Narrator 00:00:03
On this episode, hear what purchasers are in search of from their advisor to fulfill their future wants and the way expertise will help you meet these wants.
David Kitai 00:00:11
Hi there and welcome to this particular version of WP TV the place we’re celebrating WP’s Prime 25 Wealth Tech Suppliers of 2024. My identify is David Kitai, Senior Editor at Wealth Skilled. At the moment we’re fortunate to be joined by Paul Kornfeld of SIACharts. As President of SIACharts, Paul is accountable for gross sales, advertising and marketing assist operations, improvement and a big selection of different areas that the effectively tech agency touches. Paul can also be a former Canadian Nationwide Swimmer and a former world document holder. Paul, welcome to WP TV.
Paul Kornfeld 00:00:46
Thanks a lot for having me. I look ahead to our dialog.
David Kitai 00:00:49
Out of your perspective, what do you assume earned you this spot? Why do you assume SIACharts was named as one in all WP’s Prime 25 Wealth Tech Suppliers?
Paul Kornfeld 00:00:51
Nice query. SIACharts has been round working with advisors in Canada within the US for for over 15 years, most likely 20 years. Now, I have not stored monitor of precisely the date. However all through this time, I feel we have simply earned the belief of advisors by means of {our relationships} with them. There’s been numerous difficult instances out there during the last 15 20 years together with a 2008 disaster 2022 or 2020 COVID pandemic, proper. There’s been numerous tough instances for advisors. And SIACharts has been capable of be a profitable firm all through these market cycles, and assist advisors navigate them by means of confirmed danger administration and different instruments in order that they do not. So that they thrive throughout these instances, really. So we really began out as a technical evaluation firm, rating Canadian mutual funds, I feel we’re really one of many first in Canada rating mutual funds, not simply by efficiency, however an precise comparability towards one another. And we have grown quite a bit from there. So we have diversified away from technical evaluation to perform this by means of relative energy comparisons and rankings. And we have been recognized for 5 second evaluation on any funding, and actually can rank any funding towards one another. We have been capable of from the start rank of mutual fund versus inventory rank rank of crude oil futures contract to an ETF, proper. So it is, it has been an L of an evolution for our personal firm. But additionally, all through the time with expertise, we have been capable of work with advisors to maintain evolving our enterprise all through the evolving instances as effectively.
David Kitai 00:02:35
Okay, that makes numerous sense. You have hinted at one in all my favourite tendencies in traces, type of submit 2008, but additionally since 2020. However everybody’s crying elbow proper right here from advisors that 12 months for my fellow fellow millennials, we identical to to dwell in precedented instances for as soon as we preserve going by means of unprecedented. So it may be good for a bit little bit of normality. However as as you type of say info is so key to navigating the unprecedented as a result of there’s no less than some steerage and a few basis you’ll be able to construct on from from that info. So being that supplier of an info and evaluation instrument, what are you listening to from advisors about what they need from a effectively, tech agency normally, after which from an info and analytics specialists like yourselves particularly?
Paul Kornfeld 00:03:21
Yeah, I imply, clearly, advisors should not quick on opinions, they need quite a bit, and we’re joyful to supply that for them. We will not present every part, we’re not going to be an professional in every part. However what we’re attempting to do is simply be on their facet, simply give them a instrument that, , is is for them. And for his or her enterprise, we need to assist them develop. Simply this week, I used to be or I assume final week, I used to be serving to an advisor attempt to shut a big, , 5 plus million greenback consumer, proper? That is not what different effectively, tech corporations, I do not assume are try to do. However we actually try to associate with them. We’re listening to extra on the main banks that their charges are going up and assist goes down in lots of instances. So I feel advisors are wanting extra to effectively tech fin tech corporations to fill that hole and be that type of perhaps secret sauce, aggressive Vantage, no matter you need to name it, however simply any person on their facet a lifeline for advisors that want a associate on this enterprise. So we intention to proceed to evolve as we associate with advisors to do that. So we need to create a full market intelligence platform that began off from a technical facet, transferring into the basic facet, transferring into compliance facet transferring into the advertising and marketing, which we already do for advisors to assist them inform their story, assist them develop their e-book of enterprise, we intention to be that place the place they will get all of the analysis all their compliance wants, all their advertising and marketing, portfolio administration, modeling, you identify it, we need to be that we all know we can’t be the most effective in each space. However we hoped by the mixing of these instruments and options. Advisors can come to us type of with that, that full resolution as a lot as doable. So they are going to want a system that listens to them but additionally stays present with the difficult markets and adapting by means of the time. So we have additionally dedicated to being that expertise firm. And we’re a expertise firm, initially. So we need to proceed to advance by means of the instances by being on their facet. In order that’s, that is actually the primary factor is we do hearken to our purchasers, we try to listen to from them. And we’re attempting to evolve our enterprise as because the calls for go up as effectively.
