HNWs targeted with personalised robo offering

18-Mar-2016

By Kristen Crawford

Email Article Print Article

Stockspot has launched the world’s first automated service that allows investors to calibrate and personalise their portfolios .

Group chief executive Chris Brycki expects the offering will attract high-net worth individuals and young professionals.

The Australian pioneer in automated investment services says Stockspot Themes lets ‘qualifying’ investors steer the direction of their portfolio from a selection of 14 investment themes.

“Up till now, Australians have been attracted to automated investing because of the low fees and convenience,” Brycki said.

“The ability to pick themes gives it a new dimension since customers can have added control over the direction of their portfolio and where their money is invested.”

The number of high-net-worth individuals seeking face-to-face advice was already on the decline and the adoption of enabling technology meant this trend would continue, he added.

A 2016 KPMG robo-advising study estimated that half of the US$2.2 trillion managed by automated investment advisers in 2020 would come from high-net-worth investors and from existing investments rather than from new clients.

“We see Themes as the next step on the journey to converting high-net-worth investors – one of our key customer segments – to automated investing,” Brycki said.

The offering allowed qualifying investors to choose the direction of their investment and incorporated themes including socially responsible shares, global shares, property and international bonds.

These could then be combined with Stockspot’s model portfolios to create personalised holdings that were diversified across thousands of companies, Brycki said.

“Some of our clients already own Australian shares, so want more of a tilt towards global shares in their portfolio.

“Likewise, we have clients asking if they can have more focus in a certain region [like] Europe or Asia, asset class [such as] bonds or property, or factors like dividends or ethical shares,” he explained.

The service has developed complex algorithms that analyse client investment goals and risk tolerance to determine how much of the portfolio can be allocated to their chosen investment themes.

“Themes can be mixed and matched by each client, resulting in 1000 possible portfolio combinations that are continually reviewed and rebalanced,” Brycki said.

“Themes lets investors choose the direction of their portfolio, while still accessing the benefits of automated investing, which include convenience, regular rebalancing and lower fees.”

« Back to Articles