Industry News

Advisors who are part of the platform can now invest client assets in Forstrong’s seven actively managed investment strategies

By Fiona Collie |

Toronto-based Wealthsimple Financial Inc. has expanded its investment offering for financial advisors and their clients through a partnership with Kelowna, B.C.-based Forstrong Global Asset Management Inc.

Advisors who are part of the robo-advisor's platform for advisors, Wealthsimple for Advisors, can now invest client assets in Forstrong's seven actively managed investment strategies. Assets invested through the advisor platform are placed in portfolios consisting of ETFs and are not subject to a minimum account size or trading fees.

Advisors who partner with Wealthsimple for Advisors, which launched in May 2016, can invite clients to sign up for a Wealthsimple investment account. Although the robo-advisor manages clients' investments, advisors can continue to manage the client relationship and provide additional financial planning services.

Fees for the platform range from 0.35% (Wealthsimple's management fee) to 1.5% depending on the level of service the advisor offers.

"The investment advice industry is undergoing a shift in which the drive to lower costs is very important," says Dave Nugent, head of investments, Wealthsimple for Advisors, in a statement. "We can achieve significantly greater efficiencies through technology, creating a great experience for both the client and the advisor, regardless of their investment strategy."

The Wealthsimple for Advisor platform runs through the start-up's fully-owned brokerage, Canadian ShareOwner Investments Inc., which gives Wealthsimple control of the end-to-end investing experience and allows advisors to onboard clients within 24 hours.

"Wealthsimple's platform is a great solution for efficiently delivering our investment strategies to advisors of any dollar amount," says Tyler Mordy, president and CEO of Forstrong Global, in a statement. "Through this partnership, we can focus on delivering the best risk adjusted returns to our clients."

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