(January 31 – 18:10 ET) – Speaking today at a lunch hosted by the Toronto Society of Financial Analysts, Marty Weinberg, chairman and CEO of Assante Corp., revealed a little of the firm’s strategy.

In a speech that essentially introduced the company and its history to analysts, Weinberg revealed that the firm’s manufacturing arm, Assante Asset Management, generates operating margins from its Canadian unit in the range of 120-130 basis points.

He spelled out the advantage Assante enjoys when selling its proprietary products compared with third-party products. “For each $1 billion invested in our products, we can increase EBITDA margins from the sale of third-party products from 5 to 10 basis points to combined distribution and manufacturing EBITDA of approximately 120 to 130 basis points, or about $13 million.”

He noted that there is a large opportunity to gravitate its clients holding third-party funds to its own, more profitable funds. “With only $4 billion of the over $26 billion currently invested in our products, there is substantial opportunity for organic growth.”

Weinberg noted that the firm’s advisory force is its key to the future, saying, “it is our distribution capability in Canada and the U.S. that is clearly the jewel in our crown”. He indicated that the firm would increase its push of the house funds, “With our integration initiative more than 70% complete, we are now ready to unlock the value of our existing client base by identifying and offering the right mix of proprietary products and services.”

Despite the apparent push to increase proprietary sales, Weinberg, says, “At Assante Advisory Services, we are focused on our sales force, growing each individual practice to maximize assets under administration.” He noted that the firm is working on new products, getting set to roll out a slate of banking products, and looking to increase cross-selling with its insurance arm.
-IE Staff