Monday, December 19, 2011
Globefund upgrades Brigata Canadian Equity Fund to Five Stars (Top Rating)
With its fourth anniversary just around the corner in January, the Brigata Canadian Equity Fund has a lot to be proud of. Globefund has moved the fund to its top rating of five stars. As well, the Brigata Canadian Equity Fund has beaten the Canadian equity fund group average yet again with a better than average 1, 2 and 3 year rate of return. The fund was able to achieve better than average performance while maintaining a lower 3 year risk level than the group average.
Wednesday, November 30, 2011
Vince Valenti joins the MFDA Board of Directors
At this morning's 2011 annual general meeting for the Mutual Fund Dealer's Assocation (MFDA) held in Toronto, Vince Valenti was officially added to the MFDA Board of Directors as an Industry Director for a two year term.
Thursday, November 24, 2011
Brigata Canadian Equity Fund Beats the Street !
GlobeFund reports that Brigata Canadian Equity Fund has beat the Group Average (Canadian Equity Funds) with the best 1, 2 and 3 year rates of return while maintaining a lower risk and beta than the group average and the index.
Thursday, November 10, 2011
New Technology Begins its Roll-Out to Financial Advisors
After many months of development, the technical team at IPG have begun the process of installing our latest generation of technology on our advisor's desktops and laptops. Along with full real-time collaboration, CRM, compliant ready websites that offer products and services, this new technology is in hot demand by our advisors and will undoubtably create higher levels of productivity and revenue opportunities.
Wednesday, September 14, 2011
IPG Annual Conference in Quebec City
We're all very excited and getting ready to host our independent financial advisors in beautiful Quebec City. The conference is open to all financial advisors and their administrators and is not based on sales qualification. We'll spend three days listening to some of the industry's most respected money managers, economists and practice management consultants. Of course, we always find some time to relax, unwind and have some fun.
Monday, July 18, 2011
Brigata Canadian Equity Fund now 1st Quartile and 4 Star GlobeFund Ranking
Great news for the investors of the Brigata Canadian Equity Fund! Globefund has given the Brigata Canadian Equity Fund a four star ranking and the fund is now in the 1st quartile on a year to-date basis. As an added benefit, the 3 year beta is lower than the industry average, meaning less volatility.
Please note the following disclaimer:
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing which summarizes the Fund's objectives, fees, expenses and associated risks. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.This commentary is for information purposes based on information available as of July 18, 2011 and is not specific financial and investment advice. You should not rely on its content without seeking the advice of your financial advisor. Information was obtained through GlobeFund.com.
Please note the following disclaimer:
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing which summarizes the Fund's objectives, fees, expenses and associated risks. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.This commentary is for information purposes based on information available as of July 18, 2011 and is not specific financial and investment advice. You should not rely on its content without seeking the advice of your financial advisor. Information was obtained through GlobeFund.com.
Tuesday, July 12, 2011
SAMPLE CONTINGENCY AGREEMENT Video
Vince Valenti, President of IPG Inc. gives advice to financial advisors.
Click here to view the video: Sample Contingency Agreement
http://www.joinipg.com for more info
Click here to view the video: Sample Contingency Agreement
http://www.joinipg.com for more info
Wednesday, June 29, 2011
Julia Chapman Radio Interview on EZ ROCK 99.7fm
If you've ever thought a career in finances just didn't add up for you go check your math again! Julia Chapman from Independant Planning Group joined the EZ Breakfast show with all of the reasons why women make great financial planners.
Click Here for Radio Interview
Click Here for Radio Interview
WHY JOIN IPG Video
Watch this short video to find out more information about IPG and it's partner companies.
http://www.youtube.com/watch?v=RBZ0Yb6oStc&feature=player_embedded
Speaker:
Julia Chapman, Business Development & Recruitment Manager
Email: jchapman@joinipg.com
Phone: 1 800 565-9219 ext: 228
http://www.joinipg.com
http://www.youtube.com/watch?v=RBZ0Yb6oStc&feature=player_embedded
Speaker:
Julia Chapman, Business Development & Recruitment Manager
Email: jchapman@joinipg.com
Phone: 1 800 565-9219 ext: 228
http://www.joinipg.com
Wednesday, May 4, 2011
Thursday, March 24, 2011
Strategic Alliance of PPI Solutions and IPG Insurance Inc. will benefit IPG Advisors
PPI Solutions Inc. is pleased to announce a strategic alliance agreement with IPG Insurance Inc. of Ottawa. The agreement offers IPG’s advisors access to the extensive resources of PPI Solutions.
