Hunting the rich to make richer - cloudfront.net
OPINION
Hunting the rich to make richer Jonathan Chevreau, Financial Post · October 23, 2010
I
f you’re a decamillionaire, which means you have a net worth of $10-million, the chance to become one of just 56 charter Canadian members of the Tiger 21 networking group may be gone by the spring. Now that Thane Stenner has become managing director for Tiger 21 in Canada, the recruiting drive has begun in earnest. In practice, only successful business owners are likely to have that much wealth. Or people like Stenner, who advises the wealthy. Stenner is founder of Stenner Investment Partners, a division within Richardson GMP Ltd. He is based in Vancouver, one of just four Canadian cities in the networking group initially. The others are Calgary, Toronto and Montreal. Stenner plans to visit all four at least monthly. Fortunately, all that business travel qualifies as a tax-deductible business expense. But it’s less clear if the annual $30,000 membership fee is a valid taxdeductible expense. In an interview, Stenner says the “majority” of the fee may be deductible, but adds the disclaimer that members should consult their accountants and tax advisors. True, the collective intelligence of the group provides members with an edge over the hoi polloi. Stenner says American members were well aware of the subprime mortgage problem by late 2007 and early 2008, so made their portfolios more defensive before the
bear market hit in the autumn of 2008. (it’s US$71-million in the United States), Most raised cash and bonds or cut back which brings the fee closer to five basis on long-only exposure to stocks, some points of total net worth. went to market-neutral investments and Kelly Rodgers of Rodgers Investment some even shorted stocks. Conversely, Consulting in Toronto, says most clients when the gloom was pervasive early in in this bracket already have an existing 2009, members stepped up to take more network of professional advisors, lawyers risk and grab bargains, with the result that and accountants. “I doubt any of my most were soon back to pre-crash levels clients would pay $30,000 a year to have or close. lunch and talk with people.” Tiger 21’s So Tiger 21 is one way the rich get focus is alternative investments, hedge richer. But you’d need an aggressive funds, private equity and real estate and, accountant to write off theLynett, whole fee, Post “you can Stenner go to lots of conferences Aaron National - Thane is recruiting clients for on a very select investment since the Income Tax Tiger Act is21,very specific those fornetworking less thangroup. $30,000 a year.” about what fees qualify as tax-deductible Clearly, strong sales skills are needed investment counsel. Much of the fee during this recruitment phase and Stenner facilitates what amounts to group therapy can deliver. At just 46, he too has a net for the rich, and perhaps the chance for worth of $10-million. Son of a veteran U.S. hedge fund managers to pitch their stockbroker, Thane bought his first wares. investment, Templeton Growth Fund, Note the fee is imposed every year, at age 11. His clients also must have unlike the hefty upfront fees some $10-million and his fee is as high as affluent people pay to join exclusive 1.2% of assets under management ( “all country clubs. in,” less if portfolios contain more fixed or someone with $10-million, $30,000 income). He has 52 clients. is like paying 30 basis points (0.3%) on Michael Nairne, president of Torontoa total portfolio, says Rob Bell, of Bell based Tacita Capital Inc., says for some Kearns & Associates, who provides former business owners who enjoy the investment counsel to the wealthy and world of investments, the cost to join charges 20 basis points for the privilege. Tiger 21 “can be a good investment. It can “I don’t understand the mathematics of be intellectually and socially fulfilling.” it,” Bell says. There are more affordable But he says the culture here is different ways for ultra-high-net-worth Canadians than in the United States, where Tiger to access top advisors, he adds. 21 began. “In Canada, most rich people Stenner says the average Canadian Tiger don’t think they’re rich and don’t want to 21 member has a net worth of $60-million be identified as rich.”
Hunting the rich to make richer Jonathan Chevreau, Financial Post · October 23, 2010
I
f you’re a decamillionaire, which means you have a net worth of $10-million, the chance to become one of just 56 charter Canadian members of the Tiger 21 networking group may be gone by the spring. Now that Thane Stenner has become managing director for Tiger 21 in Canada, the recruiting drive has begun in earnest. In practice, only successful business owners are likely to have that much wealth. Or people like Stenner, who advises the wealthy. Stenner is founder of Stenner Investment Partners, a division within Richardson GMP Ltd. He is based in Vancouver, one of just four Canadian cities in the networking group initially. The others are Calgary, Toronto and Montreal. Stenner plans to visit all four at least monthly. Fortunately, all that business travel qualifies as a tax-deductible business expense. But it’s less clear if the annual $30,000 membership fee is a valid taxdeductible expense. In an interview, Stenner says the “majority” of the fee may be deductible, but adds the disclaimer that members should consult their accountants and tax advisors. True, the collective intelligence of the group provides members with an edge over the hoi polloi. Stenner says American members were well aware of the subprime mortgage problem by late 2007 and early 2008, so made their portfolios more defensive before the
bear market hit in the autumn of 2008. (it’s US$71-million in the United States), Most raised cash and bonds or cut back which brings the fee closer to five basis on long-only exposure to stocks, some points of total net worth. went to market-neutral investments and Kelly Rodgers of Rodgers Investment some even shorted stocks. Conversely, Consulting in Toronto, says most clients when the gloom was pervasive early in in this bracket already have an existing 2009, members stepped up to take more network of professional advisors, lawyers risk and grab bargains, with the result that and accountants. “I doubt any of my most were soon back to pre-crash levels clients would pay $30,000 a year to have or close. lunch and talk with people.” Tiger 21’s So Tiger 21 is one way the rich get focus is alternative investments, hedge richer. But you’d need an aggressive funds, private equity and real estate and, accountant to write off theLynett, whole fee, Post “you can Stenner go to lots of conferences Aaron National - Thane is recruiting clients for on a very select investment since the Income Tax Tiger Act is21,very specific those fornetworking less thangroup. $30,000 a year.” about what fees qualify as tax-deductible Clearly, strong sales skills are needed investment counsel. Much of the fee during this recruitment phase and Stenner facilitates what amounts to group therapy can deliver. At just 46, he too has a net for the rich, and perhaps the chance for worth of $10-million. Son of a veteran U.S. hedge fund managers to pitch their stockbroker, Thane bought his first wares. investment, Templeton Growth Fund, Note the fee is imposed every year, at age 11. His clients also must have unlike the hefty upfront fees some $10-million and his fee is as high as affluent people pay to join exclusive 1.2% of assets under management ( “all country clubs. in,” less if portfolios contain more fixed or someone with $10-million, $30,000 income). He has 52 clients. is like paying 30 basis points (0.3%) on Michael Nairne, president of Torontoa total portfolio, says Rob Bell, of Bell based Tacita Capital Inc., says for some Kearns & Associates, who provides former business owners who enjoy the investment counsel to the wealthy and world of investments, the cost to join charges 20 basis points for the privilege. Tiger 21 “can be a good investment. It can “I don’t understand the mathematics of be intellectually and socially fulfilling.” it,” Bell says. There are more affordable But he says the culture here is different ways for ultra-high-net-worth Canadians than in the United States, where Tiger to access top advisors, he adds. 21 began. “In Canada, most rich people Stenner says the average Canadian Tiger don’t think they’re rich and don’t want to 21 member has a net worth of $60-million be identified as rich.”
