Power Financial Invests $10 million in WealthsimpleBy Andrew Rickard | April 15 2015 01:05PM
Power Financial Corporation, the parent company of Great-West Life, London Life, and Canada Life, has entered into a partnership with Wealthsimple, an automated portfolio management service that is aimed at younger investors.
On April 9, Power Financial announced that it had agreed to invest $10 million into Wealthsimple, with the option of investing another $20 million over the next twelve months.
Wealthsimple was launched in September last year, and offers investors personalized investment portfolios of exchange traded funds (ETFs) that are rebalanced daily, as well as access to a remote "wealth concierge" who is available by text, telephone, or video chat. In exchange, Wealthsimple charges clients an annual fee of 0.5% on investments between $5,000 and $249,999, 0.4% on portfolios of $250,000 to $999,999, and 0.35% on amounts over $1 million. Investments of less than $5000 are managed for free under the company's standard product offering.
"Wealthsimple offers an innovative solution that complements the demographics serviced by our other financial services brands," says Power Financial Corporation Vice President Stéphane Lemay. "We believe in the value of financial advice for everyone and see the Wealthsimple model as a way to appeal to under-served segments of the Canadian population like millennials and those with more modest assets. Wealthsimple has been able to reach this market."