Russell Investments' research: Canadian financial advisors added 3.9 percent in value to client accounts in 2022, exceeding the typical fee in a challenging year

Russell Investments Canada Limited (Russell Investments) has released its eighth-annual Value of an Advisor study, which aims to quantify an advisor’s increasingly complex role to serve their clients.

Toronto, ON, 2023-06-11 – Russell Investments Canada Limited (R­ussell Investments) has released its eighth-annual Value of an Advisor study, which aims to quantify an advisor’s increasingly complex role to serve their clients. The firm’s 2023 study found that Canadian advisors added 3.9% in value to clients by delivering comprehensive wealth management services.

“Our study clearly illustrates the important role an engaged advisor plays in their pursuit to deliver financial security for their clients” said Brad Jung, head of North America Advisor & Intermediary Solutions at Russell Investments (and President, Russell Investments Canada Limited). “2022 was a challenging year for investors, with stocks and bonds both declining, but once again our objective formula reveals advisors continued to provide significant value well beyond the average financial advisor fee.”

Jung added that a financial advisor who charges an average fee of 1.5% delivers much more in value to each client’s account. The advisor’s work continues to expand over time and today involves investment management, capital markets expertise, creating comprehensive financial plans and holding regular reviews, family meetings and education, as well as understanding each client’s goals, circumstances, risk tolerance and preferences.

Russell Investments developed its Value of an Advisor formula based on rigorous research and experience to help advisors understand and communicate the full value of their services. The formula, which is reassessed each year to assure it accurately quantifies the tangible benefits of collaborating with an advisor, consists of the following four components:

  • Active rebalancing of investment portfolios. Value added: 0.17%
  • Behavioral Value added: 1.95%
  • Customized client experience & family wealth planning. Value added: 1.1%
  • Tax-smart planning & investing. Value added: 0.68%

Each component is explained and clearly quantified with extensive research in the 2023 Value of Advisor study, available here.

“Much of the complex work an advisor does happens behind the scenes, making it difficult for their clients to appreciate,” said Toronto-based Danny Kabeya, Divisional Director for Russell Investments Canada’s Advisor and Intermediary Solutions business. “Our Value of an Advisor study is designed to help advisors bring the results of that work to the forefront in order to demonstrate the full value of the services they deliver to every client.”

About Russell Investments

Russell Investments Canada Limited is a wholly owned subsidiary of Russell Investments Group, Ltd. Established in 1985, Russell Investments Canada Limited has its head office in Toronto.

Russell Investments is a leading global investment solutions firm providing a wide range of investment capabilities to institutional investors, financial intermediaries, and individual investors around the world. Building on an 87-year legacy of continuous innovation to deliver exceptional value to clients, Russell Investments works every day to improve the financial security of its clients. The firm has CA$390.2 billion in assets under management (as of 3/31/2023) for clients in 32 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 17 cities around the world, including Toronto, New York, London, Tokyo and Shanghai.

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Date of first publication: June 2023. CORPCA-00555