Guardian Capital hits historic high in client assets

Company's latest earnings report shows 62% annual increase in AUM driven by mix of organic growth and key acquisition

Guardian Capital hits historic high in client assets

Toronto-based wealth firm Guardian Capital had plenty of good news to share in its latest earnings report.

As of September 30, 2021 the firm said it held $83.1 billion in total client assets. That figured represented a 22% increase in client assets from December 31, 2020, when the firm had just $68.3 billion, and a 55% increase from the $53.5 billion it recorded in September 30 last year.

“The acquisition of a Canadian wealth management business on March 1, 2021, which was subsequently renamed Guardian Partners Inc., added $5.4 billion in total client assets in the first quarter of 2021,” the firm noted in a statement.

That business, originally known as BNY Mellon Wealth Management, Advisory Services, represented an opportunity for Guardian to expand its presence in the ultra-high-net-worth, family office, endowment, and foundations segments. It also allowed Guardian to enhance its wealth management offering for both its pre-existing and new clients.

The firm saw its AUM increase to $53.1 billion, a 16% rise from $46 billion as of December 31, 2020 and 62% from $32.7 billion as of September 30 last year. That was fuelled by a combination of positive global financial market performance, a strong inflow of assets, and Guardian’s acquisition of U.S.-based investment manager, Agincourt, which was completed on October 1 last year.

Guardian’s assets under administration stood at $30 billion as of September 30, representing a 35% increase from $22.3 billion on December 31 and 45% higher than $20.8 billion as of September 30, 2020.

For the three months ended September 30, the company reported $20.8 million in operating earnings, 72% higher than what it achieved during the same period last year, as both its investment management and wealth management segments delivered stronger results.

Net revenue for the current quarter also reached an all-time record of $72.4 million, 39% above the $52 million it generated during the same quarter in 2020.

“The increase reflects largely our successful organic growth in revenues, and, to a lesser extent, the addition of revenues from the acquired businesses,” the firm said.