How veteran portfolio supervisor has constructed a long-lasting follow


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. 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 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 high class service to his purchasers. First up, John, I need to ask you, your portfolio technique outperforms the S&P 500. So are you able to carry the lid slightly on the way you managed to realize that?

John Soutsos: [00:00:55] Properly, with out releasing the key sauce, primarily, there are three parts to my portfolio. Initially, it is a extra concentrated portfolio than what traders are accustomed to it from, whether or not it’s ETFs, or mutual funds or different non-public wealth administration options. That is a part of the power of the mannequin portfolio. The opposite facet is now we 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 taking part in a job as nicely. That’s how the portfolio managed to outperform the index. Holding in thoughts that was the publicity to the US there may be the forex volatility, but it surely has been my expertise over the course of time, each time there’s hassle out there, cash flows to the US greenback. And subsequently, as a Canadian domiciled funding group, we profit from that, and it offers further safety for traders.

James Burton: [00:02:11] Thanks, Johnny, you alluded there to varied mannequin allocations, possibly we are able to dig slightly deeper into how you employ 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 actually, I designed it to be an multi functional portfolio answer for seasoned portfolio answer. The truth is, once we take a look at their danger metrics of the mannequin portfolio, despite the fact 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 have to have totally different mannequin selections. That being mentioned, as a result of conference, I did create further mannequin picks. So for instance, we do have our defensive mannequin, now we 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 folks’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 most fitted.

James Burton: [00:03:49] As higher than me, John, communication is essential for not simply consumer relationships, but additionally consumer 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 discovered just a few issues about communication. And the in the beginning being that you must keep in fixed contact along with your purchasers. Now, my first consumer method again in 1986, was a lady who handed me a examine after opening up an account and mentioned, 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 he or she was a really profitable enterprise lady was fairly rich. So I since I did not have every other purchasers, I principally wrote her a letter in, that is 1986. So we do not have emailing. And phone calls are slightly 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 obtained 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 traces of talk alongside the traces of communication. Presently, what I do is I write a weekly e-newsletter. So the e-newsletter 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 long run, however we are able to undertaking tendencies and into the close to future. So there’s a few of that in within the e-newsletter, 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 individual’s preferences. Oftentimes, these conferences aren’t on the workplace, really, more often than not, they are not on the workplace. Usually we’ll meet with folks at a restaurant, or at my golf membership, the place we are going to share a meal, or simply in the course of the summer season, as we’re doing at this time, we will be having across the Golf with certainly one of our purchasers. In order that’s the kind of communication now we have on an ongoing foundation on a private stage. Along with that, I host a number of dinner displays, sometimes between 4 and 6 dinner displays all year long. And I invite each purchasers and potential purchasers to those displays with a view 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 folks 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 concerning the significance of those?

John Soutsos: [00:07:05] Properly, two of the busts are of historical 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 be taught 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 at this time’s world. However definitely 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 rather troublesome for folks to type out data. So I like to position issues into perspective and nothing locations issues into perspective, like a superb quote from somebody in historical past, and in addition generally somebody who’s presently dwelling

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

John Soutsos: [00:08:32] For the longest time a succession plan was non existent? Initially, I like what I do. It’s my enterprise. And that does not contain digging ditches. So bodily, it isn’t 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, nicely, If they will get to that stage, why cannot I However that being mentioned, I perceive that purchasers and potential purchasers 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 way of a head officer association that being mentioned 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 follow and he is presently working with me very intensely to find out about portfolio man renting though that being mentioned, 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 purchasers and prospecting to get new purchasers. So Alexander has been working with me for the final 12 months with a view to get to know my clientele, and to develop his personal clientele and to be taught 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 companies as nicely for potential purchasers attempting to interrupt down their portfolio and permitting me to present a advice.

James Burton: [00:10:41] Thanks, John. And eventually, the extra rapid future, what’s subsequent to your follow? What objectives 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 it is going to be launching someday within the subsequent month. And we’ll be bringing on company 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 traces, and many others, and many others. So life-style pursuits, we’re very enthusiastic about it. We now have some company lined up. And our aim is to broaden our publicity to {the marketplace}. Utilizing this podcast, we are going to proceed with the dinner displays as nicely. 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 probably launch a fund. Proper now our companies within the non-public wealth administration space. So purchasers have direct possession of the underlying securities. Oh, we’re additionally interested by lending, launching a fund model that can open up a portfolio on to traders on a broader scale.

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

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

James Burton: [00:12:15] And if you would like extra data on John and his staff, please go to And remember to go to wealth For all the most recent information and views on the trade. Be part of us subsequent time on WP TV.


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