David Kitai 00:05:25
Evolution of your enterprise is all the time so fascinating. And also you began after all, with like, it was initially simply mutual fund rankings. And now there’s a lot extra sophistication in what you are able to do. However transferring into areas like compliance transferring into numerous the opposite type of specific operational areas of an advisory follow and attempt to assist them with that. How do you eat inside your individual group type of employees up for that and scale up for that in a method that , you are you are getting into in some methods, new territory, however you are you are you are attempting to develop your enterprise? What are a number of the type of key type of steps it’s important to take as a frontrunner to make sure you’re doing that with out overstretching all of sudden?
Paul Kornfeld 00:06:03
Yeah, it is difficult since you solely have restricted sources, you’ll be able to solely deal with sure initiatives over time. So I imply, one of many methods we beat up is simply expertise employees, like we’re investing in, we’re hiring extra programmers and salespeople. So that you would possibly, lots of people could also be watching this video, have not heard of SIACharts, as a result of we’re by no means going to be the most important gross sales division to probably the most advertising and marketing and advertisements. What we try to beef up is our expertise, we’re shopping for extra servers, we name our personal server infrastructure, ourself, to course of all of the 80,000 investments on our system, and the lots of of tens of millions of comparisons we do each night time, simply to create these rankings and evaluation. In order that’s the place all our cash goes, is within the tech facet, greatest, once more, new servers, GPUs, all these items to attempt to create a bit bit quicker instruments a bit bit higher analysis a bit bit higher end result. As a result of we all know that if we’re profitable in serving to advisors with these alerts with these, this analysis, it may assist us, they won’t really need to inform their mates or their their colleagues, they’d prefer to preserve it to themselves, however it’s going to, once more, hopefully have us again on this yearly, due to our dedication to the advisors. So we have been actually beefing up the expertise facet, we have all the time been a expertise firm initially. After which it is only a expertise firm that strikes in several instructions. Plus, now we’re attempting to customise it extra we perceive that every advisor is exclusive. So with the ability to customise totally different methods for every every advisor is type of the core of what we all the time attempt to do. However now we’re attempting to take a step additional saying, okay, there actually is one million other ways you can go along with this. However listed here are some pattern fashions to level in the fitting route. But additionally, in the event that they need to do one thing simply distinctive for themselves, we are able to additionally associate with them, their e-book of enterprise to once more create merchandise or create totally different methods for them as as they develop and evolve to so we perceive that there is not a set in stone 6040 mannequin anymore, there’s going to be one million totally different mixtures of these totally different methods for every totally different danger profile of their purchasers. And every advisor we talked to is totally different and that is a part of the enjoyable. I am very blessed to be on this place as a result of I get to speak to totally different advisors daily that which have totally different challenges and totally different wants for his or her purchasers.
David Kitai 00:08:18
I am simply curious let’s let’s return in some methods to the the nuts and bolts, the unique type of focus of SIACharts, which is that funding analytics and comparability. volatility has been the the watchword of the previous three years, once more, unprecedented volatility it to make use of the opposite one. And we preserve operating into it in sectors the place you would not anticipate locations like fastened earnings, or simply different elements of the market are on weeks and months that should not be occurring. So what does your type of core instrument that funding analytics capability? How does that assist advisors navigate their purchasers by means of this type of volatility that we’re seeing?
