How veteran portfolio supervisor has constructed an enduring observe

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James Burton: [00:00:05]

Whats up everybody, and welcome to this WP TV particular. My title is James Burton, managing editor of Wealth Skilled Canada. Right now I am delighted to welcome John Soutsos, Portfolio Supervisor at Med-Wealth Monetary of IPC Securities Company. John, thanks for becoming a member of us.

John Soutsos: [00:00:22] Good morning, James. And it is my pleasure.

James Burton: [00:00:26] Now, John was lately named an excellence awardee of the WP awards within the Portfolio Discretionary Supervisor of the Yr class, sponsored by Avenue Residing Asset Administration. So with that in thoughts, what higher time to choose John’s brains about how he is managed to ship such a high class service to his shoppers. First up, John, I wish to ask you, your portfolio technique outperforms the S&P 500. So are you able to carry the lid just a little on the way you managed to realize that?

John Soutsos: [00:00:55] Properly, with out releasing the key sauce, primarily, there are three components to my portfolio. Initially, it is a extra concentrated portfolio than what buyers are accustomed to it from, whether or not or not it’s ETFs, or mutual funds or different non-public wealth administration options. That is a part of the energy of the mannequin portfolio. The opposite facet is we’ve our components of development shares in there in addition to defensive shares and the portfolio is Connor is concentrated in the US and for functions of liquidity, and development potential. So between these three, 4, I ought to say 4 components, as a result of that is a geographic allocation taking part in a task as properly. That’s how the portfolio managed to outperform the index. Retaining in thoughts that was the publicity to the US there may be the foreign money volatility, but it surely has been my expertise over the course of time, at any time when there’s hassle out there, cash flows to the US greenback. And due to this fact, as a Canadian domiciled funding neighborhood, we profit from that, and it supplies extra safety for buyers.

James Burton: [00:02:11] Thanks, Johnny, you alluded there to varied mannequin allocations, perhaps we will dig just a little deeper into how you utilize these to assist your shoppers.

John Soutsos: [00:02:21] So there are a selection of mannequin allocations now the core portfolio is 100% equities. And in reality, I designed it to be an multi functional portfolio resolution for seasoned portfolio resolution. In actual fact, once we take a look at their threat metrics of the mannequin portfolio, regardless that it is 100%, equities, and really behaves extra like a 70% inventory 30% bond portfolio, that allocation would in all probability swimsuit the overwhelming majority of the funding out of the funding public. So we do not essentially must have totally different mannequin decisions. That being stated, because of conference, I did create extra mannequin picks. So for instance, we do have our defensive mannequin, we’ve a steadiness. And let’s outline the asset combine, a defensive mannequin is 5050, half shares, half bonds, be a balanced portfolio is 65% of shares, 35% bonds, the expansion mannequin is 80 20. And naturally, the core portfolio itself is 100% fairness so we run a questionnaire to establish individuals’s threat reward, commerce off preferences, after which from that data together with an in depth interview or an understanding of the shoppers now it really works at anytime we decide which mannequin can be most fitted.

James Burton: [00:03:49] As you recognize higher than me, John, communication is essential for not simply shopper relationships, but in addition shopper retention. So how do you stand out in that regard?

John Soutsos: [00:03:58] Properly, given the truth that I have been on this enterprise since 1986, I’ve realized a number of issues about communication. And the at the start being that you need to keep in fixed contact together with your shoppers. Now, my first shopper method again in 1986, was a girl who handed me a verify after opening up an account and stated, I am leaving for Florida now for six months, ensure you take excellent care of us. And it was fairly an intimidating expertise and interplay. I used to be very younger on the time and she or he was a really profitable enterprise lady was fairly rich. So I since I did not have another shoppers, I mainly wrote her a letter in, that is 1986. So we do not have emailing. And phone calls are just a little bit costly. So I wrote her a letter on a typewriter and mailed it to her as soon as per week at offering her with portfolio valuation updates. And by the point she received again to Toronto from Florida six months later, she was totally impressed with my diploma of communication And from her, I got here to different main referrals that turned out to create a lineage of shoppers over the course of generations. So communications have been achieved with me from the very outset. So on the traces of talk alongside the traces of communication. At the moment, what I do is I write a weekly publication. So the publication is a recap of what is been taking place within the markets over the previous week, in addition to some insights as to what I imagine how issues can be unfolding within the within the close to future, clearly, whereas we will predict the long run, however we will undertaking traits and into the close to future. So there’s a few of that in within the publication, I additionally present my private opinions on what is going on on by way of media’s new off the markets and different issues. Along with that I meet with my shoppers on a quarterly foundation, or semi annual foundation, relying on the particular person’s preferences. Oftentimes, these conferences aren’t on the workplace, really, more often than not, they don’t seem to be on the workplace. Sometimes we’ll meet with individuals at a restaurant, or at my golf membership, the place we’ll share a meal, or simply through the summer season, as we’re doing in the present day, we will be having across the Golf with one among our shoppers. In order that’s the kind of communication we’ve on an ongoing foundation on a private stage. Along with that, I host a number of dinner shows, sometimes between 4 and 6 dinner shows all year long. And I invite each shoppers and potential shoppers to those shows so as to each develop our enterprise and submit the ideas of the portfolio within the minds of our present clientele, and to allow them to higher perceive what we’re doing, and that goes a protracted strategy to serving to individuals present shoppers perceive and in addition introducing the mannequin portfolio to potential shoppers.

