| TORONTO, April 21
TORONTO, April 21 National Bank of Canada
is investing C$6 million in Canadian robo-adviser
startup Nest Wealth and will license the financial technology
company's digital wealth management platform, the companies said
Toronto-based Nest Wealth manages investments for clients by
using technology to create and monitor investment portfolios
composed of low-cost exchange-traded funds. The portfolios are
customized based on a series of investment-goal questions asked
Robo-advisers typically charge lower fees than traditional
outfits, and investors can start investing with just a few
hundred dollars. Portfolios also automatically rebalance
according to market movements.
The robo-advisory market has become increasingly
competitive, and startups like Betterment and Wealthfront in the
United States have begun diversifying their offerings and tools,
while others like SigFig are collaborating with banks like Wells
Fargo & Co and UBS Group AG.
"It's something that not a lot of financial institutions
have clear road map or even in many cases the expertise or
resources in-house to build," said Nest Wealth founder Randy
Cass in an interview.
Nest Wealth, which also has several other undisclosed
partnership deals, is planning to expand its Nest Wealth Pro
platform outside of Canada and is in talks with international
partners, said Cass.
Founded in 2014, Nest Wealth received external funding once
previously, with a C$1.5 million investment by Canadian
publisher Metroland Media Group Ltd.
(Reporting by Solarina Ho; Editing by Cynthia Osterman)