Transcend Direct answers calls from investors looking for better fee transparency and the ability to leverage state of the art technology with experienced advisors
TORONTO, May 3, 2016 /CNW/ - Transcend Private Client has something different to offer Canadian investors who are tired of paying high investment costs without high returns. Operating on the philosophy that it will make money when client portfolios outperform industry benchmarks, the firm is launching a service called Transcend Direct and plans to redefine the nature and delivery of financial services.
"We believe that linking investment management fees to the quality of performance achieved is a good way to align our clients' interests with ours, ensuring that we are successful when our clients are successful," said Chris Ambridge, Chief Executive Officer of Transcend Private Client Corp. and President & CIO of Provisus Wealth Management Limited, an investment management firm that has been helping clients grow their net worth for a decade.
Now launching a sister company targeting consumers directly, Ambridge says, "A performance-based fee structure provides an incentive to maximize risk-adjusted returns and accountability from money managers. It is one of the most cost-effective fee structures in the country and something which has long been needed in Canada."
The onset of this new model comes on the heels of a new legal framework, pushing for tighter regulations governing financial advisors. Many feel that greater transparency about how fees are calculated and what portion the advisors receive is required. With the advent of online financial firms, often known as robo-advisors, it's clear that more Canadians are searching for alternate methods of investing.
Recognizing the fundamental role that technology has in redefining investment management, Transcend Direct combines a sophisticated, proprietary investing approach employed by Provisus' portfolio managers with Transcend's experienced financial planners. The result is a personalized, comprehensive financial service, available to Canadians with diverse incomes – not just high net worth individuals.
Services available include customized, goal-based financial planning; financial account aggregation; investment management; personalized investment policy and portfolio construction; ongoing cash management; portfolio monitoring and 24/7 online access to portfolios.
How Performance Fees Work
Pay-for-Performance™ is a fee structure whereby through Transcend, a subsidiary of Provisus Wealth Management, clients have access to a very low fee of only 0.25 per cent that covers the base cost of administering a family of funds. It is based on a philosophy of delivering better value for clients by charging a very low administration fee, while the investment firm earns income only after outperforming its industry benchmark's return.
When these funds do not perform better than the market as measured against their industry benchmark, clients will pay fees similar to traditional ETFs. When these funds outperform, a performance fee is charged that is equal to 20 per cent of the performance of the fund above its industry benchmark. This directly ties the investment manager's remuneration to the value added results achieved by the clients.
About Transcend Private Client
Transcend Private Client was created by Provisus Wealth Management Limited to offer Canadians flexible financial planning services. Transcend Private Client provides a Pay-for-Performance™ service through Transcend Direct, delivering sophisticated investment management for a low cost. Provisus manages $400 million in private client assets and has been offering investment management services since 2007.
SOURCE Transcend Private Client
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