Monthly Market Snapshot
November 12, 2024
10 min read
By iA Private Wealth, November 12, 2024
James Gauthier and his research team walk through the highlights of last month’s market and economic data.
We are excited to introduce our new company name, iA Private Wealth. The new name is designed to better reflect the essence of what our advisors do – provide holistic wealth management solutions tailored to the unique needs and goals of investors across Canada.
Please take a few moments to browse our newly redesigned and updated website to learn about the many benefits of working with an iA Private Wealth Investment Advisor.
*Refers solely to the Investment Industry Regulatory Organization of Canada licensed advisors within HollisWealth.
We believe comprehensive personal wealth planning, supported by unbiased advice, collaboration and transparency, is the key to meeting your needs and helping you achieve your goals. Our advisors focus on six main priorities to create a plan that’s tailored to you:
A proven wealth management philosophy is one that takes emotion out of the equation and relies on a disciplined, long-term approach. Your objectives, risk tolerance, return expectations and time horizon will be the key factors your Investment Advisor takes into account in designing a plan that can help meet your retirement and other goals.
Your Investment Advisor will help you set and achieve saving goals aligned with your needs and objectives, and develop a borrowing and debt management strategy for your unique circumstances.
Whether you’re looking to fund a child’s education or returning to school to upgrade your credentials, your Investment Advisor can help you understand your options and maximize the value of a Registered Education Savings Plan (RESP).
Your Investment Advisor will conduct a thorough assessment of your circumstances to determine the most tax-efficient way of building your portfolio.
Your Investment Advisor will develop a risk management plan that addresses the full range of factors that could affect your financial well‑being.
To plan for the preservation and transfer of your assets, your Investment Advisor can help you keep an eye on the horizon by understanding your situation and wishes, including tax-efficient legacy planning.
November 12, 2024
10 min read
By iA Private Wealth, November 12, 2024
James Gauthier and his research team walk through the highlights of last month’s market and economic data.
November 8, 2024
Video duration 12:49
By iA Private Wealth, November 8th, 2024
Tune in weekly for insight and perspective on the macro and market landscape with iA Investment Management chief strategist and senior economist Sébastien Mc Mahon.
Watch Sébastien’s previous weekly updates on YouTube.
October 1, 2024
read
By iA Private Wealth, October 1, 2024
Building wealth is essential when trying to reach important financial goals, be it funding a child’s education, buying a home or enjoying a comfortable and meaningful retirement. Working with an investment advisor is often a good way to save more money, achieve greater tax efficiency and grow long-term wealth through investing.
However, investing for the future can be highly complex and typically requires specialized skills, experience and discipline to succeed. The same applies to retirement and estate planning, which is why many people seek out professional advice. If you’re working with an investment advisor (or considering it), you should understand how advisors are compensated. The topic of fees can be complicated, but we’ll stick to the basics.
There are three main forms of advisor compensation: a commission-based model, a fee-based model or by salary.
Commission-based. Advisors working in this structure receive compensation when their clients buy or sell an investment (e.g., mutual funds, exchange-traded funds or stocks). The commission they earn may depend on the investment type, the dollar value of a trade or other variables. Advisors may also receive ongoing compensation from fund companies in relation to the funds their clients hold (more on that later).
Fee-based. Advisors working in this structure earn a fee that’s based on the value of assets they manage on a client’s behalf. Even if a client makes many trades and frequently uses certain advisory services, the fee charged remains a prearranged percentage (e.g., 1%) of the value of assets being managed. Sometimes the fee percentage declines as a client’s assets increase.
Salary. An advisor working for a bank or credit union will often earn an annual salary plus a performance-based bonus. Salaried advisors provide value to clients but may not hold the same industry licencing as commission- or fee-based advisors, which may narrow the range of services they can offer.
If you invest in mutual funds, segregated funds or exchange-traded funds, you’ve likely heard about MERs. They’re calculated as a percentage (e.g., 2%) of fund assets and are deducted from the value of your investment. MERs are used to compensate fund managers and dealers, and to pay related taxes.
Fund manager. This is the firm that operates the fund you invest in. They set the fund’s strategy and objectives, and employ portfolio managers who decide what (and when) to buy and sell, in order to help enhance fund returns and manage risk. They also handle administrative duties like recordkeeping, as well as legal, accounting, audit and custodial services. For these important duties, fund managers earn a portion of the MER.
Dealer. This is the firm where your advisor is registered. Dealers maintain account records, produce and deliver account statements, and provide the technology for online account access. Dealers also ensure their investment advisors meet all regulatory requirements. Part of a dealer’s MER allocation (also called a “trailer fee”) typically goes to the advisors responsible for client-oriented tasks like planning, portfolio construction and monitoring, and trade execution.
Taxes. A portion of the MER is used to cover federal and provincial taxes charged on fees and services related to the fund manager and dealer.
In 2009, CRM1 was introduced as a way to standardize written disclosure requirements for dealers industrywide, to help clients understand key relationship issues like the way dealers determine product suitability, how they address compensation matters and potential conflicts of interest, what dispute resolution process they follow, etc.
Building upon CRM1 and implemented in 2017, CRM2 obliges dealers to provide clients with a personalized annual report that summarizes charges and compensation related to a client’s account. This report is designed to be transparent and is written in straightforward language. For a better understanding of fees (e.g., what you pay and where the fees go), check your personalized annual report.
In the years to come, CRM3 will take effect and provide even fuller investment fund disclosure. For instance, annual total-cost reporting requirements will disclose all embedded costs of owning funds, including MERs and TERs (i.e., trading expense ratios), to offer investors greater clarity regarding the expenses incurred as part of the investing process.
Good advisors earn their compensation by providing significant value to clients. To learn more about the costs of investing and the benefits of professional advice, speak with an iA Private Wealth Investment Advisor.
Looking for a rewarding career in financial services? We have a wide range of opportunities for talented, committed professionals, and offer attractive compensation and benefits.
View available positionsMore and more advisors are looking to iA Private Wealth as the partner of choice for building and growing an independently owned and operated business with an unwavering focus on client success.
See what we offer