![]() 1 reason is Cardinal’s track record has been quite easy to sell to a lot of the advisors who do business with us,” Lawton says, noting his firm’s funds are sold through a network of almost 100 independent advisors across the country. Paul Lawton, president of Value Partners, says the assets of the three funds combined just passed $150 million, which is slightly ahead of where company brass expected to be after 18 months in business. in Winnipeg hired Cardinal to manage its three funds - a Canadian equity, an international equity and an income fund. A small percentage comes from the got into the mutual fund management business in the fall of 2005, when start-up Value Partners Investments Inc. Shaw and Atkins are no longer with the company.īurt says the bulk of Cardinal’s assets are in Western Canada, followed by Ontario. We started converting those clients from Lyle and Brian over to managed accounts,” he says. “I offered them an equity position in Cardinal. ![]() He then joined up with his two original partners, Brian Shaw and Lyle Atkins, two fee-for-service planners who didn’t have portfolio management licences and couldn’t charge management fees for managing money. ![]() I wanted to make that decision myself, and the only way I could guarantee that was to be self-employed.”īurt started “trolling” for business and clients while working out of his house. Most firms push you out before you’re 62. “That probably meant anybody I worked for would force me to retire prematurely. “I saw the future for people working in financial services firms,” Burt says. (his assistant there was fellow Winnipeg money manager Larry Sarbit) before founding Cardinal in August 1992, says the move to Cardinal was motivated by his desire to control his own destiny. equity analyst at Richardson Greenshields of Canada Ltd. They might start with $500,000 with us and then, two or three years later, the client has another $500,000 for us.”īurt, who had worked as a portfolio manager at London Life Insurance Co. “If they’re happy with what we’re doing, ultimately we end up getting the rest of their assets. “We get a chance to prove ourselves to the client for the first few years,” says Burt. Quite often, clients have considerably more money to invest but they don’t want to invest it all with one firm. We’re pleased to take on an $850,000 account.” He or she wouldn’t qualify for firms with $1-million minimums. That’s how we got the bulk of our new business.”īurt maintains Cardinal’s biggest advantage is its minimum account size of $500,000 - half or one-quarter of those of its main competitors: “Our typical client has $850,000. “It was a good deal for them, the clients and for us. “ was an attractive enough incentive for the planners to refer business to us,” Burt says. and Lawton Partners Financial Planning Services Ltd.Ĭardinal now has 20 planning relationships, 80 advisors and more than 700 clients - all of whom give the firm full discretionary authority to make trades on their behalf. All figures are net of fees.Ĭardinal splits the management fee of 1.5% with dealers such as Manulife Securities International Ltd., Dundee Securities Corp., Partners in Planning Financial Services Ltd., Quadrus Investment Services Ltd., FundEx Investments Inc. They were ready to move on to the next level of professional management.”įor the five and 10-year periods ended March 31, Cardinal’s equity investments posted average annual compound returns of 14.4% and 16%, respectively, and its foreign holdings gained 11.7% in both the five- and 10-year periods. ![]() These were their higher-end clients who didn’t want more mutual funds. We had the right message and planners were looking for this separately managed account type of service that they couldn’t offer on their own. “It helped having a 10-year track record. “We started getting a ton of referrals,” says Burt. “Even if we grow at just 25% a year,” he says, “we’ll be at $3 billion in five years.”įifteen-year-old Cardinal builds and manages customized portfolios of stocks, bonds and other asset classes based on client asset-mix objectives, risk tolerance and income requirements.īurt says the firm’s rapid growth began when it expanded its referral relationships with national member-firms of the Mutual Fund Dealers Association of Canada and started pitching its services to their planners. The 23-person Winnipeg-based investment-counselling firm reached the $1-billion plateau in assets under management this spring, the culmination of a six-year hot streak during which its AUM grew from $100 million.Īnd with an average annual compound growth rate of 50% since 2002, it’s not too early to start thinking about the second billion dollars in AUM, which should arrive in about three years, says Tim Burt, Cardinal’s president, CEO and chief investment officer.
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