Private Client from SLGI: Building your book with affluent investors

“Private Client gives affluent clients a fresh approach to investing. Unlike many other fund companies, the minimum amount to qualify is $100,000. Plus, the investment per fund investment is only $500, so investors can build well-rounded portfolios from a wide selection of Series E and O mutual funds, including corporate class,” says Amélie Laferrière, Sun Life Financial’s Wealth Sales Director, Individual Wealth Distribution and Marketing.

As the client’s assets under management grow, the management fee scale falls. “This is the biggest advantage of Private Client,” confirms Ms. Laferrière, who has been with Sun Life since 2012. “Clients with $500,000 and above currently receive a 20 basis point (a basis point is 1/100th of a percent) reduction in management fees on any amount above $500,000. The reduction applies on a tiered basis, so nothing for the first $100K, 5 basis points between $100K and $250K, 10 basis points between $250K and $500K, and so on.”

Another highlight is the option to link a master account to other accounts for family members living in the same household to achieve greater savings and provide a consolidated view of the family’s holdings. “This means every family member can enjoy reduced fees, and because the money is pooled all the linked accounts can potentially reach higher fee discounts at a faster rate. But to qualify, the master account and consolidated accounts must total at least $250,000,” points out Laferrière.

Part of Private Client’s cache is the option to have an annual review with a member of the Private Client team for investors with accounts above $500,000. The Private Client team works closely with Sun Life Global Investments’ Chief Investment Officer and portfolio managers. Private Client accountholders also have the ability to opt in to a portfolio rebalancing service, which helps keep their asset allocation on track without any effort on the advisor’s behalf. “This frees up the advisor to focus on other activities such as prospecting and relationship building,” says Laferrière.

Single platform advantage

Linking the assets of all Private Client accounts gives your clients more valuable benefits: simplicity and effectiveness. “Sun Life’s Private Client investors can select from a number of mutual funds managed by top firms like MFS, BlackRock and Franklin Templeton,” says Laferrière. “So instead of receiving separated statements from each of these companies, clients receive one quarterly statement from Sun Life Global Investments.” The statements also provide enhanced reporting on the investor’s holdings and include market commentary from Sadiq S. Adatia, Chief Investment Officer.

A book-building opportunity

Advisors definitely make a difference, as shown by Morningstar research estimating the added value of your advisory role at an additional 1.82% return annually.² Combine value-added service with fee reductions and all the other benefits and enhanced services of Private Client, and you have an excellent opportunity to grow your business in one of the most important and potentially lucrative market segments.

“Your clients need an advisor who can help them make good investment decisions. I think investors greatly underestimate longevity risk when it comes to retirement planning, and they need to count on emotional support to successfully navigate market turmoil,” says Ms. Laferrière.

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