In a nutshell, the Alberta Securities Commission (ASC) now requires Exempt Market Dealers and Advisors to be registered and follow a strict compliance process (as of Sept 28, 2010). Thankfully, this wasn't anything new for Prosperity Engine as we have had a compliance structure and requirements for suitability assessments in regards to a clients investment needs. The real curve ball came when our previous dealer decided not to continue as a dealer anymore, instead focusing on a successful investment product they had created years before.
Having been spoiled in the past with a team of Chartered Financial Analysts to vet opportunities, our standard was set terribly high. Meeting after meeting was held with new dealerships discussing their processes, the depth of their investigations and their past performance and experience. After months of scrutiny, there was one that rose to the top. They stood above the others for 3 reasons:
- Good, caring, moral people with a conscience
- Performance based - They get paid when the investor gets paid.
- Industry leading track record and creativity
Good Caring Moral People with a Conscience
I am particular about the people I spend time with. I want to surround myself with good, like minded people who share the same standards and level of integrity. The people involved in Pennant Capital Partners are caring people that love their families and understand their responsibility as a fiduciary to each of my clients.
The number one complaint I hear about other advisors and managers is their fee structure. Clients don't feel it is right to watch managers take record pay-cheques and bonuses while there portfolio's have had record losses. My conscience leads me to aim for performance based management fees. Pennant agrees that an investment management team should be rewarded in the same manner as the investor so that the management isn't tempted to act separately for their own best interest. Performance based management ensures that the incentive for management decisions will benefit both equally. While this isn't always available, Pennant strives to arrange performance based alignments in compensation between management and the investor.
I strive to improve, so I surround myself with people who I can learn from. Pennant has an insutry leading team of CFA's and PM's and MBA's that combine for a powerful vetting team. They not only have the expertise to look at financials but also at the business case as a whole. They want to see a viable business that can produce what it promises and can secure the investors properly.
- VP, Ernst & Young Orenda Corporate Finance Inc.
- B. Comm (Finance with Distinction), Haskayne School of Business
- Chartered Financial Analyst Charterholders
- MBA (Finance), Haskayne School of Business
- HBSc (Actuarial Science and Statistics), University of Western Ontario
- NASD Series 7/63
- Canadian Investment Manager Designation