Paul Kornfeld 00:09:00
Yeah, so type of coming again to the core we do. SIA simply analyzes and compares cash move. So we get all the way down to economics one on one, proper, we’re evaluating the availability and demand between any two investments, we begin up off at a really excessive stage, simply cash move of the fairness markets. And we attempt to reply only one query ought to we be in equities or ought to we be wanting elsewhere simply that easy. We have created a type of a inexperienced mild pink mild state of affairs of like, hey, however on the gasoline, , you are driving you are cruising down the freeway. That is the place we’re proper now. We’ll place this recording we’re nonetheless there and in a few weeks. That is type of the the state of affairs the place we need to preserve advisors out there more often than not and 70% of the time we’re in that that atmosphere during the last 15 years. However there’s instances whenever you’re driving you might want to slam on these brakes you might want to decelerate to curb forward or there’s an animal’s throat or there is a pink mild proper. In order that’s that is the important thing to type of initially, serving to advisors from a prime down strategy, the primary space that you would be able to add probably the most worth for advisors is within the type of asset allocation of their e-book of enterprise for his or her purchasers. It isn’t on funding choice. So we initially begin there, as a result of particularly the upper web price purchasers that advisors can have. Having nice efficiency is not really what they are going for. They’re attempting to guard their hard-earned cash that they’ve invested their complete life and their enterprise or their household inheritance or no matter it’s, that 10 million, or no matter that’s plus, they’re simply attempting to maintain that cash initially. And that is, that is what we attempt to do for all our purchasers is give them a danger administration instrument, simply to assist them perceive type of what danger are we within the markets, we do not know, once more, if it is a 2008, the place it may be a 16 month type of bear market? Or if it is a 2020, the place it is a, what, 4 week bear market or one thing proper, the quickest bear market in historical past, proper? So, once more, our instrument is not designed to foretell something, however to observe the cash flows, institutional cash strikes, what 80 90% of the market, proper? So the advisors are literally a smaller a part of that, and retail director, retail are simply particular person buyers are even smaller a part of that as effectively. So simply by watching the cash move, the massive black rocks, the sovereign funds the world, , it takes longer for that cash to maneuver out and in. However by monitoring it, you achieve numerous perception. In order that’s one of many keys to our success is simply following the cash flows. And with that, we are able to take it a pair steps additional than we might take a look at the asset class rankings and say, okay, one easy query, ought to or not it’s in US or Canada? Properly, it is easy to say that perhaps wanting again, and however within the time, it is not all the time as clear, proper? There’s there’s causes for every of these alternatives, or, Hey, perhaps we needs to be in rising markets or in China or Europe or Center East? In all probability not proper now. However, , like all these sections of the world we are able to we really measure towards one another and attempt to simplify as effectively saying, hey, final 12 months, we have been in US fairness over Canada and worldwide guess what, final 12 months, all of the fairness markets did fairly effectively, aside from China. Sure, however that might be the one space the place you’d assist keep away from however the US fairness was up 24% final 12 months and the s&p 500 or over 40 43% and the NASDAQ Composite, proper. In order that was the place we have been pushing advisors to assist them have that nice, hopefully outperformance simply by that one evaluation versus the Canadian markets up solely 8% final 12 months. So that easy evaluation of simply Yeah, most individuals are staying out there, however even one other layer of claiming, Okay, this is the place you’d relatively chubby or underweight then once more, we would go a step additional and say, Okay, what sector ought to we be? Ought to we be in? Perhaps semiconductors? Perhaps expertise? Completely. Proper. That is the place we have been investing in our power recently, proper? Or supplies like these, these issues that once more, we do not, we do not come on BNN and say, hey, , that is what we imagine. And we’re gonna be a worth investor for the subsequent 5 years, we may be a worth investor for six months, after which a momentum buyers, then rising markets investor than a expertise investor, proper? So we’re all the time attempting to simply observe these cash flows. Generally these predictions, the basics, all align and make a very sturdy sign. And different instances, we will be perhaps contrarian to what the markets doing. So I type of we type of speak about 4 pillars of study with their advisors, first, foremost, danger administration on the highest, ought to we be in equities or not, that we go to the asset class rankings and assist them perceive and keep away from a 6040 portfolio like 2022, the worst 12 months on document for the reason that Thirties. Proper? So we’re really saying get out of fastened trade, like this isn’t a well-liked take for many balanced buyers. Nevertheless it’s one which’s added numerous worth simply within the final couple years. So our purchasers are very pleased with us from that standpoint, as a result of hopefully, we’re simply outlining them the place the most effective alternatives lie. So then the third pillar is that sector evaluation we talked about, after which we get into the person evaluation as effectively to say, hey, perhaps you need to take into consideration in video over, , what different inventory are staying away from on the time, proper? So people who’s type of the the core of what we do of the place we began, then that helps us type of navigate a unstable market. And it has been very profitable over the time, after which each, each volatility, every part that we see, we be taught from that. And we’re capable of even adapt and enhance our expertise going ahead, particularly from the danger administration facet, as a result of I feel the alerts typically do must be a bit bit faster. Not everyone desires a six to 18 month outlook for markets when it is tanking or issues like that. So actually, to summarize every part I simply mentioned, all we take a look at is alternative price. So David, if you happen to’ve had one inventory to speculate on proper now, if you happen to had $10,000 to speculate, we are able to inform you the place the most effective place to place that cash is that is the chance with our system is we’re evaluating every part towards one another to level you in the fitting route saying hey, you can make investments on this expertise inventory or this power inventory. However what about one thing else you did not take into consideration? What about this? What about Netherlands ETF, what I imply? Like, there’s all the time these different areas that you would be able to placed on wherein it may be virtually overwhelming typically. So we attempt to take that out of the type of, yeah, we take that out from advisors, issues xiety In a strategy to say, Hey, you do not have to handle every part, you do not have to have evaluation and analysis and every part, we’re attempting to simplify this as a lot as doable and level him in the fitting route. After which actually, that comes all the way down to a chance price evaluation.
