In July 2019 we wrote an article introducing High Level Wealth Management. At that time our firm’s focus was on providing financial planning and we partnered with an external portfolio manager to handle investments for clients. Over the course of the subsequent year, as we started working with a variety of clients, it became clear that we could offer a much more compelling service if investment management was integrated with financial planning rather than outsourced. In mid-2020 we began the process of applying for registration with the Alberta Securities Commission and today we are happy to share some good news:
High Level Wealth Management Inc. has been granted registration in the category of Portfolio Manager.
As a result, we can now provide securities advice and begin managing investment portfolios on behalf of clients. While many portfolio managers construct portfolios that they hope will outperform the market (a strategy called active management), we will be offering investment portfolios that seek to track the performance of well-established market indices (a strategy called passive management). Our approach is supported by historical evidence and academic research that conclude it is very difficult for an active manager to consistently outperform the market. In fact, research shows that the return of well-established market indices outperforms the majority of active managers, especially over the long-term.
Providing investment management significantly increases the scope of our available services and necessitates some changes to our business model.
There are two key changes you should be aware of:
Our pricing is changing from a fixed monthly/annual amount to a fee that is calculated as a percentage of the assets that we manage on your behalf. The new pricing includes all of our services: investment management, financial planning, and income tax returns. Our pricing page has been updated to reflect these changes.
We will no longer be offering financial planning as a stand-alone service. We believe in a holistic approach to wealth management and over the past two years we’ve recognized the benefits of having a single entity responsible for a client’s financial plan, investments, and income tax returns.
What’s not changing?
While much has changed since writing that introductory article in July 2019, many of the article’s themes are still relevant:
The frustration and confusion Canadians face when navigating the array of choices for their personal financial needs.
The wide range of experience and qualifications of practitioners in the financial services industry.
The conflicts of interest inherent in certain investment products and business models.
To address these and other issues, we’ll continue to provide professional, trustworthy, client-focused service with fair, transparent pricing. Adding investment management to our list of services is a logical next step along the path we outlined in 2019 and we hope you’ll join us as we move forward.
Coinciding with today’s announcement, we’ve updated information throughout our website to reflect the new business model and pricing. In particular, we encourage you to review the section on investment management to learn more about our newest service. If you have any question or concerns about these changes, please reach out to us.
Kent Akgungor, CFA President and Portfolio Manager High Level Wealth Management Inc.