Category: Case Studies

Randy T. – ADVISORS STORY: STREAMLINE, SLOWDOWN, DECIDE

The Start:

Growing up in Alberta, Randy calls himself a “refuge of the oil patch.” His job in the oil sector, took him to most small towns in Alberta.

In 1996, he transitioned out of the big oil company with a payout. At first, he wasn’t sure what he wanted to do. Randy had taken the CMA course at the University of Alberta Continuing Education Program, and thought it would also be useful to be a Mutual Fund Representative.

He started working with friends and family as a financial planner and by the late 1990’s and early 2000s, had bought a few books of business. His venture was off the ground.

 

The Challenge:

 By 2011, Randy wanted to begin the transition of downsizing his business from nearly 250 clients, to allow for more free time. He began to think of a succession plan, and considered questions like, “what happens in an accident and I can’t service my clients anymore?”  He began to look at options.

Randy had traditionally used mutual funds as a means to build client portfolios. As he began the transition, he questioned if this was the best route for maximizing returns for client investments. He put the mutual fund vs. 1:1 management debate on the table as he began conversations with Chris Ambridge at Transcend.

 

The Transition:

Randy says he quickly learned there were better options with individual managers. Chris explained the benefits, including customized management, tax deductions for fees on registered accounts, lower fees in general and just greater flexibility.

Through his conversations with Transcend, Randy says he had to abandon his old thought process. “Am I missing something?” he thought to himself. But Chris was able to answer all his questions, and finally “the light came on” and he thought, this is “really excellent.”

 

The Result:

Randy started his transition in May 2012 and by the end of September had sold about 90 per cent of his business, while retaining top clients. Now, Randy is back to wilderness, hiking, biking, and organizing trips across the world. He doesn’t need an assistant and taking a three week vacation isn’t a problem.

His says the returns are excellent, especially with the lower fees. “With Provisus, I get managers that aren’t available for retail. They have greater autonomy. These money managers are top notch and if they don’t meet the Transcend standard, they fix it quickly.”

Randy says he feels like he picked the right time to transition and slow down his business. With regulations more stringent, the work was becoming cumbersome. But now that he has Transcend, he doesn’t worry. “My life is so much simpler.”

Peter C. – ADVISORS STORY: TRANSITION & GROW

The Start:

In the 1990s, Peter worked for a “big insurance” company, designing financial plans for clients before financial planning was a buzz word. But, at the height of his career making good money, he decided to pack it in to start his own business.

His mission was to build long-term financial plans to meet client goals – something he didn’t feel he could fulfill under the umbrella of a big financial services firm. In 1996, he started his own company which has since grown through referrals and some smart business moves.

 

The Challenge:

Peter wanted to spend more time with his clients creating custom financial plans. If he could save time on the portfolio management and administrative side of the business, Peter and his business partner knew that further growth would be achievable.

In 2014, they made the commitment to move all clients over with the Transcend service. He would routinely receive calls from other Portfolio Management companies, but felt their service was lacking. There’s a sense in the industry that “you need to diversify your client’s assets and you shouldn’t have all your eggs in one basket,” says Peter. “But with Transcend, you don’t need to worry about that, because they diversify for you. The service is unmatched.”

Most striking to Peter when he came across the Transcend service was the commitment to clients. He says, “We were able to do that much better by partnering with Transcend because of the cap on fees. The more fees our clients don’t pay, the more money they make. Our company shared the same value on low fees.”

 

The Result:

Since partnering with Transcend, efficiency has increased tremendously. Last year, business was up by 15 per cent and further growth is expected this year. Peter and his company get more referrals because “they do such a great job.” According to Peter, two key benefits for his clients include:

  1. Consistent rate of return which outperforms the rate of market benchmark
  2. Reduction of fees – more money in their pocket

More time to do the work Peter loves is also a plus. Because of the increased efficiency, Peter spends the bulk of his time creating financial plans for clients. “It’s simple. Our clients are able to get a higher level of service and make more money. Because of this, referrals have increased and our business continues to grow.”