Putting a value on your value: Quantifying Vanguard Advisor's Alpha™

27 November 2018 | Practice management


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Vanguard Advisor's Alpha is a value proposition based on three simple elements: top-down portfolio construction, coaching and wealth management. Created in 2001, the concept is centred on the idea that consistent market outperformance is unrealistic and that your clients will value the holistic wealth management you provide. The concept has only been strengthened since its inception, as recent influx into index funds shows investors are willing to accept below-market returns, rather than chasing outperformance with more expensive actively managed funds.

In this research, we take the advisor's alpha concept further by attempting to quantify the benefits that advisors can add relative to others who are not using such strategies. Based on our analysis, advisors who focus more time on relationship building, behavioural coaching and other best practices in the advisor's alpha framework can have a positive impact on their clients' net returns. Read our research paper for details on the recommended strategies and the underlying data supporting our conclusion.

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Important information:

This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation.

While this information has been compiled from sources believed to be reliable, Vanguard Investments Canada Inc. does not guarantee the accuracy, completeness, timeliness or reliability of this information or any results from its use.

Information, figures and charts are summarized for illustrative purposes only and are subject to change without notice. All investments, including those that seek to track indexes, are subject to risk, including the possible loss of principal. Diversification does not ensure a profit or protect against a loss in a declining market.

For financial advisor use only. Not for public distribution.


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