MD Management Limited today announced the launch of Stratos Wealth Management, an independent financial services provider that will offer a comprehensive and proven alternative for affluent, advice-seeking Canadian investors.

“At Stratos our idea is simple: offer quality investment products, valued financial planning and industry-leading service – all for a low fee,” said Sandy Wilson, chief operating officer for CMA Holdings, the parent company of both MD Management and Stratos Wealth Management.

Stratos Wealth Management is a bold new business venture from the MD Financial Group, one of Canada’s largest independent financial services organizations and possibly one of the best-kept secrets in the financial services industry. With $19 billion in assets under management, MD Management and affiliated companies provide financial services and products to members of the Canadian Medical Association and their families.

“With Stratos we are leveraging the experience and expertise of MD’s more than 35 years in the investment industry, to offer something truly different to the general investment community in Canada,” added Wilson. “Professionals outside of the medical community have been asking about this service for years – and we are pleased to extend a version of this successful model designed specifically for them through Stratos Wealth Management.”

The Stratos difference is based on a total approach that is designed to deliver value to Canadian investors. From low fees, a transparent pricing structure and a range of high-quality, low-fee, no-load mutual fund products, to customized and flexible solutions delivered by a non-commissioned, unbiased team of financial advisors, Stratos Wealth Management intends to set a new benchmark for quality and value in the financial services industry.

According to Investor Economics, most Canadian investors pay between 2.2% and 2.8% of their portfolio in fees for wrap-style products. Further, a new Decima Research survey commissioned by Stratos Wealth Management shows that 48% of Canadian investors believe they are paying too much in fees. Of those who say they know what they are paying, a surprising 43% report paying 3% or more of their total investment portfolio in fees.

“The research says many Canadians feel they pay too much in fees for the quality of service they receive,” said Wilson. “This is a troubling fact given the significant negative effect fees can have on investment returns over the long term.”

For example, a 1% reduction in a portfolio’s annual expenses over a lifetime of investing and compounding of capital can make a significant difference in financial outcomes – providing an additional $143,000 for an average portfolio – based on a monthly contribution of $1,125 over 25 years.

“At Stratos we will deliver high quality products and services with fees up to one-third less than the industry average for comparable services. With Stratos, more money stays in the investor’s account at all times,” said Wilson.

Following an initial launch in Toronto, Stratos Wealth Management plans to extend its reach to all regions of Canada.