actually impact our trajectory at an even greater pace,” he added.
Bringing on more advisors and increasing AUM were both reasons Wellington-Altus expanded into the Quebec market in September.
The new capital from JFI and Cynosure will also go toward potential acquisitions, Hauser said, with an eye on the investment counsel portfolio management (ICPM) segment. Hauser said Wellington-Altus “can add a lot of value to” businesses in this space.
Portfolio managers in the ICPM space can plug into Wellington-Altus’s wealth management infrastructure and tech, receiving the same benefits as the firm’s Investment Industry Regulatory Organization of Canada advisors, Hauser said.
“You get to find 30% to 40% more time than you did before,” he said. “You get to focus on what you’re good at, which is talking to clients and finding new ones. And you get to remove the headaches.”
JFI and Cynosure will have one board member each on Wellington-Altus’s board of directors, adding “industry knowledge” and “general business knowledge” to the group, Hauser said.
He added that Cynosure has a lot of industry experience and a deep team of M&A experts that will contribute to the firm’s acquisition strategy and allow it to do “high-quality deals.”
JFI and Cynosure both pointed to Wellington-Altus’s growth and client focus as reasons for their investments.
“After many years of partnering with leading private wealth management businesses in the U.S., we know what success looks like, and Wellington-Altus’ explosive presence and reputation for outstanding client service in Canada is undeniable,” said Keith Taylor, co-founder and managing director of Cynosure, in a release.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
