Voted #6 on Top 100 Family Business Influencers, most influential expert on Wealth, Legacy, Finance and Investments: Jacoline Loewen LinkedIn Profile

November 12, 2018

How to put purpose in your portfolio with Michael Baldinger, Impact investing

Michael Baldinger, Sustainable Investing with Jacoline Loewen
We were fortunate enough to have Michael Baldinger, expert on Sustainable and Impact Investing, visit Toronto and speak in front of a wide variation of interest groups - ranging from MaRS Capital, the family offices and pension funds wanting to make an impact, ultra-high net worth investors during a private dinner, and finally, The Ticker Club whose members are the leaders of asset management in Canada.

"How to put purpose in your portfolio" was the theme Michael Baldinger tackled at MaRS, The Social Finance Forum, Canada’s leading event for people who believe profits should be paired with purpose.

Every day, billions of dollars are invested with the sole intention of making more dollars, while life-changing social programs and vital environmental initiatives struggle for funding. Impact investing is the fast-growing movement that’s closing that gap by promoting profitable investments in programs and ventures that power progress.

Now in its 11th year, the Social Finance Forum, organized and convened by the MaRS Centre for Impact Investing, attracted more than 600 investors, entrepreneurs, finance professionals, charity leaders and public service visionaries who are reshaping markets and ensuring that every dollar makes a difference.

Later, at a private dinner at The National Club, Michael addressed 40 investors. He made the case that by using new eyes, we can invest to make the world a better place. But what is sustainable? This word lacks a common definition which can make it less attractive for investors who think their charity should be donating to anything sustainable, not as a serious investment case.

Talking about the confusion around the word sustainable, Michael chose to not use green on the cover photos of the sustainable investing white papers.
" It is not just about 50 Shades of Green," quips Michael. "It is about going beyond the public numbers to non-material data. that shows which companies are operating with the best interests of society, but also making the returns our investors seek."
At the Ticker Club, Michael spoke about how to invest, but with the sustainable filter.
Michael Baldinger is a former Wall Street trader intent on making UBS' $800 billion in asset management money greener and more socially responsible.
Since 2016, Michael Baldinger has served as Global Head of Sustainable and Impact Investing at UBS Asset Management (UBS). There, Michael leads a team of investment professionals focused on research and stewardship, client solutions and business strategy. And he is responsible for establishing world-class social and environmental impact investing across asset classes.
With 30 years in the financial services industry and a decade as an investor in sustainability, Michael brings a wealth of experience to all projects. Before joining UBS, Michael served as Chairman and CEO of RobecoSAM’s executive committee. 

November 7, 2018

What are the fees for sale of your business?

For all of you entrepreneurs and business owners who are thinking about an exit, I am excited to tell you that the new M&A Fee Guide 2018-19 report by Firmex and Divestopedia is a must-read. After checking out this report, Founders and Owners will benefit from having a realistic and up-to-date overview of the fees for a proper advisor (not your accountant). Facts make you confident in selecting an expert. 
Over the years, I have observed how the fear of fees can be a block to exploring the wide range of ways to grow the business or exit. I have seen many owners think that fees will be too much.  Then they try and do by themselves - this most emotional job of all.  Don't be cheap on this part and don't think your accountant alone is the right expert. Get the facts. I think most owners will be surprised.  
Also, I have certainly seen that by using an advisor, you attract a better quality of buyer and end up with a sale price that fits expectations. Do check out this report and don't let fear of fees cost you lost profits.
Success fees, work fees, break fees…. M&A advisory fees can be structured in various ways and can differ greatly from region to region and city to city. I highly recommend checking out this free report to get a true assessment of fees for your sale of your business. Based on a survey of 480 M&A advisors – AKA the experts who will go out and find qualified buyers for your company and help negotiate the sale – this guide provides valuable data on what advisors charge their clients and why.
An exit can put owners in an uncomfortable position. While you know how to run your business better than anyone, this doesn’t necessarily mean you know how to sell it. When owners seek the expertise of advisors to help with a sale, they aren’t always familiar with how the process works or the fees that are being proposed. This report will provide the inside scoop you need to negotiate fees and terms for the sale of your business with confidence that you’ve done your homework.

