In 2019, we celebrated the 30th anniversary of The RaeLipskie Partnership. As we approached this landmark, our team put together a list of milestones that we’ve reached while working at the company.

While we reminisce on all our amazing accomplishments and reflect on our company’s growth, we must also acknowledge how the wealth management industry has evolved over the decades. 

Follow our timeline of wealth management to see how it has grown into the industry we know and love today!

1969 to 1970s – A Simpler Time

Most Canadians invested through Canadian Savings Bonds (CSBs) and simple bank deposits. Investment portfolios consisted mostly of US stocks and bonds with little to no regard for asset allocation or diversification.

1973 – The Launch of Index Funds

Wells Fargo and the American National Bank launched the first index funds for institutional investors. Shortly after, The Vanguard Group launched an index fund for retail investors.

1981 – The Peak of Canadian Savings Bonds (CSBs) and Guaranteed Investment Certificates (GICs)

Canadian Savings Bonds (CSBs) peaked, paying an annual interest rate of 19.50%, and the first $1,000 of interest earned was tax free. Guaranteed Investment Certificates (GICs) also became extremely popular as an investor could choose the term for their GIC from one to five years, with the GIC paying a guaranteed interest of 20.5% or more per year.

1990s – Mutual Funds Replace CSBs and GICs

CSBs and GICs lost their attractiveness as investment options as interest rates began to decline to some of the lowest levels in history. As a result of these falling bank rates, mutual funds start to replace CSBs and GICs, moving investors into investment with the potential of higher returns. 

This marked a huge milestone for the average investor. According to Evolution Solutions, this was the first time “ordinary investors with minimal amounts to invest could pool their resources in a professionally managed, diversified basket of investments.”

1990s – The Birth of Portfolio Managers

With the rise of mutual funds, investors began to see the benefits of professional money management. According to Forbes, “mutual funds were very popular for the average retail investor, however, for the industry titans who made their money in heavy industry and otherwise, they hired professional money managers to oversee and grow their wealth.”

As the financial marketplace began to grow, wealth managers shifted their focus to risk management. This eventually led to the creation of customized portfolios to address individual investors’ specific needs.

2004 and 2008 – Technological Advancements to Wealth Management

The early to mid-2000s marked a digital revolution in the finance industry, introducing the creation of automated investing platforms (robo-advisors), which transformed the way wealth managers approach and customize clients’ portfolios.

Present Day – The Continued Need for Portfolio Managers

Today, with the rise of robo-advisors and other automated investing platforms, investors have more digital options and resources than ever before — and yet, the need for a human portfolio manager is still crucial.

Although a robo-advisor can construct a client’s investment portfolio, it lacks the human ability to empathize and establish a personal connection with a client. Portfolio managers at The RaeLipskie Partnership not only take into account a client’s financial needs, but we consider all aspects of a client’s personal life and their ever-changing priorities.

No matter how many changes the wealth management industry has faced over the years, the need for a portfolio manager will never change.

Next Steps

Find out how a financial advisor can make the difference in your investment portfolio. Contact us to learn more about financial planning or creating an investment portfolio. There’s no time like the present!

This information is courtesy of Forbes and Evolution Solutions