Narrator 00:00:03
On this episode, hear what shoppers are searching for from their advisor to satisfy their future wants and the way know-how will help you meet these wants.
David Kitai 00:00:11
Hey and welcome to this particular version of WP TV the place we’re celebrating WP’s High 25 Wealth Tech Suppliers of 2024. My identify is David Kitai, Senior Editor at Wealth Skilled. At this time we’re fortunate to be joined by Paul Kornfeld of SIACharts. As President of SIACharts, Paul is in command of gross sales, advertising and marketing help operations, growth and a big selection of different areas that the nicely tech agency touches. Paul can also be a former Canadian Nationwide Swimmer and a former world file holder. Paul, welcome to WP TV.
Paul Kornfeld 00:00:46
Thanks a lot for having me. I stay up for our dialog.
David Kitai 00:00:49
Out of your perspective, what do you assume earned you this spot? Why do you assume SIACharts was named as one among WP’s High 25 Wealth Tech Suppliers?
Paul Kornfeld 00:00:51
Nice query. SIACharts has been round working with advisors in Canada within the US for for over 15 years, in all probability 20 years. Now, I have not saved monitor of precisely the date. However all through this time, I believe we have simply earned the belief of advisors by means of {our relationships} with them. There’s been a variety of difficult instances out there during the last 15 20 years together with a 2008 disaster 2022 or 2020 COVID pandemic, proper. There’s been a variety of troublesome instances for advisors. And SIACharts has been capable of be a profitable firm all through these market cycles, and assist advisors navigate them by means of confirmed threat administration and different instruments in order that they do not. In order that they thrive throughout these instances, really. So we really began out as a technical evaluation firm, rating Canadian mutual funds, I believe we’re really one of many first in Canada rating mutual funds, not simply by efficiency, however an precise comparability towards one another. And we have grown quite a bit from there. So we have diversified away from technical evaluation to perform this by means of relative energy comparisons and rankings. And we have been identified for 5 second evaluation on any funding, and actually can rank any funding towards one another. We have been capable of from the start rank of mutual fund versus inventory rank rank of crude oil futures contract to an ETF, proper. So it is, it has been an L of an evolution for our personal firm. But in addition, all through the time with know-how, we have been capable of work with advisors to maintain evolving our enterprise all through the evolving instances as nicely.
David Kitai 00:02:35
Okay, that makes a variety of sense. You’ve got hinted at one among my favourite traits in strains, type of submit 2008, but additionally since 2020. However everybody’s crying elbow proper right here from advisors that yr for my fellow fellow millennials, we identical to to dwell in precedented instances for as soon as we maintain going by means of unprecedented. So it could be good for a bit of little bit of normality. However as as you type of say data is so key to navigating the unprecedented as a result of there may be no less than some steering and a few basis you possibly can construct on from from that data. So being that supplier of an data and evaluation software, what are you listening to from advisors about what they need from a nicely, tech agency usually, after which from an data and analytics specialists like yourselves particularly?
Paul Kornfeld 00:03:21
Yeah, I imply, clearly, advisors should not brief on opinions, they need quite a bit, and we’re joyful to supply that for them. We will not present the whole lot, we’re not going to be an professional in the whole lot. However what we’re attempting to do is simply be on their aspect, simply give them a software that, , is is for them. And for his or her enterprise, we wish to assist them develop. Simply this week, I used to be or I assume final week, I used to be serving to an advisor attempt to shut a big, , 5 plus million greenback shopper, proper? That is not what different nicely, tech corporations, I do not assume are try to do. However we actually try to associate with them. We’re listening to extra on the main banks that their charges are going up and help goes down in lots of circumstances. So I believe advisors are trying extra to nicely tech fin tech corporations to fill that hole and be that type of possibly secret sauce, aggressive Vantage, no matter you wish to name it, however simply any individual on their aspect a lifeline for advisors that want a associate on this enterprise. So we intention to proceed to evolve as we associate with advisors to do that. So we wish to create a full market intelligence platform that began off from a technical aspect, shifting into the basic aspect, shifting into compliance aspect shifting into the advertising and marketing, which we already do for advisors to assist them inform their story, assist them develop their e-book of enterprise, we intention to be that place the place they’ll get all of the analysis all their compliance wants, all their advertising and marketing, portfolio administration, modeling, you identify it, we wish to be that we all know we can’t be one of the best in each space. However we hoped by the mixing of these instruments and options. Advisors can come to us type of with that, that full resolution as a lot as attainable. So they are going to want a system that listens to them but additionally stays present with the difficult markets and adapting by means of the time. So we have additionally dedicated to being that know-how firm. And we’re a know-how firm, initially. So we wish to proceed to advance by means of the instances by being on their aspect. In order that’s, that is actually the primary factor is we do hearken to our shoppers, we try to listen to from them. And we’re attempting to evolve our enterprise as because the calls for go up as nicely.
