When a business is started, the hope is always that it will change and grow into something worthy of all the hard work invested in it — that the original concept will blossom into a successful practice.
Bissett Investment Management was started in 1982 by David Bissett with a focus on providing clients with funds employing a “growth at a reasonable price” approach. Since then, Bissett has gone through several phases of growth — going public in 1998, being acquired by Franklin Templeton Investments Corp. in 2000 and, more recently, cementing its position in Calgary as a safe bet in uncertain times.
For Michele Horne and Garey Aitken, this past spring heralded a new phase in their tenure at Bissett. Respectively appointed president and chief investment officer when Fred Pynn retired in June, the pair aren’t new faces at Bissett. Their successions were expected, both having worked extensively at Pynn’s side, and also make sense, considering the firm’s core strengths: a disciplined investment strategy and an experienced, steady investment team.
The decision was not to bring in new faces with new ideas but to stick to tried-and-true methods, promoting from within and drawing on the years of experience already within the firm.
“It was an easy transition,” says Horne, who boasts a lot of hands-on experience in taking on the president’s position. “I worked very closely with Fred. He liked to focus on investments and was very involved in money management.”
Both Horne and Aitken are Bissett veterans; the number of years they’ve been with the firm is collectively in the double digits, and they both worked closely with Pynn, not only during the run-up to his retirement but throughout their entire careers at Bissett. The firm’s policy of promotion from within and a strong company-wide emphasis on succession planning has created a unique situation: two new people who aren’t really new and who aren’t really taking on new roles.
“It didn’t feel that different from June 30 to July 2,” says Aitken, referring to the time when he and Horne assumed their new posts. “I know the people; I’ve worked with them in the past. I know the programs.”
Both Bissett, a firm that hires young and trains new recruits, and now Horne and Aitken in their leadership roles, focus on a strong team to execute the company’s investment strategy. “Like some other investment shops, we don’t foster that star mentality,” says Aitken. “We don’t want to have the firm associated with just one person. We’re really a team.”
Team members’ long-term experience with Bissett also ensures an understanding of and adherence to the firm’s investment philosophy, well known for its consistency. Formed to provide low-risk opportunities for investors, the Bissett group of funds and trusts are known for their performance in lagging markets.
“We have always and will always adhere to our investment strategy through thick and thin,” says Aitken. “The firm built an investment strategy that has served us well over the years, and we’re enjoying the success we’ve had. We’re really not doing anything new.”
“It’s not that we don’t look back and question what’s happened,” adds Horne. “We’re not that rigid in our process. But when we do that navel-gazing, we’re happy with what we’ve done.”
There is one aspect of their new roles that has changed, however — the responsibility of leading one of the largest money managers in Calgary’s growing market with almost $16 billion in assets under management while simultaneously being a part of a large corporation with an international presence.
“At the end of the day,” says Horne, “we’re responsible for a big business and there’s a huge responsibility to unitholders.”
Horne and Aitken are splitting the leadership role, which for some time had been held by Pynn. That decision will allow them to continue to manage funds as well. Horne oversees Bissett’s balanced portfolios; Aitken focuses on Canadian equities.
“I look at it as having two jobs,” says Aitken, emphasizing that it’s important to stay connected with what really goes on at the firm.
As Pynn’s retirement loomed, there were a lot of discussions to decide what form the new leadership would take. Working with Franklin Templeton president and CEO Don Reed, the decision was made to split the leadership posi-tion and have Horne and Aitken work as a team instead. “It made a lot of sense to split the duties to make sure we don’t become too burdened,” says Horne. “The firm ran really well in the past, but both Garey and I are more hands-on.”
@page_break@So far, the transition has been pretty quiet, with Horne and Aitken making a good team. Aitken credits their complementary personalities and styles for their success.
Listening to them talk about their pasts, it is clear they are very different people. Horne, whose career in financial services has taken her from Alberta to the Cayman Islands and back again, started university in pre-med before shifting to criminology and finding her passion while taking some optional economics courses. Aitken, also a native of Alberta, on the other hand, didn’t feel a moment’s hesitation and jumped right into a bachelor of commerce degree focusing on finance after high school.
For now, Horne and Aitken are focusing on maintaining the status quo and ensuring their people can do their jobs. While Bissett is strongly focused on consistency, that’s not to say things won’t change. Who’s to say what comes next for a firm in a growing market with strong corporate support? IE
Bissett’s new management team are old hands
Michele Horne and Garey Aitken understand the money manager’s philosophy and intend to be consistent
- By: Rachel Betts-Wilmott
- October 1, 2008 October 1, 2008
- 09:43