PPI Solutions, in conjunction with PPI, has and is developing a suite of advisor tools- The PPI Solutions ToolKit. Each unique tool assists them to build an effective, compliant and efficient practice. In addition, PPI Solutions and PPI are working with several insurance companies to develop speciality products paired with PPI’s unique marketing support software (the PPI Solutions Tool Kit) that will only be available to PPI Solutions advisors. The life licensed advisors doing business with Independent Planning Group will have full access to both the proprietary PPI Solutions Tool Kit and the dynamic suite of products only at PPI Solutions.
“We are very excited about our new strategic alliance with PPI Solutions. We’ve long recognized PPI as a leader in the insurance industry with impressive sales and marketing support that’s helping thousands of advisors across Canada grow their businesses.” says Allan Bulloch, president of IPG Insurance Inc.
PPI, through its’ marketing arms, PPI Advisory and PPI Solutions, is Canada’s pre-eminent insurance distributor supporting advisors working in both the high net worth and mid markets, (respectively). Both companies are strong industry leaders with thirty plus year track records in comprehensively supporting advisors to make their practices more successful.
“Ottawa was identified as a city PPI Solutions wanted to expand into and this strategic alliance allows us to fulfill that goal. For over 8 years now we’ve worked with Allan Bulloch and the team he’s put together in Ottawa and this truly was a natural fit for our PPI Solutions Ottawa planned expansion” commented Jim Virtue, President of PPI Solutions.
IPG Insurance Inc. is the insurance arm of Independent Planning Group Inc. one of the largest independent mutual fund dealers in Canada. Since 1990, Independent Planning Group has offered independent financial and insurance advisors innovative technology, support and compliance to operate and grow their businesses their own way. “In addition to the extensive offering from our dealership, technology firm, and mutual fund company our new alliance with PPI Solutions offers, further enhances our value position with the addition of PPI Solutions unique technology tools, service and support,” quoted Vince Valenti, founder and President of Independent Planning Group.
To view a brief demonstration of the PPI Toolkit, please click here.
PPI Solutions, in conjunction with PPI, has and is developing a suite of advisor tools- The PPI Solutions ToolKit. Each unique tool assists them to build an effective, compliant and efficient practice. In addition, PPI Solutions and PPI are working with several insurance companies to develop speciality products paired with PPI’s unique marketing support software (the PPI Solutions Tool Kit) that will only be available to PPI Solutions advisors. The life licensed advisors doing business with Independent Planning Group will have full access to both the proprietary PPI Solutions Tool Kit and the dynamic suite of products only at PPI Solutions.
“We are very excited about our new strategic alliance with PPI Solutions. We’ve long recognized PPI as a leader in the insurance industry with impressive sales and marketing support that’s helping thousands of advisors across Canada grow their businesses.” says Allan Bulloch, president of IPG Insurance Inc.
PPI, through its’ marketing arms, PPI Advisory and PPI Solutions, is Canada’s pre-eminent insurance distributor supporting advisors working in both the high net worth and mid markets, (respectively). Both companies are strong industry leaders with thirty plus year track records in comprehensively supporting advisors to make their practices more successful.
“Ottawa was identified as a city PPI Solutions wanted to expand into and this strategic alliance allows us to fulfill that goal. For over 8 years now we’ve worked with Allan Bulloch and the team he’s put together in Ottawa and this truly was a natural fit for our PPI Solutions Ottawa planned expansion” commented Jim Virtue, President of PPI Solutions.
IPG Insurance Inc. is the insurance arm of Independent Planning Group Inc. one of the largest independent mutual fund dealers in Canada. Since 1990, Independent Planning Group has offered independent financial and insurance advisors innovative technology, support and compliance to operate and grow their businesses their own way. “In addition to the extensive offering from our dealership, technology firm, and mutual fund company our new alliance with PPI Solutions offers, further enhances our value position with the addition of PPI Solutions unique technology tools, service and support,” quoted Vince Valenti, founder and President of Independent Planning Group.
To view a brief demonstration of the PPI Toolkit, please click here.
Saturday, March 5, 2011
A Threat to Independence - Financial Advisors must get Back to Basics
With the recent acquisition of DundeeWealth Inc. by the Bank of Nova Scotia, the top 5 banks in Canada now control two thirds of the mutual fund assets under management and about one half of the licensed representatives that distribute mutual funds in Canada.