David Kitai 00:15:31
That could be a nice reply. And only a nice type of complete view of of the facility of a instrument like that. All I can say is, as somebody who most likely unhealthy to say it on this channel, however self direct a few of his investing. Boy, I want I had that after I’m observing my Wealthsimple web page, and my eyes are going a bit clean. However it’s actually fascinating to see how a lot element you’ll be able to pull out and the way that direct comparability and to commerce it off. And I appreciated the usage of alternative price in addition to type of a core framework by which you are doing this work. So, , you’ve got demonstrated this in numerous methods, and you’ve got already made this level. However simply to put it out explicitly, and in some methods briefly, how can your expertise assist advisor set themselves aside, and that features what we simply talked concerning the the funding analytics facet, but additionally embrace a number of the stuff you are constructing out now extra on the operation facet.
Paul Kornfeld 00:16:26
We wish SIACharts to be that aggressive benefit for that advisor. One of many methods we do this, and I am most likely no one else you speak to on the world tech facet, I do not assume that they do that is we’re solely obtainable to licensed professionals licensed Funding Advisors. Most different wealth tech FinTech corporations aren’t really about simply the advisor, it is type of one of many issues we did proper from the start, we would be quite a bit greater firm if we did not do that. However what we’re actually attempting to say to our purchasers, and once more, have an instance of this, is we actually need to associate with the funding advisor, and provides them a bonus. So their purchasers cannot go round their again and get the identical instrument, the identical analysis elsewhere. I assume, technically, most, most individuals can get numerous this analysis on-line join type of a person standpoint, however they can not really go round advisors again and join our system, we are saying no, it’s important to work with advisor are you able to ever be or whoever we’re working with. So I feel that is one of many issues that simply units us aside is we actually on the adviser facet, we’re attempting to associate with them and provides them a instrument they can not get anyplace else. And all of the instruments and evaluation we construct. Due to that’s constructed for them. It isn’t constructed for a number of folks. It is constructed for his or her wants, their desires their complaints, their their altering atmosphere. In order that’s why we have launched a Kyp instrument to assist with compliance that their purchasers do not want, however they should assist with their wants going ahead. Second, we hope we’re only a main evaluation of agency who began with relative energy and is increasing for the advisor as we go. And in order that’s once more, what we’ve got been constructed off of. And we’re attempting to once more, preserve advancing our analysis our information, I am unable to inform you how a lot information I purchased during the last couple of years, that appears to be the brand new forex on the market, as a result of there’s that demand. So now we’ve got actual time information. Now we’ve got new actual time options that we need to get into the arms the data as fast as doable, in order that they will make the most effective choices for his or her purchasers. Couple different issues that individuals instructed us about or we have been acknowledged for is absolutely well timed alerts. A lot of the analysis out there’s on the purchase facet, proper? There’s 90% I do not know precisely the proportion however much more purchase facet analysis than promote facet. And we have been actually recognized for a time to get out of valley in prescribed drugs time to get out of labor again within the day, a few of these huge blow up of firms, proper? We we have helped advisors keep away from from names that may blow up a complete portfolio, you can have 9 out of 10 firms are doing nice, and that one is dragging you on that efficiency. So what our system is absolutely good at is simply serving to keep away from that, that one inventory that you simply most likely should not be in proper now or that one ETF or that one mutual fund. In order that’s among the finest I feel issues is we’ve got these alerts that assist folks establish simply when that chance price is altering. It isn’t, it is not a promote or purchase sign. It is simply saying, hey, there’s higher alternatives on the market, why would not we transfer that cash to the place these cash flows are going. And in order that’s why we have tried to simplify all this to saying like, Hey, we’re simply a chance price rating system. And yeah, you’ll be able to take an opportunity on this, however most likely the percentages should not in your favor proper now. We would relatively observe the good cash as we name it. the place that’s. After which, like I talked about earlier, we need to assist advisors with customized methods, customized instruments, so we’re persevering with to develop extra instruments round that to again take a look at to strengthen their resolve within the technique that they are implementing for his or her purchasers. So I feel that is type of what hopefully is about us aside is that dedication to advisors, hopefully sturdy danger administration, well timed alerts and the type of customized strategy that we take with our enterprise figuring out that no two advisors are totally different, or sorry that each advisor is.
