David Kitai 00:00:08
Hiya and Welcome to a really particular episode of WPTV. My title is David Kitai, Senior Editor at Wealth Skilled. This summer time, we hosted the tenth annual WP awards celebrating the perfect and brightest within the wealth administration trade, from advisors to funding resolution suppliers. Hamilton ETFs was one of many funding suppliers acknowledged, named as an Excellence Awardee for ETF supplier of the yr. To debate their recognition, we’re fortunate to be joined by Patrick Somerville, Senior Accomplice and Co-President at Hamilton ETFs and Jennifer Mersereau, Senior Accomplice, Co-founder and Co-president at Hamilton ETFs. Patrick. Jennifer, thanks for becoming a member of us.
Patrick Somerville 00:00:45
Thanks for having us, David.
Jennifer Mersereau 00:00:46
Thanks.
David Kitai 00:00:48
So let’s begin proper off the bat with possibly the massive query popping out of the awards. Why do you of us suppose that you simply have been acknowledged?
Patrick Somerville 00:00:55
Positive, I believe it is largely a perform of our important progress final yr, and in addition possibly a mix, too, of our progress with some launches of some modern ETFs as effectively. However simply to provide you some context, we started the yr at about 1.8 billion in AUM, after which we ended the yr at 3.8 billion. So we had progress over 100% which was a terrific yr, so we’re fairly pleased with that. And at this time, right here we sit midway by means of, or greater than midway by means of, 2024 and we’re at the moment about 5 billion. So the expansion has continued, and yeah, issues are going very effectively for us.
David Kitai 00:01:32
Okay, congratulations. I imply, that’s important progress. I suppose , as you have a look at that progress. What would you attribute it to? Patrick, you talked about, , some modern product, product launches, however, however what particularly do you suppose has pushed that progress for you?
Patrick Somerville 00:01:48
Yeah, quite a lot of the expansion has come primarily from our lined name ETFs. We launched a collection of what we name yield Maximizer ETFs, and we constructed that out over final yr, the place we now cowl or have a method, a lined name technique in nearly each well-liked North American sector, permitting buyers to earn larger earnings from sectors, most popular sectors in North America. In order that suite’s been rising fairly quickly. It is an modern method to lined calls. This isn’t a class that is new, however we took a novel spin on it once we launched the suite the place now we have an earnings first method to cowl calls. So we’re emphasizing the earnings extra so than progress. And as demographics have been altering, we have observed, , larger demand for larger month-to-month earnings. So these methods are constructed for buyers like that.
David Kitai 00:02:42
So these improvements and product launches have been superb, and it is attention-grabbing to see the way in which you are participating with the advisor market. However as you have a look at the expansion that you have already skilled, what would you attribute that to internally inside Hamilton ETS, what inside your group has pushed that progress?
Jennifer Mersereau 00:02:57
Now that is an ideal query. The truth is, as a lot as we have grown in belongings during the last couple of years, we have grown in personnel on the identical time. So there’s been quite a lot of rising pains right here, however everybody right here is like high notch, and has finished a incredible job. I do know Pat and I’ve talked about this so much, about how a lot we take pleasure in our workforce. We expect now we have probably the greatest groups on the road. They’re sensible, they’re humorous, they’re modern, they’re an ideal bunch of individuals to return in to work day by day with, and we do benefit from the collaboration and the and the group that we have created right here now we have, I imply, I might title all people i However I positively ought to title again asadi, our head of Prague technique, who has been proper there with bringing ahead some concepts. Nevertheless it’s nonetheless, it is on the finish of the day. It is a full workforce method. We do not take without any consideration anyone throughout the workforce. We all know each effort from , making ready the prospectus to making ready the advertising supplies, to speaking to advisors, and so on. It is like we could not do any of this with out them. And it might sound cliche to say, however I 100% 100% again that concept on the subject of our workforce.
David Kitai 00:04:19
So who would you say is the kind of investor that you simply you want to serve?
