Russell Investments’ Study Reveals: Canadian Financial Advisors’ Services Add 3.52% in Value, Exceeding Typical Fee

TORONTO--(BUSINESS WIRE)--Russell Investments Canada Limited (Russell Investments) has released its ninth-annual Value of an Advisor study, which aims to quantify an advisor’s increasingly complex role to serve their clients. The firm’s 2024 study found that Canadian advisors add 3.52% in value to clients by delivering comprehensive wealth management services.

“Our simple but comprehensive A+B+C+T formula indisputably shows that an advisor who delivers holistic wealth management services provides value that far exceeds the typical fee charged,” said Brad Jung, head of North America Advisor & Intermediary Solutions at Russell Investments (and President, Russell Investments Canada Limited). “We’re committed to helping advisors bring the results of their work to the forefront and demonstrate the full value of the services they deliver to every client.”

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:

• A - Active rebalancing and asset allocation. Value added: 0.28%
• B - Behavioral coaching. Value added: 1.43%
• C - Customized family wealth planning. Value added: 1.13%
• T - Tax-smart planning & investing. Value added: 0.68%

“Our study powerfully quantifies our strong conviction in the value that advisors bring to their clients,” said Toronto-based Danny Kabeya, Divisional Director for Russell Investments Canada’s Advisor and Intermediary Solutions business. “An advisor’s work to guide clients holistically through defining moments of their lives, to ensure investments align with their goals, to provide expertise on taxes and insurance, as well as to plan for their retirement, long-term care needs and estate planning—among a myriad of other services—adds value.”

Russell Investments’ 2024 Value of Advisor study is available here.

About Russell Investments Canada Limited

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.

About Russell Investments

Russell Investments is a leading global investment solutions firm providing a wide range of investment capabilities to institutional investors, financial intermediaries, and individual investors. Building on an 88-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$409.7 billion in assets under management (as of 3/31/2024) for clients in 30 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 16 financial centers around the world, including Toronto, New York, London, Tokyo and Shanghai.

Important Information

Nothing in this publication is intended to constitute legal, tax securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. This is a publication of Russell Investments Canada Limited and has been prepared solely for information purposes. It is made available on an “as is” basis. Russell Investments Canada Limited does not make any warranty or representation regarding the information.

Russell Investments is the operating name of a group of companies under common management, including Russell Investments Canada Limited.

Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management, L.P., with a significant minority stake held by funds managed by Reverence Capital Partners, L.P. Certain of Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.

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