Narrator 00:00:03
On this episode, hear what shoppers are on the lookout for from their advisor to satisfy their future wants and the way know-how will help you meet these wants.
David Kitai 00:00:11
Good day 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. Right now we’re fortunate to be joined by Paul Kornfeld of SIACharts. As President of SIACharts, Paul is answerable for gross sales, advertising and marketing assist operations, growth and a big selection of different areas that the nicely tech agency touches. Paul can also be a former Canadian Nationwide Swimmer and a former world file 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 considered one of 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 saved monitor of precisely the date. However all through this time, I feel we have simply earned the belief of advisors by way of {our relationships} with them. There’s been plenty of difficult instances available in the market over the past 15 20 years together with a 2008 disaster 2022 or 2020 COVID pandemic, proper. There’s been plenty of troublesome instances for advisors. And SIACharts has been in a position to be a profitable firm all through these market cycles, and assist advisors navigate them by way of confirmed threat administration and different instruments in order that they do not. So that they thrive throughout these instances, truly. So we truly began out as a technical evaluation firm, rating Canadian mutual funds, I feel we’re truly one of many first in Canada rating mutual funds, not simply by efficiency, however an precise comparability in opposition to one another. And we have grown loads from there. So we have diversified away from technical evaluation to perform this by way of relative power comparisons and rankings. And we have been identified for 5 second evaluation on any funding, and actually can rank any funding in opposition to one another. We have been in a position to 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 know-how, we have been in a position to work with advisors to maintain evolving our enterprise all through the evolving instances as nicely.
David Kitai 00:02:35
Okay, that makes plenty of sense. You have hinted at considered one of my favourite developments in traces, form of put up 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 hold going by way of unprecedented. So it is perhaps good for somewhat little bit of normality. However as as you form of say info is so key to navigating the unprecedented as a result of there’s at the least 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 nicely, tech agency generally, after which from an info and analytics specialists like yourselves particularly?
Paul Kornfeld 00:03:21
Yeah, I imply, clearly, advisors are usually not brief on opinions, they need loads, and we’re glad to offer that for them. We won’t present every part, we’re not going to be an skilled in every part. However what we’re attempting to do is simply be on their facet, simply give them a instrument that, you realize, 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 suppose final week, I used to be serving to an advisor attempt to shut a big, you realize, 5 plus million greenback consumer, proper? That is not what different nicely, tech corporations, I do not assume are are attempting to do. However we actually are attempting 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 circumstances. So I feel advisors are trying extra to nicely tech fin tech corporations to fill that hole and be that form of possibly secret sauce, aggressive Vantage, no matter you need to name it, however simply any individual on their facet a lifeline for advisors that want a associate on this enterprise. So we goal 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 ebook of enterprise, we goal 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 combination of these instruments and options. Advisors can come to us form of with that, that full resolution as a lot as potential. So they will want a system that listens to them but additionally stays present with the difficult markets and adapting by way of the time. So we have additionally dedicated to being that know-how firm. And we’re a know-how firm, at the start. So we need to proceed to advance by way of the instances by being on their facet. In order that’s, that is actually the primary factor is we do take heed to our shoppers, we are attempting to listen to from them. And we’re attempting to evolve our enterprise as because the calls for go up as nicely.
David Kitai 00:05:25
Evolution of your enterprise is at all times 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 plenty of the opposite form of explicit operational areas of an advisory observe and attempt to assist them with that. How do you eat inside your personal group form of workers up for that and scale up for that in a approach that you realize, 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 form of key form of steps you need to take as a pacesetter to make sure you’re doing that with out overstretching unexpectedly?
Paul Kornfeld 00:06:03
Yeah, it is difficult since you solely have restricted assets, you’ll be able to solely concentrate on sure initiatives over time. So I imply, one of many methods we beat up is simply know-how workers, 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 essentially the most advertising and marketing and adverts. What we are attempting to beef up is our know-how, 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 hundreds of thousands of comparisons we do each evening, 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 this stuff to attempt to create somewhat bit sooner instruments somewhat bit higher analysis somewhat bit higher final 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 may not truly need to inform their pals or their their colleagues, they’d wish to hold 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 know-how facet, we have at all times been a know-how firm at the start. After which it is only a know-how firm that strikes in several instructions. Plus, now we’re attempting to customise it extra we perceive that every advisor is exclusive. So having the ability to customise totally different methods for every every advisor is form of the core of what we at all times attempt to do. However now we’re attempting to take a step additional saying, okay, there actually is one million alternative ways you possibly can go together with this. However listed below are some pattern fashions to level in the proper course. 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 ebook 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 combos of these totally different methods for every totally different threat profile of their shoppers. 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 on daily basis that which have totally different challenges and totally different wants for his or her shoppers.
