TORONTO, April 9, 2015 /CNW/ - Wealthsimple, a technology-driven investment manager, today announced it has entered into a partnership with Power Financial Corporation, through a wholly owned subsidiary. Under the agreement, Power Financial will, subject to regulatory approval, invest $10 million, and can invest up to $20 million into Wealthsimple over the next 12 months, with the option to make further investments over the next three years.
"The financial services industry is changing as many millennials desire smart, transparent, and low-fee services," said Michael Katchen, Founder and CEO, Wealthsimple. "We are excited to be at the forefront of this change in Canada and Power Financial's investment demonstrates a huge vote of confidence in our team and business."
Since launching in September 2014, Wealthsimple has secured over 1,000 clients. Power Financial's investment will enable Wealthsimple to expand its offering of low-fee investing solutions to a larger pool of Canadian investors looking for a different way to invest. This includes building its team with more technology and financial experts, enhancing its marketing efforts and providing Wealthsimple with access to an even larger roster of experienced investment professionals to continue to enhance its current service.
"Wealthsimple offers an innovative solution that complements the demographics serviced by our other financial services brands," said Power Financial Corporation Vice President Stéphane Lemay. "We believe in the value of financial advice for everyone and see the Wealthsimple model as a way to appeal to under-served segments of the Canadian population like millennials and those with more modest assets. Wealthsimple has been able to reach this market."
Wealthsimple is a first-of-its-kind service that was founded by technology entrepreneurs and financial industry experts. For a minimum investment of $5,000, investors receive personalized investment portfolios that are rebalanced daily. Wealthsimple provides each investor with access to a wealth concierge – who works remotely and is available by text, phone or video chat.
Wealthsimple is a technology-driven investment manager that is changing the way Canadians invest. Our goal is to make smart, simple, low-fee investing accessible to those who desire this approach regardless of net worth or financial knowledge. Founded by a team of financial experts and technology entrepreneurs, Wealthsimple is currently registered and operating in Ontario, British Columbia, Alberta, Manitoba, and Quebec. To learn more, visit www.wealthsimple.com.
About POWER FINANCIAL
Power Financial Corporation is a diversified management and holding company that has interests, directly or indirectly, in companies in the financial services sector in Canada, the United States, Europe and Asia. It also has diversified investments in industrial companies based in Europe. Power Financial Corporation is a member of the Power Corporation Group of Companies. To learn more, visit www.powerfinancial.com
For further information: James DeCosimo, Kaiser Lachance Communications, T: (647) 725-2520 x218, C: (905) 510-3722, [email protected]