CO-OPERATORS PURCHASES PORTFOLIO THROUGH PROGRAM DESIGNED TO HELP WEALTH MANAGERS
The company completed its first acquisition of a mutual fund portfolio through their ‘Sell and Stay’ initiative
Mar 7, 2023
GUELPH, ON, March 7, 2023 – Co-operators today announced that it has purchased the entirety of an independent wealth advisor’s mutual fund portfolio. The acquisition is part of the organization’s Sell and Stay program, created to address the incremental need in the wealth management and financial services industry, to provide a strategic transition opportunity for advisors who are considering retirement.
According to a 2019 survey of 2,000 of members of Advocis, the Financial Advisors Association of Canada, 51 per cent of advisors were 55 years of age and older and more than half of respondents reported working in their industry for 20 years or more.
“We recognize that wealth advisors are so focused on their business and servicing their clients that many of them haven’t stopped to map out their own succession plan,” says Mark Feeney, Co-operators regional vice president of Ontario. “For advisors that are considering selling their business, but not ready to walk away entirely, our Sell and Stay program is the ideal bridge to the next phase of their life. We offer them a competitive price for part or all of their portfolio and grant them the freedom to exit the business at their own pace.”
A recent report from the Investment Funds Institute of Canada (IFIC) shows that retail investments in Canada, which include investment funds, managed accounts, and securities holdings, represent $4.707 trillion in financial wealth. As the advisory workforce ages, there is an urgency to enable the coordinated transition of assets into experienced, trustworthy hands.
“Developing the scale and skill of our distribution model is among our top objectives,” says Lucilla Nardi, chief distribution officer of Co-operators Financial Investment Services Inc. (CFIS). “Sell and Stay facilitates the progress of our mutual fund expertise by creating opportunities for us to recruit seasoned advisors and/or their portfolios while their clients enjoy the benefits of being with an established organization that has been serving Canadian investors for more than 75 years.”
Tim Warkentin, the Owner of Warkentin Financial, is the Sell and Stay program’s first official signee. Warkentin, a wealth manager based in Kenora Ontario, plans to stay on as an Associate Financial Advisor with a Co-operators advisor in his community.
“One of the most appealing aspects of transitioning my book to CFIS was the opportunity to accelerate the growth of the portfolio by advising existing Co-operators clients,” Warkentin says. “My current clients can access the full suite of Co-operators insurance and financial service offerings which adds significant value to the service I offer and the solutions I can provide.”
According to IFIC, at the end of 2022, Canadian mutual fund assets totaled
$1.809 trillion. For their part, Co-operators is laser-focused on the expansion of their mutual fund business to ensure it can continue to meet the investment and wealth management needs of its growing client base.
With this announcement, Co-operators makes its official position clear: to any interested Mutual Fund Dealers Association of Canada (MFDA) licensed advisors who are considering the sale of their portfolio – whether in part or in its entirety – the interest is mutual.
Co-operators is a leading Canadian financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. The company has more than $61.5 billion in assets under administration. Co-operators has been providing trusted guidance to Canadians for the past 76 years. The organization is well known for its community involvement and its commitment to sustainability. Achieving carbon neutral equivalency in 2020, the organization is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co-operators is also ranked as a Corporate Knights’ Best 50 Corporate Citizens in Canada. For more information, please visit www.cooperators.ca.
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Mutual funds are offered through Co-operators Financial Investment Services Inc. to Canadian residents except those in Quebec and the territories. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Facts before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently, and past performance may not be repeated.
Co-operators Financial Investment Services Inc. is an introducing mutual fund dealer and member of the Mutual Fund Dealers Association of Canada.
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