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Leslie Cliff: [00:00:00] Welcome to the Genus Weekly Video, it’s a Friday and it’s a very special Friday because this is Genesis 31st birthday, so we have a special video for you today. But I don’t just like to turn them over to Wayne and say, Wayne, what do you what are your thoughts on our 31st birthday.
Wayne Wachell: [00:00:21] Well happy 31st birthday Genus. I guess my initial thoughts today are one of being thankful and proud. I’m thankful that the whole team is together, during, this pandemic, we’re all working hard, e’re all safe, all healthy. All our families are doing well. So thankful for that. And I’m just proud of how the teams come together and are executing during these hard times. We’re all at home or at the office and we’re we’re doing it doing great and we’re getting the job done for our clients. So we’re very pleased. And we’re trying to communicate more and more of a dialogue with our clients during these periods. And that’s important and it’s being appreciated. Looking back at our 31 years, I just want to thank a few few folks out there. First off, I’d like to start by thanking our clients who’ve been with us from many of them, with us from day one. And we’ve listened to them. They’ve helped us grow our business. They’ve given us ideas. They’ve made us better. And we’re just thankful for that. And for them. I just want to thank some of our past partners in particular, John Destinee founded the firm. He helped get us off the ground and also Dave Muller. We ended up merging with with his firm a while back and he got Mary Lou in that deal. She was the she was the special value there. And I also want J.P. Harrison, who helped us build the fossil free brand. He was a big part of that. We want to thank you for that being there. And of course, I also want to thank our clients, as I mentioned, are also suppliers that have been here with us over the top over the over the years. And interesting young and Allison, who’s been a big part of our H.R.. And we really appreciate that Youlu’s helped who’s helped build our our fossil free brand. And just, you know, the whole the whole team and in particular, the whole Genus team is. I just wanna thank them for where we are. All the all the past partners that have helped us grow and be who we are today.
Leslie Cliff: [00:02:28] Well, thank you, Wayne. I, too, want to just add some thanks and I, at the 25th birthday and the 30th birthday, I said the same thing and hopefully I’ll come a lot to this birthday parties and I can’t imagine saying anything differently.
Leslie Cliff: [00:02:43] Thank you to the staff, the people that make Genus work. But I have to say, I reserve my most appreciation for the very imprudent clients who hired us in the first two years or so, this fledgling firm. And they put their trust in us and know we deal with almost all their grandchildren. And I just have enduring gratitude for the trust you put on us and let us start the ball rolling. I’d also like to specially thank client Carol Newell, who hired us about in 1992 a long time ago and started us on the journey of fossil free back then called Socially Responsible Investing. We owe a big gratitude to Carol. And as Wayne said, we listen to our clients and Carol would be one that played a big role there. I’d also like to thank our outside board member, Eric Switzer. He’s not on the call today, but he is very wise counsel and we really appreciate that. And finally, I would like to sincerely thank you. Cannot have a partnership for a business partnership for 31 years unless there’s something there. There there’s some intangible there’s some reason why the combination works. You know, you don’t always have to agree on everything, but you have to value each other. You have to value each other’s skillset. And most importantly, you have to have the same value system. So I think that’s the reason Wayne and I have survived for 31 years and I would like to very much. Thank you Wayne.
Wayne Wachell: [00:04:13] Well, back at you, Leslie. Look at old married couple. Know we’re [inaudible] about things, but I know that we should have to come to a consensus on that in the same direction.
Leslie Cliff: [00:04:25] Yes. And of course, we need the other people around us to do that. So I would like to introduce to the clients some of the not all the people of Genus, but there’s about 35 people at Genus. Most of them are on this call. I’m going to ask some of our executives and portfolio managers to say introduce themselves and say something. Let’s start with our famous first employee, Sue.
Sue-May Talbot: [00:04:51] Hi, everyone. Sue Talbert, partner and portfolio manager here at Genus. And as less they said, you may know me from my other title firm’s first employee. And so that means I’ve been at jazz for 31 years and that truly is an incredible number. I also like saying that I started at Genus when I was twelve, but after 31 years I’m gonna change that and say I started at Genus when I was five. I just want to thank, you know, Wayne and Leslie for their mentorship, support and encouragement throughout the year. So I thank you for that. And I also want to thank our wonderful clients. It truly is a privilege working with you. And I look forward to the day when we can all meet again in person. So thank you, everybody. Stay safe and well. And happy birthday to Genus.
