Advisors hope CI deal will change Assante attitude

(August 25, 2003) Assante advisors are expressing cautious optimism following the announcement on Friday, August 22, that CI Fund Management was buying Assante Asset Management. There has been dissatisfaction with the management of Assante, which has been criticized for focusing too much on head office development and not enough on the individual advisor. “Assante management […]

By Steven Lamb | August 25, 2003 | Last updated on August 25, 2003
4 min read
  • Synergy founder prepares for Assante challenge
  • CI may trim and expand Synergy lineup
  • Advisors hope CI deal will change Assante attitude
  • CI deals get thumbs-up from industry observers
  • CI Funds goes on buying spree, takes over Assante & Synergy

    “The focus on in-house product may wane somewhat now that our parent is another fund company,” he says. “Perhaps if you sell CI funds and not Optima, you are no longer going to be a second-class citizen in a first-class company.”

    He says most of the risks involved in such a massive upheaval in the investment community fall on CI’s shoulders, as the fund manufacturer moves into distribution.

    “The greatest impact may be the reaction of other mutual fund dealers,” he said. “Some may see this as a threat and sell their CI fund holdings in reaction to the deal. This is what happened with Mackenzie, but that sentiment has waned.”

    There has been a flurry of postings to Advisor.ca’s Talvest Town Hall as well. Again, the tone is cautiously optimistic.

    “I haven’t got much to say about Assante, but Joe Canavan is a coup,” read a posting from Tina Sullivan. “There are some who believe that Joe Canavan made Mackenzie what it is, [and that] way back when he made Synergy what it is. I’ve great hopes for all of you that he’s going to do marvelous things with Assante.”

    An advisor identified only as “Michael S.” also thinks Canavan is a positive addition, though perhaps not “a coup.” He says that Assante advisors should expect only a gradual improvement in the practices, but that in the long term the CI way of doing business will benefit everyone.

    “Canavan is OK, certainly more rep-friendly than certain people at Assante. Hang in there, Assante reps; life and business will improve. No miracles, but CI will likely identify where they can genuinely add value for CI, Assante-reps and investors all… and that is a winning business model.”

    Assante’s compensation grid has been the source of a great deal of vitriol in the Talvest Town Hall’s “Free For All” forum. There is hope that CI will re-examine the way Assante representatives are compensated.

    “Let us hope CI has the good sense to take a hard look at the grossly inequitable grid — and fix it,” read the posting of one anonymous guest. “That will pay big dividends long term.”

    The takeover has also sparked speculation that this is just the beginning of a round of consolidation in the industry, with Cartier Partners Financial Group being mentioned as the next possible target.

    “Assante is now gone and Holland has gone on record saying the CI will continue to buy. Cartier, anyone?” asked a user going by the name of “Tally Ho.”

    What’s your take on the CI takeover of Assante? Are advisors going to get a better deal, or are they just up against a bigger adversary? Share your thoughts about this topic in the Talvest Town Hall on Advisor.ca.

    Filed by Steven Lamb, Advisor.ca, slamb@advisor.ca

    (08/25/03)

    Steven Lamb

    • (August 25, 2003) Assante advisors are expressing cautious optimism following the announcement on Friday, August 22, that CI Fund Management was buying Assante Asset Management.

    There has been dissatisfaction with the management of Assante, which has been criticized for focusing too much on head office development and not enough on the individual advisor.

    “Assante management has been focused inwardly, building a head office management team and reaping the benefits of integration at the expense of its people in the field, particularly non-shareholders,” says Kerin Lloyd, an Assante advisor in Whitby, Ontario. “Hopefully CI will direct management to focus on the field force where its key ‘people capital’ require support and development.”

    Under the terms of the CI deal, Assante will spin off its U.S. sports and entertainment operations, which will continue to be run by Marty Weinberg. The remaining Canadian operations will be purchased by CI.

    “Marty [Weinberg] et al have long been known to be enamoured with the ‘Hollywood Division’ which runs a very different business, and this distraction has been noticed,” says one Assante branch manager, who asked not to be identified. “Now we have some reduction to that.”

    There will also be a reduction in cost, as CI president William Holland has said in a press conference that the departure of Weinberg and his team will save CI $11 million up front.

    The branch manager says being swallowed up by CI could have its advantages for the average Assante advisor, as the management style and sales focus could shift in favour of more independence.

    Related News Stories
  • Synergy founder prepares for Assante challenge
  • CI may trim and expand Synergy lineup
  • Advisors hope CI deal will change Assante attitude
  • CI deals get thumbs-up from industry observers
  • CI Funds goes on buying spree, takes over Assante & Synergy

    • “The focus on in-house product may wane somewhat now that our parent is another fund company,” he says. “Perhaps if you sell CI funds and not Optima, you are no longer going to be a second-class citizen in a first-class company.”

    He says most of the risks involved in such a massive upheaval in the investment community fall on CI’s shoulders, as the fund manufacturer moves into distribution.

    “The greatest impact may be the reaction of other mutual fund dealers,” he said. “Some may see this as a threat and sell their CI fund holdings in reaction to the deal. This is what happened with Mackenzie, but that sentiment has waned.”

    There has been a flurry of postings to Advisor.ca’s Talvest Town Hall as well. Again, the tone is cautiously optimistic.

    “I haven’t got much to say about Assante, but Joe Canavan is a coup,” read a posting from Tina Sullivan. “There are some who believe that Joe Canavan made Mackenzie what it is, [and that] way back when he made Synergy what it is. I’ve great hopes for all of you that he’s going to do marvelous things with Assante.”

