Do you know the wealth creation formula?

For Mandeville Private Client, advisors should have the knowledge and tools to answer one crucial question: how is wealth created?

The company follows the ethos of its CEO and world-renowned businessman Michael Lee-Chin, who last week received the Ontario Order of Merit and whose five laws of wealth creation have helped attract a client base that has turned the immigrant from Jamaica into a coveted billionaire.

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Frank Laferriere, the company’s director, senior vice president and COO, said if you don’t know the answer to the wealth question, be prepared to lose business.

He said: “Do you know the wealth creation formula? Because if you don’t know that formula, as a client, I would consider changing advisors.

“That’s the highest value that an advisor can provide to the client or family sitting across the table. The thing about financial planning, it all dances around the pin head of why do you speak to an advisor? Why do you give your money to an online discount place? It’s all about creating wealth. Who knows how to do it? Virtually nobody.”

Laferriere believes his company has the answer to that question and refers to it as the “Mandeville difference”, which he says separates the company from its competition.

He said: “It’s about the democratisation of investment, activities and techniques that are usually reserved for the uber wealthy. We believe that there is a formula for wealth creation. We’ve seen it in action time and time again and we really feel the Canadian investing public are getting a raw deal. They are not really getting the ability to create wealth.

“The securities industry is a self-serving ecosystem where people are pumping out different products, generating fees, but is anyone really creating wealth? Everybody here was with Michael prior to our sale to a big insurance company and so we could have stayed clipping coupons with that company or Michael could have sailed off into the sunset.

“But what really made all these changes is that Michael came back with a vision. He said everything I have accomplished is because I had clients - and clients in Canada are getting a raw deal. Let’s make it so that clients can actually have an opportunity to create wealth in a similar way that he did, but also in a similar way that CPP does, that Harvard and Yale do, that the family offices do, like the uber wealthy people do.”

Laferriere said the key to this approach is giving clients access to what he calls endowment fund investing styles, which include a combination of public and private securities.

The other aspect of Mandeville Private Client that he believes gives it an edge over industry rivals is a company motto that gets to the heart of its work culture.

He said: “We have this little saying, our CEO is an advisor and our advisors are CEOs. We are an advisor-centric organisation. I know who pays my salary, it’s the advisors, and everyone from kings to cabbages recognizes that an advisor who can serve their client well will be successful, so we do our level best to make sure the advisors are well served and successful.”