Brendan Wood International
TopGun® Press

Canada’s TopGun Sell-Side Analysts, Sales Professionals and Traders Increasingly Challenged By Global Sector Investing in 2021

March 24th, 2022 by TopGun Press

– Canadian Issuer Corporations Fully Engage In Global Sector Competition For Investment Capital

– Canada’s Big Cap Stocks Now Rely On US and Foreign Versus Canadian Investors. Mid Caps Follow Suit

– Canadian Investors Globalize – Buy More International Stocks. Over 60% Of Canadian Institutional Trading is Now in US and International Names

– Global Sector Investing Has Transformed Canada’s Investment Industry

– Global Sector Investors & Issuer Corporations Need Borderless Research & Brokerage Services

For Immediate Release – New York, NY, March 24th, 2022 (TopGun Press)

Global sector investing is the entrenched prevalent theme in worldwide asset management practice. Dealers whose research is ‘Canada centric’ face a declining opportunity. Canadian investors have generally adopted global sector coverage as essential. Most of their trades are in non-Canadian investment targets…this for the first time in 40 years. The Canada focused investment dealer which cannot deliver foreign investors is severely disadvantaged. Likewise, without providing global sector research coverage, a Canadian dealer is compromised by competitors who can. With most Canadian trades being international and Canada’s corporations prioritizing foreign investor support, a dealer footprint defined by Canadian borders is becoming less relevant to the mainstream needs of investors and issuers alike.

In the global sector focused investment world Canadian corporate issuers continue to emphasize marketing to US and foreign investors. Why? According to Brendan Wood’s daily shareholder confidence polling, large Canadian issuers, especially over-achievers in their sectors, are under-marketed outside Canada. US and foreign investors often report a lack of sufficient investment knowledge about Canadian targets and missing dialogue with Canadian senior managements. US banks and broker dealers continue picking up coverage on large cap Canadian names as well as mid-caps. This trend will continue, driven by Canadian issuer demands for US and foreign sell-side research and sales coverage.

The coverage footprints of Canadian banks and dealers in foreign investor relationships, especially the US, are a defining feature of their future competitiveness even amongst their long-standing Canada based issuer clients.

Source of Brendan Wood International Intel:

Brendan Wood International conducts about 2000 institutional investor debriefs throughout the year. The global investor panel accounts for +$54 trillion in equity investment capital. These in depth debriefs focus on the investment attractiveness of 1400 big cap stocks and the performance of bank/dealer teams in terms of adding value to investment analysis. This process allows BWI to match the value add of analysts, sales and trading professionals with commissions allocated on a stock by stock and sector basis.

This new ‘stock by stock’ market share data quantifies the revenue available to banks/dealers based upon the stocks they choose to cover. In the global sector environment these choices are critical to the ‘revenue per professional’ ratio of a coverage team.

The trading influence is hardest to quantify, especially in Canada, where we found quality of trading services was sometimes outweighed by apparent volume. Institutions are aware of the impact of some larger platforms which somewhat paint the tape. We found two such cases and have corrected the formula. Also, Canadian dealer trading services are more general than sector specific. This has been resolved by focusing on institutional blocks as opposed to total volume and weighting quality of trading and individual traders more heavily.* In the US, the prevalence of specialized sector trading makes BWI’s performance analysis of stock by stock and sector trading more accurate. The growth of electronic trading, now over 30% in Canada, continues to commoditize domestic trading services. Observance of MiFID protocols is also shaping the selection of trading desks for institutional trades. Trading, which accounts for approximately 35% of commissions, on average is a moving target. We therefore spend much more time debriefing buy-side traders to identify sell-side trading performance.

Investment Banking Overlap:

The Research, Sales and Trading franchises of banks are amongst the top criteria corporations use when awarding lead bank mandates and syndicate fees. While respecting the independence of sell-side research, it is nonetheless highly material to an issuer to know how influential an analyst is in the decision to own the company stock and the effectiveness of each dealer’s institutional sales capability. Corporations allocate banking fees accordingly. International distribution capability is a critical selection issue in selecting banks. BWI data identifying the influence of the broker dealers on investors’ decisions to own their stock is in high demand amongst corporations.

“BWI’s role is to create intelligence which opens up strategic opportunities and solves problems. Our intel is the product of intense debriefing, quantifying intangibles at the highest levels of detail and factuality. Often mis-perceived as a survey, the intelligence BWI generates is primarily an independent strategy tool, best used for that purpose. In close domestic competition blocking and tackling is an inevitable and consuming daily focus of the professionals on the execution front. Sell-side professionals are always keen to know what their clients think of them. TopGun Club recognition and boasting rights are widely communicated. However, the underlying purpose of BWI’s intense investigations is to inform strategy and the allocation of our clients’ resources,” said Brendan Wood.

 *In Canada BWI encountered a couple of platforms whose trading volume far outweighed actual institutional share, causing correction to methodology accordingly.


