What are investors paying for investment management services in Canada?
by Stephan Desbiens, Partner & Associate Portfolio Manager at Exponent Investment Management Inc.
I often get asked about investment management fees. “How much am I paying?” or “How much will you charge to manage my money?” are the 2 most often asked questions. Of course it would be nice to receive any advice or service for free, but to quote Stephen King: “You pay for what you get, you own what you pay for… and sooner or later whatever you own comes back home to you”. This is especially true with investment fees in Canada.
Here’s a rundown of the fees you can expect to pay for the most common types of investment strategies in Canada:
For the “Do-it-yourselfer” or DIY This type of investor has the time, interest, knowledge and inclination to tend to their portfolio through all market conditions, as well as, the decisiveness to execute their chosen strategy. Like constructing a home, DIY is the most cost-effective way to build, but the above factors will determine the quality of the construction of your home and how well you will sleep in it at night.
Do-it-yourself Fees: Self-directed annual administration fees between $0 and $59 per year. Trading fees ranging from $0 to $30 per trade for stocks and exchange traded funds (ETF). ETF fees range from a few basis points to slightly over 1% annually.
“Robot”, “Smart” or “Simple” Portfolios
The target market for these relatively new products are millennials who are fee sensitive and do not require or believe in the value of the traditional advice channel.
Robot Fees: Usually these are held within a fee-based platform which means they charge a percentage on your assets under management. The fee range is usually between .50% and 1% per year depending on the chosen service levels.
Big Bank Advisors
Bank clients are usually dedicated to their bank’s brand and the perceived security represented by it. Banks host a small army of portfolio counsellors, investment advisors and mutual fund sales people. You’ll find the widest range of products and solutions with banks. Advisor work experience and knowledge base will also vary greatly, as will the client experience.
Bank Fees: Portfolio Counsellor all-in fees range between 75 basis points and 1.25% annually on managed portfolios. Investment Advisors can charge per transaction from 1% to 3% or make fee-based arrangements with clients. Fee-based programs range mostly between 50 basis points (5M+) and 1.5% per year. Add administration, custodial, sub-advisor and/or other fees as negotiated with your Advisor. Bank in-branch advisors usually focus on the bank’s smaller investment clients. They mostly use mutual funds or ETFs and charge fees which are imbedded in the product (clients don’t see the charge as it is drawn from the fund itself). These typically range between 1.5% to 3% annually. Account size minimums usually apply with banks, so checking with your bank and being in the appropriate channel is an important aspect of investing within banks.
When you think insurance, think insurance premiums. Just like auto or home policies, premiums are charged to insure your portfolio. Insurance clients are typically people that need life, disability or critical illness first. Insurance company investment product line-ups are often complex and expensive. An insurance agent’s investment knowledge and business focus varies greatly.
Insurance Fees: Fees for investment products typically range between 2% and 4% annually. Most insurance agents make use of sub-advisors (where someone else manages the money I.e. Mutual funds). Annual administration and other fees may also apply.
Most Portfolio Managers (PM) hold CFA or CIM designations. Portfolio Managers typically work directly with private clients or as sub-advisors for institutional clients, like pension funds and mutual funds. They are often smaller boutique type firms where the lead PM will be an owner in the firm.
PM Fees: Portfolio Managers usually work within a fee-based program ranging between 50 basis points to 1.5% on assets managed by the firm. Administration, trading and custodial fees may also apply.
How does it add up?
The illustration below is based on a $100,000 investment earning 6% over 25 years (income taxes are not factored).
Stephan Desbiens, Partner & Associate Portfolio Manager at Exponent Investment Management Inc. in Ottawa. Stephan@ex-ponent.com
Heart of the Rideau Canal
Grounded in history Smiths Falls does not disappoint the day-tripper
By Madeline Kallio | Jan/Feb 2019
As the major centre between Ottawa and Kingston, Smiths Falls enjoys a “small-town” ambience that is very sought after. A town steeped in history, coupled with the nearby beauty of the Rideau River and the Rideau Canal, this area is a pleasure to visit.
