Over the course of his three years at Sun Life, Desjardins discovered institutional investment management. But the approach to investing at that time was more “artistic” (intuitive and experience-based). “I had a scientific bias because I was exposed to modern portfolio management theories at university,” he says.
Desjardins put that scientific bias into practice when, somewhat fortuitously, he met J. Thomas Timmins, who ran a small manufacturing company. “[Timmins] was looking for somebody to manage some of the family assets and also a small pension fund.”
Desjardins admitted to Timmins that “joining the family trust where all the money would disappear as the generations pass on was really not that attractive.” But Desjardins saw a possibility. He and Timmins became partners, forming TAL Global Asset Management in 1972. Implementing a systematic tactical asset allocation process, Desjardins built TAL around a disciplined approach to money management, which has since been adopted by several of the world’s largest asset managers.
In 1994, with Desjardins and his partners owning 100% of the firm (Timmins had sold his shares in 1987), TAL merged with CIBC’s money management group but retained operating control. “That gave us a platform to grow our business to what we were dreaming to achieve: a global investment company with global capabilities.”
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And the dream came true: by 1999, TAL had operations in Geneva and Hong Kong; its worldwide assets under management (AUM) had reached $60 billion. And it actively promoted global diversification in portfolio management—one of the first companies in the Canadian pension landscape to do so.
However, CIBC wanted 100% control. In 2001, Desjardins et al. finally gave in. “The conditions were attractive enough that we decided to let go [of] our ownership.”
Desjardins took a four-month hiatus. Then in 2002, he bought a small e-commerce company in Quebec. The following year, he reinvested and started another investment management firm, Fiera Capital. “We had $7 billion AUM, a Quebec base and no private portfolio management activity.”
But not for long. Desjardins set out two priorities: acquire a Toronto-based investment management firm and establish private portfolio management activity. That firm was YMG Capital Management. Now with offices in Montreal and Toronto, Fiera Capital has $20 billion AUM and serves institutional, retail and high net worth clients.
Although his dream took a different turn, Desjardins’ scientific bias helped not only his career but also the pension landscape. But he’s not just about alphas and betas.
His artistic flair has grown over the years. He’s a board member of the Montreal Museum of Fine Arts and admits to having a “marginal collection” of 20th-century Canadian paintings. He even has an interest in putting brush to canvas. “I never put a lot of time into developing my expertise,” he says. Fortunately for the industry, he directed his talents to investment management.
Brooke Smith is associate editor of Benefits Canada. brooke.smith@rci.rogers.com
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