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Canadian financial advisors added 3.85% tangible value to client accounts in 2021, surpassing the typical 1% fee


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TORONTO — Russell Investments Canada Limited (Russell Investments) has its seventh annual Value of an advisor study, which aims to quantify a consultant’s broadening role in serving their clients holistically. The company’s 2022 analysis found that the value added to a client’s portfolio by a full-service Canadian advisor delivering comprehensive wealth management is 3.85%.

“Our research shows that the overall benefit of an engaged financial advisor is significantly higher than the typical advisory fee,” said Brad Jungo, head of North America Advisor & Intermediary Solutions at Russell Investments. “Based on our objective calculations, financial advisors who have worked with their clients to stay invested, prepare for an uncertain future and set their post-pandemic goals should feel a deep sense of satisfaction for adding real value. ”

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Russell Investments has developed its Value of a Advisor formula based on decades of research and experience to help advisors understand and communicate the full value of their services. The formula (A+B+C+T = value of an advisor), which is reassessed each year to ensure it accurately quantifies the tangible benefits of working with a consultant, was recalibrated for 2022 to reflect the industry’s move toward holistic family wealth planning.

According to this year’s objective formula, Canadian advisors have added value to their client accounts as follows:

A is for active rebalancing of investment portfolios. Added value: 0.20% B is for behavioral coachingAdded value: 1.93% C is for customized customer experience and family wealth planningAdded value: 1.04% t is for fiscally smart planning & investingAdded value: 0.68%

Each of the four components of the formula is explained and quantified in the 2022 Value of Advisor study, available here.

“We believe in the value of financial advisors, and the numbers from our research consistently support this view,” said Sophie Antal Gilbert, head of Portfolio & Business Consulting for Russell Investments’ North America Advisor and Intermediary Solutions business. “As we enter a post-pandemic world full of unknowns, financial advisors should be proud to know that they have helped their clients navigate a tumultuous period and that their value is clear.”

Antal-Gilbert added that she hopes the company’s annual study will help dedicated advisors understand that the value they deliver to clients goes well beyond selecting and managing investments, especially as investors continue to face the challenges of market volatility. and reassess their personal and investment goals, needs, and circumstances.

About Russell Investments Canada Limited

Russell Investments Canada Limited is a wholly owned subsidiary of Russell Investments Group, Ltd. Founded in 1985, Russell Investments Canada Limited is headquartered in Toronto.

About Russell Investments

Russell Investments is a leading global investment solutions company offering a wide range of investment opportunities to institutional investors, financial intermediaries and individual investors worldwide. Building on an 86-year legacy of continuous innovation to deliver exceptional value to clients, Russell Investments works every day to improve its clients’ financial security. The company has C$407.5 billion in assets under management (as of 3/31/2022) for clients in 32 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 19 cities around the world, including New York, London, Toronto, Tokyo and Shanghai.

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Important information

Nothing in this publication is intended to constitute legal, tax or investment advice, nor an opinion as to the suitability of an investment, nor a solicitation of any kind. This is a publication of Russell Investments Canada Limited and is for informational purposes only. It is made available on an “as is” basis. Russell Investments Canada Limited makes no warranty or representation of any kind with respect to the information.

Russell Investments is the operating name of a group of companies under common management, including Russell Investments Canada Limited. Russell Investments is owned by majority interests held by funds managed by TA Associates with minority interests held by funds managed by Reverence Capital Partners, the management of Russell Investments and Hamilton Lane Incorporated.

Frank Russell Company owns the Russell Trademarks in this material and all trademark rights in the Russell Trademarks, which the members of the Russell Investments group of companies may use under license from Frank Russell Company. The members of the Russell Investments group of companies are in no way affiliated with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.

Copyright © Russell Investments Canada Limited 2022. All rights reserved.

Check out the source version at businesswire.com: https://www.businesswire.com/news/home/20220518005294/en/

Contacts

Steve Claiborne206-505-1858, newsroom@russelinvestments.com

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