David Kitai 00:05:25
Evolution of your online business is all the time so fascinating. And also you began after all, with like, it was initially simply mutual fund rankings. And now there’s a lot extra sophistication in what you are able to do. However shifting into areas like compliance shifting into a variety of the opposite type of explicit operational areas of an advisory observe and attempt to help them with that. How do you eat inside your individual group type of workers up for that and scale up for that in a approach that , you are you are coming into in some methods, new territory, however you are you are you are attempting to develop your online business? What are a number of the type of key type of steps you need to take as a frontrunner to make sure you’re doing that with out overstretching all of sudden?
Paul Kornfeld 00:06:03
Yeah, it is difficult since you solely have restricted sources, you possibly can solely deal with sure initiatives over time. So I imply, one of many methods we beat up is simply know-how workers, like we’re investing in, we’re hiring extra programmers and salespeople. So that you would possibly, lots of people could also be watching this video, have not heard of SIACharts, as a result of we’re by no means going to be the largest gross sales division to probably the most advertising and marketing and advertisements. What we try to beef up is our know-how, we’re shopping for extra servers, we name our personal server infrastructure, ourself, to course of all of the 80,000 investments on our system, and the a whole bunch of hundreds of thousands of comparisons we do each evening, simply to create these rankings and evaluation. In order that’s the place all our cash goes, is within the tech aspect, greatest, once more, new servers, GPUs, all this stuff to attempt to create a bit of bit sooner instruments a bit of bit higher analysis a bit of bit higher final result. As a result of we all know that if we’re profitable in serving to advisors with these indicators with these, this analysis, it’ll assist us, they may not really wish to inform their pals or their their colleagues, they’d prefer to maintain it to themselves, however it will, once more, hopefully have us again on this yearly, due to our dedication to the advisors. So we have been actually beefing up the know-how aspect, we have all the time been a know-how firm initially. After which it is only a know-how firm that strikes in several instructions. Plus, now we’re attempting to customise it extra we perceive that every advisor is exclusive. So with the ability to customise totally different methods for every every advisor is type of the core of what we all the time attempt to do. However now we’re attempting to take a step additional saying, okay, there actually is one million other ways you would go together with this. However listed here are some pattern fashions to level in the best route. But in addition, in the event that they wish to do one thing simply distinctive for themselves, we will additionally associate with them, their e-book of enterprise to once more create merchandise or create totally different methods for them as as they develop and evolve to so we perceive that there is not a set in stone 6040 mannequin anymore, there’s going to be one million totally different combos of these totally different methods for every totally different threat profile of their shoppers. And every advisor we talked to is totally different and that is a part of the enjoyable. I am very blessed to be on this place as a result of I get to speak to totally different advisors every single day that which have totally different challenges and totally different wants for his or her shoppers.
David Kitai 00:08:18
I am simply curious let’s let’s return in some methods to the the nuts and bolts, the unique type of focus of SIACharts, which is that funding analytics and comparability. volatility has been the the watchword of the previous three years, once more, unprecedented volatility it to make use of the opposite one. And we maintain operating into it in sectors the place you would not count on locations like mounted earnings, or simply different elements of the market are on weeks and months that should not be occurring. So what does your type of core software that funding analytics capability? How does that assist advisors navigate their shoppers by means of this sort of volatility that we’re seeing?