It won’t be long until the disadvantages of an oligopoly will be upon all product manufacturers, advisors and investors. As you may remember, an oligopoly is a market situation in which control over the supply of a commodity, product or service is held by a small number of producers each of whom is able to influence prices and thus directly affect the position of competitors. As the banks continue to make strategic acquisitions and further their expansion into the insurance sector, it seems that the days of true independence may be numbered.
Independence is both a blessing and a curse
The financial advisory community in Canada is made up of thousands of proprietorships as our industry has had a relative easy access to entry (ie: easy to get licensed and become an advisor). As a result, the large majority of these proprietorships are managed and operated by the financial advisor and in some cases will have an administrative assistant to help with managing client accounts. Many of these proprietorships will begin to or have begun to suffer from the lack of a business and marketing plan. Their practices will begin to see erosion of assets as the major banks continue to flex their brand and marketing muscle and introduce the same products and services that the proprietorships presently offer.
Ease of entry and the lack of business discipline have resulted in a poor reputation for financial advisors. The very term itself, “financial advisor” implies that these individuals are capable of offering financial guidance but not all advisors are able to do so. Some have been motivated by the variable high commission structure that product suppliers are willing to pay.
Existing branch offices of the independent channel are also challenged. Typically, the largest producer will be the branch manager and will house or support several smaller producing advisors. The branch manager producer is usually so busy managing his/her own practice that the junior advisors are left to fend for themselves. These branches offer the junior advisors access to the branch administrator to process new business and perform some compliance. Otherwise, no other operational or marketing support is available.
What Can We Do About This? – Get Back to Basics
Independent financial advisors must make financial planning the main value proposition for their clients. Proper financial planning means using a process that will set advisors apart from their bank competitors by ensuring that they are able to answer the important questions that most clients have in the back of their minds such as:
• Will I have enough money saved for a comfortable retirement?
• Will my family be properly looked after if a sudden critical illness or death should arise?
• Is my estate properly organized to ensure that my beneficiaries will get the most value of my life savings and belongings?
• Am I taking advantage of all tax strategies that a person of my risk tolerance should have?
Just as important as the initial financial plan is the annual review process with each client to ensure they are sticking to the goals and the strategies of the plan. I think you will agree that the bank branches are not performing this critical process.
Consider Working with other Advisors
Do you know of other advisors that are trust worthy and hard-working who can add value to your client value proposition? If you are predominately an investment advisor, would it make sense for you to search out advisors that specialize in estate planning, tax planning and other complimentary services that can be offered to the group of clients?
As expenses continue to grow for advisors, joining forces to add more client services and the opportunity to share in office overhead expenses can be a real win for all parties concerned.
Get the Message Out to your Clients and Prospects
You might be able to build a better mouse trap but the world must be able to learn about it. Put yourself in a prospect’s shoes for a moment and think about how you can educate your prospects and clients on the services you offer and how you differentiate yourself. This could be done without having to spend a lot of money such as developing a newsletter, some marketing literature or brochures.
Work with companies and people that support your independence
You’re not alone. Many of your suppliers in the investment and insurance fields are just as concerned as you are about the threat to independence and want to help you. Think about which companies support your independence and support them as well.
Vince Valenti is the president of Independent Planning Group Inc, an independent mutual fund dealership that is licensed across the country. He is also the president of Brigata Capital Management Inc, a Canadian mutual fund company.
It won’t be long until the disadvantages of an oligopoly will be upon all product manufacturers, advisors and investors. As you may remember, an oligopoly is a market situation in which control over the supply of a commodity, product or service is held by a small number of producers each of whom is able to influence prices and thus directly affect the position of competitors. As the banks continue to make strategic acquisitions and further their expansion into the insurance sector, it seems that the days of true independence may be numbered.
Independence is both a blessing and a curse
The financial advisory community in Canada is made up of thousands of proprietorships as our industry has had a relative easy access to entry (ie: easy to get licensed and become an advisor). As a result, the large majority of these proprietorships are managed and operated by the financial advisor and in some cases will have an administrative assistant to help with managing client accounts. Many of these proprietorships will begin to or have begun to suffer from the lack of a business and marketing plan. Their practices will begin to see erosion of assets as the major banks continue to flex their brand and marketing muscle and introduce the same products and services that the proprietorships presently offer.
Ease of entry and the lack of business discipline have resulted in a poor reputation for financial advisors. The very term itself, “financial advisor” implies that these individuals are capable of offering financial guidance but not all advisors are able to do so. Some have been motivated by the variable high commission structure that product suppliers are willing to pay.
