The new feature promises to provide a holistic picture of a portfolio's construction and performance
Qtrade Investor, a part of Aviso Wealth, has partnered with portfolio and planning analytics provider Wealthscope to launch a new feature on its platform.
Portfolio Score, which Qtrade described as “the most comprehensive available from a Canadian online brokerage,” promises to let investors make well-informed trading decisions by quickly analysing their portfolio holdings. The analysis, according to Qtrade, provides an objective, holistic picture of how a portfolio is built and how it can perform in all market scenarios.
“Investors not only want results, they also want assurance that their investment portfolio is well-constructed and not unduly exposed to risk,” said Christine Zalzal, Aviso Wealth’s recently appointed SVP and head of Online Brokerage & Digital Wealth. “Portfolio Score identifies any potential risks and flags where they are in the simplest and clearest format possible.”
By comparing investors’ portfolios against domestic and global benchmarks, Portfolio Score offers them a chance to better understand their risk exposures. Investors’ securities, which include Canadian and U.S. stocks, ETFs, and Canadian mutual funds — are evaluated, and overall portfolio performance is graded across five dimensions:
- Downside Protection
- Performance
- Diversification
- Income
- Fees
“Continued uncertainty in financial markets has left investors feeling worried about whether they are on track to reach their short- and long-term goals,” said Dr. Pauline Shum Nolan, CEO and co-founder of Wealthscope. “Portfolio Score was developed as a solution to help mitigate these fears and encourage investors to recognize risks and opportunities so that they can optimize their asset allocation mix.”
Among the key functions of the tool are:
- Assessment of portfolio diversification and level of risk exposure across multiple classifications including asset class and sector
- Drill down on each individual investment pillar and rebalance or adjust the portfolio as needed
- Comprehensive portfolio analytics covering historical returns and volatility, risk-adjusted ratios to evaluate portfolio performance during market downturns, yield, and management fees analysis
- Customized performance comparison against Canadian and global market benchmarks
Claiming to be the first online brokerage to fully integrate Portfolio Score into its client site, Qtrade said that users of its platforms will see their scores automatically updated with every change to their portfolio.
The brokerage also plans to integrate several additional tools offered by Wealthscope by early 2020.
