That includes, he notes, expertise on other commodities. It also includes core alternative strategies and segments of the market where they could possibly drive some outsized return for investors. It even involves wading into the US equity ETF space, an area with a heavy saturation of choice already out there. He notes the recent hire of Samarjit Mitter as a senior portfolio manager as one of the key steps they’ve taken towards differentiation in the US equity ETF space. Mitter, Cheong explains, was previously a portfolio manager with AGF, where he was responsible for the firm’s US Small & Mid Cap Fund, which had been the top performer in its category in 2024. Adding that expertise, Cheong notes, is essential to gaining traction in the Canadian ETF market.
Cheong is also keenly aware of the solutions that have tended to resonate with Canadian investors and advisors. He highlights yield, transparency, and tax-efficiency as traits that many Canadians seek in their investment funds and something that he expects will resonate among ETF investors. He also notes some of the areas where Ninepoint will likely not be building out ETFs. Namely, the heavily saturated low-fee index tracking market.
One of the reasons Cheong was drawn to Ninepoint, he says, is the firm’s more flexible and flat structure. He prefers to operate in less rigid environments, he says, and the culture at Ninepoint fit with his tendency to prefer an ‘entrepreneurial’ atmosphere. That flexibility, he says, should also encourage greater innovation in the way his firm leverages their expertise to launch and market ETF strategies.
Cheong’s new role comes with a significant goal, taking Ninepoint’s ETF AUM from $500 million to between $2 and $2.5 billion over the next three to five years. In addition to strategy launches and thought leadership, Cheong says that his firm will begin leveraging new forms of media to market themselves. In addition to their established relationships in the advisor channel they will also look more closely at DIY investors, who tend to prefer buying ETFs.
Despite a market with more ETF products per dollar of assets than in the United States, Cheong still believes there’s room to grow in Canada. He notes that the Canadian industry remains quite “top heavy” with a few players dominating market share. He thinks that gives smaller ETF shops like Ninepoint room to grow, especially as they find market segments that remain underpenetrated. They should also benefit, he says, from the organic growth of the industry which is set to reach $1 trillion in assets by 2032. As he looks to capture more of that growth, Cheong believes he’s now at an ideally placed firm.