We started Steadyhand last year because we saw an opportunity to work with investors who know what they want, care about fees and are interested in beating the market over the long run.  Our target clients make up a tiny part of the wealth management market, but the segment is growing as the baby boomers become more investment and web savvy. 

Our offering is designed to get down to the essentials – well-designed funds, professional management and low fees.  A key part of our value proposition is the delivery of our funds directly to our clients.  This ensures that there are no extra fees or surprises and allows us to communicate clearly (statements, reports, blog) without being interrupted or filtered.

We think that there is a growing base of investors that want this kind of service.  But with every passing week, we have our resolve and confidence tested as we observe what’s happening in the industry around us. 

Recently we watched as an excellent firm and worthy competitor, Mawer Investment Management, announced an alliance with Manulife to distribute their funds through advisors.  Mawer will continue to sell its reasonably-priced funds direct to clients in select provinces, but going forward its focus will be on the higher-cost, advice channel (Balanced Fund = 2.45% MER … Yikes!).

Saxon Financial is another direct seller that has turned its focus to the advisors.  They have been investing in this channel for a few years now, but their direction and emphasis was carved in stone this week when it was announced that the firm is being sold to IGM Financial (Investors Group).  The Saxon Funds will be a new fund family under IGM’s Mackenzie platform.

By aligning themselves with two powerhouses in the advisor world, these firms have given themselves an opportunity to grow their businesses very rapidly.  If the ad campaign that Manulife is running to support the new partnership is any indication, Mawer will be experiencing huge inflows right away.  Saxon’s growth trajectory will likely be slower in the near term because its value approach is at a low point in its performance cycle and its funds are already available to advisors.

With these companies firmly focused on the advisors, we find ourselves a little lonelier in the direct-to-client segment.  But Steadyhand supporters should rest assured that our resolve and confidence is stronger that ever.  For engaged investors, we still think the Steadyhand approach makes perfect sense.