Canadian Robo Advisor Companies: Competitive Landscape (1)
BMO SmartFolio and Invisor are top online investment management services in Canada. Both platforms offer tracking tools or users to set and manage investment goals.
- BMO SmartFolio is a professional online portfolio service managed by BMO Nesbitt Burns, one of Canada's most trusted firms. It is owned by BMO, Canada's oldest bank.
- The account types BMO SmartFolio offers are Tax-Free Savings Account, Registered Retirement Savings Plan, Registered Education Savings Account, Registered Retirement Income Fund, Joint Investment Accounts, and Non-registered investment accounts.
- BMO SmartFolio provides five model ETF portfolios that are designed to cater to investors with different investment needs. They include Capital Preservation Portfolio (10% equities and 90% fixed income allocation), Income Portfolio (70% fixed income and 30% equities), Balanced Portfolio (50% equities and 50% fixed income), Long-term Growth Portfolio (70% equities and 30% fixed income), and Equity Growth Portfolio (90% equities and 10% fixed income).
- BMO SmartFolio's annual rate is 0.4% over $500,000 and between 0.5% to 0.7% under $500,000.
- It has a team of 17 professionals who have a combined financial services experience of more than 300 years. On BMO SmartFolio's team, eight professionals are Chartered Professional Analysts, while five are accredited Portfolio Managers.
- As the oldest bank in Canada, BMO is a name that is recognized by most people in this country.
- BMO SmartFolio frequently releases the historical performance of its model portfolios. This allows users to see what their accounts may potentially realize in interests.
- The platform "leverages the benefits of software algorithms with work performed by professional portfolio managers."
- It requires a minimum deposit of $1,000.
- Its investment fees are higher than most robo-advisors in Canada.
- BMO SmartFolio does not offer socially responsible or halal investing.
- The platform has a fee of $135 for transferring funds to another financial institution.
Unique Brand Features
- BMO SmartFolio has a “Manage My Finances tool” which allows users to track and budget external holdings with ease.
- The platform has a goal-tracking tool that allows users to instantly track their progress on their investment goal.
- BMO SmartFolio is managed by BMO Nesbitt Burns - the investment arm of BMO Financial Group. The 2018 revenue of BMO Nesbitt Burns was $6.29 billion.
- Invisor helps Canadians to professionally manage their money. It offers investments that fit their needs.
- Its account types include Tax Free Savings Account, Locked in Retirement Account (LIRA), Registered Retirement Savings Plan, Spousal Registered Retirement Savings Plan, Registered Education Savings Plan (RESP), and Non-Registered Accounts.
- Invisor offers users the option to invest in three different portfolios. They include the Vanguard Portfolio, the Invisor Portfolio, and the BlackRock Portfolio. Based on risk, each portfolio has six sub-segments.
- Although a robo-advisor, Invisor ensures that real professional advisors are involved in the customer experience.
- It has significant partnerships with well-known wealth management firms like Vanguard and BlackRock. The partnerships allow Invisor to offer "the portfolios of these reputable companies to their clients, thus strengthening their product offering."
- Invisor does not push products to customers for revenue purposes, it customizes client portfolios based on their financial goals and needs.
- It is affiliated with Industrial Alliance Insurance & Financial Services Inc. ("IA"), one of the largest non-bank wealth distribution networks in Canada.
- Invisor has no minimum investment requirements. The company offers a bonus of $100 for investments over $5,000.
- Invisor does not have additional services like investment education and budgeting on its website.
Unique Brand Features
- Invisor has a tracking tool called InvisorGPS. It allows users to set long and short term goals, track progress, and view shortfalls in their investments.
- The company has a "proprietary portfolio construction methodology and it considers all types of investment funds, including mutual funds and exchange traded funds; both actively and passively managed."
- Invisor is a privately-held company that does not disclose its revenue to the public. Zoom Info mentions that its estimated revenue is $15.9 million.