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Michael Lee-Chin

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The Honourable
Michael Lee-Chin
OJ OOnt
Born (1951-01-03) 3 January 1951 (age 73)
Port Antonio, Jamaica
CitizenshipJamaica
Canada
Occupation(s)Chairman, Portland Holdings[1][2][3]
Spouses
Children5

Michael Lee-Chin, OJ, OOnt (born 3 January 1951) is a Jamaican-Canadian billionaire businessman, philanthropist and the chairman and CEO of Portland Holdings Inc, a privately held investment company in Ontario, Canada.

Lee-Chin was appointed to the Order of Ontario in 2017.[7]

In 2016, Lee-Chin was appointed chairman of the government of Jamaica's Economic Growth Council (EGC).[8]

Lee-Chin has made several large pledges and/or donations in Canada to the Royal Ontario Museum in 2003, the Rotman School of Management at the University of Toronto, McMaster University and the Joseph Brant Hospital Foundation. Lee-Chin served as chancellor of Wilfrid Laurier University.[9]

Background

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Lee-Chin was born in Port Antonio, Jamaica, in 1951 to Aston Lee and Hyacinth Gloria Chen. Both his parents were biracial African and Jamaican-Chinese. When Lee-Chin was aged seven, his mother married Vincent Chen[10] who had a son from a previous relationship, and the couple had seven children together, six boys and one girl.[11] Lee-Chin's mother sold Avon products and worked as a bookkeeper for various local firms, while his stepfather ran a local grocery store.[12]

He attended the local high school, Titchfield High, between 1962 and 1969.[13]

Career

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In 1965, Lee-Chin's first job came working as part of the landscaping team at the Frenchman's Cove Hotel. The next year, he got a summer job working on the Jamaica Queen cruise ship, cleaning the engine room.[14]

In 1970, he went to Canada on a scholarship program sponsored by the Jamaican government to study Civil Engineering at McMaster University,[15] and graduated in 1974.[16] He financed his first year at university on his own but after that was able to attend on scholarship.[17]

After graduating from McMaster, Lee-Chin worked briefly as a road engineer for the Jamaican government,[18] but unable to find work in his qualified field (and allegedly, because his Canadian wife did not like living in Jamaica), he returned to Canada where he began graduate studies in business. At first he worked as a bouncer, but later found employment as a financial advisor for Investors Group.[19]

Lee-Chin spent two years at the Investors Group, in the Hamilton, Ontario office and in 1979, moved to Regal Capital Planners and became regional manager. While at the company, in 1983, he secured a loan from the Continental Bank of Canada for C$800,000 to purchase a stake in Mackenzie Financial Group and formed Kicks Athletics with Andrew Gayle. By 1987, the investment was worth C$3.5 million.[20]

In 1987, Lee-Chin took the proceeds from his Mackenzie investment to buy a Kitchener-based company called the Advantage Investment Council (a division of AIC Limited) for $200,000. At the time, the company had holdings of around C$800,000. He renamed the company AIC, and developed it to a fund that controlled around C$6 billion, with hundreds of thousands of investors. Following the acquisition of AIC Limited, Lee-Chin set up the Berkshire group of companies, comprising an investment planning arm, a securities dealership and an insurance operation. By 2007, Berkshire had amassed more than C$12 billion of assets under administration. In 2007, Manulife acquired Berkshire from Portland Holdings in exchange for shares, making Portland one of the largest shareholders of Manulife.

In 2009, Lee-Chin sold AIC Limited to Manulife for an undisclosed amount. The following year, Manulife rebranded the heritage AIC funds and eliminated the AIC name from the mutual fund line-up.[21]

In addition to being the founder and Chairman of Portland Holdings Inc., Mr. Lee-Chin is chairman and director of Mandeville Holdings Inc. and Executive Chairman, CEO, and Portfolio Manager of Portland Investment Counsel Inc.[22][23]

Investments 1990–2005

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In the late 1980s, AIC suffered from a collapse in the real estate market, in which it had invested. It recovered throughout the early 1990s by maintaining investments in large groups, such as Merrill Lynch and TD bank (formerly Toronto Dominion). This caused investments to grow from US$8 million in 1990 to nearly US$8 billion by 1998.

