When transferring funds from one institution to another, there are four different options to choose from:
- All In Kind (As is): This means that you wish to transfer your entire account to Wealthsimple from your previous financial institution, as is. For example, you held in your portfolio $20,000 cash, 20 shares of ABC and 56 shares of XYZ at your previous financial institution. All these assets would be transferred to your Wealthsimple account.
- All In Cash: All your investments at your previous financial institution get sold and transferred over to your Wealthsimple account in cash.
- Partial: You can transfer a portion of your portfolio from another institution. Using the example above, you can instruct Wealthsimple to only transfer in the $20,000 cash and the 56 shares of XYZ, leaving behind the 20 shares of ABC.
- All Asset Mixed: You request that there is partial liquidation of your portfolio while the remainder is transferred "in kind" or "in cash." Using the previous example, you wish to liquidate the 56 shares of XYZ (and transfer the cash value), transfer the $20,000 cash and transfer the 20 shares of ABC (in kind).
Now you know what they are. But which one should you choose?
Most of the time, we recommend transferring “All in kind” to ensure the fastest and most efficient transfer process. Often, if you transfer "in cash" we may lose track of some cost basis information on your non-registered accounts (i.e., personal/joint). If you transfer in-kind, we will sell all the transferred assets and reinvest the proceeds into your Wealthsimple model portfolio according to your chosen asset allocation, unless you specifically indicated that you would like to keep certain assets.
Are there any fees if Wealthsimple sells my assets?
Mutual funds that have A shares will not incur any fees when they are sold however some mutual funds have B & C shares, which may incur a fee when they are sold. If you are transferring mutual funds you can check whether you hold B & C shares by contacting the mutual fund company or by asking your broker or advisor.
We know this stuff is a little complicated. If you have questions about transferring funds (or anything else) please create a request and a Relationship Manager will assist