In 1784 Major Thomas Smythe, a United Empire Loyalist, received a Crown Grant of four hundred acres from the Royal Commission as a reward for loyalty. A sawmill was built by Smythe, his two sons, Terrance and Henry, and his son-in-law, William Merrick of Merrickville. In 1826, Lieutenant-Colonel John By of the Royal Engineers was sent to Upper Canada to build the Rideau Canal. Within a short period of time the village had a sawmill, a gristmill, a flour mill, a blacksmith shop, two stores, a tannery and houses. It grew so quickly, that it became a major commercial centre, which was given an added boost when the Canadian Pacific Railway ran its main line through town. The town was originally called Wardsville, then Smythe’s Falls, which was modified to Smith’s Falls. In 1968, the apostrophe was officially removed.
Smiths Falls boasts three very active and exciting museums which give visitors glimpses into the past. Joshua Bates original home, built in 1861, is now the Heritage House Museum (613 283-6311), 11 Old Slys Road. The classically-styled Victorian home has been restored with eight period rooms, a two-storey privy and a working brick bake oven. The museum hosts a variety of events and exhibitions. The Canadian Northern Railway Station (later the CNR) is the site of the Smiths Falls Railway Museumof Eastern Ontario (613 283-5696; rmeo.org), 90 William Street West, which has an extensive collection of rolling stock and inspection vehicles, and offers train rides, including the North Pole Express in December. The Rideau Canal Visitor Centre (613 283-5170), housed in a 19th century stone mill at 34 Beckwith Street South, takes you back through the incredible six years from 1826 to 1832 when Colonel By planned and built the canal from Kingston to Ottawa.
The Rideau River brings boaters from the water and interested spectators from the land. The Rideau Canal System has three locks within the Town of Smiths Falls: The Smiths Falls Detached Lock on the west side of town; the Smiths Falls Combined Locks, a hydraulic lock built in 1973 to replace three of Colonel By’s locks and the largest single chamber lift on the Rideau (25 feet); and Old Sly’s Locks on the east side of Smiths Falls. There are picnic facilities alongside the locks and you can watch the Parks employees opening and closing the locks by physical effort and a pulley system installed in the early 1800s by Colonel By.
The former Hershey chocolate plant is now Canopy Growth headquarters, growers of medical marijuana. The Tweed Visitor Centre, offers interactive educational displays, and a catwalk that overlooks the cannabis manufacturing and grow rooms. In keeping with the history of chocolate making, a chocolate factory has opened up on the premises.
The town has a variety of types of accommodation to please the visitor. The Econo Lodge (613 283-5150), 33 Centre Street, sits overlooking the Rideau River. The Best Inn Motel (613 284-0464), 241 Lombard Street, offers quality accommodation. Roger’s Motel (613 283-5200), 178 Lombard Street, has a whirlpool. All rooms are tastefully furnished with antiques at Montague House Bed and Breakfast (613 283-4198), 482 Queen Street, which serves a full breakfast. Best Western Colonel By Inn (613 2840001), 88 Lombard St, serves a complimentary breakfast. Katmor’s Bed and Breakfast (613 2051102), 26 Willow Lane, serves a delightful, gourmet breakfast.
Smiths Falls offers a variety of restaurants. The Ger-Bo’s Steakhouse Family Restaurant(613 283-4940), 11 Beckwith Street South, serves Canadian and Italian cuisine. Rob Roy’s Pub (613 283-9093), 33 Centre Street, specializes in English pub fare. The Roosteraunt (613 283-7151), 60 Lombard Street, specializes in breakfasts and home-baked menu items for lunch. International fine cuisine is the order of the day at Chuckles Jack (613 2051400), 23 Russell Street East. The Country Diner Restaurant (613 283-8635), 23 Union Street, serves home-cooked food. European cuisine is the specialty at My Place Restaurant (613 284-4696), 2 Main Street West. Café Whim (613 2833008), 7 Russell Street West, offers artisan sandwiches, soups, wine, craft beer and more.
