Idema Investments is the first company in Canada to have launched an online portfolio management solution, now better known as a Robo-Advisor.
The term Robo-Advisor generally refers to a portfolio manager that provides online investment solutions. Using a questionnaire to establish the investor profile, the Robo-Advisor determines a portfolio tailored to that profile. The majority of Robo-Adivsors build their portfolios using exchange-traded funds (ETFs) as they allow getting a good diversification at a low overall cost. The Robo-Advisor then manages the portfolio for the client where the assets are held with a registered custodian, exactly as would do a traditionnal portfolio manager.
Currently, the Canadian securities legislation prevents a portfolio manager to provide fully automated solutions. The term Robo-Advisor can therefore be confusing for investors and that’s why Idema Investments is known as portfolio manager of personalized, low-cost portfolios.
Choosing a Robo-Advisor (or a portfolio manager) should be dictated by much more than a flashy website. The most important criteria to consider are the portfolio manager’s expertise, his investment philosophy, the quality of the asset allocation mix, the absence of any conflicts of interest, the overall cost to the investor and the quality of the IT systems.
To benefit from a Robo-Advisor service, visit our Managed Portfolio Service page or Contact Us directly.