Emperor Investments Closes its Doors
“Emperor Investments was started with the goal of bringing tailored dividend investments to those who needed it the most. We have come a long way since our launch and are extremely proud of what our small team has accomplished. Unfortunately, we have not reached the growth required to be a sustainable business in the long run. Effective immediately, Emperor Investments has ceased operations as a registered investment adviser.” ~The Emperor Team
Emperor Robo-Advisor – For Stock Investors Only
Are you seeking investment management with steady income and low volatility?
Do you want the chance to super-charge your returns?
Is dividend investing your thing?
If so, Emperor Investments, a dividend pure equity investment manager might be your solution.
Founded by Brenna Casserly, former investment analyst and Dr. Francis Tapon, economics professor at the University of Guelph, the investing approach was implemented ten years ago, with their own money.
I’ve spent some time digging into Emperor Investments and will report their strategy and who might benefit from the new all equity robo-advisor.
- Emperor Investments Closes its Doors
- Emperor Robo-Advisor – For Stock Investors Only
- What Makes Emperor Investments Robo-Advisor Unique?
- How Does Emperor Investments Pick Stocks?
- Is Emperor Investments Personalized for Me?
- What About Rebalancing?
- What are the Fees and Investment Minimums?
- How is the Emperor Mobile Platform?
What Makes Emperor Investments Robo-Advisor Unique?
Emperor Investment picks individual dividend paying stocks, only, for your investment portfolio. That means, no mutual funds or ETFs.
Stocks offer the greatest long-term growth potential of all financial asset classes with long-term average annual returns above 9%. Of course, embedded in this lofty long term investment result are individual years where stocks have lost money – sometimes quite a lot. In general, stock investing is a solid way to build wealth over the long term as long as you have the stomach for some losing years, along with the winning times.
Emperor Investments robo-advisor invests their clients’ money only in dividend paying companies, allowing you the option to receive your dividends in the form of cash or be automatically reinvested.
The firm responsibly recommends that investors should be willing to leave their money invested for at least five years, as investing for the long term is the best way to grow your wealth.
How Does Emperor Investments Pick Stocks?
The company has developed algorithms, of course, that select companies that meet their strict criteria, one being a long dividend paying record.
Here is more information on the Emperor Investments stock portfolios:
- Are filtered according to fundamental criteria such as P/Book Value ratios.
- Use Nobel Prize winning modern portfolio theory. (For finance nerds, read more about the methodology in the Emperor Investments white paper.)
- Are further refined by hand by the investment team at Emperor Investments.
- Are personalized to your specific goals.
- Are bought at reasonable prices.
- All pay dividends, including through the Great Financial Crisis (2007-2009).
- Are directly owned by you – the investor.
- Their hypothetical back-tested returns have outperformed the S&P 500. (Although, future investment returns are never guaranteed.)
Is Emperor Investments Personalized for Me?
While a goal-oriented robo-advisor is nothing new, Emperor offers personalization through custom goals. You can simultaneously pursue various goals – not just retirement. You might have a vacation home down payment goal, or a goal of saving for Junior’s college.
First, enter details about your goal and then Emperor recommends a targeted portfolio of stocks designed to meet that objective.
And, there’s flexibility. You can change inputs to see how the timeline for achieving your goal adjusts.
Don’t worry if you lack a goal, Emperor makes suggestions.
What About Rebalancing?
Automatic rebalancing is a popular robo advisory feature. Simply, rebalancing means keeping your investments in line with your preferred risk level.
Emperor regularly rebalances to maintain consistent investment holding percentages appropriate for your individual goals. Emperor differentiates itself through its personalization.
Emperor avoids excessive trading (in fact they hardly trade at all, once your portfolio is assembled, unless the companies they include in your portfolio fails one of the tests they use to pick stocks).
The maximum weight invested in any stock for even the most risk tolerant investor is 10%.
What are the Fees and Investment Minimums?
Emperor joins the robos with low investment minimums and requires only $500 to get started.
The annual management fee is distinct from competitors as there are no underlying ETF fund management fees. So, the 0.60% AUM fee is the only charge you’ll incur. This is well below that of most human financial managers as well as that of the average actively managed mutual fund.
The management fee falls to a low of .20% AUM with assets greater than $900,000.
How is the Emperor Mobile Platform?
I went through a dry run sign up on my mobile phone and found it seamless. The initial questionnaire was clear and easy to navigate. If you’re on the go, it’s an advantage to know that you can sign up with your phone.
With Emperor’s technology, you can receive a personalized portfolio without having to sacrifice returns.
Emperor Investments are courting individuals who are looking for a more tailored portfolio than the typical ‘cookie-cutter’ funds/ETFs currently offered. To learn more about the platform, check out their home page and have a look around.
Investors must understand that an all equity portfolio has historically offered higher returns than a stock and bond portfolio, with much greater volatility. Investing wisdom suggests that investors include cash and bonds in any diversified portfolio. For Emperor investors, make sure to have another account that includes cash and bond investments.
This is a sponsored post.