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 form 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 hold operating into it in sectors the place you would not anticipate locations like mounted earnings, or simply different elements of the market are on weeks and months that should not be occurring. So what does your form of core instrument that funding analytics capability? How does that assist advisors navigate their shoppers by way of this sort of volatility that we’re seeing?
Paul Kornfeld 00:09:00
Yeah, so form of coming again to the core we do. SIA simply analyzes and compares cash circulation. So we get all the way down to economics one on one, proper, we’re evaluating the provision and demand between any two investments, we begin up off at a really excessive degree, simply cash circulation of the fairness markets. And we attempt to reply only one query ought to we be in equities or ought to we be trying elsewhere simply that straightforward. We have created a form of a inexperienced gentle purple gentle state of affairs of like, hey, however on the gasoline, you realize, 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 form of the the state of affairs the place we need to hold advisors available in the market more often than not and 70% of the time we’re in that that atmosphere over the past 15 years. However there’s instances if you’re driving you should slam on these brakes you should decelerate to curb forward or there’s an animal’s throat or there is a purple gentle proper. In order that’s that is the important thing to form of at the start, serving to advisors from a high down strategy, the primary space you could add essentially the most worth for advisors is within the form of asset allocation of their ebook of enterprise for his or her shoppers. It is not on funding choice. So we at the start begin there, as a result of particularly the upper internet price shoppers that advisors can have. Having nice efficiency is not truly 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 at the start. And that is, that is what we attempt to do for all our shoppers is give them a threat administration instrument, simply to assist them perceive form of what threat are we within the markets, we do not know, once more, if it is a 2008, the place it may be a 16 month form 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 comply with 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 traders are even smaller a part of that as nicely. So simply by watching the cash circulation, the large black rocks, the sovereign funds the world, you realize, it takes longer for that cash to maneuver out and in. However by monitoring it, you achieve plenty of 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 have a look at the asset class rankings and say, okay, one easy query, ought to or not it’s in US or Canada? Nicely, it is simple to say that possibly trying again, and however within the time, it isn’t at all times as clear, proper? There’s there’s causes for every of these alternatives, or, Hey, possibly we must be in rising markets or in China or Europe or Center East? In all probability not proper now. However, you realize, like all these sections of the world we are able to we truly measure in opposition to one another and attempt to simplify as nicely 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 nicely, apart from China. Sure, however that might be the one space the place you’d assist avoid 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 straightforward evaluation of simply Yeah, most individuals are staying available in the market, however even one other layer of claiming, Okay, here is the place you’d quite 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 know-how? 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, you realize, that is what we imagine. And we’re gonna be a price investor for the subsequent 5 years, we is perhaps a price investor for six months, after which a momentum traders, then rising markets investor than a know-how investor, proper? So we’re at all times attempting to only comply with these cash flows. Typically these predictions, the basics, all align and make a extremely sturdy sign. And different instances, we will be possibly contrarian to what the markets doing. So I form of we form of discuss 4 pillars of study with their advisors, first, foremost, threat 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 avoid a 6040 portfolio like 2022, the worst 12 months on file because the Nineteen Thirties. Proper? So we’re truly saying get out of mounted change, like this isn’t a well-liked take for many balanced traders. But it surely’s one which’s added plenty of worth simply within the final couple years. So our shoppers 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 nicely to say, hey, possibly you must take into consideration in video over, you realize, what different inventory are staying away from on the time, proper? So people who’s form of the the core of what we do of the place we began, then that helps us form 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 study from that. And we’re in a position to even adapt and enhance our know-how going ahead, particularly from the chance administration facet, as a result of I feel the alerts typically do have to be somewhat 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 have a look at is alternative value. So David, if you happen to’ve had one inventory to take a position on proper now, if you happen to had $10,000 to take a position, we are able to let you know the place the most effective place to place that cash is that is the chance with our system is we’re evaluating every part in opposition to one another to level you in the proper course saying hey, you possibly can make investments on this know-how inventory or this power inventory. However what about one thing else you did not take into consideration? What about this? What about Netherlands ETF, you realize what I imply? Like, there’s at all times these different areas you could placed on wherein it may be nearly overwhelming typically. So we attempt to take that out of the form of, yeah, we take that out from advisors, issues xiety In a approach 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 potential and level him in the proper course. After which actually, that comes all the way down to a possibility value evaluation.