Patrick Somerville 00:04:24
Yeah, I believe it is a mixture, proper? So there’s the earnings targeted investor, which might, , be appropriate for our lined name, ETFs. So our yield Maximizer, ETFs, there’s the full return the extra progress oriented buyers which are comfy with a bit of little bit of leverage, modest leverage modest leverage of 25% so they’d be may need to check out our enhanced suite of ETFs, after which now we have our core Canadian financial institution in Financials, ETFs, which may function a core holding, as a inventory substitute for anybody’s financials holdings. So. So there’s actually, there’s actually three pillars to our to our AUM, and all are constructed for a distinct sort of investor.
David Kitai 00:05:06
The macro atmosphere is altering now, whether or not that is with rates of interest or the extent of uncertainty available in the market or adjustments in fairness developments, what are you doing to adapt to a altering and unsure macro atmosphere?
Patrick Somerville 00:05:21
Yeah, the macro atmosphere, it is at all times evolving. I believe it’s important for us to once more, preserve an lively dialog with advisors and get a really feel for his or her wants. I will offer you an instance. So when quantitative easing completed and we went right into a tightening interval, that was actually a giant change for mounted earnings markets. Up till then, there have been no mounted earnings lined name methods. We have been the primary to launch a lined name mounted earnings technique with H bond. And actually what was altering was the amount of tightening reintroduced bond market volatility. And as , volatility is important for choice methods. In order that was actually a cue for us, and it enabled us to launch a product like that. And clearly, mounted earnings had had a tough couple years, and we thought it was fairly well timed to launch one thing like that. In order that’s simply an instance of us evolving with the altering macro panorama. And , we’ll proceed to take our cues from from the market and from the individuals we communicate to.
David Kitai 00:06:24
Okay, glorious. As one thing of a advantageous query. You recognize, the advisors who’re watching this at this time, what do you hope they take from the work that you have been doing, these improvements, these new merchandise, and your outlooks?
Jennifer Mersereau 00:06:36
Yeah, so I believe, I believe advisors would who’re conversant in us, which is rising on a regular basis, I believe that they’d know that we’re very aware of their questions, their wants, however along with that, as as Pat alluded to listening to what they’re truly wanting, however educating them as effectively, and serving to to teach their purchasers on each our merchandise in addition to the broader panorama. So I believe we have actually imply once we began years, fairly just a few years in the past. Now, it was all concerning the advisors and getting it out to department conferences and educating them. At that time, extra on the Canadian banks. However over time with with Nick’s version, our lined name suite, we have continued to broaden the webcast we do. However I believe the the the message, I might hope they take away, is we’re listening, and we’re, , we wish to be nice companions, and we’re not simply making an attempt to launch merchandise for the sake launching merchandise. We wish to, , assist fulfill their wants.
Patrick Somerville 00:07:43
We wish to be balanced in our method. So now we have these, these totally different pillars of our of our ETF lineup, and it is not a one dimension suits all. There’s totally different methods for various individuals, and we’re making an attempt our greatest to correctly place these with advisors in order that they know the, , the dangers and commerce offs to allow them to correctly put these within the portfolios, understanding every thing that is that is beneath the hood. We’re, , very dedicated to ongoing schooling by means of webcasts CE credit score webcasts, due to our core specialty within the Canadian banks and international financials space, we’ll proceed to place out frequent content material on the Canadian banks and well timed content material that we predict will assist the advisors and their purchasers. And, yeah, we’ll, we’ll proceed to stay dedicated to the to the schooling, and now we have a really excessive service mannequin, so the advisors that know us effectively know that we’re very accessible and at all times out there to them.
David Kitai 00:08:41
No, that is nice to listen to. And there is a diploma of intentionality behind this, and in addition that willingness to agitate. And I can simply say, as a reporter, I at all times recognize having the ability to speak to somebody from Hamilton ETFs when there’s information concerning the Canadian banks. So thanks for being an open yr there. And sadly, that’s on a regular basis now we have at this time. So all I can actually say is thanks each a lot, Jennifer and Patrick, for taking the time speaking with me and sharing all of your insights. And congratulations in your recognition.
Patrick Somerville 00:09:09
David, thanks everybody at Wealth Skilled.
Jennifer Mersereau 00:09:12
Actually recognize it.
David Kitai 00:09:13
And thanks to all of our viewers for Wealth Skilled, I’ve been David Kitai, have an ideal remainder of your day.