TORONTO May 11 Power Financial Corp
has invested C$50 million ($37 million) in "robo-adviser"
Wealthsimple, bringing its total investment in the 2-year-old
financial technology company to C$100 million, they said on
Toronto-based Wealthsimple provides automated investment
advice to consumers and helps manage personalized portfolios
based on responses to an online questionnaire about investment
goals. It entered the U.S. market at the end of January.
The robo-advice business was pioneered by fintech startups
that, like Wealthsimple, have touted themselves as low-cost,
easy-to-use alternatives to traditional investment firms.
Competition has heated up as large established companies,
including Charles Schwab Corp and Vanguard, have
followed them into this area.
Targeting young, first-time investors, Wealthsimple has
marketed its service with its "money diary" profiles of
The company said it now has more than 30,000 clients in
Canada and the United States, up from 20,000 in late January,
investing more than C$1 billion in exchange-traded funds.
Power Financial, a Canadian holding company whose
subsidiaries include Great-West Life and other insurers, has
invested more than C$250 million in financial startups. Last
fall it funded Portag3 Ventures, which invests in the fintech
($1 = 1.3654 Canadian dollars)
(Reporting by Solarina Ho in Toronto; Editing by Jim Finkle and
Lisa Von Ahn)