The Canadian financial services industry offers a variety of business models, from low-cost robo-advisors, to bank-sponsored mutual funds, to full-service managed accounts at boutique investment dealers. Prior to starting High Level Wealth Management and becoming registered as a portfolio manager, we spent time exploring different models and understanding the benefits and downsides of each.

The competition: robo-advisors
In general, we believe that robo-advisors – a class of financial adviser that provide investment management online with moderate to minimal human intervention – offer many benefits. Their fees are typically much lower than traditional advisory firms and robo-advisors typically employ a passive investment management strategy – investing in exchange-traded funds that seek to match the performance of established market indices rather than trying to “beat the market” – which aligns with our investment philosophy. However, the heavy emphasis on low fees leads to a number of potential downsides to the robo-advisor business model:

• limited time spent by robo-advisors evaluating client circumstances and assessing investment suitability;
• typically very limited ability to customize investment portfolios to account for unique client circumstances; and
• limited ability to reach registered professionals in a timely manner to discuss client needs, and a lower probability that a client will receive service from the same person each time they contact the robo-advisor.

The competition: traditional advisory firms
On the other end of the spectrum, boutique investment dealers and traditional portfolio management firms specialize in client service. This addresses the main downsides of robo-advisors – at a cost. Traditional advisory firms employ a variety of fee structures making it difficult to generalize, but it would not be uncommon for a firm to charge fees that are several times the cost of a robo advisor. In addition, it is typical for traditional advisory firms to implement a minimum account size policy (for example $500,000), making their services inaccessible for those with smaller accounts.

The best of both models
Our approach adopts components from both robo-advisors and traditional advisory firms, utilizing passive investment management strategies and technology to reduce costs while still providing an advisor-centric client experience.

As a client you receive:

• direct access to the same dedicated advisor for all your needs rather than having to submit support tickets to a call centre;
• an advisor that spends time learning about you, your financial objectives, risk tolerance, and unique circumstances;
• an advisor that works with you to develop a financial plan that is routinely updated to adjust for changes in your life;
• an advisor that can help with the preparation and filing of your annual personal income tax return; and
• the ability, when appropriate, to customize our model portfolios to account for your unique circumstances.

At High Level Wealth Management we believe in:

• passive investment management, using low-cost exchange-traded funds that seek to track the performance of established market indices rather than trying to “beat the market;”
• utilizing technology where possible to increase efficiency;
• relying on academic research and historical evidence to inform decisions; and
• working with clients at all stages of life, without a minimum account size policy.

We strive to provide professional, trustworthy, client-focused service at a fair price. By combining the successful components from other business models while avoiding some of their pitfalls we think we’ve developed a compelling offering that strikes a good balance.

Navigating the array of choices for your personal financial needs can be frustrating and confusing. When searching for a provider, you can choose from insurance companies, mutual fund dealers, banks, trust companies, portfolio managers, investment dealers, exempt market dealers, and robo-advisors. These entities fall under at least four different regulatory bodies, each with different registration requirements for their members.

As a result, practitioners in the Canadian financial services industry possess a wide range of experience and qualifications. In Alberta, there is currently no protection for titles such as Financial Advisor or Financial Planner and there are many finance-related professional designations each with varying proficiency requirements. All of this creates a landscape where it can be very difficult to determine who to trust. At High Level Wealth Management, we strive to demonstrate our professionalism and gain your trust in several ways: