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    Jeff Fenwick

    Research Analyst at Cormark Securities

    Jeff Fenwick's questions to RENN Fund (RCG) leadership

    Jeff Fenwick's questions to RENN Fund (RCG) leadership • Q2 2022

    Question

    Jeff Fenwick of Cormark Securities asked for details on the record $9.2 million in insurance revenue, how the Fidelity conversion timeline is impacting the advisor recruiting pipeline, and the expected run rate for SG&A expenses amid inflationary pressures.

    Answer

    President and CEO Kish Kapoor detailed that a single, large life insurance contract for an ultra-high net worth family drove the insurance revenue surge. He noted that while some advisors will join pre-conversion, most are waiting until early 2023 post-Fidelity launch. CFO Tim Wilson projected that SG&A expenses would remain flat to modestly up sequentially for the remainder of the year.

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    Jeff Fenwick's questions to RENN Fund (RCG) leadership • Q3 2021

    Question

    Jeff Fenwick from Cormark Securities inquired about the onboarding timeline for new advisors, the financial details of the Fidelity agreement, the drivers of increased operating expenses, and the company's capital deployment strategy.

    Answer

    President and CEO Kish Kapoor stated that new advisors can migrate approximately 85% of their assets within 45 days. CFO Tim Wilson clarified that no significant further charges are expected before the Fidelity transition and the $10 million EBITDA benefit will be immediate. Wilson added that higher OpEx is for strategic investments in digital marketing and platform enhancements, not head office expansion. Kapoor emphasized that the primary use of capital is for advisor recruitment, with some allocation for insurance book acquisitions and potential asset management capabilities.

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