SOLWealth Strategies

HIGH-OCTANE ESG STRATEGIES

Invest Your Money, Responsibly

We are bundling three equity strategies into one to help you achieve that goal.

ESG Best Ideas Equity

30 responsible All-Star companies
Crafted to beat our custom index

Key Principles for Success

Our Investment Philosophy

Factor Investing

Follow a rigorous quantitative, evidence-based investment approach.

Undexing

Beat the market over the long run with differentiated ESG strategies.

Concentration

Achieve a sufficient level of diversification to generate value-added.

Low Turnover

Minimize trading costs to increase tax efficiency for our investors.

Proven, Consistent and Repeatable

Our Investment Process

Universe

Step 1

Define the ESG Environment

Companies involved in severe business controversies are excluded. Companies linked to tobacco, weapons, thermal coal and oil sands are also excluded.

Factors

Step 2

Identify and Create Factors

Review the financial literature to identify factors and use experience to create new ones. Assess validity and risk-adjusted return characteristics of each factor.

Ranking

Step 3

Build a Multi-Factor Ranking

Select factors with the most desirable characteristics. Examine correlation among factors to determine factor emphasis. Put factors together in a ranking system.

Rules

Step 4

Apply a Set of Rules

Establish fundamental and technical rules that govern the ranking system. Buy rules are constraints for a purchase. Sell rules are conditions for a replacement.

Portfolio

Step 5

Construct the Strategy

Determine positions, weights and assemble a strategy with targeted risk-adjusted returns and portfolio characteristics that meet the needs for the mandate.

Monitor

Step 6

Monitor and Rebalance

Incorporate a risk overlay at the strategy implementation. Track the ESG rating of positions. Realign the holdings quarterly according to the established rules.

Fees and Benefits

Quality strategies offered at a reasonable price

Tier 1

Invest $50K+

0.99% Management Fee¹
Guided rebalancing
Dividend reinvesting
Dedicated support

Tier 2

Invest $250K+

0.87% Management Fee¹
Guided rebalancing
Dividend reinvesting
Dedicated support

Tier 3

Invest $1M+

0.75% Management Fee¹
Guided rebalancing
Dividend reinvesting
Dedicated support

1. The management fee equals to the percentage shown above of your managed assets and is charged on a monthly basis.

2. The performance fee is paid only when the strategy’s performance is above 3% per year before the management fee. When the strategy exceeds this performance threshold, SOLWealth receives 10% of the surplus while customers retain 90%. The performance fee is an incentive for the portfolio manager to provide the best possible returns to its clients.

3. Both fees are paid out of your Interactive Broker’s SMA. All returns shown on the website and in our marketing materials are after fees. There are no other fees for SOLWealth clients (administrative, transfer, purchase or redemption).

FAQ

Frequently Asked Questions

Getting Started

You invest through an SMA (Single Managed Account). It is an investment account owned by you, offered by a brokerage firm and overseen by a portfolio manager. Learn more below on the two parties involved:

Portfolio Manager
SOLWealth Investments (SOLW) acts as your registered portfolio manager and fiduciary on the Interactive Brokers SMA Platform. SOLW provides investment advisory and portfolio management services. SOLW is also responsible for arranging the provision of administrative services and regulatory compliance required by the SMA.

Brokerage Firm
FBAM appointed Interactive Brokers (IB) as the provider of its SMA Platform. IB is rated #1 Best Online Broker for Active Traders and International Traders by Barron’s in 2020. It is also the largest U.S. online brokerage firm by number of daily average revenue trades. We believe they are the best and lowest cost broker for our clients.

In order to invest in our strategies, you will need to possess a minimum amount of C$50,000. This amount may be held across non-registered accounts, RRSPs, TFSAs, LIRAs and RRIFs.

Opening Your Account

Your money will be held in a brokerage account under your name at Interactive Brokers. We cannot access your money beyond deducting our management fees and rebalancing your portfolio to replicate our strategies.

To enroll in an SMA, you must be 18 years old or more, and have a valid Social Security Number or Tax Identification Number for a company. If you are located outside of Canada, more documents will be required.

Yes, but it will be on a case by case basis as we have limited portfolio management capabilities outside of Canada. You will also have to provide additional information during the account opening process.

No, our SMA service is available exclusively for accounts opened at Interactive Brokers. Although we realize it might be inconvenient to set up a new account, we believe you will reap long term benefits.

Yes, you will have to answer a couple of questions in the form and receive instructions to complete the transfer. It normally takes 5-10 business days to fund a new account with an existing RRSP / TFSA.

Because they have a very technologically advanced platform at low cost. Most Canadian brokerage firms charge expensive flat fees per trade while Interactive Brokers does not. Also, most Canadian banks charge you 2% of fees for currency conversion. On Interactive Brokers, they simply convert your money at the ongoing FX rate.

Funding Your Account

You can fund your Interactive Brokers account via electronic funds transfer, bill payment or wire transfer for the following account types: non-registered accounts, RRSPs, TFSAs. LIRAs and RRIFs rollovers. Processing times vary, and for rollovers, you will need to fill additional paperwork with your financial institution.

Once your Interactive Brokers account is open and funding is complete, we will invest the cash in your account at the end of the month in the portfolios / strategies you accepted to replicate.

Additional funds are processed by Interactive Brokers and deposited into your trading account. Once received, we will rebalance your portfolio with your new funds at the end of the month.

Withdrawals are permitted at any time. To withdraw your funds, please submit your request at trading@solwealth.com. If you intend to continue investing with us, we cannot honor a withdrawal that would make your account fall below the C$50,000 minimum balance. You are permitted one withdrawal request every quarter. If you need another withdrawal within the same quarter, your account will be charged a small fee by Interactive Brokers.

You might see uninvested cash in your Interactive Brokers account for the following reasons: the strategy might have a small cash balance on its own, 2) you might have received dividends from your positions recently, 3) we purchase only whole shares of companies for you, not fractions and 4) we reserve a small amount of cash to cover upcoming advisory fees you’re likely to owe soon.

Interactive Brokers is a Member of the Canadian Investor Protection Fund (CIPF), which means that the securities in your account are protected up to $1,000,000. For more details, please visit www.cipf.ca.