Craig Advice, Relationship manager, EdgePoint

“Product providers will no longer be able to charge high fees for mediocre products that hug the index”

Since its formation in 2008, EdgePoint has made a point of focusing on its strengths. The firm started with four portfolios when it launched nine years ago at the height of the financial crisis; today, those four funds remain its sole focus, which has proven popular with clients. In addition to limiting its product suite, the firm also prefers to cultivate strong ties with a select group of advisors who understand what the EdgePoint brand entails. “Rather than trying to be everything to everyone and cater to every need,” says EdgePoint’s Craig Advice, “we chose to develop strong partnerships with a few advisors who share our beliefs.”

For the four funds – Global Equity, Canadian Equity, Global Growth and Income, and Canadian Growth and Income – cost was a key consideration, and Advice believes these products are some of the most affordable among Canadian asset managers. “We agree that fees are too high,” he says, “and EdgePoint prides itself on having among the lowest fees in the industry, including non-HST, lower-tax options for Western Canada.”

Another factor in a smaller operation being able to thrive is technology, which makes a huge support staff unnecessary. “Technology has allowed us to do more with less,” Advice says. “I wouldn’t be nearly as effective at covering the large geographic area I do without the ability to call up information in the palm of my hand.”

While many of his peers have predicted consolidation under industry giants, Advice is confident that smaller firms like EdgePoint have their place. By maximizing their resources and ensuring that their funds outperform a variety of competitors, he says, smaller firms have no reason to fear the future. “Product providers will no longer be able to charge high fees for mediocre products that hug the index,” he says. “Also, the growth in passive investing could make for some interesting opportunities for those managers who are truly active, bottom-up investors.”