Canaccord’s Canada AUA gains 32.5% over past year

Canaccord Genuity Group’s Canadian wealth management business grew its assets under administration by 32.5% over the past year, the firm says, reaching $12 billion at the end of 2016 as it registered additional assets from new advisory teams.

“Assets in our Canadian wealth management business continued to improve, primarily due to the success of our recruiting strategy,” Dan Daviau, chief executive of the investment bank, said in a letter to shareholders for the quarter ending December 31, 2016. “Our recruiting efforts in this business remain on track and we are attracting interest from growing numbers of high quality advisors.”

Canadian AUA rose from $9 billion on December 31, 2015. Revenues from the Canadian business will be more fully reflected in future quarters, Daviau said, as the company focuses on scaling up its wealth management divisions in Canada, the U.K. and Europe.

Canaccord said in November it had recruited nine advisory teams that, together with more planned acquisitions, would help grow assets under administration by about $2.5 billion.

Read: Canaccord recruiting more than 9 advisory teams, $2.5B in AUA

The company reported quarterly expenses of $6 million related to rationalizing Toronto office space, transitioning new advisors onto its platform in Canada, and other charges for compensation and awards. Its Canadian business had 139 advisory teams as of December 31, unchanged from the previous quarter and down by one team from a year earlier.

Canaccord’s North American wealth management business recorded a net loss of $481,000 during the quarter, before taxes, on revenues of $32.8 million.

The company also announced key personnel changes on Friday, including the appointment of Don MacFayden as CFO and Adrian Pelosi as chief risk officer and treasurer. Both appointments took effect immediately.

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North American assets under administration were $12.0 billion at the end of the quarter, up 15.8% from $10.3 billion at the end of the previous three-month period.

Canaccord also has wealth management offices in Australia, the U.K. and Europe.

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