I have personally partnered with my company with BDO and appreciate their ability to work with Canadian companies and their unique circumstances. Adam Mallon, the Managing Director of Transaction Advisory Services, for the mid-market, is someone who can read the situation and give clear and fair feedback to the founder as if it were his own business. Adam is one of the sponsors of the report which is an indicator of the accuracy.  
What I enjoy about Adam is that he does not waste time and gets to the real issues quickly. Adam says, 
“Sale mandates are complicated and, as this research shows, the associated fees can be calculated in many different ways. While price is an important element, is not the most important one. When selling a business, engagements can be long, intense, and often emotional. Business owners should make sure that their advisor is experienced, qualified, and a good fit personally.” 
Great advice for anyone who’s gearing up for a sale!
Get the Full Report
To download your free copy of the M&A Fee Guide 2018-19, click

November 5, 2018

Sustainable, Impact Investing Assets Surge - Study reports

This week, I am running three Sustainable Investing events with our experts from New York and Switzerland. This article on Sustainable investing and the rapid uptake of funds came across my desk today. It is written by one of my favourite editors, Tom Burroughes, Group Editor, Family Wealth Report.  The full article was posting on November 5, 2018:

The trend of ESG and impact investing continues to build momentum, according to figures from the US.
Investments that are deemed sustainable or that achieve certain impact beyond purely monetary results are now worth $12 trillion in the US, new figures show, a quarter of all the total assets managed professionally in the country, and a 38 per cent jump from just two years ago.

The data comes from the US SIF Foundation’s 2018 biennial report on such trends. Since the report was first issued in 1995, when sustainable/impact investing accounted for about $639 billion of AuM, the market has surged 18-fold.

Such ways of using investment muscle are gaining ground because, advocates say, they appeal to people who want to not just accumulate savings for the long term but to address issues such as pollution, crime, educational failure and mistreatment of women, among other concerns.

The latest report identified $11.6 trillion in ESG incorporation assets under management at the outset of 2018 held by 496 institutional investors, 365 money managers and 1,145 community investing financial institutions. The largest percentage of money managers cited client demand as their top motivation for pursuing ESG incorporation, while the largest number of institutional investors cited fulfilling mission and pursuing social benefit as their top motivations.

“Money managers and institutions are utilizing ESG criteria and shareholder engagement to address a plethora of issues including climate change, diversity, human rights, weapons and political spending,” Lisa Woll, US SIF Foundation CEO, said.

Retail and high net worth individuals are increasingly utilizing this investment approach with $3 trillion in sustainable assets, the
US SIF Foundation reported.

2 Changes to Estate and Tax Law in Ontario

The recent changes to Ontario estate law and U.S. tax law might impact families with wealth. These 2 new changes are worth reviewing:

  1. For those of you with multiple wills (used commonly to avoid Probate) should review their Wills. A recent decision, Re Milne, rendered a Primary Will void because it contained a commonly used provision that gave the Trustee discretion to determine what assets to include in the Primary Estate. As a result, multiple wills are only valid if the assets that comprise each of the Primary and Secondary Estate are defined with sufficient certainty. This decision is currently applicable in Ontario, but it is possible that it could be applied in other provinces.
  2.  U.S. citizens in Canada may be impacted by the changes to the Tax Cuts and Jobs Act, specifically the global intangible low-taxed income (GILTI) tax. U.S. GILTI tax is relevant for any U.S. Shareholder owning 10% or more of a controlled foreign corporation (i.e. a Canadian Corporation with US shareholder). U.S. Shareholders in that situation may have a one-time 15.5% tax, plus they must include in income such profits in excess of a 10% return annually on depreciable tangible assets owned by the corporation whether or not a distribution is made to the U.S. Shareholder.


Clients with wealth need to know you see their needs first

We are striving to talk to clients the way they think about their money, not the way we do. Many advisors jump into talking about themselves, how they have been doing their role for 20 years and so forth.  This does not give the client ease of mind.  The client wants to know that you see them and you understand their special circumstances, not that you are shoehorning them into a standard "solution".

Clients feel their money “has a job to do” – to help them develop and educate their children, care for their parents, fund their businesses and homes, spin out a monthly cash flow, etc. In our client relationships, we are focused on helping our clients achieve their desired outcomes – offering the right capabilities, removing complexity and truly listening.

Our clients have their best practices in managing their wealth. This mutual sharing of knowledge has developed the wealth management practices over the past 150 years and this is a responsibility we take very seriously.