Staking out the middle market

(June 4, 2004) These days it seems the entire world thinks bigger is better, as giant companies are bought by enormous companies to become colossal companies.

Market consolidation has swept through the financial services industry with a vigour rarely seen, but Philip Armstrong, president and CEO of Jovian Capital, has a different approach. The latest issue of Advisor’s Edge magazine takes a closer look at Jovian Capital’s recent acquisitions.

“Philip Armstrong is doing some interesting things with Jovian Capital — buying up a financial planning firm, buying up a dealership, buying up a hedge fund firm,” says Deanne Gage, managing editor of Advisor’s Edge. “Is Jovian an alternative to what’s happening in the industry? We’re seeing a lot of bigger consolidations, but this is building a mid-tier business.”

Armstrong played an integral role at Altamira in the 1990s, pitching funds directly to investors, rather than relying on sales through advisors.

“Can Armstrong do it again? Does he see another opportunity to do something in financial services at the mid-tier?” Gage asks.

Also in this month’s issue of Advisor’s Edge, assistant editor Sheila Avari looks at a new disturbing trend in the insurance industry, where people are having to jump new hurdles to get the coverage they need.

“People are applying for life insurance and finding they may be denied based on their travel plans,” says Gage, using the example of travelers heading to the Middle East. “A lot of insurance companies may not like that, so they may turn around and decline clients.”

In the Advisor’s Edge “Toolbox” section, readers will find a study of health and welfare trusts and how they can be used to construct a low-cost benefits package for self-employed clients.

“These types of trusts have become popular with business owners, because they don’t have benefits the way employees do,” says Gage. “They’re responsible for coming up with their own benefit plan.”

Another product piece is Thane Stenner’s look at principal-protected notes. Are they right for your high net worth client? How do you choose the right one for them? Stenner takes an in-depth look at these increasingly popular investment tools.

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Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com