Lee-Chin was reluctant to invest in the dotcom boom, and saw AIC investments lose 8 per cent in value, even as the S&P gained 56 per cent. Investors moved US$224 million out of AIC's flagship "Advantage Mutual Fund". The Globe and Mail ran an article predicting that even more investors would leave the fund, meaning that it would run out of cash and be forced to sell its core holdings. Lee-Chin's response was to sell stock in Coca-Cola, and invest US$65 million into Mackenzie Holdings (the same firm in which he had invested US$400,000 16 years previously). Letters were sent to all 350,000 investors, explaining the strategy. The investors were calmed by the purchase, and the stock was later sold to Investor Group (the same company Lee-Chin had worked for in the 1980s) at more than twice the price AIC had paid for it.[24] In 2000 and 2001, following the dotcom crash, AIC outperformed the market with 26 per cent growth and 4 per cent decline respectively.[25]

In November 2003, AIC was part of a regulatory investigation involving 105 Canadian mutual funds companies. In its review of AIC, investigators found no evidence of late trading and market timing activity by AIC staff. However, the Ontario Securities Commission (OSC) did find that over the 1999–2003 period, AIC permitted specific third party investors to engage in market timing trades in AIC Funds that generated profits of $127 million. In the Settlement Agreement between AIC and the OSC, the OSC stated that "Accordingly, the conduct of AIC in failing to protect fully the best interests of the Relevant Funds in respect of the frequent trading market timing was contrary to the public interest."[26] As a result, in December 2004, AIC Limited was forced to return CAD $58.8 million to affected investors, which was the largest penalty imposed on any of the fund companies in the OSC investigation.[27]

On 5 October 2006, Lee-Chin announced his resignation as CEO of AIC, to be replaced by Jonathan Wellum, AIC's chief investment officer.

In 2005, two investment product managers offering structured products joined the Portland Holdings portfolio, Copernican Capital Corporation has offered retail investment products, primarily sold by brokers, and has raised more than C$800 million, in 10 closed end funds since its launch. Markland Street Asset Management, which launched the Oil Sands Sector Fund, raised C$430 million in one of Canada's largest closed-end IPOs.

Personal life

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In 1974, he married Vera Lee-Chin, a Ukrainian Canadian whom he had met at university. They separated in 1997 and are now divorced.[28][29] Vera Lee-Chin had contested the terms of the separation agreement, claiming that Lee-Chin did not disclose his actual wealth at the time of the separation.[30] The couple had three children, Michael Jr., Paul, and Adrian.

Lee-Chin now lives with his wife Sonya Lee-Chin,[31][32] with whom he has fraternal-twin daughters, Elizabeth and Maria, in Burlington, Ontario.

Wealth

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Forbes first added Lee-Chin to its billionaires list in 2010. Since, his estimated net worth has fluctuated between $1 billion and $2 billion, with it pegged at $1.4 billion as of June 2023.[33]

Lee-Chin is well-known in Ontario, Canada as a prolific car collector, specifically of Ferraris.[34] His collection includes a LaFerrari, Ferrari 599 GTO, Ferrari F12tdf, and Ferrari Enzo.

In 2021, Lee-Chin took delivery of a 115.10m (377.6ft) Lürssen superyacht named Ahpo, worth an estimated US$354 million (CA$474 million). During its construction, Ahpo was known as Project Enzo, paying tribute to Lee-Chin's love of Ferraris. In 2023, after just over one year of ownership, Lee-Chin sold Ahpo to fellow Canadian billionaire Patrick Dovigi, who subsequently renamed the yacht to Lady Jorgia.[35]