    An advisor identified only as “Michael S.” also thinks Canavan is a positive addition, though perhaps not “a coup.” He says that Assante advisors should expect only a gradual improvement in the practices, but that in the long term the CI way of doing business will benefit everyone.

    “Canavan is OK, certainly more rep-friendly than certain people at Assante. Hang in there, Assante reps; life and business will improve. No miracles, but CI will likely identify where they can genuinely add value for CI, Assante-reps and investors all… and that is a winning business model.”

    Assante’s compensation grid has been the source of a great deal of vitriol in the Talvest Town Hall’s “Free For All” forum. There is hope that CI will re-examine the way Assante representatives are compensated.

    “Let us hope CI has the good sense to take a hard look at the grossly inequitable grid — and fix it,” read the posting of one anonymous guest. “That will pay big dividends long term.”

    The takeover has also sparked speculation that this is just the beginning of a round of consolidation in the industry, with Cartier Partners Financial Group being mentioned as the next possible target.

    “Assante is now gone and Holland has gone on record saying the CI will continue to buy. Cartier, anyone?” asked a user going by the name of “Tally Ho.”

    What’s your take on the CI takeover of Assante? Are advisors going to get a better deal, or are they just up against a bigger adversary? Share your thoughts about this topic in the Talvest Town Hall on Advisor.ca.

    Filed by Steven Lamb, Advisor.ca, slamb@advisor.ca

    (08/25/03)

    (August 25, 2003) Assante advisors are expressing cautious optimism following the announcement on Friday, August 22, that CI Fund Management was buying Assante Asset Management.

    There has been dissatisfaction with the management of Assante, which has been criticized for focusing too much on head office development and not enough on the individual advisor.

    “Assante management has been focused inwardly, building a head office management team and reaping the benefits of integration at the expense of its people in the field, particularly non-shareholders,” says Kerin Lloyd, an Assante advisor in Whitby, Ontario. “Hopefully CI will direct management to focus on the field force where its key ‘people capital’ require support and development.”

    Under the terms of the CI deal, Assante will spin off its U.S. sports and entertainment operations, which will continue to be run by Marty Weinberg. The remaining Canadian operations will be purchased by CI.

    “Marty [Weinberg] et al have long been known to be enamoured with the ‘Hollywood Division’ which runs a very different business, and this distraction has been noticed,” says one Assante branch manager, who asked not to be identified. “Now we have some reduction to that.”

    There will also be a reduction in cost, as CI president William Holland has said in a press conference that the departure of Weinberg and his team will save CI $11 million up front.

    The branch manager says being swallowed up by CI could have its advantages for the average Assante advisor, as the management style and sales focus could shift in favour of more independence.

    Related News Stories
  • Synergy founder prepares for Assante challenge
  • CI may trim and expand Synergy lineup
  • Advisors hope CI deal will change Assante attitude
  • CI deals get thumbs-up from industry observers
  • CI Funds goes on buying spree, takes over Assante & Synergy

    • “The focus on in-house product may wane somewhat now that our parent is another fund company,” he says. “Perhaps if you sell CI funds and not Optima, you are no longer going to be a second-class citizen in a first-class company.”

    He says most of the risks involved in such a massive upheaval in the investment community fall on CI’s shoulders, as the fund manufacturer moves into distribution.

    “The greatest impact may be the reaction of other mutual fund dealers,” he said. “Some may see this as a threat and sell their CI fund holdings in reaction to the deal. This is what happened with Mackenzie, but that sentiment has waned.”

    There has been a flurry of postings to Advisor.ca’s Talvest Town Hall as well. Again, the tone is cautiously optimistic.

    “I haven’t got much to say about Assante, but Joe Canavan is a coup,” read a posting from Tina Sullivan. “There are some who believe that Joe Canavan made Mackenzie what it is, [and that] way back when he made Synergy what it is. I’ve great hopes for all of you that he’s going to do marvelous things with Assante.”

    An advisor identified only as “Michael S.” also thinks Canavan is a positive addition, though perhaps not “a coup.” He says that Assante advisors should expect only a gradual improvement in the practices, but that in the long term the CI way of doing business will benefit everyone.

    “Canavan is OK, certainly more rep-friendly than certain people at Assante. Hang in there, Assante reps; life and business will improve. No miracles, but CI will likely identify where they can genuinely add value for CI, Assante-reps and investors all… and that is a winning business model.”

    Assante’s compensation grid has been the source of a great deal of vitriol in the Talvest Town Hall’s “Free For All” forum. There is hope that CI will re-examine the way Assante representatives are compensated.

    “Let us hope CI has the good sense to take a hard look at the grossly inequitable grid — and fix it,” read the posting of one anonymous guest. “That will pay big dividends long term.”

    The takeover has also sparked speculation that this is just the beginning of a round of consolidation in the industry, with Cartier Partners Financial Group being mentioned as the next possible target.

    “Assante is now gone and Holland has gone on record saying the CI will continue to buy. Cartier, anyone?” asked a user going by the name of “Tally Ho.”

    What’s your take on the CI takeover of Assante? Are advisors going to get a better deal, or are they just up against a bigger adversary? Share your thoughts about this topic in the Talvest Town Hall on Advisor.ca.

    Filed by Steven Lamb, Advisor.ca, slamb@advisor.ca

    (08/25/03)