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The corner of Bay Street and Adelaide streets in the heart of Toronto’s financial districGloria Nieto/The Globe and Mail

Gluskin Sheff + Associates Inc. shares fell more than 5 per cent Wednesday after the company announced its second straight quarter of net redemptions and revealed that the well-respected head of its investment strategy was retiring.

Bill Webb, executive vice-president and chief investment officer, will leave the company at the end of this year. His departure will see two internal faces take over as co-CIOs: Peter Mann, managing director and head of equities, and Peter Zaltz, executive vice-president and head of fixed income. Mr. Mann has been with the company since 2011, while Mr. Zaltz joined the firm in 2014.

"These two individuals are not new to the company and have been running investment mandates internally for quite some time," Jeremy Freedman, president and chief executive officer of Gluskin Sheff, said. "I have been extremely impressed with the leadership each has shown of their respective areas and with the way they have collaborated to date to make our investment team stronger."

But one analyst noted that such a leadership change creates further uncertainty for a wealth-management company that's facing negative trends in its assets under management.

"Bill was a pretty unique individual and very well received by the investment community," Gary Ho, a research analyst with Desjardins, said in an interview. "We see the announcement as a slight overhang because whenever there is a change in CIO – for any company in the industry – there is a bit of a transition period, whether there's any change in investment strategy or philosophy."

Mr. Webb became CIO on December 31, 2009.

The announcement comes on the heels of the firm scooping up Aston Hill's CIO Jeffrey Burchell, who resigned from his position at the end of June and will join Gluskin Sheff as portfolio manager in August.

The company Wednesday said that its estimated assets under management were down by $82.4-million to $8.5-billion as of June 30, 2015, down approximately 1 per cent from March 31, 2015.

The company also reported a second consecutive quarter of net redemptions, with net withdrawals of $57.6-million.

"Investors may question whether this is developing into a trend," Mr. Ho said in an analyst report. "That said, we note that the majority of the net redemptions relates to institutional clients, who generate lower-margin business. Management remains confident about its sales pipeline."

Mr. Webb's first day at the firm was more than 20 years ago when he was first hired on as an assistant to founder Gerald Sheff. Later that week, he was moved to the investment department where he has been working ever since.

He will remain a significant shareholder of Gluskin Sheff postretirement.

Mr. Mann and Mr. Zaltz will continue to manage the company's U.S. Equity and Global Credit portfolios, respectively, while Jeannine LiChong, managing director and portfolio manager, and Adrian Wong, vice-president and portfolio manager, will take over Mr. Webb's mandates.

Ms. LiChong will oversee the institutional Canadian equity portfolio, and Mr. Wong will oversee the much smaller GS+A Resource Portfolio.

Mr. Webb will stay on as co-manager for both mandates to help in the transition of portfolio managers over the next five months. The change in portfolio managers is not anticipated to have any impact on the investment strategy for either fund, Mr. Webb says.

Upon retirement, Mr. Webb will devote the bulk of his time towards charitable and service-oriented efforts in a number of areas including health care, education and youth sports – specifically rugby in Canada.

"I plan to do more than write cheques," Mr. Webb says. "I intend to dedicate much more of my time and energy towards these organizations and causes, and, just as importantly, to engage other people in them as well."

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