Susan Bell, CFA
CAREER HIGHLIGHTS

• Partner, Bell Kearns & Associates Ltd., since 2002
• Panellist at the Portfolio Management Association of Canada and Canadian Private Family Office Invitational conferences
• Became a CFA charterholder while working full-time and caring for two children

Susan Bell is Partner and Executive Vice-president of Bell Kearns & Associates Ltd. The firm provides independent financial guidance to high net worth individuals and families, estates, and foundations.

What precipitated your decision to become a CFA charterholder?

Outwardly, the desire for credibility. Inwardly, it was so I could be the best at my job I could be. I’m privileged to interact daily with exceptional investment professionals at investment counsel firms—mostly in Canada but also in the U.S. and Europe. When we first meet and they learn I’m a CFA charterholder, I believe there’s instant recognition of my capacity to perform my role. Most prospective clients are also aware that the CFA charter is the highest standard in the industry. However, most important, I knew I’d be better at my job if I were able to take in, and apply, all of the valuable information the Candidate Body of Knowledge shares with candidates.

How has the CFA designation and the knowledge you’ve gained through completing the program helped you in your career?

I like to be thorough; I like to put a lot of thought and research into the decisions I make. I’ve learned not only is it more efficient in the long run, but it also yields a better outcome if I take more time to make an informed decision versus a quick decision. Having a deep and thorough understanding of the investment industry from the CFA Program has allowed me to have a spectacular foundation to draw from. The environment we work in is always changing, so having a solid base is essential for making good decisions. And although my bias towards well-researched decision-making means it may take me a little longer to choose a greeting card (I need to read them all!), I believe it has benefited our clients and helped me excel in my career.

What are the main investment-related challenges private clients face today?

All investors face the challenge of too much information and not enough time. If you can help solve one or both of these conundrums, you can tangibly demonstrate your value. I think one of the key challenges for private clients is choosing between active and passive investments and whether to engage a professional advisor or manage the portfolio themselves. Fees seem to be a key determinant in these choices. In Canada, it’s no secret the mutual fund industry charges some of the highest fees in the world.

The ETF industry has rapidly taken advantage of this inefficiency. And while in many cases ETFs are an appropriate choice, I fear in other cases they’re not. We’ve enjoyed a very long bull market in global equities and my main concern is that when we have a bear market many do-it-yourself clients will sell at the bottom because of a risk misfit.

What are two of the most important aspects of building and maintaining a successful working relationship with clients?

One, trust. Every interaction should build the level of trust with your client. We work with a highly desirable client base and some of them are guarded given all of the attention they attract from the investment industry. I’ve always found that ongoing honest and independent advice is key in gaining a client’s trust, and that takes time. Also, connecting on a more personal level helps to build the relationship. With one rather guarded client, I felt a turning point in our relationship after we attended the Berkshire Hathaway Annual Shareholders Meeting in Omaha. It provided an opportunity for them to see me outside the investment professional box, and my behaviour outside the boardroom further reinforced my trustworthiness.

Two, put yourself in their shoes. Always try to anticipate how your client will feel or think, so you can provide what they need. Both are easy to say, but not always easy to implement.

Since 2002, when you joined Bell Kearns, what major changes have you seen in the private wealth management industry?

Technology has changed a huge amount, including in the private wealth space. Clients have easy and instant access to vast amounts of information. With advances in technology, new products have become more accessible, and the way services are delivered is evolving. With each new development, we ask ourselves, would it benefit our clients, and is this something our clients would like? However, what’s unchanged, in my opinion, is that for complex and important parts of our lives, we want another human being to help us. As a result, I believe there will always be a role for hard-working, skilled individuals with integrity in our industry.

Are there any books or research papers that have influenced your work?

Early in my career I loved to read about Warren Buffett because he emphasized the basics. Michael Lewis does a spectacular job of educating his readers while entertaining them with a story. I keep this approach in mind when educating clients or speaking to a larger audience. Howard Marks’s The Most Important Thing puts into words a skill that he calls second-level thinking; I interpret it as looking beyond the obvious, as if someone is telling you “Don’t be lazy, keep thinking.…”

Who is your career role model and why?

There are many people I look up to, but hands down my father, Rob Bell. He was born with a high IQ, but I’ve watched how he worked hard every day to develop his other character traits: integrity, humility, and discipline. And he is an excellent listener. He doesn’t take himself too seriously and has a terrific sense of humour. He taught me that to be the best you don’t have to be the loudest or most aggressive in the room and that sometimes simple is right, even if it isn’t sexy. The result for him was being able to build two successful companies and earn a sterling reputation in the investment industry across Canada.

What’s some of the best advice you’ve received in your career?

Macro: Work hard. Period.

Micro: Remember, you’re the expert. When starting a career, it can be very intimidating to be decades younger and less experienced than your clients. But remind yourself that you’re the expert. You don’t have to be more experienced than them in other areas; you just have to be an expert in yours. Someone close to me gave me that pep talk on several occasions when I was nervous before making presentations early in my career and I found it helpful.

How do you give back?

I volunteer with Parkdale Project Read, a community-based literacy program that operates an adult learning centre. I work one-on-one with individuals who speak English but don’t read and write proficiently. We’re working to increase the literacy level, which, in turn, provides more opportunity (economically) and is a source of pride. I’m in awe of new immigrants who come to our country facing innumerable hurdles and want to make a better life for themselves and their families. When they succeed, we all benefit.