Leslie Cliff: [00:05:43] Thank you. So, Virginia.
Virginia Yu: [00:05:47] Hi, my name is Virginia. I’m the director of I.T. I’m responsible for managing our I.T. operations and financial data processing my responsibilities also including first ensure company business continuity by managing Internet operations system functionalities and the firm we’re aiming this second in charge of the development and the support of internal investment and marketing applications, as well as the third party technology to enable Genus to achieve business objectives. Third, oversee the generation of alpha files for monthly rebalance in company daily automation processes. I joined Dennis in May nineteen ninety seven and has been a partner since year 2000. Happy birthday, Genus.
Sue-May Talbot: [00:06:40] Thank you. Virginia hasn’t been busy at all through this recent period, we’ve been through sarcasm.
Leslie Cliff: [00:06:46] Ok. Oh, Steve Au.
Steve Au: [00:06:49] Hello, everybody, I’m Stephen Au. I’m the chief operating and chief compliance officer at Genus. Twenty twenty marks my nineteen here at the firm. It’s like to say it’s my first place I’ve joined and I’m thankful for Wayne and Leslie for allowing me the opportunity to grow with it, with the firm and with everybody. Super proud of our all of our staff during this time. And just want to say thanks to our clients for being there. And so you soon.
Leslie Cliff: [00:07:23] Sorry. Dogs barking I had that on mute, Mary Lou, Miles. Come on down.
Mary Lou Miles: [00:07:28] Thanks Leslie. Yes, Mary Miles. I am partner and director of wealth management here at Genus than I can hear just over 15 years. So not quite as long as some of you. But I am so what I love is working with all the people on you’re going to see on the screen here today. But more importantly, I love all the relationships that Genus has supported, like allows office portfolio managers to have those conversations with clients and values with client successes. And so it’s really great to have the opportunity to thank all of you for supporting, I thought believe 31 years. And also to say what a great team that we have working for you. And the fact that we’re even doing this today is making to me. So I think really wish Genus, happy birthday. And I am just thrilled to be here.
Leslie Cliff: [00:08:14] Great. So, Lisa.
Lisa Zhang: [00:08:17] Oh, hi, everyone. So this is Lisa Chow. I’m the director of Equity Investments, so I’m overseeing the day to day balance and then portfolio constructions as well as the trading. Apart from that, I’m also in charge of, you know, any research related, including, you know, the data and then the investment strategies, etc. So I joined Genus since 2007. So almost 30 years or so, like a long journey. I’m really enjoyed working here with a group of people who are responsible and really passionate at the investment industry. So, you know, we try hard and work so closely pursuing the best performance for our clients and also we challenge ourselves from time to time. Well, you know, you know, late ideas to, you know, make a better Genus. So all the best. And happy birthday, Genus.
Leslie Cliff: [00:09:15] Great. Thank you, Lisa. Grant.
Grant Conroy: [00:09:18] I on Grant Conroy, one of the portfolio managers at Genus, I’ve been here for three and a half years. I happy to be part of the 31st celebration’s then hopefully here for many more years to come!
Leslie Cliff: [00:09:30] Great. Stephanie.
Stephanie Tsui: [00:09:35] Hi, this is Stephanie. Hello, everyone. I’m a portfolio manager and a director of foundations and nonprofits. I got my first internship with Genus many, many, many years ago. And after that, I spent some time doing veggie studies in New York and Hong Kong. We joined Genus about three and a half years ago. Genesis truly is like a family to me. And I’m really grateful to be able to work with our clients and the Genus team. And special thanks to Wayne and Leslie for your mentorship. And lastly, happy birthday to Genus.
Leslie Cliff: [00:10:10] Thank you. So Mike!
Mike Thiessen: [00:10:16] Hi. So I’m Mike Thiessen. I’m the director of Sustainable Investing and a partner at Genus. I work on our sustainable portfolios. Also Fossil Free portfolios, impact portfolios. So it’s been great working with clients and working with the team that really care about the difference that they’re making in the world.