Below Are The 2021 TopGun Canadian Sell-Side Analysts, Sales Professionals and Traders

TopGun Sell-Side Research Analysts:

Agriculture, Chemicals, Fertilizers:
Jacob Bout (CIBC)
Joel Jackson (BMO)
Ben Isaacson (Scotia)

Alternative Energy:
Rupert Merer (NBF)
Ben Pham (BMO)
Nelson Ng (RBC)

Mario Mendonca (TD)
Darko Mihelic (RBC)
Sohrab Movahedi (BMO)

Base Metals & Minerals:
Orest Wowkodaw (Scotia)
Greg Barnes (TD)
Jackie Przybylowski (BMO)

Biotechnology & Pharmaceuticals, Healthcare / Cannabis:
Doug Miehm (RBC)
Justin Keywood (Stifel)
Tamy Chen (BMO)

Consumer Products & Merchandising:
Christopher Li (DES)
Mark Petrie (CIBC)
Michael Van Aelst (TD)

Diversified Financials:
Geoff Kwan (RBC)
Phil Hardie (Scotia)
Jaeme Gloyn (NBF)

High Tech:
Thanos Moschopoulos (BMO)
Richard Tse (NBF)
Paul Treiber (RBC)

Industrial Products:
Maxim Sytchev (NBF)
Walter Spracklin (RBC)
Kevin Chiang (CIBC)

Mario Mendonca (TD)
Darko Mihelic (RBC)
Tom MacKinnon (BMO)

Drew McReynolds (RBC)
Jeff Fan (Scotia)
Adam Shine (NBF)

Oil & Gas Equipment & Services:
Ian Gillies (Stifel)
Aaron MacNeil (TD)
Andrew Bradford (RJ)

Oil & Gas – Large Cap:
Tyler Reardon (Peters)
Greg Pardy (RBC)
Justin Bouchard (DES)

Oil & Gas – Small/Mid Cap:
Dan Grager (Peters)
Ray Kwan (BMO)
Michael Harvey (RBC)

Precious Metals & Diamonds – Large Cap:
Tanya Jakusconek (Scotia)
Josh Wolfson (RBC)
Greg Barnes (TD)

Precious Metals & Diamonds – Small/Mid Cap:
Ovais Habib (Scotia)
Trevor Turnbull (Scotia)
Don DeMarco (NBF)

Pulp, Paper & Forest Products:
Daryl Swetlishoff (RJ)
Hamir Patel (CIBC)
Sean Steuart (TD)

Real Estate, REITS & Hospitalities:
Mario Saric (Scotia)
Michael Markidis (DES)
Pammir Bir (RBC)

Telecommunications & Wireless:
Jeff Fan (Scotia)
Drew McReynolds (RBC)
Vince Valentini (TD)

Walter Spracklin (RBC)
Fadi Chamoun (BMO)
Kevin Chiang (CIBC)

Robert Kwan (RBC)
Ben Pham (BMO)
Robert Hope (Scotia)

Avery Shenfeld (CIBC)
Stefane Marion (NBF)
David Doyle (MAC)

Index Analysis:
Peter Haynes (TD)
Andrew Moffatt (Scotia)

Portfolio Strategy:
Ian de Verteuil (CIBC)
Hugo Ste-Marie (Scotia)
Martin Roberge (CG)

Quantitative Analysis:
Mark Deriet (COR)
Martin Roberge (CG)
Hugo Ste-Marie (Scotia)

Maggie MacDougall (Stifel)
Stephen MacLeod (BMO)
Michael Doumet (Scotia)

Technical Analysis:
Mark Deriet (COR)
Tina Normann (Eight)
Javed Mirza (CG)

TopGun Sell-Side Sales Professionals Selling Canadian Equities

Jamie Bates (CIBC)
David Beevor (RBC)
Mike Bryden (BMO)
Guillaume Caya (TD)
Eric Comtois (NBF)
Gonzalo Escoto (Scotia)
Mark Ferguson (TD)
Michael Foley (BMO)
Steve Foley (RBC)
Jhad Friesen (CIBC)
Arthur Grayfer (Peters)
Brian Jones (RBC)
Bannon Kopko (Scotia)
Robin Kozar (BMO)
Todd Krauser (RBC)
Philippe Lachance (RBC)
Rick Lavoie (NBF)
Paul Lee (Scotia)
Ryan Males (CIBC)
Brad Marcotte (Peters).
Grant Moenting (Scotia)
Wendy Nichols (NBF)
Nathan Normandin (BMO)
Christian Porraccio (CIBC)
Bonita To (Scotia)
Arash Yazdani (DES)

TopGun Sell-Side Traders trading Canadian Equities

Ashlim Ameen (RBC)
Jay Bakker (COR)
Steven Barnes (RBC)
Felix Belanger (CAN)
Jay Burke (BMO)
Kevin Costa (Eight)
Geoff Darling (Scotia)
Chris Finora (TD)
Carlo Giarrusso (BMO)
Ara Guiragossian (CIBC)
David Lower (NBF)
Loutfi Mouaket (CIBC)
Peter Newell (Scotia)
Derek Oram (RJ)
Rip Patel (BofA)
Mark Popadiuk (RBC)
Robert Pringle (NBF)
Devin Ramasawmy (BMO)
Guillaume Roy (NBF)
Tom Scheuring (RBC)
John Shannon (MS)
Chris Stuart (CIBC)
Godefroy Tessier (BMO)
Andrew Turner (CG)

About Brendan Wood International:

Brendan Wood International (BWI), formed in 1970, is a private partnership generating independent performance audits throughout the world. Relying on real time intelligence, the firm advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off sites in fifty cities. Brendan Wood founded the exclusive TopGun Club.

Related Links:

Jordan Novak
Brendan Wood International
+1 416 924 8110

Amanda Knott
Managing Director
Brendan Wood International
+1 416 924 8110

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