Thomas J. Trainor, CA, MBA, CFA, CFP, CLU
CAREER HIGHLIGHTS

• Founded Hanover Private Client Corporation in 1999
• Vice-president, J.P. Morgan
• Earned CA with Doane Raymond
• Past president and board member of CFA Society Toronto
• Past chair of the Private Client, Governance, and Audit committees

How did you get your start in the financial industry?

Following graduation from Dalhousie University, I worked for several years at Doane Raymond, a predecessor firm of Grant Thornton LLP in Halifax, Nova Scotia, as I earned my Chartered Accountant designation. Later on, I completed an MBA degree at the University of Western Ontario, which led me to J.P. Morgan, where I focused on capital markets, mergers and acquisitions, and risk management.

You began your firm, Hanover Private Client Corporation, in 1999. What inspired you to start the firm?

My experience with J.P. Morgan Private Banking gave me excellent experience in working with high net worth clients. When I decided to start my own firm, I looked around for models I could adapt for my purposes. I became interested in the European family office model, and I decided to adopt the family office structure at Hanover.

What was your experience starting out as an entrepreneur? How has the environment changed for new firms since the late 1990s?

The process has become much easier now compared to when I was starting out, especially regarding technology infrastructure. Portfolio information systems, phone systems, IT services and equipment have increased in availability and come down in price substantially. On the other hand, there are fewer custodian services to work with. Consolidation in the financial industry means fewer choices for smaller firms.

Since 2000, what major changes have you seen in the private wealth management industry?

Since the financial crisis, the big five Canadian banks have focused more attention and resources on wealth management. In terms of client service and expectations, there is now a much greater interest in comprehensive financial planning rather than focusing exclusively on portfolio returns.

How has your investment approach changed over time?

The available investment opportunities have expanded significantly compared to what was available in the early 1990s. For example, international investing prior to the 1990s was quite difficult and expensive. In terms of products, there are now many more options, including exchange-traded funds, which have greatly expanded since 2000, and currency overlays, which can now be done for portfolios as small as $100,000. In terms of approach, there is greater understanding that portfolio construction must be driven by financial planning rather than the other way around.

CFA Institute has launched a Future of Finance initiative to improve public trust in the investment profession. What do think about the Institute’s efforts in this regard?

I think the Institute should be applauded for bringing this issue to the forefront. The Annual Wealth Management Conference held in Toronto included a discussion on the challenge of public perception and trust. Setting the fiduciary standard is a key strategy to position the profession for success.

In addition to your involvement with CFA Institute, you are active in several other professional associations such as the Canadian Institute of Chartered Accountants and the American Institute of Certified Public Accountants. What have you learned from working in these other organizations?

The accounting profession has a very strong understanding of tax and financial planning strategies. Since tax has a significant impact on client finances, it’s vital to stay up to date on those challenges. For example, it’s important to ensure that portfolios are structured in the most tax-efficient way possible and to understand future tax liabilities and consider these points in financial plans.

Philanthropy is a topic of emerging importance in the private wealth management industry. What trends are you seeing in this area?

Many donors seek a personal connection to a particular cause or organization. For example, a donor may be interested in donating to The Hospital for Sick Children if their children have been treated there. Structurally, there is greater interest in giving to specific projects rather than creating perpetual foundations.

What trends have you observed in retirement ages and retirement expectations?

Some people have the view that they will simply work well into their sixties and seventies. In 2011, according to Statistics Canada, the average retirement age was 62.3 years. Working full time to age 70 or beyond will happen much more frequently by necessity or by choice. In my view, a fixed and complete retirement at age 65 is also becoming less common. What individuals are focusing on is when they will be financially independent. Part-time employment and other similar arrangements are likely to become more and more popular.

How did you decide to obtain the CFA designation?

In the 1990s, the CFA designation was rapidly becoming more and more well known, especially in asset management. The designation was also a natural extension of my MBA finance studies. In addition, moving to the buy side provided me with greater focus on the designation, and it was very relevant to the work that I was doing.