Managed Portfolio Service in Details

Benefits

• Compare our Managed Service with other alternatives. Select a line of interest to get more details.

	Managed Portfolio Service	Full-Service broker	Investment advisor
Service type	Managed Portfolio	Managed Portfolio	Mutual fund portfolio
Personalized portfolio management	Get a personalized portfolio tailored to your investor profile.	Personalized portfolio tailored to your investor profile.	The investment advisor can build a customized portfolio.
Investor protection	Assets are held by a broker who is a member of the CIPF.	Assets are held by a broker who is a member of the CIPF.	Current legislation provides good protection.
Turnkey solution	Idema Investments executes the required trades in your account.	Portfolio managed by your broker; trades can be subject to your approval.	You must accept the recommendations of your investment advisor.
Alignment of interest	Idema Investments is paid only through its management fees and does not receive trailers.	the broker can trade frequently to generate revenues.	It is not in your interest to invest in deferred sales charge (DSC) mutual funds.
Fee transparency	Idema Investments provides a detailed calculation of the fees applicable to your account.	Fees on some trades like bonds are not clearly disclosed.	The $ amount of fees paid is not clearly disclosed, you must compute it.
Exchange-Trade fund (ETF) Portfolio	Idema Investments analyses the ETF universe and selects the ETFs that suits your profile best.	Brokers are rarely ETF specialists.	Few investment advisors recommend ETFs because they dont receive any (or little) trailers.
Systematic approach	Allows a constant and rigorous monitoring of your portfolio. Portfolio rebalancing is also systematic.	Few brokers have a systemtic approach to portfolio monitoring.	You must accept the portfolio changes recommended by your investment advisor which limits his flexibility.
Low idiosyncratic risk	Using diversified ETFs reduces the risk specific to a given position.	To limit trading costs, portfolios are generally less diversified.	Some mutual funds concentrate their holdings in a limited number of positions.
Multi-asset class diversification	Benefit from a globally diversified portfolio that uses different ETFs.	High costs can apply to some investment products (bonds, international stocks).	Several balanced funds offer good diversification.
Low cost solution	Only 0.20% (min 750$ per year) plus transactions costs and the ETFs low management fees.	High cost per trade or high fees as a percentage of assets under management	Canadian mutual funds are the world's most expensive.
Tax-efficient portfolio	The porfolio is personalized to your fiscal situation while also benefiting from the structural advantages of ETFs.	A selection of specific investments are required.	Some funds offer potentially tax-efficient structures.
Higher probability of better long-term returns	A low-cost systematic portfolio management approach increases the likelihood of better long-term returns.	High fees and frequent trades reduces the likelihood of better long-term returns.	High fee solutions significantly reduces the likelihood of better long-term returns.

Introduction

For accounts of 25 000$ (recommended) and up, Idema Investments manages your portfolio and executes for you the suggested trades generated by the same system as for the Do-It-Youself Service.

Your portfolio is managed using a combination of Exchange Traded Funds (ETFs). The ETF selection and their portfolio weights are based on many factors including your investment objective, your investment horizon, your risk tolerance, the size of the portfolio and your tax profile. Depending on account characteristics, our system can decide to invest a portion of your assets directly in the some underlying stocks of an ETF to avoid paying the management fees of these products. See the page ETFs for more details.

Our long-term goal is to let you earn as much of the market return as possible. To this end, our approach reduces the number of trades in your portfolio (and thus related fees) while ensuring that your porfolio matches your investor profile. We believe a portfolio should be rebalanced to its target allocation about once a year unless market conditions justify otherwise. For more information on our approach, see the Methodoloy section of the FAQ page.

How it works

• Idema Investments executes all the required trades. It's a fully managed solution. The account and assets are in your name. Idema Investments executes the trades on your behalf.
• You need to open an account with the broker that we recommend based on your investor profile. See the recommended brokers in the "Pricing" section..
• You need to inform Idema Invesments when you want to add or withdraw funds in your account.  Idema Investments then determines the required trades and executes them, the case being.
• You can terminate your subscription with Idema Investments at any time. The broker account must then be closed (fees may apply) and the assets sold or transferred to another portfolio manager.
• All of the applicable fees are charged directly to your brokerage account, See the "Pricing" section below for more details. 
• Our website allows you to update your personal information, your investor profile and to inform us of any deposits or withdrawals that you would like to make.

Pricing

• Management fee of Idema Investments

Recommended broker We recommend a broker based on the analysis of your investor profile that you need to complete.	Type of account A non-registered account is either cash, margin, trust or company account. A registered account is either a RRSP, LIRA, TFSA, RESP,...	Idema Fees	Recommended minimum
Interactive Brokers.ca	Registered (RRSP, TFSA only) and Non-registered accounts	0,50% up to 150,000$ 0,30% thereafter (min 250$/year)	25,000$
NBIN	Registered and Non-registered accounts	0,20% (min 750$/year)	75,000$

• Exchange Traded Fund (ETF) fees

A diversified ETF portfolio can generally have fees ranging from 0.15% to 0.40%. Like mutual fund fees, these fees are not charged directly in your broker’s account, but still affect your portfolio’s long term performance.

• Other fees

For accounts opened with Interactive Brokers.ca, Idema Fees covers all transaction costs, currency conversion costs, broker's minimum monthly fees and annual administration fees. Other administration fees might apply subject to Interactive Brokers.ca policy, such as deregistration fee for RRSP withdrawals.

For accounts opened with NBIN (Division of NBF Inc.), transaction fees apply for each trade in your account. In certain cases, administration fees apply, such as for RRSP accounts. The Statement of Disclosure of Fees of Service Charges of the recommended broker applies, subject to any agreement Idema Investments might have negotiated in order to reduce certain of those fees. For more information, please Contact Us.

To get your customized analysis including our broker recommendation and fee details that apply to your situation, complete our Free Analysis.

How to subscribe

• Click on the "Subscribe" button below;
• Complete the analysis of your investor profile;
• Register with a username and validate your email address;
• Complete the identification form;
• Accept the Service agreement;
• Open an account in your name with the broker that we recommend and and transfer your initial amount that will be managed by Idema Investments. Warning : If your money is already invested in other securities or investment products, make sure you understand the financial impact of selling them. Some trades could trigger taxable income and some products like mutual funds can charge penalties when you sell them.