Here’s a review and peek behind Invisor’s curtain, as we continue to review the robo-advisor market in Canada.
Who’s Behind Invisor
Invisor has been in the robo-advisor market since 2014 and is based out of Oakville, Ontario. Looking at the Who We Are section, Invisor was co-founded by Pramod Udiavir, a CFA previously working for TD Asset Management and Dan Poole, a licensed insurance advisor. Other team members include a marketing associate, lead developer, senior developer, and VP of Investments. Invisor also has strategic advisors and a chairman on their board of directors who provide general business advice for Invisor.
Invisor was not able to answer what their assets under management are at the present time, but they did say that their goal is to be the first choice for Canadians, when it comes to online wealth management services.
Investment services are provided by Invisor Investment Management Inc., a firm registered as a portfolio manager in the provinces of Ontario, British Columbia, Alberta, Saskatchewan and Manitoba.
For the insurance portion of their business (Invisor Insurance Services, Inc.), they are only licensed for the sale of life and health insurance products in Ontario and Manitoba (life insurance, critical illness insurance, and disability insurance).
The custodian for Invisor is Credential Securities Inc. though this information wasn’t easily found on their website but instead stated in their Youtube video series. That means that Credential Securities holds your assets and your assets are protected for up to $1,000,000 (they are a member of the Canadian Investor Protection Fund).
How Invisor Looks and Ease of Use
The Invisor platform is easy to use and looks appealing and simple. I like how it is interactive and when you click on charts, it leads somewhere (e.g. clicking on the Vanguard ETF in the portfolio leads you to the Vanguard website). Most people who use Invisor are over the age of 35 (the older Millennials, Generation X, and Baby Boomers), but they would like to target all demographics. The graphics, in my opinion blend maturity and youthfulness and I think appeals to a broad cross section.
How Invisor Works
Just like most other robo-advisors, Invisor works by charging you a flat fee to re-balance and monitor your exchange traded fund portfolio. In the Invisor Youtube video “We Make Investing Easy”, they state you can access your portfolio details 24/7 from any mobile device (rather than calling your “financial advisor” or mutual fund sales person at the big banks) to see how it is doing.
Here’s another video with the co-founders talking about how Invisor works, complete with catchy, motivating background music.
- A personalized investment strategy and portfolio built around your goals
- Regular portfolio monitoring and re-balancing as required
- Your portfolios are managed by our experienced investment professionals
- Market updates and reviews of your portfolio’s performance
- No trading or administrative fees
What Invisor Will Cost You
One of the good things about Invisor is that to invest with them, there are no minimum requirements, but they often have a promotion that if you invest more than $5,000 they will add an additional $100 to your account.
If you have under $250,000 invested with Invisor, your Invisor fee will be 0.50%
If you have $250,001-$500,000 invested, your Invisor fee will be 0.40%
If you have over $500,001 invested, your Invisor fee will be 0.30%
In addition there is the cost of the ETFs within that portfolio, which seems to be on average about 0.20%.
Therefore, if you have less than $250,000 invested, you will be paying about 0.70% to invest your portfolio with Invisor.
Types of Accounts
The types of accounts that you can open with Invisor are:
- Tax Free Savings Account
- Registered Retirement Savings Plan
- Spousal Registered Retirement Savings Plan
- Locked in Retirement Account (LIRA)
- Registered Education Savings Plan (RESP)
- Non-registered Account
What Makes Invisor Unique
The main thing that makes Invisor unique is that they are one of the first to offer a goal planning and tracking tool, called InvisorGPS. They just launched this recently and it allows you to keep track of your progress and goals.
With InvisorGPS you can:
- Set short and long term goals
- See how long it will take you to meet those goals
- View and shortfalls in your plan, and adjust accordingly
- Track your progress
- Receive a free insurance needs analysis
They have 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 also aims to provide clients with insurance solutions and you can review your insurance needs with them.
Soon, they will be providing Invisor TermLife, a flexible term life insurance solution that can be purchased online without any medical tests, up to $500,000 in coverage, which will only be available in Ontario and Manitoba.
A Peek Inside Invisor
As with other robo-advisors, when you are opening an account, they ask questions to ascertain your risk profile in a multiple choice format so that they can come up with a customized portfolio that is right for you. These questions were easy to answer and pretty standard, comparable to the other robo-advisor questionnaires/risk assessments that I’ve answered. They also ask questions such as “Why are you investing?” “What is your retirement timeline?” as well as the usual age, income, etc.,
One downside when going through the questions to assess your level of risk and your goals, is that when inputting your target retirement age, the minimum retirement age they have set is 60! I personally would like to retire before age 60!
The finished product is a look at the ETFs in your recommended portfolio. One great thing is that when you click on the individual ETFs comprised in your portfolio, you automatically get sent to an external link (e.g. Vanguard’s website) providing more information about that particular ETF. You can also adjust your portfolio risk score, and if you kick up the risk up a notch too high, there will be a reminder that your risk level is not in accordance with the risk assessment questions that you just answered.
Invisor shows you the historical data of the ETFs within that particular portfolio and compares it to the performance of an “average global equity tilt mutual fund” to see the difference in money you would have if you invested in Invisor and not the typical mutual fund.
Act Now! How to Open up an Invisor Account
In just a short 20 minutes (that’s only 2-3 Youtube cat or beauty vlogging videos), you can be on your way to opening up financial freedom and financial independence by opening up an Invisor account. You can do this all from the comfort of your own home and they have a document verifying service which allows you to upload your identity documents to open an account.