ADVISOR EVOLUTION
Understanding investors’ options
The advisory industry is often seen as divided into two distinct camps: full-service advice and “robo” advice.
Yet there’s a broad range of products and services available to investors who seek some degree of professional
input about their portfolios.
Product or
advice model
Low
Personalization,
complexity
and cost
High
Personalization,
complexity
and cost
Description
Example(s)
All-in-one funds
Funds of funds support a certain objective. For
example, a fund may maintain an asset allocation
that aligns with the length of time before an investor
plans to begin withdrawals.
Target-date funds
Online tools
Portfolio analytics guide self-directed investors
toward an appropriate asset allocation.
Portfolio
analytics tool
Digital advice
Discretionary portfolio management is enabled
exclusively by technology. Asset allocations for
“personalized model portfolios” are often based
on information from investor questionnaires
Wealthsimple
Nest Wealth
WealthBar
Nondiscretionary portfolio recommendations are based
on analyses of aggregate portfolios and seek to improve
asset allocations and investment costs.
Example:
ShareOwner
Hybrid advice
Ongoing partnership with an advisor includes
services ranging from model portfolios to customized,
goals-based financial planning and ongoing portfolio
management. Depending on the service, a dedicated,
certified representative may be available at a local
branch or by phone or virtual communication.
Traditional
financial advisor
Higher-touch advice model offers the most
comprehensive suite of financial planning services
delivered through in-person interaction.
Source: Vanguard.
For financial advisor use only. Not for public distribution.
Full-service
advisory firms
Differentiate from digital advice:
Personalized service, strong client relationships
High
High
Comprehensive
planning and
wealth
management
Additional
planning:
Estate, tax,
insurance
Immunity
to digital
advice
Personalization
and depth of
relationship
Primarily
investment
management
Investment
management
only
Low
Commodity
Pricing
Premium
Low
Source: Vanguard.
Connect with Vanguard ® > vanguardcanada.ca > 888-293-6728
Vanguard Investments Canada Inc.
This material is for informational purposes only. This material is not intended to be relied upon as research,
investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell
any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do
not take into account the particular investment objectives, needs, restrictions and circumstances of a specific
investor and, thus, should not be used as the basis of any specific investment recommendation. Please consult
your financial and/or tax advisor for financial and/or tax information applicable to your specific situation.
Information, figures and charts are summarized for illustrative purposes only and are subject to change
without notice.
For financial advisor use only. Not for public distribution.
155 Wellington Street West
Suite 3720
Toronto, ON M5V 3H1
© 2015 Vanguard Investments Canada Inc.
All rights reserved.
FAEVOSA 112015