Summit Portfolio Graph Disclosure
Within Wealthsimple’s managed investing accounts there is a graph that displays hypothetical data, including previous returns and future projections of performance.
The graph shown is for illustrative purposes only and does not represent the actual returns of an account. The previous returns for the public equity exposure are based on the actual historical returns of the current holdings of the model portfolio, assuming the assets were acquired and held from the starting point indicated, and does not consider any account rebalances, dividends or other distributions. The previous returns for the Private Market Fund is based on Preqin private asset indices, which aggregate performance across multiple private asset managers with comparable asset exposure. The Preqin private asset indices may differ materially from the performance of the specific managers we use.
The projected returns are simulated based on a projected cash rate of 3.25%, plus excess returns ranging from 2.9% to 6.2%, which are inclusive of a Wealthsimple management fee of 0.40% and assuming average ETF MER of 0.10%, and include a 1% fee for the exposure to the Private Markets Fund (which will vary from a 15% allocation to a 30% allocation based on risk level). The specific excess return depends on the risk level of your account and the management fee charged by Wealthsimple, which is dependent on your client tier.
The hypothetical projections are based on an initial deposit of $10,000, the amount you plan to save each month, and the assumed rate of return based on the risk level of your account.
The “likely” section of the graph represents a 50% confidence interval, while the “less likely” section represents a 90% confidence interval. These projections are based on forward-looking Sharpe ratios, asset class volatility, and historical long-term correlations for each portfolio class. They do not take into account sales, redemptions, transfers, optional charges, or income tax payable by clients, which would reduce the returns.
Please note that all the information provided is hypothetical and for illustrative purposes only. It is not intended as investment advice or constitute a recommendation. Simulated performance does not necessarily indicate future results, and actual allocations and performance may differ. All investments involve risk. For more information about our products, investment decisions, fee schedules and disclosures, please visit wsim.co/disclaimers.