David Kitai 00:00:08
Whats up and Welcome to a really particular episode of WPTV. My identify is David Kitai, Senior Editor at Wealth Skilled. This summer time, we hosted the tenth annual WP awards celebrating the very best and brightest within the wealth administration business, from advisors to funding answer suppliers. Hamilton ETFs was one of many funding suppliers acknowledged, named as an Excellence Awardee for ETF supplier of the 12 months. To debate their recognition, we’re fortunate to be joined by Patrick Somerville, Senior Companion and Co-President at Hamilton ETFs and Jennifer Mersereau, Senior Companion, 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 large query popping out of the awards. Why do you people assume that you just have been acknowledged?
Patrick Somerville 00:00:55
Certain, I believe it is largely a perform of our vital development final 12 months, and likewise possibly a mixture, too, of our development with some launches of some revolutionary ETFs as properly. However simply to offer you some context, we started the 12 months at about 1.8 billion in AUM, after which we ended the 12 months at 3.8 billion. So we had development over 100% which was a terrific 12 months, so we’re fairly happy with that. And immediately, right here we sit midway by means of, or greater than midway by means of, 2024 and we’re presently about 5 billion. So the expansion has continued, and yeah, issues are going very properly for us.
David Kitai 00:01:32
Okay, congratulations. I imply, that’s vital development. I suppose , as you have a look at that development. What would you attribute it to? Patrick, you talked about, , some revolutionary product, product launches, however, however what particularly do you assume has pushed that development for you?
Patrick Somerville 00:01:48
Yeah, a number 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 12 months, the place we now cowl or have a method, a lined name technique in nearly each fashionable North American sector, permitting traders to earn larger earnings from sectors, most popular sectors in North America. In order that suite’s been rising fairly quickly. It is an revolutionary method to lined calls. This isn’t a class that is new, however we took a singular spin on it after we launched the suite the place we now have an earnings first method to cowl calls. So we’re emphasizing the earnings extra so than development. And as demographics have been altering, we have seen, , larger demand for larger month-to-month earnings. So these methods are constructed for traders like that.
David Kitai 00:02:42
So these improvements and product launches have been wonderful, 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 development?
Jennifer Mersereau 00:02:57
Now that is a fantastic query. The truth is, as a lot as we have grown in belongings over the past couple of years, we have grown in personnel on the identical time. So there’s been a number of rising pains right here, however everybody right here is like high notch, and has carried out a incredible job. I do know Pat and I’ve talked about this lots, about how a lot we get pleasure from our group. We expect we now have among the finest groups on the road. They’re good, they’re humorous, they’re revolutionary, they’re a fantastic 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 we now have, I imply, I may identify everyone i However I undoubtedly ought to identify again asadi, our head of Prague technique, who has been proper there with bringing ahead some concepts. But it surely’s nonetheless, it is on the finish of the day. It is a full group method. We do not take with no consideration anyone inside the group. We all know each effort from , getting ready the prospectus to getting ready the advertising and marketing supplies, to speaking to advisors, and many others. 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 relating to our group.
David Kitai 00:04:19
So who would you say is the type of investor that you just you wish to serve?
Patrick Somerville 00:04:24
Yeah, I believe it is a mixture, proper? So there’s the earnings centered investor, which might, , be appropriate for our lined name, ETFs. So our yield Maximizer, ETFs, there’s the overall return the extra development oriented traders which might be snug with somewhat little bit of leverage, modest leverage modest leverage of 25% so they might be may need to check out our enhanced suite of ETFs, after which we now have our core Canadian financial institution in Financials, ETFs, which might 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 kind 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 out there or adjustments in fairness tendencies, 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 vital for us to once more, keep an lively dialog with advisors and get a really feel for his or her wants. I will provide you with an instance. So when quantitative easing completed and we went right into a tightening interval, that was actually a giant change for fastened earnings markets. Up till then, there have been no fastened earnings lined name methods. We have been the primary to launch a lined name fastened earnings technique with H bond. And actually what was altering was the amount of tightening reintroduced bond market volatility. And as , volatility is crucial for possibility methods. In order that was actually a cue for us, and it enabled us to launch a product like that. And clearly, fastened 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 folks we communicate to.
David Kitai 00:06:24
Okay, wonderful. As one thing of a effective query. You realize, the advisors who’re watching this immediately, 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 accustomed to us, which is rising on a regular basis, I believe that they might know that we’re very conscious of their questions, their wants, however along with that, as as Pat alluded to listening to what they’re really wanting, however educating them as properly, and serving to to teach their purchasers on each our merchandise in addition to the broader panorama. So I believe we have actually imply after we began years, fairly just a few years in the past. Now, it was all in regards to 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 need to be nice companions, and we’re not simply attempting to launch merchandise for the sake launching merchandise. We need to, , assist fulfill their wants.
Patrick Somerville 00:07:43
We need to be balanced in our method. So we now have these, these totally different pillars of our of our ETF lineup, and it isn’t a one dimension suits all. There’s totally different methods for various folks, and we’re attempting 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 the whole lot that is that is underneath 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 world 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 we now have a really excessive service mannequin, so the advisors that know us properly know that we’re very accessible and at all times obtainable to them.
David Kitai 00:08:41
No, that is nice to listen to. And there is a diploma of intentionality behind this, and likewise that willingness to agitate. And I can simply say, as a reporter, I at all times admire having the ability to speak to somebody from Hamilton ETFs when there’s information in regards to the Canadian banks. So thanks for being an open 12 months there. And sadly, that’s on a regular basis we now have immediately. 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 admire it.
David Kitai 00:09:13
And thanks to all of our viewers for Wealth Skilled, I’ve been David Kitai, have a fantastic remainder of your day.