Philanthropy

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In 2003, he made headlines when he pledged to donate $30 million to the Royal Ontario Museum (ROM) of which a third had been paid as of 2015.[36] He also provided a $10 million gift to the Rotman School of Management at the University of Toronto. The gift established the Michael Lee-Chin Family Institute for Corporate Citizenship at the Rotman School of Management, University of Toronto. The Lee-Chin Institute's purpose is to help current and future business leaders integrate corporate citizenship into business strategy and practices.[37]

In September 2014, Lee-Chin and his family donated $10 million to the Joseph Brant Hospital Foundation.[38]

Michael Lee-Chin and family received the 2015 Association of Fundraising Professionals' (Golden Horseshoe Chapter) National Philanthropy Award in the category of Outstanding Philanthropist.[39]

Current fund growth and difficulties

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Investment in Caribbean

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In the late 1990s and early 2000s, Jamaica went through a period of financial crisis.[40] Lee-Chin saw potential in his native country, and Portland purchased 75 per cent of the National Commercial Bank of Jamaica for 6 billion Jamaican dollars (US$127 million) from the Jamaican Government. In 2003, Senvia Money Services Inc., a global money transfer company, was established. This was followed in 2004, by the acquisition of AIC Financial Group Limited, headquartered in Trinidad.

In 2004, he announced plans to set up the AIC Caribbean Fund with the intention of investing in the entire Caribbean region. The stated aim of the fund is to raise US$1 billion in order to "make investments in businesses located in countries of the Caribbean Community (CARICOM), with an emphasis on Jamaica, Barbados and Trinidad and Tobago".[41] So far, it has made a number of large-scale investments.

In 2006, Portland acquired an 85 per cent controlling stake in the United General Insurance Company, the largest auto insurer in Jamaica, and renamed the firm Advantage General Insurance Company. A controlling interest in CVM Communications Group (consisting of radio and television stations and newspapers) was purchased at the same time. Portland partnered with the Canadian Risley Group to form Columbus Communications Ltd – a Barbadian corporation that holds controlling interest in a number of telecommunications providers in the Caribbean including Cable Bahamas Ltd, Caribbean Crossings Ltd, Merit Communications Ltd, and FibralLink Jamaica Ltd.

In the tourism sector, Lee-Chin guided Portland through a number of acquisitions in the Caribbean. Among them were the hospitality operations of the Trident Villas and Spa in Jamaica, Reggae Beach, and Blue Lagoon.

Portland's first acquisition in the health care industry sector was announced in July 2006, when Medical Associates Ltd., a privately held hospital in Kingston, Jamaica, joined the Portland Group.

Commodities boom

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Similar to the experience of the late 1990s, Lee-Chin again has shied away from investing in commodities and the energy market boom. He has specifically stated that "We [AIC] do not like commodities-type businesses nor most high-tech companies simply because they are implicitly poor enterprises which we would not want to hold for the long term".[42]

Again, this strategy has meant that AIC has significantly underperformed the S&P index, but Lee-Chin stated in 2006 that he believed that the current boom is just another bubble. Lee-Chin describes the market since 1990 as "a series of rolling speculations", and now "we see a commodities bubble".[43]

Business strategy

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While at Investors Group, he studied the strategies of successful investors, such as Warren Buffett, Benjamin Graham and Kenneth Thomson. Their buy and hold strategy is easily recognizable in the motto of AIC – Buy, hold and prosper. He also invested in public investment management businesses which benefit from a rising market in two ways. In a rising market stock in portfolios go up and more people become investors and increase existing investment.

Business ventures owned or operated by Michael Lee Chin

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  • Columbus Communications –
    • Columbus Communications Jamaica Ltd / Flow Jamaica
      • FibraLink
      • CVM Television Group
      • Merit Communications
      • Sauce Cable Company
        • Affordable Enterprise Ltd
        • Cabana Cable Ltd
        • Dynamic Corp, a company in the making Eastern Cable Network Ltd
        • Home Commercial Satellite Ltd
        • Universal Cable Network Ltd
    • Columbus Communications Trinidad Ltd/Flow Trinidad
    • Columbus Communications Grenada Ltd/Flow Grenada
  • Eastern Caribbean Gas Pipeline Company (ECGPC)
  • National Commercial Bank Jamaica (NCB)
  • Radio Jamaica
  • Reggae Beach (resort), Jamaica
  • Senvia
  • Total Finance Bank of Trinidad & Tobago Ltd
  • Trident Hotel (Resort)
  • Wallenford Coffee[44]

