Our Fee Structure
The SciVest Direct SMA platform offers institutional-class investment management solutions to the “average” investor at an industry-leading, affordable, all-in cost structure. Our goal is to allow regular investors access to account structures and investment strategies with a level of quality that is usually reserved for ultra-wealthy individuals and/or large institutional investors – all at a wholesale level of pricing.
We can offer fees that are a small fraction of industry average and amongst the lowest in Canada by extensively utilizing technology, offering only a limited selection of the very best investment strategies, with very few "bells and whistles."
Importantly, we can offer the SciVest Direct platform and its industry leading fee structure not only to wealthy investors, but also the "forgotten middle" - those households with $100,000 to $800,000 of investible assets. The forgotten middle are "too small" for the downtown financial advisors, but due to lack of better alternatives they are "forced" into expensive mass market products from the banks.
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Impact on Future Wealth
How important are investment fees and expenses to your long-term portfolio value? The answer is that fees and expenses are incredibly important. Even small annual differences in the all-in fees and expenses between two investment accounts, can produce significant differences in your ultimate net worth, or retirement nest-egg, when these small differences are compounded over the years. In fact, these differences can be literally life changing when compounded over 15 to 30 years.
Consider a $100,000 in an investment strategy that generates a 7.5% compounded return, before any fees and expenses. We estimate the $100,000 investment with SciVest Direct in this strategy would be worth $720,000 net of all fees and expenses after 30-years, while the same investment in the average Canadian financial advisor sold mutual fund would be worth only $463,000 net of all fees and expenses after 30-years - simply and solely due to the average fee differences. That's 55.4% more wealth with SciVest Direct, simply due to lower fees! What could you do with that extra $257,000 on your initial $100,000 investment?
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