When it comes to cementing bonds with clients, “touch is worth a thousand words,” says Robert Pierce, managing director and co-founder of Stonegate Private Counsel LP in Toronto.
By “touch,” Pierce means “client contact.”
One of the mainstays of his practice, which encompasses 80 clients with a combined $210 million in assets under administration, is quarterly face-to-face meetings with clients. Although the occasional quarter may be missed, Pierce absolutely insists on connecting in person with clients at least three times a year.
Pierce will meet with clients wherever it’s most convenient, whether it’s at his office or his client’s office, home or vacation property. Every winter, Pierce takes a trip to Florida to visit clients who are spending the season there; in summer, Pierce makes the rounds in cottage country. Sometimes, the meeting will be a simple lunch or dinner, but the key is communication.
“Personal contact enhances trust, and you get a handle on what the real issues are,” says Pierce, a 25-year veteran of the financial advisory industry. “Clients are able to open up, which helps me find out what’s really going on their lives. You can see if a client’s not feeling well or if the worry lines have deepened. Or they can show off the new car they have just bought. A lot of what’s done in financial planning is intangible.”
Pierce’s practice entails detailed strategies for investments, tax minimization, and retirement, insurance and estate planning. He focuses on high net-worth clients with $1 million or more in investible assets. Pierce constructs a blueprint of personalized financial goals for each client, a quarter-by-quarter implementation plan and a review process to ensure the steps are completed in a timely fashion. Depending on a client’s needs and the complexity of his or her financial situation, it can take two to four years to complete every step of that client’s detailed plan. Clients are charged an investment-management fee based on a percentage of AUA.
“High net-worth clients have a lot of challenging and interesting issues,” says Pierce, “whether it’s moving from Switzerland to Toronto or dealing with children who are spread all around the world.”
Clients benefit from a proactive approach in preparing for the future, Pierce says. Whether it’s the formation of a family trust, cash-flow planning in retirement, starting a charitable foundation, winding down an RRSP or developing a business succession plan for a client, Pierce has the event on his radar screen. He is supported by a team of in-house experts at Stonegate, including investment analysts, lawyers, accountants, and estate and insurance specialists. Stonegate will also bring a client’s own lawyer or accountant into the process.
“We know our clients inside out and backwards, and probably better than their best friends,” Pierce says. “A lot of thought and research goes into the [financial plan’s] recommendations.”
Many of Pierce’s clients are busy entrepreneurs and, as an entrepreneur himself, Pierce understands the time and energy that must be devoted to running a business and how easy it is to defer financial planning issues. He also knows that wealth — and the properties and possessions that go with it, such as multiple homes on different continents and a handful of cars — can create stress for some clients. Pierce makes sure the important wealth-management details are attended to, so clients can relax instead of constantly worrying. Essentially, Pierce and his team offer peace of mind.
“High net-worth clients are attracted to a firm like ours because we don’t candy-coat the issues,” Pierce says. “We don’t back off until each job gets done, unless there’s a good reason not to. The complications of wealth can take over, and sometimes it’s no fun being wealthy. We take care of it all in three or four meetings a year. It’s a bit like going to the dentist — as long as clients keep their appointments, they don’t have to worry about anything.”
On the investment side, Stonegate’s clients invest in an assortment of private pools, run by several investment managers. Some of these managers are part of the team at CI Financial Corp., Stonegate’s parent company. Others are independent subadvi-sors to both Stonegate and CI. Stonegate’s detailed financial reporting is part of the investment process, and every client is shown his or her individual rate of return on his or her account statements.
@page_break@“Performance matters,” says Pierce. “Whether it’s good or bad, people want to know. When clients are shown their individual rates of return, there’s nowhere to hide.”
Having a financial plan in place made a huge difference to clients during the stock market turmoil of the past year, Pierce says. Clients were well diversified across an asset mix suitable to their own needs and risk tolerance, and most had a conservative slant to their portfolios, with 40% to 50% of assets in fixed-income securities. Wills and insurance policies were up to date, cash flow was being managed and clients were not overleveraged or living beyond their means.
“When the market is crashing, that’s when a plan and a strategy are most important,” Pierce says. “You don’t repair the roof during a hurricane. You get off the roof and hunker down in the basement. If you’ve not prepared for various scenarios ahead of time, you’re in trouble.”
Stonegate also offers its clients special benefits that go beyond a financial plan. Along with top executives within the CI group, Stonegate’s clients have access to top private medical facilities such as the MedCan Clinic, which specializes in preventative health care, and the Cleveland Clinic, a private hospital and a leader in heart care.
“The health-care connection is deemed to be a valuable perk by clients,” Pierce says. “If someone is having a heart issue and they can’t get to see a specialist in a public hospital right away, they can get immediate access to top expertise.”
Pierce’s focus on efficiency trickles down to office attire. Whenever Stonegate’s advisors meet personally with clients, they dress in a navy blue suit. Pierce views the suit as a uniform. It makes advi-sors look professional and inspires confidence but avoids attracting attention with personal style.
Pierce has a variety of outside pursuits that provide balance to his life. He has been a member of the board of governors of the Royal Ontario Museum in Toronto for 14 years, and is also a member of its finance and investment committee. He also has his own private collection of Canadian antique maps and Native art. He has a vacation property in Whistler, B.C.; for three weeks during the Olympic games this month, he will be part of the Vancouver Olympic alpine team, helping to coordinate activities at the athletes’ residence.
In addition to skiing and playing hockey, Pierce is an avid golfer with a seven handicap. He also finds time to take piano lessons and run a small business that sells premium health-food products, including an energizing supplement called Living Fuel.
Pierce says he thrives on the stimulation of mixing creative pursuits with business. “Having so many activities makes life more interesting and helps me to appreciate people’s differences,” he says. “I’m able find more points of connection with people.” IE
Slaying the monsters that haunt the wealthy
Serving the needs of the affluent means taking control of the complications of wealth and providing peace of mind
- By: Jade Hemeon
- February 8, 2010 February 8, 2010
- 11:44