Nancy Bertrand moved from Hong Kong to Canada when she was three and a half years old. She grew up in a family steeped in Chinese culture, where money wasn’t the taboo topic that it is for many in North America. There, it was—and is—front and centre. Their standard greeting at New Year’s translates to, “I hope you are prosperous and make money.”
Today Bertrand is Global Market Manager and head of Citi Private Bank in Canada, where she leads a Canada-wide team that advises ultra-high-net-worth families, foundations and single-family offices on wealth preservation and creation, with a particular focus on alternative and international investments.
Before joining Citi in 2006, she practised U.S. securities law at the global law firm A&O Shearman, specializing in cross-border corporate finance and mergers and acquisitions. Bertrand is also past president and former board member of the CFA Society of Toronto.
We talked with her about how she rose to her current position, who her clients are and her observations about investors from around Canada.
How did you get to where you are?
I got an HBA at what is now Ivey Business School, and then my law degree at McGill. I started my career at Shearman & Sterling (now called A&O Shearman) as a U.S. securities attorney focused on cross-border corporate finance and M&A transactions.
When I decided to move into private wealth management 18 years ago, it wasn’t as ‘cool’ a space as institutional sales. But it turned out that we were at the start of a J-curve for private wealth—institutional margins were shrinking, pension plans were shifting to defined contribution and many high-profile institutional jobs were no longer available.
We were seeing a huge influx of wealth into Canada, it was a period of low interest rates, and people who started businesses after the financial crisis became unbelievably successful.
What is your average client’s profile?
Our minimum threshold is US$25 million in investable assets, but most of our families have well over US$100 million of liquid net worth. You really need to have a portfolio of $100 million-plus to benefit from our full range of solutions.
I love that 75 per cent or more of my clients are first-generation entrepreneurs—they started from scratch. This resonates with my own background, as I have that same work ethic.
With this amount to work with, we can set up an endowment-style structure with a globally diversified portfolio that is comprised of low or uncorrelated assets and sub-asset classes. We optimize both sides of our clients’ balance sheet by overseeing overall asset allocation, portfolio construction and financing of personal and commercial real estate, investment portfolios, art collections and personal aircraft.
What do you like most about working with these clients?
I love that 75 per cent or more of my clients are first-generation entrepreneurs—they started from scratch. This resonates with my own background, as I have that same work ethic.
These entrepreneurs have done so much to help our country. They employ thousands of people, many of whom are immigrants, and they have made all of these people’s lives better. Many of my clients are enabling newcomers to live the Canadian dream.
Family offices are doing a lot of direct investing. What are the challenges there?
Direct investing is a huge interest of our clients. They like the fact that they can have more control over the operations of a company they are invested in (only if they have a majority interest).
I make sure to point out that nine times out of 10 things go wrong with an operating business, so it is important that they have the right people in place at the family office to properly assess and monitor the investment.
How would you describe the culture of investing today in Canada?
The culture of investing varies by region.
Toronto UHNW investors tend to have portfolios with a more diverse range of manager strategies and geographies. Many global managers stop to pitch large pension funds such as CPPIB, Ontario Teachers’ and OMERS and at the same time visit with many UHNW families.
Montreal is a bit more parochial in that the investor community is very tight-knit. If one of the larger family offices invests, so will everyone else, piggybacking on their due diligence. This is quite often seen in hedge fund portfolios among UHNW families in Montreal where there is a desire to promote and prioritize Canadian content—you don’t see this as much in Toronto.
Calgary is still mainly first-generation wealth concentrated in oil and gas, land and the beginnings of a tech hub. Now that the new Trans Mountain Pipeline is operational, there is a real energy (as it were) in Calgary—you can feel it!
Vancouver has a lot of foreign money as a legacy from the first wave of wealthy immigrants from Hong Kong and China in the 1970s and 1980s. The face of wealth has changed: there are now a lot more people from India and Southeast Asia.
What do you think markets will do for the balance of this year?
We are optimistic into year-end in an environment of rising profits, potentially more muted interest rates and U.S. policies under a Trump administration that is predicted to be more business-friendly—we are overweight equities.
We are hopeful that the M&A and IPO markets come back, as this would be helpful for investor confidence.
Do your female clients have any investment preferences?
One alternative asset class that holds great appeal for women is art—female clients are more likely than male clients to be connoisseurs. Women collect art mostly because they like the artist or the painting/sculpture, not because they think the piece will double or triple in value in short order like some men, who ask our art advisors for assistance in trying to find the next Basquiat.
Men will collect cars and wine more often than women, as well. Due to the level of speculation and illiquidity, we will not lend against cars and wine, but certainly lend against art collections. This enables UHNW clients to monetize the millions they have on the wall to invest in investments that can generate a yield.
Do you have any career advice for other advisors in your field?
For me, it is always, ‘What interests you?’ Figure out what turns your crank. Some advisors prefer to deal with Canada only, and some want to work with lower-net-worth clients so they can make a real difference in people’s lives.
The reason I’ve been at Citi for 18 years is that I like the intellectual challenge. I have the ability to put any kind of solution in front of clients, such as putting an FX hedge on Israeli shekels or implementing a cross-currency swap to lower interest rate costs!
Responses have been lightly edited for clarity and length.
Barbara Stewart is a Chartered Financial Analyst (CFA) with 33 years of investment industry experience; five years as a foreign currency trader, more than two decades as a portfolio manager for high net worth entrepreneurs, and for the past eight years doing interview-driven research for multiple global financial institutions. She is a keynote speaker for CFA Societies, banks, stock exchanges and industry conferences globally, and she is a columnist for CFA Institute, Canadian Family Offices and Canadian Money Saver magazine. She is on the Advisory Board of Kensington Capital Partners and also is the Ambassador for the Kensington Women’s Forum.
Fifteen years ago Barbara saw a need to challenge outdated financial industry stereotypes and share positive messages about women and money. Today, Barbara is recognized worldwide as one of the leading researchers in women and finance. Her Rich Thinking® global research papers quote smart women and men of all ages, professions and countries and are released annually on International Women’s Day, March 8. To find out more about Barbara’s research, visit www.barbarastewart.ca.
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