Leslie Cliff: [00:10:33] Great. Thank you, Mike. Ian.
Ian Lusher: [00:10:37] Hello, this is Ian Lesher, I’m a partner and or portfolio manager with Genus Capital Management. I’ve been here three years, haven’t regretted coming here. I love the people here, good people. We all use really innovative crew that puts clients first and that’s the most important thing. So happy 31st and look for many more birthdays to come.
Leslie Cliff: [00:11:01] Great, thank you, Ian Martin.
Martin Wegren: [00:11:05] I’m Martin Wigren. I’m a partner and portfolio manager with Genus Capital Management, tied being with the firm for about 18 months. In my more than two decades of help, my clients reach their financial goals and making sure their families are looked after have always striven to provide exceptional service to my clients. And I’m happy to say that Genus Capital Management is really a great firm to work with and for some of the people that I work with are great. So I have to say thanks to Leslie and Wayne for for creating such an exception [inaudible] for 31 years.Thank you.
Leslie Cliff: [00:11:53] Thomas.
Thomas Irwin: [00:11:55] Thanks, Leslie. My name is Thomas Irwin. I am a associate portfolio manager Peter Genus, I’m celebrating my 20th year as a portfolio manager [inaudible] back here at Genus. I came from RBC and one of the things that attracted me to Genus was our discipline, risk management and customized approach and a big focus on clients and staff. Happy birthday. Genus.
Leslie Cliff: [00:12:21] Thank you, Thomas. Jill.
Jill Bester: [00:12:25] Happy birthday, Genus. My name is Jill Bester. I am over on Vancouver Island servicing the Genus clients remotely from my kitchen. I do would really like to just give a shout out to my colleagues and our customer service team who are doing a fabulous job as we work from afar. And again, gratitude to Wayne and Leslie for building such an incredible workplace and with an amazing team. So thank you very much.
Leslie Cliff: [00:12:57] Great! Thanks, everyone. That’s a that’s a flavor of the people who work at Genus. And I think maybe Wayne we will go back to you now.
Leslie Cliff: [00:13:07] Wayne Wachell
Wayne Wachell: [00:13:08] OK. Just again, a big thanks to our clients that our past partners and all the team at Genus, we’re all working hard and through this pandemic, everybody’s doing well. I believe everything’s healthy. And just a big thanks, everybody, and happy birthday, Genus.
Leslie Cliff: [00:13:34] So the first question was, is from a longtime client, it’s a great question. It’s a bit of a scary question. And he references, you know, after World War One, Germany was slowing, had a slow and failing economy, massive unemployment and lots of printing of money creating hyperinflation. And why why is this time different? Why is this not what we’re doing?
Wayne Wachell: [00:14:01] So why are we not getting inflation?
Leslie Cliff: [00:14:05] Well, we don’t want all this printing of money. Cause inflation.
Wayne Wachell: [00:14:09] Well, it’s not you know, it’s it’s always a fine line between inflation and deflation. You’re always kind of on knife’s edge, I would say. And so I can paint all kinds of scenarios where we can get inflation here in the future by all the printing of money. The big concern for me, frankly, is that the bond vigilantes of the 80s, 90s come back. And so if they come back and start pushing real, real yields out, they will really cause a problem for all debt holders. So that is, I think, an issue that we all should be concerned about. And it is not a complete separate lot of money. It was going to be inflation runaway. Now, gold is behaving that way. And we think those that are probably break out here in the near term, but longer term, the bond market can shut everything down and stop inflation and and cause serious deflation starts that concern to us. And we’re watching that. So it’s it’s not a fait accompli. Now, I would say the bond market, the bond vigilantes ultimately will be the regulator of inflation.
Leslie Cliff: [00:15:17] So basically, the the the the market the world didn’t have bond vigilantes in the 1930s. No.
Wayne Wachell: [00:15:25] Many in many markets countries don’t have bond vigilantes. We do. And.
Leslie Cliff: [00:15:30] But a bond vigilantes it’a a investors who make interest rates go really high because they think they should be really high, even though the Fed doesn’t put it there.
Wayne Wachell: [00:15:39] Right. Right.
