stats
globeinteractive.com: Making the Business of Life Easier

   Finance globeinvestor   Careers globecareers.workopolis Subscribe to The Globe
The Globe and Mail /globeandmail.com
Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space


Search

space
  This site         Tips

  
space
  The Web Google
space
   space



space

  Where to Find It


Breaking News
  Home Page

  Report on Business

  Sports

  Technology

space
Subscribe to The Globe

Shop at our Globe Store


Print Edition
  Front Page

  Report on Business

  National

  International

  Sports

  Arts & Entertainment

  Editorials

  Columnists

   Headline Index

 Other Sections
  Appointments

  Births & Deaths

  Books

  Classifieds

  Comment

  Education

  Environment

  Facts & Arguments

  Focus

  Health

  Obituaries

  Real Estate

  Review

  Science

  Style

  Technology

  Travel

  Wheels

 Leisure
  Cartoon

  Crosswords

  Food & Dining

  Golf

  Horoscopes

  Movies

  Online Personals

  TV Listings/News

 Specials & Series
  All Reports...

space

Services
   Where to Find It
 A quick guide to what's available on the site

 Newspaper
  Advertise

  Corrections

  Customer Service

  Help & Contact Us

  Reprints

  Subscriptions

 Web Site
  Advertise

  E-Mail Newsletters

  Free Headlines

  Globe Store New

  Help & Contact Us

  Make Us Home

  Mobile New

  Press Room

  Privacy Policy

  Terms & Conditions


GiveLife.ca

    

PRINT EDITION
Industrial Alliance buys Scotiabank unit
space
Growing Canadian insurer announces $139-million equity financing to help fund acquisition of HollisWealth
space
By TIM KILADZE, JACQUELINE NELSON
  
  

Email this article Print this article
Tuesday, December 6, 2016 – Page B1

Bank of Nova Scotia is selling its HollisWealth network of financial advisers to a growing Canadian insurer, parting ways with a business it acquired five years ago.

Industrial Alliance Insurance and Financial Services Inc. is buying HollisWealth, adding $34billion in assets under administration for an undisclosed price.

To help fund the purchase, Industrial Alliance announced a $139-million equity financing.

HollisWealth has 800 licensed advisers and became part of Scotiabank when the bank acquired DundeeWealth in 2011. The investment advisory business is in a period of rapid change, owing to a mix of regulatory initiatives, the proliferation of lowcost fund providers and the emergence of digital financial products such as robo-advisers, which offer inexpensive guidance to investors. Canada's banks own the country's largest full-service adviser networks, but in the past few years they have started reforming them, largely to focus on high-net-worth clients.

Clients with less than $500,000 in investable assets are now often referred to bank branches for investment advice.

The Globe and Mail was the first to report on the sale talks between the two firms. Following the reports, Scotiabank chief financial officer Sean McGuckin was asked about a potential HollisWealth sale on a conference call. The CFO declined to comment, but added that in wealth management, "a lot of the value comes through our branch distribution," suggesting an independent adviser network is less desirable to the bank.

Industrial Alliance has been steadily growing its wealth management business, making 25 acquisitions since 2000, and the HollisWealth purchase would give it $75-billion in assets under administration.

Wealth management has become a more attractive business for life insurance companies as they grapple with modest growth and low interest rates that hamper their ability to generate low-risk returns on investments. Wealth management units also require minimal capital, because their revenues are mostly fee-based.

Based in Quebec City, Industrial Alliance has said in the past that it wants to build scale in asset management because it sees a large transfer of wealth in the coming years from people over the age of 50. At a recent investor day, the company added that it wants to grow its distribution network, while acknowledging the need to "stay current" with the growth of robo-advisers and the next generation of investors looking to digital channels.

"We see a lot of value" in independent advisers, despite the digital trends, chief executive officer Yvon Charest said in an interview Monday. "Some organizations that developed the robo-adviser software were dreaming customers would go direct to them; within a year, you have seen a change."

What's happening now, he added, is that some robo-advisers are calling advisers and suggesting they use the robo-software.

Scotiabank first invested in DundeeWealth, the firm that owned HollisWealth, in 2007 by buying an 18-per-cent stake. In 2011, Scotiabank acquired the remaining shares for about $2.3billion.

In late 2013, the adviser network was renamed HollisWealth after the street in Halifax where the bank's historic head office is located: Hollis Street. The rebranding was prompted by an expiring trademark agreement.


Huh? How did I get here?
Return to Main Allan_Maki Page
Subscribe to
The Globe and Mail
 

Email this article Print this article

space  Advertisement
space

Need CPR for your RSP? Check your portfolio’s pulse and lower yours by improving the overall health of your investments. Click here.

Advertisement

7-Day Site Search
    

Breaking News



Today's Weather


Inside

Rick Salutin
Merrily marching
off to war
Roy MacGregor
Duct tape might hold
when panic strikes


Editorial
Where Manley is going with his first budget




space

Columnists



For a columnist's most recent stories, click on their name below.

 National


Roy MacGregor arrow
This Country
space
Jeffrey Simpson arrow
The Nation
space
Margaret Wente arrow
Counterpoint
space
Hugh Winsor  arrow
The Power Game
space
 Business


Rob Carrick arrow
Personal Finance
space
Drew Fagan arrow
The Big Picture
space
Mathew Ingram arrow
space
Brent Jang arrow
Business West
space
Brian Milner arrow
Taking Stock
space
Eric Reguly arrow
To The Point
space
Andrew Willis arrow
Streetwise
space
 Sports


Stephen Brunt arrow
The Game
space
Eric Duhatschek arrow
space
Allan Maki arrow
space
William Houston arrow
Truth & Rumours
space
Lorne Rubenstein arrow
Golf
space
 The Arts


John Doyle arrow
Television
space
John MacLachlan Gray arrow
Gray's Anatomy
space
David Macfarlane arrow
Cheap Seats
space
Johanna Schneller arrow
Moviegoer
space
 Comment


Murray Campbell arrow
Ontario Politics
space
Lysiane Gagnon arrow
Inside Quebec
space
Marcus Gee arrow
The World
space
William Johnson arrow
Pit Bill
space
Paul Knox arrow
Worldbeat
space
Heather Mallick arrow
As If
space
Leah McLaren arrow
Generation Why
space
Rex Murphy arrow
Japes of Wrath
space
Rick Salutin arrow
On The Other Hand
space
Paul Sullivan arrow
The West
space
William Thorsell arrow
space





Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space

© 2003 Bell Globemedia Interactive Inc. All Rights Reserved.
Help & Contact Us | Back to the top of this page