C’est Tout Bakery (613 2840774), 14 Beckwith Street South, serves great coffee, tea, breakfast, lunch and sells daily madefromscratch baked goods. Matty O’Sheas Pub (613 2836363), 12 Chambers Street, is a sports pub with food and entertainment. Breakfast, lunch, coffee and drinks are offered at Perfect Thyming Restaurant (613 2839577), 17 Chambers Street. The NOAL Pantry (613 706-2188), 6 Russell Street, specializes in breakfast, lunch and coffee. A large selection of dishes is offered at Wongs Restaurant and Chinese Buffet (613 283-2828), 60 Lombard Street. King Star Oriental Buffet (613 283-5798), 15 Greig Street, Man Ling (613 284-2626), 28 Main Street West, and the Lotus House (613 283-2777), 12 Main Street West, all serve Chinese food. Two Guys for Lunch (613 284-2202), 91 Cornelia Street West, serves an eclectic menu of home-made soups and sandwiches, quiches and more. A number of other restaurants and fast-food outlets are scattered throughout the town.
Many interesting shops and boutiques open their doors to the visitor. Browse through the downtown area or visit the 30 stores and services in the Settlers Ridge Centre (613 205-1418), 275 Brockville Street. Every Sunday, year-round, the Sunday Flea Market (613 205-1537), 65 Cornelia Street East, offers crafts and treasures. Greeting cards, souvenirs, postcards and plush toys are featured at Special Greetings and Gift Shop (613 283-2244), 8 Russell Street East. Modern Thymes Natural Foods (613 283-3612), 11 Russell Street East, carries a variety of bulk foods, specialty food, and vitamins. Gemmell’s Garden Centre (613 2836371), 11862 Highway 15 North, has an incredible selection of plants. Gemmell’s Flowers Ltd. (613 283-7666), 39 Beckwith Street North, sells both live and artificial flowers, as well as gifts for every occasion. The Gilded Monarch (613 283-3008), 7 Russell Street West, sells Fusion Mineral Paint and supplies.
Arlie’s Books (613 2830116), 32 Market St, has been in operation since 1981 and has an impressive selection of new and used books. Elizabeth Interiors (613 2837581), 8 Chambers Street, is a repository of fine home decor. The Garden Market (613 2834821), 115 William Street West, offers fresh produce, groceries and a garden centre. Yarns, pattern books and accessories are available at Yarns Aplenty (613 285-9315), 12 Russell Street East. The Rideau Candy Shoppe (613 7956203), 20 Russell Street, offers an incredible selection of sweets and treats, Kawartha ice cream and more. Rideau River Music (613 2831410), 11 Main Street West, stocks musical instruments and accessories. Sweet Scoops (613 283-7707), 1 Chambers Street, is an ice-cream store which also has chocolate and candy. Toy Heaven (613 8833636), 14 Russell Street East, is chock full of toys and games. Vinnies Used Furniture and Treasures (613 5529292), 25 Beckwith Street North, carries a little of “everything under the sun.” Valley Custom Cutting (613 205-1111), 159 Lombard Street, sells meat of all sorts and will custom cut for the customer. The Mercantile (613 283-3008), 7 Russell Street West, is a general store offering gourmet culinary products and gifts.
Smiths Falls has a number of clothing stores. Marianne Style (613 283-6202), 45 Beckwith Street, is a high-end ladies’ classic clothing store. Michele’s Doorway to Splendour (613 2839942), 10 Beckwith Street South, stocks women’s brand-name fashions and high-quality consignment items. The Score (613 2051240), 55 Beckwith Street North, is a thrift store, as is Jewels Gently Used Clothing (613 2839723), 18 William Street East, which also has consignment goods. Smith’s Shoes Comfort and Corrective Footwear (613 2830577), 12 Beckwith Street North, carries a large inventory of name-brand shoes, socks and accessories.