Existing branch offices of the independent channel are also challenged. Typically, the largest producer will be the branch manager and will house or support several smaller producing advisors. The branch manager producer is usually so busy managing his/her own practice that the junior advisors are left to fend for themselves. These branches offer the junior advisors access to the branch administrator to process new business and perform some compliance. Otherwise, no other operational or marketing support is available.
What Can We Do About This? – Get Back to Basics
Independent financial advisors must make financial planning the main value proposition for their clients. Proper financial planning means using a process that will set advisors apart from their bank competitors by ensuring that they are able to answer the important questions that most clients have in the back of their minds such as:
• Will I have enough money saved for a comfortable retirement?
• Will my family be properly looked after if a sudden critical illness or death should arise?
• Is my estate properly organized to ensure that my beneficiaries will get the most value of my life savings and belongings?
• Am I taking advantage of all tax strategies that a person of my risk tolerance should have?
Just as important as the initial financial plan is the annual review process with each client to ensure they are sticking to the goals and the strategies of the plan. I think you will agree that the bank branches are not performing this critical process.
Consider Working with other Advisors
Do you know of other advisors that are trust worthy and hard-working who can add value to your client value proposition? If you are predominately an investment advisor, would it make sense for you to search out advisors that specialize in estate planning, tax planning and other complimentary services that can be offered to the group of clients?
As expenses continue to grow for advisors, joining forces to add more client services and the opportunity to share in office overhead expenses can be a real win for all parties concerned.
Get the Message Out to your Clients and Prospects
You might be able to build a better mouse trap but the world must be able to learn about it. Put yourself in a prospect’s shoes for a moment and think about how you can educate your prospects and clients on the services you offer and how you differentiate yourself. This could be done without having to spend a lot of money such as developing a newsletter, some marketing literature or brochures.
Work with companies and people that support your independence
You’re not alone. Many of your suppliers in the investment and insurance fields are just as concerned as you are about the threat to independence and want to help you. Think about which companies support your independence and support them as well.
Vince Valenti is the president of Independent Planning Group Inc, an independent mutual fund dealership that is licensed across the country. He is also the president of Brigata Capital Management Inc, a Canadian mutual fund company.
Wednesday, January 5, 2011
What's a Financial Advisor's Business Really Worth?
One question that I’m frequently asked during our Succession Planning seminars deals with how to properly place a value on a financial advisor’s book of business. Many industry articles and various books may suggest using a general industry valuation to determine the approximate value. But an approximate value is exactly that, an approximate value that can be too high or too low.
In my opinion, one of the worst things that a buyer and seller can do is to assume that a general industry valuation such as 1.5 times gross revenues or 3 times recurring revenue is the proper value of a business. The problem with using a general valuation is that it assumes that all financial advisor businesses are identical.
Where to Start
The first place to start to properly determine the value of any business, and a financial advisory business is no different, must be based on proven financial and accounting models. From here, other tangible and intangible factors must be considered before you can determine a final value.
From a buyer’s perspective, he or she should be looking at the income and expenses of the business. A number of factors should be considered such as:
• Will the buyer need to hire a junior advisor to help manage the book?
• Will more office space be required?
• Financing costs?
• Do any expense obligations have to be assumed by the buyer such as leases, rents, staff etc.
• What growth can the buyer expect?
• Can the buyer expect to make a profit?
Other Considerations
Other important considerations from a buyer’s perspective should focus on the quality of the book from a compliance standpoint and the length of time and commitment the seller is willing to provide to transition the book to the buyer.
The buyer should make a point to speak to the advisor’s compliance department, with the seller’s permission, to ascertain if the advisor has had complaints, lawsuits, compliance infractions or disciplinary problems. A clean compliance bill of health could add thousands of dollars of value to a book.
Secondly, if a seller is retiring and moving to Florida within two months of the closing date versus a seller that is willing to stay in town for a one to two year period to help transition the clients to the buyer, which book should be considered more valuable?
What Should a Seller do to get the Maximum Value from the sale of their business?
The first thing that a seller should do is to put themselves into the buyer’s shoes to prepare their business for sale. Knowing what a buyer will look for should help the seller in positioning their business. This could take several months or years to put into place. As an example, if an office lease is maturing, it may make more sense to not lock in for a long period of time if a sale is imminent.
Using the Proper Valuation – Discounted Cash Flow
I believe that the proper method to value a business is based on its current financials with some projections for future growth. One of the best methods to use is the Discounted Cash Flow (DCF) method. The DCF method takes several factors into consideration and when used properly, will accurately illustrate the true value of a business which in many cases can be higher then what a general industry valuation or multiples may assume.
