Update: Turner resolved the apparent contradiction by explaining that while some advisors associated with the firm that provides back office services for his practice do accept commissions, Turner does not accept commissions.
The discussion of Garth Turner’s blog over at Canadian Capitalist prompted me to take a look at Turner’s investment advisory business where I found an apparent contradiction about commissions that I can’t resolve.
The “Home” tab of the advisory business site says “we do not collect, seek or accept commissions” and “Our clients pay only a small fee (typically 1% annually of the assets we administer for them)”. This seems clear enough: no commissions.
Under the “Investment Choices” tab we find a list of investments that include some “instruments - through commission or fee-based programs”. So do you collect commissions or not? Exactly what fees do your clients pay? There seems to be some complication with two separate companies. Perhaps Turner’s company doesn’t collect commissions, but the second company does.
It’s hard to tell but perhaps Turner’s company just adds a 1% fee wrapper on top of the typical high Canadian fees charged by the second company. In the end what matters is the total amount of fees paid by investors and the quality of the advice they get for their money. I can’t figure out either side of this equation from Turner’s web site.
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