IFIC Releases 2011 Report on the Value of Advice

November 16, 2011

TORONTO – The Investment Funds Institute of Canada (IFIC) today released its second report on the value of advice – The 2011 Value of Advice: Report (the 2011 Report) – that provides additional quantitative evidence on the durable values that advice, and the relationship with an advisor, can mean for investors.

The 2011 Report answers the question of whether investors accumulated wealth before they sought out advice. We know that most investors first begin to work with an advisor with only modest amounts to invest– typically less than $25,000 – and at relatively young ages. The research shows that the use of advice is not limited only to wealthy individuals - most investors first seek advice in order to start investing and grow their assets.

“The mutual fund industry provides Canadians’ access to capital markets with even small amounts of investable assets,” said Joanne De Laurentiis, IFIC President and Chief Executive Officer. “With the valuable assistance of an advisor, those small amounts compounded over time can grow into a substantial investment portfolio.”

The 2011 Report builds on the 2010 Report by focusing in particular on three areas:

• The causational link between receiving advice and wealth accumulation;
• The investment plan and how it pays off; and
• A more quantified look at the components of value that flow from an advisor-client relationship.

Findings are presented that quantify some of the yield advantages of advised portfolios, which, when compounded over a working lifetime, explain the sizably larger investment portfolios of advised investors relative to non-advised investors.

Financial and investment advice is a key contributor to the financial health of Canadians and a cornerstone of our current retail financial market. The importance of preserving a healthy advice industry should not be overlooked as we consider public policy reforms affecting the financial sector.

The 2011 Value of Advice: Report is available on the IFIC website at www.ific.ca.


IFIC is the national association of the investment funds industry. Membership consists of mutual fund companies, retail distributors and industry affiliates.

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For more information contact:
Laurie Gillett
Senior Manager, Communications
The Investment Funds Institute of Canada (IFIC)
Phone: 416-309-2317
Email: lgillett@ific.ca
Website: www.ific.ca

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The Investment Funds Institute of Canada (IFIC)

Topics:

• Financial Services
• Funds Management
• Investment Funds
• Investment in Canada
• Investments
• Mutual Funds
• Mutual Funds Industry
• Registered Education Savings Plans (RESPs)
• Registered Retirement Savings Plans (RRSPs)