Precautions in using the DCF Method
The DCF method is as accurate as the information that is feed into it. As an example, certain assumptions must be made such as annual revenue growth rates, a perpetual revenue growth rate and the cost of financing. It is best to use the growth rate that the book has experienced over the past three to five years.
Final Thoughts
The seller should consider engaging the services of a business valuator or an accountant with experience in business valuations. The expense of a business valuator can range from $5,000 to $20,000 but could be a very worthwhile exercise for the seller in that minor adjustments can be made to increase the value and the seller has a credible 3rd party valuation that can be presented to a prospective buyer.
In closing, selling a business takes some effort and proper planning. If you’re thinking of selling your business, you would be prudent to plan your exit strategy about three to five years from the time you wish to be fully retired. In other words, if you want to be vacationing in Florida on your 65th birthday, you should start your planning around your 60th birthday. Proper planning upfront will help to ensure that you’re selling one of your most valuable assets to the right person at the right price.
Vince Valenti is the president of Independent Planning Group Inc. (www.joinipg.com) and the president of Brigata Capital Management Inc. (www.brigatafunds.com) . Visit our blog at www.mindyourownbiz.ca
In my opinion, one of the worst things that a buyer and seller can do is to assume that a general industry valuation such as 1.5 times gross revenues or 3 times recurring revenue is the proper value of a business. The problem with using a general valuation is that it assumes that all financial advisor businesses are identical.
Where to Start
The first place to start to properly determine the value of any business, and a financial advisory business is no different, must be based on proven financial and accounting models. From here, other tangible and intangible factors must be considered before you can determine a final value.
From a buyer’s perspective, he or she should be looking at the income and expenses of the business. A number of factors should be considered such as:
• Will the buyer need to hire a junior advisor to help manage the book?
• Will more office space be required?
• Financing costs?
• Do any expense obligations have to be assumed by the buyer such as leases, rents, staff etc.
• What growth can the buyer expect?
• Can the buyer expect to make a profit?
Other Considerations
Other important considerations from a buyer’s perspective should focus on the quality of the book from a compliance standpoint and the length of time and commitment the seller is willing to provide to transition the book to the buyer.
The buyer should make a point to speak to the advisor’s compliance department, with the seller’s permission, to ascertain if the advisor has had complaints, lawsuits, compliance infractions or disciplinary problems. A clean compliance bill of health could add thousands of dollars of value to a book.
Secondly, if a seller is retiring and moving to Florida within two months of the closing date versus a seller that is willing to stay in town for a one to two year period to help transition the clients to the buyer, which book should be considered more valuable?
What Should a Seller do to get the Maximum Value from the sale of their business?
The first thing that a seller should do is to put themselves into the buyer’s shoes to prepare their business for sale. Knowing what a buyer will look for should help the seller in positioning their business. This could take several months or years to put into place. As an example, if an office lease is maturing, it may make more sense to not lock in for a long period of time if a sale is imminent.
Using the Proper Valuation – Discounted Cash Flow
I believe that the proper method to value a business is based on its current financials with some projections for future growth. One of the best methods to use is the Discounted Cash Flow (DCF) method. The DCF method takes several factors into consideration and when used properly, will accurately illustrate the true value of a business which in many cases can be higher then what a general industry valuation or multiples may assume.
Precautions in using the DCF Method
The DCF method is as accurate as the information that is feed into it. As an example, certain assumptions must be made such as annual revenue growth rates, a perpetual revenue growth rate and the cost of financing. It is best to use the growth rate that the book has experienced over the past three to five years.
Final Thoughts
The seller should consider engaging the services of a business valuator or an accountant with experience in business valuations. The expense of a business valuator can range from $5,000 to $20,000 but could be a very worthwhile exercise for the seller in that minor adjustments can be made to increase the value and the seller has a credible 3rd party valuation that can be presented to a prospective buyer.
In closing, selling a business takes some effort and proper planning. If you’re thinking of selling your business, you would be prudent to plan your exit strategy about three to five years from the time you wish to be fully retired. In other words, if you want to be vacationing in Florida on your 65th birthday, you should start your planning around your 60th birthday. Proper planning upfront will help to ensure that you’re selling one of your most valuable assets to the right person at the right price.
Vince Valenti is the president of Independent Planning Group Inc. (www.joinipg.com) and the president of Brigata Capital Management Inc. (www.brigatafunds.com) . Visit our blog at www.mindyourownbiz.ca
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