For manager behind noted MIC strategy, foundational values and patient approach remain vital
Those well-acquainted with the Canadian alternative investing space might recognize W.A. Robinson Asset Management as the firm behind one of Canada’s first prospectus-listed mortgage investment corporations. What might not show up in their due diligence is its reputation as a pillar of the small Eastern Ontario community where it’s based.
“We’re the largest employer in Sharbot Lake, which has a population of around 1,000 people,” says Gord Ross, chief sales officer at W.A. Robinson Asset Management (pictured above, left). “It’s where we were founded, it’s where our head office still is today, and it’s had a major influence on our strategy and ultimately on our success over time.”
This year, the company is celebrating a milestone anniversary of 40 years. Driven by a passion for helping his neighbours, Wayne Robinson developed the mortgage investment business from the ground up in true old-school fashion, shaking hands with investors at their kitchen tables as he explained the approach and gave performance updates. When the rules governing MICs came into force, the strategy was formalized and restructured into what’s now known as the Frontenac MIC.
“The Frontenac MIC was available first privately, then by offering memorandum, and then we put a prospectus in place. It’s more work for us given a requirement for greater regulatory oversight, but this brings peace of mind for investors and advisors, so it’s worth it.” Ross says. “We are now uniquely positioned as the only prospectus-based MIC in Canada that is not traded on the TSX.”
Matthew Robinson acquired the company from his father in 2014 as part of a planned succession and has steered the business as CEO ever since. Today, W.A Robinson Asset Management draws from more than 40 years of experience in financial planning, construction, real estate, and other specializations brought to the business by the Robinsons and a dedicated employee base.
“I am incredibly proud of what I see as a true, Canadian success story,” Matthew says. “W.A. Robinson Asset Management was born of a great idea and nurtured over time by people who really care about helping others. It’s the story of a family business in a small town that has grown steadily, sustainably and without losing sight of its values.”
As a manager that works on both sides of the balance sheet, Frontenac’s strategy is designed with two sets of stakeholders in mind. For investors, there’s the need to preserve capital, and deliver regular and reliable returns. That’s balanced against the equally crucial objective of being there for borrowers who have been shut out of the traditional lending channels controlled by banks and credit unions. Supporting this ecosystem is another Robinson company, Pillar Financial Services Inc., which provides the mortgages in the Frontenac MIC portfolio.
Continuity and succession have almost certainly been a factor in the Frontenac MIC’s remarkable streak of positive calendar returns since inception. With rare exception, it’s stayed true to its promise of delivering returns between 5% and 6.5% after fees to investors every year – including 6.02% in 2022, when most fixed-income investment returns struggled.
But in Matthew Robinson’s view, the company’s greatest strength is in the foundational values that all 40 people under the firm’s roof stays committed to.
“Long ago we set foundational values of competency, consistency, and care that we all really believe in, and which have paid off for our investors over time,” Matthew says. “If people want you to stay in business, then you’ll stay in business. We never stop caring for our colleagues, partners, clients, and investors and that’s why we’re still here.”
With the growing profile of alternatives among both advisors and retail investors, the future looks exciting for W.A. Robinson as it celebrates a milestone year. The firm is sticking to its slow-and-steady ethos by aiming for roughly $50 million in AUM growth per year, but far from sitting still, the management team is actively pursuing additional product lines.
“Our niche is conservative, high-quality mortgage and real estate solutions and we see room here for growth,” said Ross. “We’re exploring complementary income offerings still within our wheelhouse but possibly one rung up from Frontenac MIC on the income ladder.”
“We set a modest growth target of $400 million AUM based on the product line we have today, but who knows what a little creativity could produce?” Matthew says. “I think we can build some amazing Canadian products that advisors can bring to their investors with confidence.”
