We think most of your questions should be covered off below. If we missed an item that you need more information on, feel free to contact us at email@example.com or start a chat conversation.
Instead of charging a percentage of your life’s savings like other firms, Nest Wealth charges a flat monthly subscription price starting at $20 a month and capped at $80 a month no matter how large your account becomes. Our pricing page has all the details.
The only other fees you incur are the costs of trading and holding the ETFs you will own. The ETFs that will be in your customized portfolio average 0.15%. NBCN charges $9.99 for each trade but Nest Wealth will absorb all trading costs that exceed $100 / year.
Your assets are held in a brokerage account in your name at NBCN Inc., a subsidiary of National Bank of Canada. NBCN Inc. is backed by the strength of National Bank, ranked as one of the world’s 20 strongest banks from 2010-2013 according to Bloomberg Markets. NBCN Inc. is a Member of the Canadian Investor Protection Fund. NBCN Inc. is also a member of the Investment Industry Regulatory Organization of Canada (IIROC), the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
Nest Wealth never actually holds your assets. They remain in your name at NBCN Inc. at all times. If Nest Wealth is acquired or closes, your brokerage account will remain in your own name. In the unlikely event Nest Wealth were to cease doing business, your account will still be held by NBCN, and you can make a decision to transfer your account to a new broker of your choosing or liquidate your account to receive a cheque.
Your assets are protected in the following three ways:
We use a combination of large, liquid, low-cost ETFs from the largest ETF providers in Canada to construct your portfolio. Keeping your fees low, rebalancing as needed and having your investments in a mix of asset classes to provide proper diversification has been proven to be amongst the smartest ways to invest for the long term. Each ETF in your portfolio represents an asset class. The broad asset classes you will hold amongst 7 ETFs are 1) Equities 2) Fixed Income and 3) Real Estate.
You can open a new account with Nest Wealth entirely online. There is no need to visit our offices or print off documents and mail them. If you have any questions during the process you can reach us by emailing us at firstname.lastname@example.org, calling us, asking to chat with us or by scheduling a call with us.
There are no exit fees charged by Nest Wealth associated with ending your relationship with Nest Wealth. NBCN Inc. may charge fees for closing your account with the bank.
Nothing, but there’s no reason to do that. Because of our pricing model there is no additional fee charged by Nest Wealth to you if your account is $150,000 or $1,000,000. We will continue to do all the trading, all the monitoring and all the reporting for the same flat monthly fee.
An exchange-traded fund (ETF) is an investment fund that is traded on stock exchanges throughout the day, much like a stock and unlike a mutual fund. An ETF holds assets such as stocks, commodities or bonds, and trades close to its net asset value over the course of the trading day. Many ETFs track an index, such as the S&P 500 or MSCI EAFE. Low-cost ETFs tend to track broad, well-established indexes. Nest Wealth evaluates ETFs and selects the ones that are most attractive based on their low cost, liquidity and, where applicable, tracking error — that means how well they track their underlying index.
Nest Wealth doesn’t believe in a one-size-fits-all approach. We create your portfolio specifically for you based on your financial situation and risk tolerance. While we don't have generic products with historical performance, we can tell you what your combination of ETFs in the proportion you are holding them has done in the past. Please email us at email@example.com to learn more.
There are four primary methods of calculating investment performance: Time-weighted return, Simple return, Internal rate of return and Money-weighted return.
In accordance with regulations that come into effect during 2016, Nest Wealth displays your return using a Money-weighted return process, which takes into account the returns you earn on deposits, as well as the returns on your investments.
We ask a series of questions to help us determine the level of risk that we feel is appropriate for someone of your financial situation and risk tolerance. We ask objective questions to get an understanding of your financial situation and subjective questions to understand your attitude towards risk.
Nest Wealth will gather information to understand what percentage of your complete holdings this portfolio represents. However Nest Wealth will not take specific external holdings into consideration when creating your suggested portfolio.
We look for ETFs with the lowest annual expense ratios so we can save you money on fees, minimal tracking error so we know they will do what they are supposed to do and sufficient liquidity so that we can easily rebalance your portfolio.
Nest Wealth’s investment methodology is based on Modern Portfolio Theory. It states that you earn the greatest return for any level of risk through the optimal mix of investments. ETFs remain the same for everybody since we select what we think are the best ETFs for each asset class. The customization is reflected in the way we combine them to make the most sense for each individual's risk tolerance and goals.
