Advisors' value, quantified & revealed

Russell Investments' 2024 study highlights advisors' impact through rebalancing, coaching, planning, and tax-smart investing

Advisors' value, quantified & revealed

Russell Investments Canada Limited has released its ninth-annual Value of an Advisor study, aiming to quantify an advisor’s increasingly complex role in serving clients.  

The firm’s 2024 study found that Canadian advisors add 3.52 percent 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 and Intermediary Solutions at Russell Investments and president of 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, reassessed each year to ensure it accurately quantifies the tangible benefits of collaborating with an advisor, consists of four components:   

  • Active rebalancing and asset allocation. Value added: 0.28 percent 

  • Behavioural coaching. Value added: 1.43 percent 

  • Customized family wealth planning. Value added: 1.13 percent 

  • Tax-smart planning and investing. Value added: 0.68 percent 

“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.”