IG Wealth Management introduces greater fee transparency for all clients and accelerates growth with pricing changes
WINNIPEG - November 15, 2018 – IG Wealth Management is delivering on its client-focused commitment by expanding fee transparency to all clients while introducing product and pricing changes to accelerate growth.
The increased fee transparency, which is in the form of unbundled pricing, is being rolled out to all IG Wealth Management clients over the course of 2019. Under the new model, clients pay an advisory fee to the dealer for its services as opposed to dealer compensation being bundled as part of mutual fund management fees. IG Wealth Management has successfully offered an unbundled fee option (Series U) to high net worth clients across its product suite since 2013.
“With an enhanced unbundled structure, we have put a high priority on transparency of fees, which further demonstrates our commitment to put the client at the centre of everything we do,” said Jeff Carney, President and Chief Executive Officer, IG Wealth Management. “Our unbundled offerings have been very successful, currently representing more than 75 per cent of high net worth client sales as of the third quarter of 2018. Today’s announcement will further strengthen the relationship between our advisors and clients, while accelerating our growth into 2019.”
The company is also introducing more competitive pricing to reward client loyalty while encouraging consolidation with IG Wealth Management and new client acquisition. IG Wealth Management plans to implement the changes over the course of 2019:
• Beginning March 1, 2019, IG Wealth Management will enhance the competitiveness of pricing to households with over $1 million in assets with IG Wealth Management through advisory fee reductions across multiple client segments.
• During the second quarter of 2019, IG Wealth Management will open unbundled fee options to households with less than $500,000 in assets.
• IG Wealth Management will be migrating clients to unbundled solutions beginning in the third quarter of 2019, with most accounts expected to be migrated over the following twelve months.
The changes announced to advisory fee levels and pricing structures outlined above is anticipated to reduce IG Wealth Management’s annualized weighted average fee rate by 0.03% of assets under management during the second quarter of 2019.
FORWARD-LOOKING STATEMENTS: Certain statements in this release are forward-looking statements based on certain assumptions and reflect IG Wealth Management’s current expectations. By its nature, this information is subject to inherent risks and uncertainties which may cause expectations to not be realized. Many of such risks and uncertainties are beyond IG Wealth Management’s control. The reader is cautioned to not place undue reliance on forward-looking statements. Other than as specifically required by law, IG Wealth Management undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of Consultants located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $85 billion in assets under management as of October 31, 2018 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $153 billion in total assets under management as of October 31, 2018.