David Kitai 00:20:07
You talked about quite a bit there concerning the advisor, clearly, and about what you are listening to from advisors and the demand that is that is being met. However after all, advisors are those who’re type of dealing with with their purchasers. And, and in some methods, as a remaining query, I assume, in all of the methods you’ve got developed your enterprise, and all of this type of the engines for progress and the approaches you are taking to make as HR, it is extra of a full service supplier. What’s subsequent? And by what’s subsequent, I type of imply, what are you listening to purchasers predict from their advisors that you simply’re now going to attempt to meet?
Paul Kornfeld 00:20:42
Yeah, nice query. As a result of we’re not quick on opinions, like I mentioned, from our advisors. And that is, that is one of many issues that we begin with is simply listening to them, proper? Like, it’s true how we do that’s perhaps totally different than different firms as effectively, everyone our type of our highest stage or skilled stage of service, get a devoted account supervisor that is following up with them, hopefully, on a quarterly foundation, perhaps no less than semi annual foundation, to listen to them and , we’ve got a helpline and stuff the place they will really calling in and speak to any person. So not that once more, different methods of doing that is not, is not higher. However once more, we’re not the most important firm on the planet that we really need to keep that method, we really do not need to associate with 10s of 1000s of purchasers, we really need perhaps 1000 tops or one thing like that, we really, we need to be type of a smaller area of interest agency that’s actually devoted to these companions utilizing the instrument. So it is a totally different type of enterprise setup. However that allow us to have these sorts of conversations, actually hearken to the wants of purchasers, and construct off of that. So constructing new options and instruments for what they really want. And anticipating that a bit bit by means of, , for instance, new compliance wants like no one was asking us for this, however issues change from a compliance standpoint. So we created a brand new your product improvement, that is, we expect goes to be a very highly effective instrument that integrates in with every part else that they are doing. Hopefully, with a number of the greatest in business, peer comparability stories and suggestion monitoring. After which once more, the automation a part of it’s what numerous advisors are asking for not solely on this however different areas. In order that might be by means of AI instruments that might simply be in well timed alerts that really give them the solutions they’re in search of, or on this case with Kyp compliance shouldn’t be horny, however hey, simply remind them on a yearly foundation or materials modifications, they do not want to do this anymore, the system will help them do this and all their different compliance necessities. So we’re very enthusiastic about that type of rollout. As a result of that is an instance of each listening to purchasers anticipating the wants of the altering business requirements or necessities, and constructing out additional issues like that. The opposite most important space that we’re evolving with, like I mentioned, it is simply integration of fundamentals, financials, economics, , these sorts of issues that we need to take a special step and say, Hey, we’re that full market intelligence applications. So that is what I will be spending the remainder of my 12 months on, is constructing that out, after which hopefully, create an awesome product that any any advisor will, will slot in with, as a result of we have been, , lots of people come to us with exterior analysis that is nice built-in with our system present that overlay on prime of it, we need to be that system that hopefully can do all of it for them. They’ll nonetheless deliver their very own analysis in, however no less than they will come to us with with that. In order that’s type of the place we’re transferring. After which after all, , this reply might change in three months if there’s new calls for, or new new areas with that, however undoubtedly specializing in innovation on the wants of our purchasers. And , lots of people would possibly say that, but additionally automation instruments, AI instruments that may save folks time and really give them outcomes. Like you’ll be able to create AI instruments that basically do not do something that look totally different. However can they result in issues the place advisors cannot do it themselves or these sorts of issues is the place we’re targeted on so not simply creating AI instruments simply to do this, however to actually implement in areas that we would not be capable to do ourselves. So particularly on the again testing facet of issues creating AI instruments, proper proper up entrance inside that may be a core focus for us proper now as effectively.
David Kitai 00:24:10
Huge targets, huge ambitions. However you’ve got you’ve got met and exceeded these targets earlier than and we have acknowledged it earlier than and we’re joyful to acknowledge it once more. So all with that. Sadly, that’s on a regular basis we’ve got however I simply need to say thanks a lot for these nice solutions and congratulations to your self and to the entire group at sa charts for being named to the Prime 25 Wealth Tech Suppliers for WP TV. I’ve been David Kitai thanks a lot and have an awesome remainder of your day. Bye bye