Key Takeaways
- • Toronto-based FinTech Wealthsimple has partnered with Mercer, a consulting firm serving the health and wealth management industries, to launch Mercer Invest Wise, a workplace investing solution for Canadian employees.
- • Invest Wise is a white-labelled version of Wealthsimple's product that combines Wealthsimple's automated investing technology with Mercer's curation of portfolios.
- • Canadian employers can offer the service so employees can manage retirement savings and digital investing, with the goal of making benefit packages more competitive.
- • Mercer is a wholly owned subsidiary of Marsh & McLennan Companies, which is approaching $17 billion USD in annualized revenue and has 75,000 consultants in over 130 countries.
- • Invest Wise lets users consolidate multiple Canadian accounts, including TFSAs, RRSPs, RESPs and pension plans, on one platform.
Summary
Toronto-based FinTech Wealthsimple has partnered with Mercer, a consulting firm for the health and wealth management industries, to launch Mercer's Invest Wise solution. The offering brings investment solutions that were previously available only to the largest retirement plans to the Canadian workforce, according to Mercer Canada's statements in the announcement.
Invest Wise is a white-labelled version of Wealthsimple's product. The platform combines Wealthsimple's automated investing technology with Mercer's curation of portfolios. Canadian employers can offer the service to their employees, who can use it to manage retirement savings and digital investing. Because employees often hold several savings vehicles through their employer, including TFSAs, RRSPs, RESPs and pension plans, Invest Wise allows them to manage a range of these accounts in one platform. The stated goal is to give companies another tool for making benefit packages competitive.
Mercer is a New York-based wholly owned subsidiary of Marsh & McLennan Companies, a professional services firm in risk, strategy and people that is approaching $17 billion USD in annualized revenue. Mercer has 75,000 consultants in over 130 countries.
Michael Katchen, CEO and co-founder of Wealthsimple, said the partnership extends the company's mission of enabling all Canadians to achieve financial freedom, providing savings and investment products to more people regardless of life stage or how much they have to invest. Jean-Philippe Provost, senior partner and wealth business leader for Mercer Canada, described the service as an alternative to high-fee, more limited options in the retail market. He said users can build savings and draw down retirement assets at fees much lower than the average mutual fund.
The launch follows several 2019 partnerships by Wealthsimple. In March, it partnered with H&R Block to let the tax preparer's customers contribute to a Wealthsimple portfolio without management fees in the first year they open an account. Earlier, the FinTech partnered with TurboTax so its users could see how RRSPs would affect their taxable income.
Invest Wise is a white-labelled version of Wealthsimple's product. The platform combines Wealthsimple's automated investing technology with Mercer's curation of portfolios. Canadian employers can offer the service to their employees, who can use it to manage retirement savings and digital investing. Because employees often hold several savings vehicles through their employer, including TFSAs, RRSPs, RESPs and pension plans, Invest Wise allows them to manage a range of these accounts in one platform. The stated goal is to give companies another tool for making benefit packages competitive.
Mercer is a New York-based wholly owned subsidiary of Marsh & McLennan Companies, a professional services firm in risk, strategy and people that is approaching $17 billion USD in annualized revenue. Mercer has 75,000 consultants in over 130 countries.
Michael Katchen, CEO and co-founder of Wealthsimple, said the partnership extends the company's mission of enabling all Canadians to achieve financial freedom, providing savings and investment products to more people regardless of life stage or how much they have to invest. Jean-Philippe Provost, senior partner and wealth business leader for Mercer Canada, described the service as an alternative to high-fee, more limited options in the retail market. He said users can build savings and draw down retirement assets at fees much lower than the average mutual fund.
The launch follows several 2019 partnerships by Wealthsimple. In March, it partnered with H&R Block to let the tax preparer's customers contribute to a Wealthsimple portfolio without management fees in the first year they open an account. Earlier, the FinTech partnered with TurboTax so its users could see how RRSPs would affect their taxable income.
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