Scott Starratt explains how he manages the heightened emotions and politics of his province
Scott Starratt offers a grounded perspective on how many Albertans are feeling today — one that contrasts with some of the louder national narratives around the province’s evolving relationship with Ottawa. Starratt is the investment advisor and portfolio manager at Starratt Wealth Management of Canaccord Genuity. Based in Calgary, he offered a view into what he’s hearing from clients, how he’s supporting them, and how the wealth management industry can better grasp the mood in Alberta now.
While feelings of alienation exist in his province, Starratt says that the overwhelming mood from clients is approaching a more balanced and moderate perspective. Separatism is treated like a tail risk, and even some of the smaller steps Alberta might take like leaving the CPP appear far off. A sense of political alienation persists, but it’s tempered by hope that the new government might offer more to Alberta than its predecessors had.
“What I'm finding is that when it comes to separation most clients I talk to at this point are saying ‘that's not going to happen,’” Starratt says. “You have other people that get kind of annoyed by it and roll their eyes. There are some though that say maybe getting a deal like Quebec has is not a bad thing. I think there's less about alienation and more about the equalization and the question about whether the deal we’re getting is fair or unfair.”
One theme Starratt observes is that perspectives can vary between rural and urban areas. In general, he notes that clients in urban centres are less likely to express concern about Alberta’s place within Canada, while some in rural communities are more open to ideas like separation or the potential for an Alberta Pension Plan.
While it’s not Starratt’s job as an advisor to guide clients through existential political decisions, he does have to talk through what he sees as possible ramifications for their portfolios and financial plans. Some of that begins with addressing the information sources his clients are relying on. Starratt notes that some opinions about an issue like exiting the CPP may be based on some selected numbers shared on legacy or social media channels that might not reflect just how complex such an exit might be. What often results from those conversations are more thoughtful questions on the part of clients about what these big political statements could mean for them.
Amid some of those questions, Starratt also says he is seeing a degree of optimism voiced by his clients. The recent change in federal government, he says, has offered some Albertans a degree of hope that the tone toward their province and its energy sector may become more constructive. Promises of new pipeline developments have offered some of his clients a more hopeful outlook about the future.
That optimism remains cautious, however, and Starratt notes that he and his clients are watching both the provincial and federal governments to get a sense of their futures. His clients will be watching to see whether provincial leaders use current sentiment to pursue more favourable outcomes or begin to steer toward more uncertain directions.
It’s on Starratt to connect those political and existential questions to his clients’ financial plans. He says that in this heightened environment there is a degree to which politics may drive risk appetites or sentiments towards specific sectors, like oil and gas. He says that right now many clients are not looking to make significant moves. Whether they’re concerned about political changes and the outcome of the last federal election, or focusing on turmoil in US markets, the stance right now is to wait and see.
Nurturing a more prudent approach, Starratt is also quick to showcase the investment style he practices. He can demonstrate how he has captured upside in both up and down markets for his clients. In doing so he can highlight the ways his approach have protected his clients from adverse outcomes and keeps them insulated from ongoing political risks.
Starratt’s view from the ground is that clients in his province are taking a nuanced view of what the future might hold. It’s a view that he thinks wealth management firms can take onboard as they look to serve clients in the province.
“It’s all about balance,” Starratt says. “I don’t think anyone in Alberta thinks there’s going to suddenly be a bunch of new pipelines and oil exploration all at once, and you have plenty of people who want to maintain environmental protections. But they see some movement and an opportunity for a balance to be struck. My clients are telling me that they don’t want extremes, they feel that in the past ten years there’s been some beating up on Alberta, and they just want things to come back into balance.”
