Trying to make sense of the current investment landscape? Worried about inflation eating away at your savings? Want to create a predictable income stream for your future? This episode is for YOU, the Canadian investor seeking smart strategies to build wealth.

In this episode of the Smart Advice Podcast, we are joined by David Scandiffio who is the President and CEO of CIBC Asset Management. David discusses the importance of diversification, asset allocation strategies for different life stages, and opportunities for growth, like private investments. David also shares an optimistic vision for the evolution of investing tools and technologies to better serve investors of the future.

Whether you're just starting your investing journey or looking to protect the wealth you've accumulated, this interview provides practical tips that anyone can apply to help meet their financial goals. By listening to this full interview, you'll learn strategies to help you invest with confidence no matter what challenges the markets may bring. 

If you want actionable advice on growing your money throughout every phase of your life, tune into the full episode.

Resources

• Visit CIBC for more smart advice
• CIBC Asset Management
• Linkedin - CIBC Asset Management

Episode Highlights

[03:16] Cracking the Code in 2024: Alpha Generation & Risk Management Strategies

• David discusses the importance of adding alpha for clients, highlighting CIBC Asset Management's focus on investment alpha.
• CIBC Asset Management's team of 90 investment professionals manages approximately $200B in assets.
• David emphasizes the importance of alpha in investment management, defining it as value added beyond benchmark performance.
• He highlights how the company adds value through consulting services, managed solutions, and balanced investment strategies.

[06:43] Investing challenges and strategies for long-term success

• David Scandiffio, CEO of CIBC Asset Management, discusses the importance of diversification and starting to save and invest early.
• Macro environment challenges include rising interest rates and inflation, impacting bond holders and mortgage payments.
• David highlights the challenges of investing in a world with high debt levels and geopolitical uncertainty.
• He advises investors to focus on long-term diversified strategies and avoid short-term distractions.

[11:11] How to navigate investment in a changing interest rate environment

• David and Carissa discuss inflation and rate environment, emphasizing diversification and market timing.
• They dive deep into the inflation and interest rate trends, emphasizing the importance of asset allocation.

[14:38] Private investment opportunities for individuals

• Investors can consider ETFs, bonds, and alternatives like private markets and liquid alternatives for diversification.
• Professional portfolio managers can use ETFs for trading and deleveraging advantages, and direct investors can access them through standalone direct investments or managed solutions.
• David discusses private markets and investment opportunities outside of public markets, including private equity, real estate, and credit.
• Advantages of private investments include flexibility and diversification, with examples of large pension funds investing in infrastructure projects and private credit funds lending to companies.
• David also mentions pension plans have up to 50% of their plans invested in private markets, while individual investors have limited access.
• He suggests that managed solutions or balanced portfolios are the best way for individual investors to access private investments while avoiding the need to manage them on their own.

[21:36] AI stocks' growth potential and market expectations

• David expands on the "Magnificent Seven" tech stocks, including Apple, Microsoft, Amazon, Alphabet, and Tesla, which have driven the S&P 500's growth in 2023.
• Carissa raises concerns about a potential bubble in these stocks, citing their high growth rates and forward-looking earnings expectations.
• To address her concerns, David discusses the potential for growth in AI companies, citing Nvidia as an example with a strong pipeline and moat.
• David highlights the importance of understanding market expectations and valuations, particularly in the US and Canadian markets.

[26:02]Investment strategies for protecting capital and delivering long-term growth

• David shares how some of his clients prioritize capital protection, reducing risk assets (e.g., small-cap, emerging market equities) and leaning towards quality, dividend-paying companies.
• Bonds offer decent yield with lower tax advantage, but bonds trading at a discount to par can provide tax-advantaged capital gains.
• He emphasizes the importance of investing for long-term wealth growth.
• David also highlights the importance of data and AI in investment management.

About David

David M. Scandiffio, CFA brings over three decades of experience in wealth management and investment to his role as President and CEO of CIBC Asset Management.  He joined CIBC in 2015 and is responsible for steering the bank's entire retail and institutional asset management business, including its portfolio management team.

Prior to CIBC, Scandiffio served as President of IA Clarington Funds for more than a decade. He also held the position of Executive Vice President of Wealth Management for Industrial Alliance Life Insurance Company, a subsidiary of IA Clarington.  This extensive background positions him as a key leader within CIBC's Wealth Management Executive Team.

Scandiffio is a strong proponent of responsible investment and has been instrumental in establishing CIBC Asset Management as a leader in this field.  He holds a Bachelor of Science in Actuarial Science and Economics from the University of Toronto and is a CFA charter holder.

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