See also

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References

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  1. ^ https://ca.linkedin.com/in/michael-lee-chin-768853102 [permanent dead link]
  2. ^ "Michael Lee-Chin - Private Capital Markets Association of Canada". www.pcmacanada.com. Archived from the original on 10 November 2021. Retrieved 14 October 2020.
  3. ^ Inc, Portland Holdings (6 June 2019). "Michael Lee-Chin joins the ITM Supervisory Board". GlobeNewswire News Room (Press release). Archived from the original on 20 October 2020. Retrieved 17 October 2020. {{cite press release}}: |last= has generic name (help)
  4. ^ "Michael Lee-Chin". Forbes. Archived from the original on 20 November 2019. Retrieved 17 December 2019.
  5. ^ "Michael Lee-Chin | The Canadian Encyclopedia". www.thecanadianencyclopedia.ca. Archived from the original on 23 October 2020. Retrieved 14 October 2020.
  6. ^ "PSOJ Hall of Fame 2022". 24 October 2022.
  7. ^ "The 2017 Appointees to the Order of Ontario". Province of Ontario, Ministry of Citizenship and Immigration. 29 January 2018. Archived from the original on 21 January 2021. Retrieved 3 February 2018.
  8. ^ Harvey, Jahlisa (29 April 2016). "Michael Lee Chin heads JA's Economic Growth Council – Caribbean News". Caribbean News. Archived from the original on 13 July 2016. Retrieved 19 July 2017.
  9. ^ "Michael Lee-Chin appointed chancellor of Wilfrid Laurier University Communications, Public Affairs & Marketing". Wilfrid Laurier University. Archived from the original on 15 January 2013. Retrieved 5 July 2012.
  10. ^ "the man...the mom...the myth". Globe Advisor. Archived from the original on 9 December 2018. Retrieved 24 August 2006.
  11. ^ Barbara McLintock (5 February 2004). "Can a Billionaire Be Nice? – If you don't think so, Michael Lee-Chin may change your mind". The Tyee. Archived from the original on 5 March 2018. Retrieved 23 August 2006.
  12. ^ "Michael Lee-Chin: Encyclopedia". About.com. Archived from the original on 18 April 2017. Retrieved 23 August 2006.
  13. ^ "Titchfield Old Students' Association Newsletter & Events". Titchfield High Alumni Association. July 2006. Archived from the original on 11 December 2006. Retrieved 23 August 2006.
  14. ^ "Why donate?". Jamaica Gleaner. Archived from the original on 29 March 2015. Retrieved 23 August 2006.
  15. ^ "National Commercial Bank of Jamaica – Board of Directors". Archived from the original on 3 September 2006. Retrieved 23 August 2006.
  16. ^ "Fund Profile AIC – Portfolio Managers". GlobeFunc.com. Archived from the original on 3 September 2006. Retrieved 23 August 2006.
  17. ^ Lowrie-Chin, Jean (1 June 2004). "If Shearer had refused Lee Chin..." The Jamaica Observer. Archived from the original on 26 September 2007. Retrieved 23 August 2006.
  18. ^ "McMaster Alumni Association". Archived from the original on 9 September 2005. Retrieved 23 August 2006.
  19. ^ "Focus on Michael Lee-Chin". AIC. Retrieved 23 August 2006. [dead link]
  20. ^ Dennise Williams (6 February 2004). "Michael Lee-Chin – Every mickle makes a muckle – The acquisition king". Jamaica Gleaner. Archived from the original on 27 November 2005. Retrieved 23 August 2006.
  21. ^ Kiladze, Tim. "Manulife puts its stamp on AIC funds". The Globe and Mail. Archived from the original on 29 March 2015. Retrieved 29 March 2015.