James Burton: [00:06:55] I can not assist noticing John three miniature busts positioned both facet of you. Please inform me extra in regards to the significance of those?

John Soutsos: [00:07:05] Properly, two of the busts are of historic Greek philosophers, Aristotle and Homer. And the third one is Sir Winston Churchill. I am somebody who’s an avid fan of historical past, and my heritage is Greek. I used to be born in Greece. And I like to study and one factor I additionally get pleasure from doing and I introduce all my newsletters was a quote from completed people or individuals who have displayed overlap spoken philosophically, all through historical past. So I Sir Winston Churchill is a kind of people and he has been quoted are very helpful in in the present day’s world. However actually the respective of the ancients from from Greece are additionally very helpful. I feel one of many qualities that I deliver to the relationships I’ve with my shoppers is perspective. Right now, we’re inundated with data and it is rather tough for individuals to kind out data. So I like to put issues into perspective and nothing locations issues into perspective, like a superb quote from somebody in historical past, and in addition typically somebody who’s at present dwelling

James Burton: [00:08:20] from typewriter to emailed newsletters. It’s nice story, John. Now, succession planning is crucial for shoppers peace of thoughts, how does your loved ones dynamic work almost about the enterprise?

John Soutsos: [00:08:32] For the longest time a succession plan was non existent? Initially, I really like what I do. It’s my enterprise. And that does not contain digging ditches. So bodily, it is not taxing. And I can do that for I take a look at fashions like Warren Buffett and Charlie Munger who’re of their 90s. And now, Charlie, I feel he’s turning a 100 this 12 months. And I feel, properly, If they’ll get to that stage, why cannot I However that being stated, I perceive that shoppers and potential shoppers have issues about succession planning. And so our agency and IPC securities does have the capability to tackle accounts, following the retirement of an advisor or in my case, a portfolio supervisor and proceed on with them by a head officer association that being stated that isn’t optimum. And so after being within the enterprise world for about eight years, and so forth, my eldest son Alexander Soutsos has joined my observe and he is at present working with me very intensely to find out about portfolio man renting though that being stated, He is already a stage one CFA constitution holder no not a constitution holder however he’s finishing stage one of many CFA Program. So he is working with me to find out about portfolio administration. However he is additionally working with me, too, in assembly all of my shoppers and prospecting to get new shoppers. So Alexander has been working with me for the final 12 months so as to get to know my clientele, and to develop his personal clientele and to study the ropes one another’s portfolio administration. He is additionally very analytical by his nature, he labored at KPMG for a few years as a senior guide, and as an analyst with CI investments. So he does present analytical companies as properly for potential shoppers attempting to interrupt down their portfolio and permitting me to provide a advice.

James Burton: [00:10:41] Thanks, John. And eventually, the extra instant future, what’s subsequent on your observe? What targets have you ever set for the 12 months forward?

John Soutsos: [00:10:49] Properly, it is we’re very excited. We’re launching a podcast my son and I, it is referred to as prescribing prosperity. And will probably be launching someday within the subsequent month. And we’ll be bringing on friends from varied fields of curiosity, it is not going to be solely about monetary issues, though we’ll introduce the podcast and exit the podcast each week with some monetary data. However the meat of the podcast goes to deal with different areas, our experiences, journey, eating traces, and so on, and so on. So way of life pursuits, we’re very enthusiastic about it. We’ve got some friends lined up. And our purpose is to increase our publicity to {the marketplace}. Utilizing this podcast, we’ll proceed with the dinner shows as properly. And the target, the target is to extend our enterprise by at the very least 20% Over the approaching 12 months. We even have an ambition to doubtlessly launch a fund. Proper now our companies within the non-public wealth administration space. So shoppers have direct possession of the underlying securities. Oh, we’re additionally excited by lending, launching a fund model that can open up a portfolio on to buyers on a broader scale.

James Burton: [00:12:10] Thanks a lot, John, on your time and insights.

John Soutsos: [00:12:13] James, thanks very a lot.

James Burton: [00:12:15] And if you need extra data on John and his group, please go to johnsoutsos.com And remember to go to wealth skilled.ca For all the newest information and views on the business. Be a part of us subsequent time on WP TV.

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