Paul Kornfeld 00:09:00
Yeah, so type of coming again to the core we do. SIA simply analyzes and compares cash move. So we get all the way down to economics one on one, proper, we’re evaluating the provision and demand between any two investments, we begin up off at a really excessive stage, simply cash move of the fairness markets. And we attempt to reply only one query ought to we be in equities or ought to we be trying elsewhere simply that straightforward. We have created a type of a inexperienced mild crimson mild state of affairs of like, hey, however on the gasoline, , you are driving you are cruising down the freeway. That is the place we’re proper now. We’ll place this recording we’re nonetheless there and in a few weeks. That is type of the the state of affairs the place we wish to maintain advisors out there more often than not and 70% of the time we’re in that that surroundings during the last 15 years. However there may be instances once you’re driving you might want to slam on these brakes you might want to decelerate to curb forward or there’s an animal’s throat or there is a crimson mild proper. In order that’s that is the important thing to type of initially, serving to advisors from a high down method, the primary space you can add probably the most worth for advisors is within the type of asset allocation of their e-book of enterprise for his or her shoppers. It isn’t on funding choice. So we initially begin there, as a result of particularly the upper web price shoppers that advisors could have. Having nice efficiency is not really what they are going for. They’re attempting to guard their hard-earned cash that they’ve invested their complete life and their enterprise or their household inheritance or no matter it’s, that 10 million, or no matter that’s plus, they’re simply attempting to maintain that cash initially. And that is, that is what we attempt to do for all our shoppers is give them a threat administration software, simply to assist them perceive type of what threat are we within the markets, we do not know, once more, if it is a 2008, the place it’ll be a 16 month type of bear market? Or if it is a 2020, the place it is a, what, 4 week bear market or one thing proper, the quickest bear market in historical past, proper? So, once more, our software is not designed to foretell something, however to comply with the cash flows, institutional cash strikes, what 80 90% of the market, proper? So the advisors are literally a smaller a part of that, and retail director, retail are simply particular person traders are even smaller a part of that as nicely. So simply by watching the cash move, the massive black rocks, the sovereign funds the world, , it takes longer for that cash to maneuver out and in. However by monitoring it, you achieve a variety of perception. In order that’s one of many keys to our success is simply following the cash flows. And with that, we will take it a pair steps additional than we may have a look at the asset class rankings and say, okay, one easy query, ought to it’s in US or Canada? Effectively, it is easy to say that possibly trying again, and however within the time, it is not all the time as clear, proper? There’s there’s causes for every of these alternatives, or, Hey, possibly we ought to be in rising markets or in China or Europe or Center East? Most likely not proper now. However, , like all these sections of the world we will we really measure towards one another and attempt to simplify as nicely saying, hey, final yr, we have been in US fairness over Canada and worldwide guess what, final yr, all of the fairness markets did fairly nicely, aside from China. Sure, however that might be the one space the place you’d assist avoid however the US fairness was up 24% final yr and the s&p 500 or over 40 43% and the NASDAQ Composite, proper. In order that was the place we have been pushing advisors to assist them have that nice, hopefully outperformance simply by that one evaluation versus the Canadian markets up solely 8% final yr. So that straightforward evaluation of simply Yeah, most individuals are staying out there, however even one other layer of claiming, Okay, this is the place you’d fairly chubby or underweight then once more, we might go a step additional and say, Okay, what sector ought to we be? Ought to we be in? Possibly semiconductors? Possibly know-how? Completely. Proper. That is the place we have been investing in our vitality these days, proper? Or supplies like these, these issues that once more, we do not, we do not come on BNN and say, hey, , that is what we imagine. And we’re gonna be a price investor for the following 5 years, we could be a price investor for six months, after which a momentum traders, then rising markets investor than a know-how investor, proper? So we’re all the time attempting to simply comply with these cash flows. Generally these predictions, the basics, all align and make a extremely robust sign. And different instances, we’ll be possibly contrarian to what the markets doing. So I type of we type of discuss 4 pillars of research with their advisors, first, foremost, threat administration on the highest, ought to we be in equities or not, that we go to the asset class rankings and assist them perceive and avoid a 6040 portfolio like 2022, the worst yr on file for the reason that Thirties. Proper? So we’re really saying get out of mounted alternate, like this isn’t a well-liked take for many balanced traders. But it surely’s one which’s added a variety of worth simply within the final couple years. So our shoppers are very proud of us from that standpoint, as a result of hopefully, we’re simply outlining them the place one of the best alternatives lie. So then the third pillar is that sector evaluation we talked about, after which we get into the person evaluation as nicely to say, hey, possibly it is best to take into consideration in video over, , what different inventory are staying away from on the time, proper? So those who’s type of the the core of what we do of the place we began, then that helps us type of navigate a risky market. And it has been very profitable over the time, after which each, each volatility, the whole lot that we see, we study from that. And we’re capable of even adapt and enhance our know-how going ahead, particularly from the danger administration aspect, as a result of I believe the indicators generally do should be a bit of bit faster. Not everyone needs a six to 18 month outlook for markets when it is tanking or issues like that. So actually, to summarize the whole lot I simply mentioned, all we have a look at is alternative price. So David, should you’ve had one inventory to take a position on proper now, should you had $10,000 to take a position, we will inform you the place one of the best place to place that cash is that is the chance with our system is we’re evaluating the whole lot towards one another to level you in the best route saying hey, you would make investments on this know-how inventory or this vitality inventory. However what about one thing else you did not take into consideration? What about this? What about Netherlands ETF, what I imply? Like, there’s all the time these different areas you can placed on by which it may be virtually overwhelming generally. So we attempt to take that out of the type of, yeah, we take that out from advisors, issues xiety In a method to say, Hey, you do not have to handle the whole lot, you do not have to have evaluation and analysis and the whole lot, we’re attempting to simplify this as a lot as attainable and level him in the best route. After which actually, that comes all the way down to a possibility price evaluation.
