Scandinavian Capital Markets is fortunate to work with fantastic individuals around the globe. One asset manager we wanted to highlight this month is Daniel Hunter. Based out of Toronto, Canada, Daniel advises high net worth individuals. We interviewed Daniel to talk about high net worth individuals needs and Forex as an alternative class of investment. Starting back early in his career in the 1990s, Daniel has been an advocate of alternative asset classes. Now those can vary. Today it can be Forex, foreign exchange. It can be anything from hard commodities to anything. It can be art. It can be wine.
Tell us a little about yourself
Thank you for the opportunity to share my experience and insights on the asset management side via Scandinavian Capital Markets.
My career spans back 20 plus years starting with Royal Trust, which was in Canada one of the premier trust companies handling trust and asset management for high net worth individuals both in Canada and internationally. We were bought by RBC Global, and that led me to a career around the world dealing primarily in advisory and asset management.
Although I have the asset management experience, I’ve been in the business development side working alongside some of the top managers globally, both with RBC and EFG international. I started my career, then, with my own business and aligned with Scandinavian Capital Markets 2 years ago and have started to on-board high net worth individuals to the platform in Sweden which has been wonderful.
It sounds like you have deep experience with a broad array of accomplished professionals in the asset management space. Give us a sense of who your clients are.
The average client that I’ve worked with, going back to the beginning of my career, has been a high net worth individual. But that’s changed over the years. Now a high net worth individual is typically worth $1,000,000 plus with investable assets going up to billions with family offices that I work with both here and offshore.
The main thing I can stress is that these types of clients are not necessarily interested only in returns of investment. They are interested in something more than just a profit.
They have wealth. They are already wealthy. They typically want to deal with someone they trust, where there’s transparency in the platform, and ultimately, of course, performance and servicing. I mean, at the end of the day they want to be serviced by top professionals. Additionally, today the level of technology that we deal with gives benefits to all because it allows to access clients globally, communicate and report instantly.
That’s interesting how the clients and the marketplace changed over time. How much do your clients know about investing in Forex?
With regards to clients’ knowledge about Forex, I think we’re all exposed to that on daily basis, whether it’s at the bank or in news. But, from a trading perspective, the clients that I deal with are sophisticated. The one thing they don’t have is time on their hands to trade their own accounts.
So, most of the services that I provide throughout my career have been on a discretionary basis. I’ve worked with a portfolio manager who makes decisions daily, structures the portfolio, and from there manages and monitors the account with me. Together we manage and service the clients.
High net worth individuals are sophisticated, they’re typically running other businesses where they’ve made their profits and their wealth.
So when the trust is aligned we make the decisions – as long as it’s a very disciplined model with not a lot of leverage, there’s not a lot of upheaval and big swings because, as I say, the clients are not trying to hit the ball out of the park. They’re looking for consistency.
They don’t want the downside. They don’t want big losses. They’re experienced. They look to us for providing access to what I call alternative asset classes.
Clients clearly value trust and personal relationships. They want to lower portfolio volatility with a solid asset manager. So, where does Forex fit in here?
Starting back early in my career, I was an advocate where many weren’t in the bank(s) and other brokerages of the utilization of alternative asset classes. Now those can vary. Today it can be Forex, foreign exchange. It can be anything from hard commodities. It can be art. It can be wine.
You know, there’s all sorts of things that can be added into a portfolio for a high net worth individual that conserve and grow capital. The equity and bond markets and cash have been traditional. But, they’re facing a lot of upheaval right now with the way the world is.
With the inclusion of a properly managed foreign exchange portfolio and other asset classes, as I mentioned previously… I think that just expands and preserves the high net worth individuals’ wealth. It expands their wealth, and they see better returns overall.
But it typically has to be an inclusion of all asset classes for diversification. Anybody that’s just out selling a product to make profit, which includes the bank, isn’t properly assessing and advising their clients.
You said you work with clients all around the world. How has that changed over time in asset management and for you personally?
The beauty of where we are in the world nowadays, in this day and age, is geographically you can have clients move around the world or work with clients around the world and report to them without complications. Ultimately there are some taxation issues that typically have to be looked at depending on the jurisdiction.
But I think clients are looking for good advice and trusted advisors.
I have clients that either lived abroad, or have moved from Canada to another country and we’ve just continued the relationship. That’s ultimately the benefit we have nowadays with technology. You can be mobile.
I have the roots of the trust side that I think is implicit with everybody that still has wealth.
High net worth individuals want to work with people they know and they know they can trust them. Ultimately that will lead to long term relationships.
That’s great you’ve been able to maintain relationships with clients after they move. It’s clear that trust and transparency top the client priorities. So, why did you choose to work with Scandinavian Capital Management?
Scandinavian Capital Markets was introduced to me by a colleague in the Caribbean about 3 years ago. He knew that I had strong relationships with high net worth individuals, had capital, that could be migrated across to Scandinavian Capital Markets.
I was looking to rebuild my client base as I was working more in the private equity space. My core belief and passion is helping individuals find alternative asset managers.
Scandinavian Capital Markets – they really have a model, and they’ve done a great job to build a company to service the brokerage industry.
What we want to do now is use the platform because of the technology the transparency and the team that’s in place.
I work with the managers I feel comfortable with, and know that my clients are going to be well taken care of when they’re on-boarded.
I’ve seen the results already and they’ve been incredible. That allows me to get out and source new business and individuals who want to grow their asset base.
Featured photo: Daniel and Susan Hunter