Smiths Falls has a number of annual events, including the following. The end of March is the Annual Downtown Easter Egg Hunt. The third Saturday in June is the Annual Healthy Living Festival. The third week of August is Trainfest at the Railway Museum as is the Smiths Falls Creative Arts and Fair. The month of December is the Celebration of Lights. From the beginning of November to mid-December, the Heritage House Museum hosts the Annual Art Show and Sale (613 283-6311).
The Smiths Falls Community Theatre (613 2830300), 53 Victoria Avenue, in the old CPR Station, provides a full slate of live theatre, concerts and movies.
There are many places to visit in Smiths Falls and this article does not attempt to include them all but has left many exciting attractions for the visitor to discover. It is meant to give potential visitors a glimpse into the community. Once you have tasted the hospitality of Smiths Falls, you will surely want to stay and enjoy the full fare. More information is available from the Smiths Falls and District Chamber of Commerce in theTown Hall at 77 Beckwith Street North (613 283-1334; smithsfallschamber.com), which also houses the Welcome Centre.
Suzart’s new production, Elf the Musical, delivers holiday family fun onstage and behind the scenes too.
by Pam Dillon
Ellen Séguin is pumped. She’s directing the Ottawa premiere of Elf the Musical, the Suzart Productions show happening December 5 to 9 at Centrepointe’s Meridian Theatres. And with days to go until curtain time, her enthusiasm is captivating. “This show is going to be about happiness,” she declares. It’s based on the beloved holiday film that’s always part of the December television lineup. In the movie, Buddy the Elf (played by Will Ferrell) sets off from the North Pole on a merry quest to discover his real identity
We often hear the word “balance” and think of the seemingly impossible goal of achieving that smooth transition between work, home, family, fitness, healthy eating, and so on (good luck with that!). But equally important is the simple ability to stand on your own two feet. Many of my senior yoga students have told me that the most significant benefit they’ve received from the consistent practice of yoga is the massive amount of confidence that comes with feeling steady. They’ve taken up (or returned to after a period away!) skating on the canal with their grandchildren and other activities that they’d either stopped or not even considered.
Our balance can start to decline as early as age 50 and steadily so from there. This is a big deal because as we move into our 60s, compromised balance is a primary cause of falls; falls account for a large percentage of hospital admissions, and the aftermath of a fall can significantly impact our quality of life thenceforth. Even a fairly common injury for all ages, like a pulled hamstring or twisted ankle, can take months to recover from, let alone a broken hip! Research shows that our balance does suffer to some degree in the natural process of aging, but there are things we can do to stop the momentum and even reverse the loss already incurred.
Not Just an Old Folk’s Issue!
A close relative of balance is dizziness. An extensive epidemiological study stated that “as many as 35% of adults aged 40 years or older in the United States—approximately 69 million Americans—have experienced some form of vestibular dysfunction.1 (Arch Intern Med 2009;169:938-44.) Although the causes underlying a vestibular disorder, like vertigo, are likely very different, they both share the common frustration of feeling unsteady.
Get Vertical to Ease Vertigo
Do you remember partying a little too hard in college and, the next morning, putting your foot on the floor to “stop the room from spinning”? Unlike someone having a dizzy spell or experiencing post-party repercussions, people who suffer from vertigo have the sensation of spinning or floating, but without the wild night before. It’s about as far from a party as you can get!
Studies have shown that placing the head in a specific position can help dislodge crystals of the inner ear canal which can contribute to dizziness. You’re best to consult your doctor on that. But in the meantime, there are ways to ease the dizzying and disconcerting effects of the condition.
The grounding effects of postures such as Paschimottanansa and Balasana (Child’s Pose) can help calm the mind and ease feelings of dizziness. An anonymous Iyengar Yoga teacher published an article on vertigo, recommending that, “If you’re experiencing spinning sensations, mentally focusing on those body parts that are in touch with the earth can dramatically reduce the length of the spinning and the associated anxiety.”