David Kitai 00:15:31
That may be a nice reply. And only a nice type of complete view of of the ability of a software like that. All I can say is, as somebody who in all probability unhealthy to say it on this channel, however self direct a few of his investing. Boy, I want I had that after I’m observing my Wealthsimple web page, and my eyes are going a bit of clean. However it’s actually fascinating to see how a lot element you possibly can pull out and the way that direct comparability and to commerce it off. And I preferred using alternative price in addition to type of a core framework by which you are doing this work. So, , you’ve got demonstrated this in a variety of methods, and you have already made this level. However simply to put it out explicitly, and in some methods in short, how can your know-how assist advisor set themselves aside, and that features what we simply talked in regards to the the funding analytics aspect, but additionally embrace a number of the stuff you are constructing out now extra on the operation aspect.
Paul Kornfeld 00:16:26
We wish SIACharts to be that aggressive benefit for that advisor. One of many methods we do this, and I am in all probability no person else you discuss to on the world tech aspect, I do not assume that they do that is we’re solely accessible to licensed professionals licensed Funding Advisors. Most different wealth tech FinTech corporations aren’t really about simply the advisor, it is type of one of many issues we did proper from the start, we might be quite a bit greater firm if we did not do that. However what we’re actually attempting to say to our shoppers, and once more, have an instance of this, is we actually wish to associate with the funding advisor, and provides them a bonus. So their shoppers cannot go round their again and get the identical software, the identical analysis some other place. I assume, technically, most, most individuals can get a variety of this analysis on-line join type of a person standpoint, however they cannot really go round advisors again and join our system, we are saying no, you need to work with advisor are you able to ever be or whoever we’re working with. So I believe that is one of many issues that simply units us aside is we actually on the adviser aspect, we’re attempting to associate with them and provides them a software they cannot get anyplace else. And all of the instruments and evaluation we construct. Due to that’s constructed for them. It isn’t constructed for a number of folks. It is constructed for his or her wants, their needs their complaints, their their altering surroundings. In order that’s why we have launched a Kyp software to assist with compliance that their shoppers do not want, however they should assist with their wants going ahead. Second, we hope we’re only a main evaluation of agency who began with relative energy and is increasing for the advisor as we go. And in order that’s once more, what we have now been constructed off of. And we’re attempting to once more, maintain advancing our analysis our knowledge, I am unable to inform you how a lot knowledge I purchased during the last couple of years, that appears to be the brand new foreign money on the market, as a result of there’s that demand. So now we have now actual time information. Now we have now new actual time options that we wish to get into the arms the data as fast as attainable, in order that they’ll make one of the best selections for his or her shoppers. Couple different issues that folks informed us about or we have been acknowledged for is absolutely well timed alerts. Many of the analysis out there may be on the purchase aspect, proper? There’s 90% I do not know precisely the share however much more purchase aspect analysis than promote aspect. And we have been actually identified for a time to get out of valley in prescribed drugs time to get out of labor again within the day, a few of these large blow up of corporations, proper? We we have helped advisors avoid from names that may blow up a complete portfolio, you would have 9 out of 10 corporations are doing nice, and that one is dragging you on that efficiency. So what our system is absolutely good at is simply serving to avoid that, that one inventory that you simply in all probability should not be in proper now or that one ETF or that one mutual fund. In order that’s top-of-the-line I believe issues is we have now these alerts that assist folks determine simply when that chance price is altering. It isn’t, it is not a promote or purchase sign. It is simply saying, hey, there’s higher alternatives on the market, why would not we transfer that cash to the place these cash flows are going. And in order that’s why we have tried to simplify all this to saying like, Hey, we’re simply a possibility price rating system. And yeah, you possibly can take an opportunity on this, however in all probability the chances should not in your favor proper now. We would fairly comply with the sensible cash as we name it. the place that’s. After which, like I talked about earlier, we wish to assist advisors with customized methods, customized instruments, so we’re persevering with to develop extra instruments round that to again check to strengthen their resolve within the technique that they are implementing for his or her shoppers. So I believe that is type of what hopefully is ready us aside is that dedication to advisors, hopefully robust threat administration, well timed alerts and the type of customized method that we take with our enterprise understanding that no two advisors are totally different, or sorry that each advisor is.
