Here's our investment management fee calculation broken down:
We calculate the fee on a daily basis by dividing the annual fee by 365 days and applying it to the closing market value of your portfolio on that day. These daily portions are added together and charged to your account monthly.
In short, our fee is quoted annually, calculated daily, and applied monthly. The end result for you, as a Wealthsimple client, is that your account will see a small charge each month.
In more complex terms, our investment management fee is amount equal to the aggregate of 1/365th of the applicable percentage, or 1/366th in any leap year, (as set out in the chart above) multiplied by the market value of the account as of the close of trading. The fee will accrue and become due and payable on the last day of every calendar month and shall be collected by the Portfolio Manager directly from the account assets. If you close your account, withdraw the entire balance of your account, or if you or Wealthsimple terminates the Investment Agreement, the accrued fee shall be due and payable immediately.