In Child’s Pose, press the tops of your feet into the floor; in Paschimottanasana root down through the sitting bones and press your calves and heels in the earth.
Many people have noticed that stress contributes to their vertigo. If you’ve found the same, make Savasana (or Legs-Up-the-Wall Pose) part of your daily routine. For best effect, cover your eyes with a heavy cloth to allow them to rest deeply.
Eryn Kirkwood is a local author and yoga teacher who specializes in classes for students aged 55 years and older. She offers a full schedule of classes at Barrhaven United Church in Nepean, along with workshops and other offerings! See ErynsYoga.com for more information.
This article is not intended to diagnose any issues or to impart medical or therapeutic advice! It is always best to consult with a doctor before initiating these or any other exercise programs relating to your condition. This article was previously published in Sweat Equity
Salamander Theatre – 2016 Summer Drama Camps
Offering young people interested in exploring theatre arts the opportunity to receive comprehensive training in an outdoor setting from our company’s seasoned professional artists since 1993!
Taking place at the picturesque Billings Estate Museum, Salamander Theatre offers Ottawa’s only outdoor drama summer camps for youth ages 10 to 18. Both the July Shakespeare Camp, and the August Musical Performance Camp will give emerging performers the opportunity to act, sing, dance, move, and work within an ensemble to bring the characters of their respective fun-filled plays to life! Both camps culminate in a beautiful outdoor evening performance for family and friends. To ensure the quality of the training and the experience, space is limited to 20 participants per program. A complimentary Salamander t-shirt is provided to each registered participant.
Drama – Shakespeare’s All’s Well That Ends Well (July 4th – 22nd) & Musical Performance – Hans Christian Andersen’s The Little Mermaid (August 8th – 19th)
Exploring the idea of hiring a nanny? Want to know more about hiring a nanny? The Ayah Nannies team is ready to assist you with your decision. Ayah Nannies is an experienced private Canadian Nanny Agency that offers live-in and live-out nanny services in Toronto, Ottawa, Calgary, Edmonton and Vancouver for those families in need of childcare, elder care and home care. Ayah Nannies was launched to provide you a personal nanny that is matched to your specific family needs. Keep an eye out for our promotions and save on hiring a nanny!
Specialized in newborn baby photography, and also offering maternity, child and family photography.
Located in the heart of Gatineau, we welcome residents from Aylmer, Hull, Cantley, Chelsea, Templeton, Buckingham, Wakefield, Ottawa, Orleans, Barrhaven, Nepean, Kanata, Stittsville, and surrounding areas.
Photographe specialisée en photographie de bébé, qui offre aussi la photographie de maternité, photographie d’enfants et portraits de famille.
Situé au centre de Gatineau, nous acceuillons des résidents d’Aylmer, Hull, Cantley, Chelsea, Templeton, Buckingham, Wakefield, Ottawa, Orléans, Barrhaven, Nepean, Kanata, Stittsville, et les régions avoisinantes.
Kim Swan, CBP, Reiki Master, owner of Tranquil Swan Holistic Health Services provides services that improve well-being on a physical, mental and emotional level. Reiki and BodyTalk stimulate the body’s natural healing system to restore balance to the body-mind connection. To learn more about BodyTalk visit www.bodytalksystem.com or www.filosofi.ca to book your appointment.
We are a parent co-operative preschool offering morning and afternoon programs for children aged 18 months to 6 years. Blackburn Hamlet Preschool has served the communities of Blackburn Hamlet, Orleans, Beacon Hill, Chapel Hill, Navan and surrounding East Ottawa neighbourhoods for over 40 years. We are a non-profit organization administered by member parents and licensed annually by the Ministry of Education. Our programs provide child-centred, play-based learning activities in a warm and nurturing environment where children of all cultures and abilities are welcomed.