by Scott Ronalds

The average all-in fee paid by Steadyhand clients is 1.00%. This figure is quite a bit lower than the published fees on our funds, which range from 1.04% to 1.78% (excluding our Savings Fund, which currently has a fee of 0.20%). What gives, you might ask?

Many of our investors benefit from our Fee Reduction Program, which brings down fees on all accounts over $100,000. We also reward our clients with a loyalty rebate once they’ve been with us for 5 years (regardless of account size). Our 5-Year Club members get an additional 7% permanent break on their fees.

Thirty-three clients received their membership last quarter, and the club is now over 500 investors strong. (We’ve received a number of ‘selfies’ of clients proudly wearing their 5YC swag. Keep ‘em coming!)

We’re the only investment firm we know of in Canada that offers this type of fee discount. Is it because we love our clients more than the banks and mega-fund companies? Well, ya. But it’s also because it typically costs us less to service our long-standing clients (there are fewer processing and administrative expenses on our end) and we feel that passing the savings on is the right thing to do.

Fee discounts have a negative impact on a firm’s bottom line. We’re no exception. Our president gets a little giddy, however, every time we get to slash a client’s fees at their 5-year milestone. It shows that they’ve got a long-term mindset and have held a steady hand on their portfolio. Our early clients will start receiving an even greater loyalty discount (14%) next year when they hit their 10-year anniversary. While our CFO will be steaming, the boss will be beaming.