Leslie Cliff: [00:15:40] So they they cut off inflation before it gets going.
Wayne Wachell: [00:15:44] Exactly. And that’s. That’s a concern. That’s a big threat that was recognized even even though President Obama was concerned about back that over the past. You know, when he was in power as president, that the bond real, it really yields come back and cause a problem for us.
Leslie Cliff: [00:15:59] Anyways, I suspect this question is going to come back again at some point. So we’ll leave it there. And the really very good comments Wayne. We’re just gonna have one more question, just because we took so much time having a birthday party. Let’s think that another good question from a client in Kelowna.
Leslie Cliff: [00:16:17] And it’s, you know, how can there be a surplus in oil? No place to store it and zero price. And what does that mean for Canada in particular, given our dependence on oil?
Wayne Wachell: [00:16:29] Yeah, well, this week here we saw reality catch up to a Federal Reserve. The reserves are really ahead of this whole ball game, lowering rates and trying to ease the problems. And with the drop in PMI and a crash in oil prices, it really had an it came to the chickens, came home to roost. Well, in reality, met the Fed’s actions there. It’s I would say it’s not very good in terms of what happened. Oil prices went down to zero. The futures went negative because the place started to oil, obviously. But if you look out over the next one to four years, one year out, the futures oil at about thirty two dollars. Four years out there, $40. This is bad news for I would say for Canada and oil producers. And what this means is there’s going to be just there’s less consumption. Obviously, the burn right now is gone down to the pandemic, about 30 million barrels a day. I don’t think is can ever come back to where it was before. So I think consumer habits have changed to be less travel. People are Zooming now more and doing those kinds of things. So I think consumption is down and that’s not good for oil reserves. MARK CARNEY, BANK OF ENGLAND by Canada’s worrying about stranded assets at risk for many years. And this just raises the risk of stranded assets of companies in countries that don’t have the reserves. They won’t be able to burn them.
Wayne Wachell: [00:17:44] And so.
Leslie Cliff: [00:17:44] As Canadians at Genus, we’ve always been concerned about oil. And for 31 years, we start Genus. We have charts of the Canadian dollar against the price of oil is saying Canada. Well, the Canadians get your money out of Canada. So this is an old theme for us. And to this day, we have a large we outside of Canada. So that’s in your portfolio?
Wayne Wachell: [00:18:06] Yes. Then let’s reflect underweight Canada as much as we can be right now. We’re underweight oil and we’re staying with the winners in this and this whole pandemic movement in terms of technology and health care and consumer staples right now.
Leslie Cliff: [00:18:20] And just to remind us all, we did start a US global bond fund in January because of the Canadian election and and how Alberta is so out of step with the rest of Canada. So that’s the two questions I have for you, Wayne.
Leslie Cliff: [00:18:36] I just maybe want to remind people from what happened to the week, you know, we talk about did the big declines that took us from thirty three hundred to twenty three hundred usual. It’s a thousand points. This is the S&P 500 I’m talking about. And you have five, 50 percent move back that be 5 points. It takes you to twenty eight hundred. And it just seems to me that market players with no road map of how we’ve ever stop the economy started again. They seem to be really not too happy getting away from whatever that twenty eight hundred mark is on the S&P 500.
Wayne Wachell: [00:19:07] It’s also he’s dropping. We’re happy about that. We want boring. We like boring. And I think what the market’s trying to do right now is trying to focus on a bottom, the bottom in the pandemic and the bottom, the economic damage is looking for that kind of visibility when it finds that. I think you’re starting to find that now and maybe that can help us go further here. But still, there’s big issues coming out there. From what we hear, there’s no food shortage issues, what we’re hearing in some places right now. So those those are dangerous and ominous. And there’s two political reasons to be concerned here as well. So one out of the woods yet, but the Federal Reserve and the governments are throwing tons of money at the problem right now.
Leslie Cliff: [00:19:49] Right, so this, as we’ve said from the beginning, will take time. This is just another week and we’ll be back next Friday. We look forward to talking to you then. And thanks for coming to our birthday party.
Leslie Cliff: [00:20:02] Bye bye
Wayne Wachell: [00:20:03] Bye bye.
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