James Burton: [00:00:05]

Hey everybody, and welcome to this WP TV particular. My title is James Burton, managing editor of Wealth Skilled Canada. As we speak 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 just lately named an excellence awardee of the WP awards within the Portfolio Discretionary Supervisor of the 12 months class, sponsored by Avenue Residing Asset Administration. So with that in thoughts, what higher time to select John’s brains about how he is managed to ship such a prime class service to his purchasers. First up, John, I wish to ask you, your portfolio technique outperforms the S&P 500. So are you able to carry the lid a little bit on the way you managed to attain that?

John Soutsos: [00:00:55] Properly, with out releasing the key sauce, basically, there are three parts to my portfolio. To begin with, it is a extra concentrated portfolio than what traders are accustomed to it from, whether or not or not it’s ETFs, or mutual funds or different personal wealth administration options. That is a part of the energy of the mannequin portfolio. The opposite side is we now have our parts of development shares in there in addition to defensive shares and the portfolio is Connor is targeted in america and for functions of liquidity, and development potential. So between these three, 4, I ought to say 4 parts, as a result of that is a geographic allocation enjoying a task as nicely. That’s how the portfolio managed to outperform the index. Preserving in thoughts that was the publicity to the US there may be the foreign money volatility, nevertheless it has been my expertise over the course of time, each time there’s hassle out there, cash flows to the US greenback. And due to this fact, as a Canadian domiciled funding group, we profit from that, and it supplies further safety for traders.

James Burton: [00:02:11] Thanks, Johnny, you alluded there to numerous mannequin allocations, perhaps we are able to dig a little bit deeper into how you utilize these to assist your purchasers.

John Soutsos: [00:02:21] So there are a number 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 reality, once we take a look at their danger metrics of the mannequin portfolio, despite the fact that it is 100%, equities, and truly 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 completely different mannequin decisions. That being stated, as a result of conference, I did create further mannequin picks. So for instance, we do have our defensive mannequin, we now have 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 danger reward, commerce off preferences, after which from that data together with an in depth interview or an understanding of the purchasers now it really works at anytime we decide which mannequin can be best suited.

James Burton: [00:03:49] As you realize higher than me, John, communication is essential for not simply shopper relationships, but additionally 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 couple of issues about communication. And the initially being that you need to keep in fixed contact along with your purchasers. Now, my first shopper means again in 1986, was a girl who handed me a examine after opening up an account and stated, I am leaving for Florida now for six months, be sure 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 some other purchasers, I mainly wrote her a letter in, that is 1986. So we do not have emailing. And phone calls are a little bit bit costly. So I wrote her a letter on a typewriter and mailed it to her as soon as every week at offering her with portfolio valuation updates. And by the point she acquired 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 purchasers over the course of generations. So communications have been achieved with me from the very outset. So on the strains of talk alongside the strains of communication. At present, what I do is I write a weekly publication. So the publication is a recap of what is been occurring within the markets over the previous week, in addition to some insights as to what I consider how issues will likely be unfolding within the within the close to future, clearly, whereas we are able to predict the longer term, however we are able to challenge tendencies 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 purchasers on a quarterly foundation, or semi annual foundation, relying on the particular person’s preferences. Oftentimes, these conferences will not be on the workplace, truly, more often than not, they are not on the workplace. Sometimes we’ll meet with individuals at a restaurant, or at my golf membership, the place we are going to share a meal, or simply through the summer season, as we’re doing right now, we’ll be having across the Golf with considered one of our purchasers. In order that’s the kind of communication we now have on an ongoing foundation on a private degree. Along with that, I host a number of dinner shows, usually between 4 and 6 dinner shows all year long. And I invite each purchasers and potential purchasers to those shows in an effort 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 method to serving to individuals present purchasers perceive and in addition introducing the mannequin portfolio to potential purchasers.

James Burton: [00:06:55] I am unable to 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 right now’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 purchasers is perspective. As we speak, we’re inundated with data and it is vitally tough for individuals to kind out data. So I like to put issues into perspective and nothing locations issues into perspective, like a very good 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 purchasers 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? To begin with, I 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 yr. And I feel, nicely, If they will get to that stage, why cannot I However that being stated, I perceive that purchasers and potential purchasers have considerations 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 way of 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 apply and he is at present working with me very intensely to study portfolio man renting though that being stated, He is already a degree one CFA constitution holder no not a constitution holder however he’s finishing degree one of many CFA Program. So he is working with me to study portfolio administration. However he is additionally working with me, too, in assembly all of my purchasers and prospecting to get new purchasers. So Alexander has been working with me for the final yr in an effort 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 advisor, and as an analyst with CI investments. So he does present analytical providers as nicely for potential purchasers attempting to interrupt down their portfolio and permitting me to offer a suggestion.

James Burton: [00:10:41] Thanks, John. And at last, the extra rapid future, what’s subsequent in your apply? What objectives have you ever set for the yr forward?

John Soutsos: [00:10:49] Properly, it is we’re very excited. We’re launching a podcast my son and I, it is known 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 are going to introduce the podcast and exit the podcast each week with some monetary data. However the meat of the podcast goes to give attention to different areas, our experiences, journey, eating strains, and so on, and so on. So life-style pursuits, we’re very enthusiastic about it. We’ve some friends lined up. And our purpose is to increase our publicity to {the marketplace}. Utilizing this podcast, we are going to proceed with the dinner shows as nicely. And the target, the target is to extend our enterprise by no less than 20% Over the approaching 12 months. We even have an ambition to doubtlessly launch a fund. Proper now our providers within the personal wealth administration space. So purchasers have direct possession of the underlying securities. Oh, we’re additionally fascinated with lending, launching a fund model that may open up a portfolio on to traders on a broader scale.

James Burton: [00:12:10] Thanks a lot, John, in 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 crew, please go to johnsoutsos.com And do not forget to go to wealth skilled.ca For all the most recent information and views on the trade. Be part of us subsequent time on WP TV.