Heather received a Bachelor of Science in Mathematics from the University of Toronto in 1983 and an MBA with a specialization in Finance from McMaster in 1985. She started work as a representative for Investors Group and two years later joined The Bank of Nova Scotia, holding many positions in her 15-year career with the bank, including Manager Corporate Credit, Manager Corporate Banking, Director of Risk Management, and Senior Relationship Manager Commercial Banking. Heather joined Canso Investment Counsel Ltd. in February 2003, and in 2005 she was awarded the CFA charter. At Canso, she is responsible for credit analysis and portfolio management as well as marketing and client servicing.

You had a graduate degree in finance and a long and successful career in the banking industry before joining Canso Investment Counsel in 2003. What precipitated your decision to become a CFA charterholder?

Heather Mason-Wood: When I first joined Canso, I did not intend to enrol in the CFA program as I thought that my MBA and years of experience in credit analysis as well as client service and marketing would be sufficient. I recognized that I had no portfolio management experience, but I thought that the necessary skills could be learned on the job. While that is true to a large extent, I soon realized that in order to be taken seriously in the investment management business, a CFA charter is key, and so I enrolled for the December 2003 exam.

You passed the Level 1 December exam in 2003, the Level 2 exam the following June, and Level 3 in 2005, receiving the charter later in the year. That is a considerable accomplishment in itself, but you also had a family and a very demanding job. How did you handle all those responsibilities at the same time?

HM-W: I had a supportive husband who made it possible for me to spend many hours studying without greatly sacrificing time with my two sons. I also had a supportive work environment where I was given a week off with pay to study for each level. I am quite organized, and the study habits I developed during MBA school were invaluable. I also enrolled in study courses for each level and participated in study groups for all three levels. I found the study group to be a great concept, as you benefit from teaching others what you know and learning from them when you are struggling. All members can contribute to some sections but can also benefit from the other members’ experiences. In the first study group I met another candidate, also with a family and busy work life, who passed each level at the same time as me.

We both took studying very seriously, so the study group sessions held on Sunday mornings were very effective.

Canso has seen very large growth in its assets under management. In what areas have you seen the most change during your time with the firm?

HM-W: We have had assets grow from $500 million to $8 billion, and the number of employees has grown from six to 35 in my nine years at Canso. As a result, my client service and compliance roles have increased in complexity. Fortunately, some of the people hired during this time have taken on some of the client service and compliance duties, and so my role has evolved from being the only person doing the work to a combination of hands-on work and oversight of these functional areas.

What are the principal investment-related challenges that you face in your work?

HM-W: With the elimination of the foreign property rule in 2005, the investment universe for Canso has grown significantly. Almost all our clients permit investment in foreign issuer bonds today whereas prior to 2005 we were restricted to Canadian issuers. Following the credit crisis in 2008, many interesting investment opportunities have arisen due to all the turmoil in the financial industry in the United States, Europe, and the United Kingdom. In order to properly assess the opportunities, a great deal of credit research and analysis is required as well as skill in trading the securities. Canso was built on its credit and trading acumen and can see opportunities where others do not. As the market has evolved, our credit research and portfolio team has grown, enabling us to continue to exploit market opportunities.

What are some of the main risk management and governance issues that you must address in today’s environment?

HM-W: As a result of the general market turmoil, we are finding it increasingly common for clients to have very tight constraints in their investment policy statements, which go beyond what is needed from a governance or risk management perspective. Boards and Committees as well as the regulators are more fearful about foreign markets, and the way they manage this risk is to impose very tight constraints. As a money manager, this is challenging, as there is a trade-off between risk management and return. Our clients generally permit loosening of these constraints over time as they become more comfortable with Canso’s internal credit skill and risk management process, but in the early days of a relationship with new clients these constraints can be challenging to implement while still adding value.

How do you see the industry evolving over the next few years?

HM-W: I think the industry will continue to move towards specialization. Years ago, institutional clients had balanced fund managers who were mostly generalists. Then the funds were split between equity and fixed income managers, still with more of a generalist or index-neutral approach. Today, investors are struggling to make positive returns with the low interest rate environment and weak equity markets, and they are looking outside the box.

We have also seen great consolidation of money management firms as larger institutions have bought some of the independent firms. I think we will start to see a new crop of independent investment counsellors in the coming years as some managers who have been absorbed by the larger firms strike out on their own again over time.

You are a volunteer for the United Way York Region. Can you share some of your experiences with this organization? What do you find most rewarding about volunteering for a charitable organization? How does this experience help you in your day job?

HM-W: I’ve done a lot of volunteer work since high school, but it is only in the last five years working with the United Way of York Region (UWYR) that I’ve been involved at the Committee/Board level. I’m happy to have chosen UWYR for a couple of reasons. First of all, I find the staff at the UWYR to be very impressive. They are a dedicated group of people who are totally committed to the cause. They work well with the volunteers and put the needs of the community first. Secondly, the United Way as a whole is very well run, with an objective of helping communities while incurring very little overhead. On a personal level, I get a great deal of satisfaction volunteering with UWYR. People in York Region are often not even aware there is a need for social infrastructure beyond what the government provides as they think it is a “rich” region. This is sadly not the case. Poverty, homelessness, and mental illness are as prevalent in York Region as they are in other areas, but it is just more hidden than it is in large cities like Toronto. I have visited agencies that are partially funded by United Way, and I can see firsthand the difference the money makes. During my term on the Board and chairing the Audit Finance and Investment Committee, I’ve gained experience and expertise in board and committee structures, governance, and effective public speaking.

Can you share some of the highlights of your career?

HM-W: Passing the CFA exams on the first try and earning my designation while in my 40s was definitely a highlight. I’m also very pleased to have been involved in the growth of Canso from a small firm with six employees and two clients to a firm of 35 employees and many clients. It has been very rewarding to be part of the success of Canso, as the firm has an excellent reputation, and we have very strong and long-lasting relationships with our clients.

What advice do you have for people just starting out in the investment industry?

HM-W: If you are serious about being successful, then you have to make earning your CFA charter a priority. It might mean that you give up some of your personal commitments over the short term, such as sports teams or social events, but it is better to focus on the goal and achieve it in the shortest time possible. In terms of career advice, I would say it is important to take ownership of your accountabilities. If you want to become a partner at a firm one day, don’t wait to be assigned work and more responsibility; offer to take on additional responsibility, and when it happens, make sure you do the work well. If you show the senior people what you are capable of doing by helping them do their job better, then your chances of success are greatly improved. Too many people today wait for opportunities to come to them. It doesn’t work that way; you have to make your own success.

CHARTERHOLDER PROFILE is a regular feature of The Analyst. Do you have suggestions for members that we should profile? Email us with the member’s name and a few sentences about who he/she is and why this person would make an interesting choice for a profile. TheAnalyst@cfatoronto.ca