RBC to kick-start robo-adviser service

Royal Bank of Canada is rolling out a national roboadviser service, following a pilot test of the digital advice and investing platform on a smaller scale in Ontario, Saskatchewan and Alberta.

Portfolios generated on the RBC InvestEase platform will invest in index exchange traded funds (ETFs) developed by RBC Global Asset Management.

The robo-adviser platform, which will carry a management fee of 0.5 per cent on investment balances of at least $1,000, will provide automated recommendations and advice, and portfolio management.

Clients will also have access to portfolio advisers who can answer questions over the phone, and will be able to track the progress of their investments online.

“Your portfolio is continuously monitored and automatically rebalanced to help keep you on track,” RBC said in a statement.

Clients will be matched with an initial investment portfolio recommendation that corresponds to one of five risk profiles generated after they fill out an online questionnaire, with the profiles ranging from “very conservative” to “aggressive growth,” the bank said.

Stuart Rutledge, senior vice-president of personal savings and investments at RBC, said the bank is addressing demand for convenient automated advice.

Other feedback also suggested there were investors who wanted to be “handsoff, with experts making decisions for them, and easy access to an expert, if needed,” he said.

RBC said it will waive the management fee until Oct. 31, 2019, for clients who sign up by March 31.