Toronto-based Questrade Financial Group Inc. Monday launched a new Canada-wide offering that redefines wealth management as a service that isn’t just for the wealthy.
Portfolio IQ introduces the online delivery of professionally and actively managed investment portfolios at an ultra-low fee.
Canadians can get a customized investment portfolio created for them entirely online and have world-class money minds actively managing their investments, Questrade says.
“We are offering this service because we believe all Canadians — not only the wealthy — deserve every chance to build wealth,” says Edward Kholodenko, president and CEO of Questrade Financial Group.
“With the typical wealth management model, you need $250,000 to $500,000 of investable assets – just to start. We dramatically reduced that – a dollar to open an account and $2,000 to get a customized portfolio. This is an entry point just about anyone can afford. It’s the democratization of investing.”
With the new service, investors can go online 24-7 and answer a few simple investment questions about their goals, time horizon, and tolerance for risk. Within minutes, an investment portfolio is created for them. Professional portfolio managers actively manage, monitor and rebalance the portfolio, giving the account owner the added comfort that their investments are taking advantage of market opportunities.
“The portfolios are created and are available entirely online, so if our client is 100% satisfied with logging in to create and view their account, it’s all there. And if the client wants to talk with a portfolio manager? No problem. We are available by phone, or they can make an appointment and we’ll chat when it’s convenient for them. It’s all about being available to Canadians how they want,” continues Kholodenko.
Kholodenko also emphasizes that Portfolio IQ accounts are managed by professional investment managers: “There are real people guiding the investments, making sure the portfolio is at peak performance. This means our clients can relax and focus on other life priorities knowing that we’re always on it. Everyone should have access to low fee portfolios that are managed by professional portfolio managers, not robots.”
Accounts with can be opened for as little as one dollar. The investments remain in cash until they reach $2,000, at which point the money is invested for the client in their portfolio.
Annual fees start from 0.35%, with a minimum of $99.95 per year. The larger the investments, the lower the rate of the fee. In addition, clients can combine household assets to potential reduce the fees even further.
Accounts are available as investment accounts, TFSAs, RRSPs, LIRAs, RIFs, LIFs and RESPs.
If clients have multiple goals and portfolios, clients can have different risk tolerances for each allowing for flexibility in goal-setting. Clients can also login to their account to make changes to their profile to reflect life events and changing goals. The portfolio will be adjusted for them.
Vancouver-based WealthBar Financial Services Inc. launched a similar service last week. (See WealthBar online portfolio manager launches, investmentexecutive.com, November 05, 2014.)