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Here is how we compare to other asset managers*:

Financial Advisor Hedge Fund World Wise Investments
Advisory fee 1.00%** 2-3% 0.94%***
Other fee 1.00%**
(average mutual fund fee)
25-50% of profit 0.04%
(trading costs)
Commission 0.50% 0.50% 0%
Total fee, % up to 2.50% >4% 0.98%
Total fee, $
($1M portfolio)
up to $25,000 >$40,000 $9,800
Services Mutual fund/ETF/
stock selection
Speculation Risk averse active
management
Asset status Varies Pooled Segregated
Assets at risk (on avg) 100% > 100% < 60%
Risk Adjusted Returns Poor Very Poor Excellent
Transparency Fair None Excellent
Conflict of interest Varies Varies None
Liquidity Varies Very restricted Excellent
Consultation fee
(basic financial planning)
$200/hr Not available No charge

Risk Adjusted Returns

It is not enough to say that your portfolio performed well. When one measures a portfolio's performance, one needs to also determine AT WHAT COST said performance was achieved. Or, how much risk was taken to achieve said performance. For example, a hedge fund may claim to have beaten your benchmark (say the S&P 500 index) by 5 or 10% last year. However, they may have accomplished that by levering up your portfolio two or three times it's value. Had their bet gone wrong, you could very quickly have lost more than half your wealth. This is betting, not investing. You might as well try your luck at the casino.
Meanwhile, you traditional investment advisor may have matched your benchmark; however, to do so, they had to risk 100% of your funds.
At World Wise Investments, we aim to match, and consistently beat, other advisors with less than 60% of your funds at risk! Therein lies the concept of “Risk Adjusted Returns”. It is a measure of how much of your money was put at risk in order to achieve desired returns. The higher the amount of funds at risk, the greater the risk of catastrophic and unrecoverable losses.
When we invest, we worry FIRST about how much we risk LOOSING and then count the prospective returns we COULD make. A gambler, MAY deliver similar returns but with 200-300% of your funds at risk. We will try to provide the same return, but with less than 60% of your funds at risk!

* Financial advisor and hedge fund fees indicated are industry averages.
** Advisory fee is industry average; Other fee may be lower for advisors investing in ETFs/stocks
*** World Wise Investments’ advisory fee based on average portfolio size of $1 million.

WWI and I have built a relationship of trust and understanding during the five years I have beenRead more..

Testimonial

WWI and I have built a relationship of trust and understanding during the five years I have been investing with them. I started small, entrusting them with my modest retirement savings. This has now ballooned into a substantial investment portfolio. Thanks to WWI, I now see how my previous money manager burdened my portfolio performance with layers of fees and hidden charges. I appreciate their straight talk and honesty - something I never thought I would see in the financial industry. I like the fact that they explore both traditional and non-traditional investment opportunites globally. In fact, it has been these non-traditional investments that have provided an unexpected boost to portfolio returns - something my previous investment adviser would not have even thought of. -- Maya S.
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