Your allocations are a function of your risk tolerance, not the amount you invest.
No. We offer a service to manage a client’s portfolio that assesses your risk tolerance, recommends an optimized portfolio of carefully selected ETFs spanning amongst multiple asset classes, and monitors and periodically rebalances the investment mix to maintain your desired risk tolerance. We do not use Nest Wealth-related brokerage account to hold securities other than the ones we choose and manage.
Research has shown that rebalancing a portfolio’s holdings makes more sense when an asset class has drifted from its target allocation by a certain percentage (i.e., threshold-based rebalancing) rather than on a set-time basis (e.g., quarterly or semi-annually). We continuously monitor your portfolio and periodically rebalance it back to your target mix based on threshold breaches. We are not able to predict when we are likely to rebalance because that depends on the performance of each of the asset classes. A study performed by David Swensen, Chief Investment Officer of Yale University, found that threshold-rebalanced portfolios earned an average of 0.4% more per year over 10 years than portfolios that were not rebalanced.
Your portfolio will also be rebalanced each year based on the new asset mix suggested by your answers to the annual KYC (Know Your Client) questions.
Nest Wealth currently supports almost all types of investment accounts. You can open individual, joint, corporate and trust accounts.
Any individual 18 or over, who is a legal Canadian resident or a Canadian citizen (with a permanent Canadian address in a province where Nest Wealth is regulated) may open a Nest Wealth account. Nest Wealth is currently registered in Alberta, British Columbia, Manitoba and Ontario, but we do plan to roll out to other provinces shortly.
In certain circumstances you might be able to open a Nest Wealth account if you live outside of Canada. Please call us or email us at firstname.lastname@example.org to talk with us about your individual situation.
Absolutely. You can email us at email@example.com and we will send you a form to complete that will allow us to transfer assets on your behalf. You can ask for a partial or full transfer on the form.
Yes. You are welcome to open as many accounts as you would like. Nest Wealth will not charge you any additional fee for multiple accounts. However, there may be an additional annual fee charged by NBCN on additional accounts.
Currently, Nest Wealth’s service is only available with accounts opened at our brokerage partner, NBCN Inc.
Yes. However, both account holders will need to digitally sign the forms. To transfer money from a joint account, both account holders should sign the forms as well.
The easiest way to fund your account is to use a ‘Bill Payment’ from any Canadian bank’s online portal to your account at NBCN. It is free and only takes a couple of seconds complete. Usually, the money will transfer from your bank account to your NBCN Inc. account within 48 hours. You can contact us at firstname.lastname@example.org for alternative methods of funding such as wire transfer or transfers from another brokerage account.
Once you've had your conversation with your portfolio manager and you have any questions answered about your asset allocation, we invest your money as rapidly as we can in an responsible manner.
No. You may only transfer funds from an account that bears your name.
No. You can only transfer in cash. This means that prior to transferring over any positions from a different account you will need to sell all mutual funds, bonds and/or equity holdings.
Please contact our client experience team, your portfolio manager or reach out to us by email at email@example.com with any account-related question, problem or suggestion.
Please contact us at firstname.lastname@example.org. We do not charge for withdrawals; however, NBCN Inc. may charge fees for certain types of withdrawals.
It's easy to withdraw some of the funds in your account and in most cases there will be no fees associated with the withdrawl. To start the process, please call us, email or email us at email@example.com.
If you have the cash available in your account, we can send it out once you verify your withdrawal request. Otherwise, we will place the trades to raise the required cash in your account. All trades then take 3 business days to settle (this applies to all brokerage firms). Upon trade settlement, we will then return your funds to the bank account you specify, which usually takes another 2 business days, but can take a day or two longer depending on where the funds are being sent.
No, Nest Wealth does not charge fees when you withdraw funds or close your account. You can receive electonic fund transfers to your bank account at no charge from NBCN while NBCN charges $25 for bank and wire transfers.
We'll make sure your portfolio stays aligned with your goals and risk profile. If you withdraw funds from your account, we will reduce any overweight asset classes to move you toward your target allocation. If you’re already at your target, then we reduce the investments pro rata to maintain your target allocation.
Based on your preferences, you’ll receive all needed tax documents from NBCN either electronically or through the mail.
Nest Wealth does not provide individual tax advice. All needed slips for end of year tax filings will be provided by NBCN Inc. Please consult your tax advisor regarding any questions you may have specific to your personal taxes and financial situation.
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