New robo-advisor caters exclusively to financial planners

Glidepath, which officially opened its doors in late September following a soft launch earlier this past summer, is an investment counsel portfolio manager that uses probability analysis software to create and manage exchange-traded (ETF) portfolios. Currently, Glidepath is only registered in Ontario.

Although Glidepath’s platform is similar to that of any other robo-advisor, it differs in that it’s not a direct-to-consumer operation. Instead, the platform is designed exclusively for financial planners.

At the moment, financial advisors who use the platform are not obligated to have a specific financial planning designation. However, Fox, who is a certified financial planner (CFP), says the company is looking to work with like-minded financial planners who are committed to financial planning standards.

However, Fox is flexible in terms of the business models financial planners operate under. For example, Glidepath is available to independent financial planners in any distribution channel, whether it’s mutual funds, securities or insurance, who are looking to outsource the investment management portion of their client accounts.

“Our registered portfolio manager [works] with our financial planning advisor partners to serve a client in a way that’s kind of like a family doctor working with a specialist,” says Fox.

For example, although a financial planner has a wider picture of a client’s overall financial health — including insurance, tax planning, retirement planning, and debt management — Glidepath specializes solely in the investment management portion of the account.

The platform is also flexible in terms of how the advisor charges clients, whether it’s through a fee-based or fee-for-service model. Glidepath, for its part, charges a flat management fee of 0.5%.

In terms of products available, Glidepath typically focuses on lower-fee index-tracking ETFs, Fox says: “We try to keep the cost down on the ETF and are not looking to complicate our methodology with other active managers.”

Of course, Glidepath is not the only financial technology (fintech) firm looking to work with the investment industry. Nest Wealth Asset Management Inc. and Wealthsimple Financial Inc., both based in Toronto, offer business-to-business platforms to advisors while other robo-advisor companies have also expressed interest in partnering with the industry.

For Fox, however, the difference isn’t necessarily the platform, but rather Glidepath’s commitment to financial planners and their business models.

“We’re financial planners. We just needed our own tools and we don’t trust the commoditized direct-to-market [offerings] that aren’t owned by financial planners,” Fox says. “This is our firm for our professional colleagues to serve our loyal clients.”

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