Greater wealth often brings greater complexity for many high-net-worth (HNW) individuals, especially as they look to manage their assets to support their lifestyles in retirement and to last for generations.
“Canadians are increasingly finding the one-size-fits-all approach to investment, succession, tax and philanthropic planning is like an ill-fitting suit,” says Sophia Ito, a wealth advisor and client relationship manager at Nicola Wealth in Vancouver. “Anyone can get a suit off the rack, but a suit that fits you perfectly is tailor-made. It’s much the same with wealth planning and advice.”
Boutique wealth management firms can provide personalized service, but not all have sizable enough assets under management and deep enough expertise to deliver all the services and products.
The challenge is finding a firm that can do it all. Nicola Wealth combines institutional-style investments – like private debt, private equity and real estate – with white-glove, individualized advice. Even the big banks can’t always offer that special mix to every client. “To put it bluntly, bigger is not always better,” Ms. Ito says.
Serving HNW clients inevitably involves providing them with better-than-average investment returns.
Kyle Westhaver, a Wealth Advisor | Client Relationship Manager at Nicola Wealth in Toronto, says finding “alpha” involves much more than portfolio construction and investment strategies. It entails a total wealth planning approach.
“With alpha you’re technically looking for what you can achieve beyond a typical investment strategy, like a 60-per-cent equity, 40-per-cent bonds portfolio,” he notes. “The ability to access different asset classes, like private debt, is also critical. At Nicola Wealth, alpha really means that we are combining various strategies, from tax and estate planning to asset allocation, that in aggregate make a big difference over time.”
This approach has made Nicola Wealth one of Canada’s fastest growing private investment firms. They manage more than $13.5-billion in client assets with a track record that demonstrates historically consistent and stable returns.
Although growth of capital is important, so is the journey. “One thing I hear from clients is they’re happy not to be on the volatility rollercoaster,” Mr. Westhaver says.
Many Nicola Wealth clients come from larger investment firms and have experienced a lot of market ups and downs that have left them feeling uncertain and unsettled about their future. Today’s best wealth management strategies reduce volatility, often emulating pension-plan investment approaches.
Not all firms can offer access to institutional-style investment strategies. Nicola Wealth does through a spectrum of private investments such as hard asset real estate and opportunities within private equity, private debt, venture capital, mortgages, and infrastructure investments.
“With several markets down last year, many of my clients were pleasantly surprised by the returns from their Nicola Wealth portfolios, achieved with less volatility,” Mr. Westhaver says.
Access to best-in-class investment strategies is only as good as the financial plan they are designed to support. And the most effective financial plans are tremendously detailed, requiring deep knowledge of clients. Nicola Wealth provides each client with two dedicated advisors and embraces a family office model to wealth management.
“Our advice paradigm is designed to serve clients, working alongside all the other advisors they might have – tax, legal and other professionals – to ensure everyone is working together for their best interests,” Mr. Westhaver says.
A wealth management firm cannot offer truly bespoke strategies without a clear understanding of a client’s big picture, from philanthropic goals to business succession, Ms. Ito adds.
“I feel our institutional-style approach to investing is catching the attention of high-net-worth individuals,” she says. “We are hearing that they appreciate the value we add to their portfolio and that the planning we do significantly contributes to wealth preservation, on an after-tax basis, to help build a lasting legacy for generations.”
Nicola Wealth Management Ltd. (Nicola Wealth) is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required securities commissions. All investments contain risk and may gain or lose value. Please speak to your Nicola Wealth advisor for advice based on your unique circumstances.