David Kitai 00:20:07
You talked about quite a bit there in regards to the advisor, clearly, and about what you are listening to from advisors and the demand that is that is being met. However after all, advisors are those who’re type of going through with their shoppers. And, and in some methods, as a last query, I assume, in all of the methods you’ve got advanced your online business, and all of this type of the engines for progress and the approaches you are taking to make as HR, it is extra of a full service supplier. What’s subsequent? And by what’s subsequent, I type of imply, what are you listening to shoppers expect from their advisors that you simply’re now going to attempt to meet?
Paul Kornfeld 00:20:42
Yeah, nice query. As a result of we’re not brief on opinions, like I mentioned, from our advisors. And that is, that is one of many issues that we begin with is simply listening to them, proper? Like, it’s true how we do that’s possibly totally different than different corporations as nicely, everyone our type of our highest stage or skilled stage of service, get a devoted account supervisor that is following up with them, hopefully, on a quarterly foundation, possibly no less than semi annual foundation, to listen to them and , we have now a helpline and stuff the place they’ll really calling in and discuss to any individual. So not that once more, different methods of doing that is not, is not higher. However once more, we’re not the largest firm on the earth that we really wish to keep that approach, we really do not wish to associate with 10s of 1000s of shoppers, we really need possibly 1000 tops or one thing like that, we really, we wish to be type of a smaller area of interest agency that’s actually devoted to these companions utilizing the software. So it is a totally different type of enterprise setup. However that allow us to have these sorts of conversations, actually hearken to the wants of shoppers, and construct off of that. So constructing new options and instruments for what they really want. And anticipating that a bit of bit by means of, , for instance, new compliance wants like no person was asking us for this, however issues change from a compliance standpoint. So we created a brand new your product growth, that is, we predict goes to be a extremely highly effective software that integrates in with the whole lot else that they are doing. Hopefully, with a number of the greatest in trade, peer comparability experiences and suggestion monitoring. After which once more, the automation a part of it’s what a variety of advisors are asking for not solely on this however different areas. In order that could possibly be by means of AI instruments that would simply be in well timed alerts that really give them the solutions they’re searching for, or on this case with Kyp compliance just isn’t attractive, however hey, simply remind them on a yearly foundation or materials adjustments, they do not want to try this anymore, the system will help them do this and all their different compliance necessities. So we’re very enthusiastic about that type of rollout. As a result of that is an instance of each listening to shoppers anticipating the wants of the altering trade requirements or necessities, and constructing out additional issues like that. The opposite primary space that we’re evolving with, like I mentioned, it is simply integration of fundamentals, financials, economics, , these sorts of issues that we wish to take a distinct step and say, Hey, we’re that full market intelligence packages. So that is what I will be spending the remainder of my yr on, is constructing that out, after which hopefully, create an important product that any any advisor will, will slot in with, as a result of we have been, , lots of people come to us with exterior analysis that is nice built-in with our system present that overlay on high of it, we wish to be that system that hopefully can do all of it for them. They’ll nonetheless convey their very own analysis in, however no less than they’ll come to us with with that. In order that’s type of the place we’re shifting. After which after all, , this reply may change in three months if there’s new calls for, or new new areas with that, however positively specializing in innovation on the wants of our shoppers. And , lots of people would possibly say that, but additionally automation instruments, AI instruments that may save folks time and truly give them outcomes. Like you possibly can create AI instruments that basically do not do something that look totally different. However can they result in issues the place advisors cannot do it themselves or these sorts of issues is the place we’re centered on so not simply creating AI instruments simply to try this, however to essentially implement in areas that we would not be capable to do ourselves. So particularly on the again testing aspect of issues creating AI instruments, proper proper up entrance inside that could be a core focus for us proper now as nicely.
David Kitai 00:24:10
Massive objectives, large ambitions. However you’ve got you’ve got met and exceeded these targets earlier than and we have acknowledged it earlier than and we’re joyful to acknowledge it once more. So all with that. Sadly, that’s on a regular basis we have now however I simply wish to say thanks a lot for these nice solutions and congratulations to your self and to the entire staff at sa charts for being named to the High 25 Wealth Tech Suppliers for WP TV. I’ve been David Kitai thanks a lot and have an important remainder of your day. Bye bye
