July 31, 2017
WisdomTree enters into strategic agreements with Questrade
Firm will become a premier provider of commission-free ETFs for purchase for Questrade self-directed investors
NEW YORK/TORONTO -- WisdomTree Investments, Inc., an exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor and asset manager, today announced that two of its wholly-owned subsidiaries, WisdomTree Asset Management Canada, Inc. (WisdomTree Canada), and WisdomTree Asset Management, Inc. (WTAM), have entered into a series of agreements with both Questrade Wealth Management Inc. (QWM) and its sister company, Questrade, Inc. (Questrade), Canada's fastest growing online brokerage.
WisdomTree Canada will become a premier provider of ETFs available for purchase on a commission-free basis on Questrade's self-directed platform. This will include all of the WisdomTree Canadian ETFs. In addition, both companies will work together to develop and deploy a variety of ETF-focused educational initiatives and resources for Questrade clients, including webinars, newsletters and reports on investing topics.
WTAM will become a consultant for Questrade's Portfolio IQ, a professionally and actively managed low-cost online investment service.
WisdomTree Canada has agreed to acquire the right to manage QWM's eight ETFs with approximately $89 million in assets under management, subject to obtaining unitholder and regulatory approvals.
"We're excited to be joining forces with Canada's leader in the online investing space and to be able to offer our suite of Canadian ETFs to Questrade clients," said Kurt MacAlpine, head of global distribution, WisdomTree Investments, Inc. "Last year, we launched our first set of equity ETFs in Canada, and just recently, our first set of smart beta fixed income ETFs, which have been very well received. Today's announcement is another milestone for the growth of our business in this key market and reflects our strong commitment to Canada."
A smart beta innovator, WisdomTree pioneered the concept of fundamentally weighted indexes and is currently an industry leader in the category. Today, WisdomTree is among the top ten ETF providers in the world with Canadian ETFs spanning a variety of asset classes and geographies.
"This strategic agreement with Questrade, combined with our talented team and differentiated product set, is an important part of WisdomTree's deepening commitment and long-term opportunity in the Canadian ETF market," MacAlpine added.
"Questrade is committed to delivering the highest quality investment options to Canadian investors," said Edward Kholodenko, president and CEO at Questrade. "We believe these strategic agreements with WisdomTree will continue to provide investors access to cost-effective and innovative ETFs, as well as critical investor education."
The acquisition is subject to regulatory and unitholder approvals, and it is expected that for most of the funds, the Questrade ETFs will merge into existing ETFs managed by WisdomTree Canada, while WisdomTree Canada is expected to become the trustee and manager for one of the existing Questrade ETFs. In either case, this will result in a change of the fund manager for those Questrade ETFs. Questrade will provide unitholders with further specific details of these transactions, including the record date and timing for the unitholder meetings to approve the change of trustee and manager and related mergers, as applicable, of the Questrade ETFs at a later date.