  22. ^ Inc, Mandeville Operations Management (8 August 2017). "Smart Money Capital Management Inc. and Mandeville Private Client Inc. Democratizing Wealth for Canadians". GlobeNewswire News Room (Press release). Archived from the original on 29 June 2019. Retrieved 27 May 2020. {{cite press release}}: |last= has generic name (help)
  23. ^ "The rules of wealth". www.wealthprofessional.ca. Archived from the original on 10 November 2021. Retrieved 27 May 2020.
  24. ^ Scott, Matthew (August 2002). "Buy, hold, and prosper – Cover Story – investment strategies". Black Enterprise. Archived from the original on 16 September 2006. Retrieved 23 August 2006.
  25. ^ Helman, Christopher (15 April 2002). "Get Rich Slow". Forbes. Archived from the original on 2 November 2012. Retrieved 23 August 2006.
  26. ^ "Settlement Agreement: In the Matter of AIC Limited". Ontario Securities Commission. Archived from the original on 17 July 2010. Retrieved 29 March 2015.
  27. ^ Damsell, Keith (4 December 2004). "Questions linger as investigation winds down". The Globe and Mail. Archived from the original on 29 March 2015. Retrieved 29 March 2015.
  28. ^ "Michael Lee-Chin". Forbes.
  29. ^ "Michael Lee-Chin | the Canadian Encyclopedia".
  30. ^ "Court reviews Lee-Chin split". Globe Advisor. 30 May 2005. Archived from the original on 11 July 2011. Retrieved 24 August 2006.
  31. ^ "PSOJ Hall of Fame 2022". 24 October 2022.
  32. ^ @michael_leechin (22 August 2017). "Sonya and I feel honoured to have played a role in the transformation of this outstanding facility" (Tweet) – via Twitter.
  33. ^ "Michael Lee-Chin". Forbes. Retrieved 4 June 2023.
  34. ^ "Forbes.com: Forbes World's Richest People 2002". www.forbes.com. Retrieved 4 June 2023.
  35. ^ "€330M Lürssen Ahpo sold in three months and renamed Lady Jorgia". www.boatinternational.com. Retrieved 4 June 2023.
  36. ^ McArthur, Greg; Taylor, Kate; McNish, Jacquie. "Crystal Myths: Behind the ROM's philanthropic façade". The Globe and Mail. Archived from the original on 28 March 2015. Retrieved 29 March 2015.
  37. ^ Leung, Calvin (December 2005). "John Risley And Michael Lee-Chin – The Cable Guys". Canadian Business. Archived from the original on 18 March 2006. Retrieved 24 August 2006.
  38. ^ Smith, Dennis. "Michael Lee-Chin shares inspiration for largest donation in Burlington's history". insideHatlon.com. Metroland Media. Archived from the original on 5 October 2014. Retrieved 30 December 2016.
  39. ^ "Three Burlington philanthropists honoured". InsideHalton.com. 13 November 2015. Archived from the original on 4 August 2017. Retrieved 3 August 2017.
  40. ^ "IMF Concludes 2002 Article IV Consultation with Jamaica". IMF External Relations Department. 11 September 2002. Archived from the original on 24 October 2006. Retrieved 23 August 2006.
  41. ^ "Lee Chin secures US$80m for Caribbean fund". The Jamaica Observer. Archived from the original on 14 May 2006. Retrieved 23 August 2006.
  42. ^ Lee-Chin, Michael. "Messages – the Writings of Michael Lee-Chin" (PDF). AIC. p. 116. Archived from the original (PDF) on 23 August 2006. Retrieved 23 August 2006.
  43. ^ Folk, Levi. "Lee-Chin sticks to his guns at AIC – Advantage fund focuses on wealth management". Canada.com. Archived from the original on 8 December 2007. Retrieved 23 August 2006.
  44. ^ "Billionaire Lee-Chin bullish on Bermuda | The Royal Gazette:Bermuda Business". mobile.royalgazette.com. Archived from the original on 22 December 2017. Retrieved 7 November 2021.
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