David Kitai 00:15:31
That could be a nice reply. And only a nice form of complete view of of the ability 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 somewhat 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 using alternative value in addition to form of a core framework by which you are doing this work. So, you realize, you have demonstrated this in plenty of methods, and you have already made this level. However simply to put it out explicitly, and in some methods in short, how can your know-how 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 discuss to on the world tech facet, I do not assume that they do that is we’re solely accessible to licensed professionals licensed Funding Advisors. Most different wealth tech FinTech corporations aren’t truly about simply the advisor, it is form of one of many issues we did proper from the start, we would be loads larger firm if we did not do that. However what we’re actually attempting to say to our shoppers, 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 shoppers cannot go round their again and get the identical instrument, the identical analysis elsewhere. I suppose, technically, most, most individuals can get plenty of this analysis on-line enroll form of a person standpoint, however they cannot truly go round advisors again and join our system, we are saying no, you need 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 cannot get wherever else. And all of the instruments and evaluation we construct. Due to that’s constructed for them. It is not constructed for a number of individuals. 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 shoppers 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 power and is increasing for the advisor as we go. And in order that’s once more, what we’ve been constructed off of. And we’re attempting to once more, hold advancing our analysis our information, I am unable to let you know how a lot information I purchased over the past couple of years, that appears to be the brand new foreign money on the market, as a result of there’s that demand. So now we’ve actual time information. Now we’ve new actual time options that we need to get into the arms the data as fast as potential, in order that they will make the most effective selections for his or her shoppers. Couple different issues that folks advised us about or we have been acknowledged for is admittedly 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 share however much more purchase facet analysis than promote facet. And we have been actually identified 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 large blow up of corporations, proper? We we have helped advisors avoid from names that may blow up an entire portfolio, you possibly can have 9 out of 10 corporations are doing nice, and that one is dragging you on that efficiency. So what our system is admittedly good at is simply serving to avoid 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 probably the greatest I feel issues is we’ve these alerts that assist individuals determine simply when that chance value is altering. It is not, it isn’t 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 possibility value rating system. And yeah, you’ll be able to take an opportunity on this, however most likely the chances are usually not in your favor proper now. We would quite comply with 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 shoppers. So I feel that is form of what hopefully is about us aside is that dedication to advisors, hopefully sturdy threat administration, well timed alerts and the form of customized strategy that we take with our enterprise realizing that no two advisors are totally different, or sorry that each advisor is.
David Kitai 00:20:07
You talked about loads 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 form of dealing with with their shoppers. And, and in some methods, as a ultimate query, I suppose, in all of the methods you have developed your enterprise, and all of this form of the engines for development 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 form of imply, what are you listening to shoppers 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 brief 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 possibly totally different than different corporations as nicely, everyone our form of our highest degree or skilled degree of service, get a devoted account supervisor that is following up with them, hopefully, on a quarterly foundation, possibly at the least semi annual foundation, to listen to them and you realize, we’ve a helpline and stuff the place they will truly calling in and discuss to any individual. 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 truly need to keep that approach, we truly do not need to associate with 10s of 1000s of shoppers, we truly need possibly 1000 tops or one thing like that, we truly, we need to be form of a smaller area of interest agency that’s actually devoted to these companions utilizing the instrument. So it is a totally different form of enterprise setup. However that allow us to have these sorts of conversations, actually take heed to the wants of shoppers, and construct off of that. So constructing new options and instruments for what they really want. And anticipating that somewhat bit by way of, you realize, 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 growth, that is, we predict goes to be a extremely highly effective instrument that integrates in with every part else that they are doing. Hopefully, with a number of the greatest in trade, peer comparability studies and suggestion monitoring. After which once more, the automation a part of it’s what plenty of advisors are asking for not solely on this however different areas. In order that could possibly be by way of AI instruments that would simply be in well timed alerts that really give them the solutions they’re on the lookout for, or on this case with Kyp compliance isn’t attractive, however hey, simply remind them on a yearly foundation or materials adjustments, they do not want to try this anymore, the system will help them do this and all their different compliance necessities. So we’re very enthusiastic about that form of rollout. As a result of that is an instance of each listening to shoppers anticipating the wants of the altering trade requirements or necessities, and constructing out additional issues like that. The opposite principal space that we’re evolving with, like I mentioned, it is simply integration of fundamentals, financials, economics, you realize, these sorts of issues that we need to take a unique step and say, Hey, we’re that full market intelligence packages. So that is what I will be spending the remainder of my 12 months on, is constructing that out, after which hopefully, create an important product that any any advisor will, will slot in with, as a result of we have been, you realize, lots of people come to us with outdoors analysis that is nice built-in with our system present that overlay on high of it, we need to be that system that hopefully can do all of it for them. They will nonetheless convey their very own analysis in, however at the least they will come to us with with that. In order that’s form of the place we’re transferring. After which after all, you realize, 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 shoppers. And you realize, lots of people would possibly say that, but additionally automation instruments, AI instruments that may save individuals time and truly give them outcomes. Like you’ll be able to create AI instruments that actually 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 centered on so not simply creating AI instruments simply to try this, however to essentially 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 nicely.
David Kitai 00:24:10
Huge targets, large ambitions. However you have you have met and exceeded these targets earlier than and we have acknowledged it earlier than and we’re glad to acknowledge it once more. So all with that. Sadly, that’s on a regular basis we’ve however I simply need to say thanks a lot for these nice solutions and congratulations to your self and to the entire crew 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 important remainder of your day. Bye bye