Robo-Advice

Mar
23

Robo advice might not suit every SMSF but has its place

It seems oxymoronic for self-managed super fund investors to seek robots to do the investing for them. After all, SMSF members are supposed to be self-directed investors – they do their own investing and are not supposed to use a machine to pick their investments. But experts say SMSF members will increasingly turn to robo advice to help them select the right assets for their fund. Robo advice involves the use of an algorithm to suggest investments for consumers, using variables like their age, existing funds, income and time to retirement. It has been touted as a low-cost way for people with a relatively simple financial situation to receive financial […]

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Australian Fintech firm recognised as global market leader

This week, Australian-owned Financial Technology (Fintech) firm, Fincast, was announced as a category winner and finalist in Sony Corporation’s global Fintech Innovation Challenge.   Andrew Connors, Co-Founder and Managing Director of Fincast, said, “we are delighted to have won the “under-banked/under-invested” category in the Sony Fintech Innovation Challenge. Being recognised by a global brand like Sony is fantastic validation and endorsement of our applications”.   The Challenge attracted over 50 applications from Fintech firms from across 28 countries. Fincast was the only Australian company named as a finalist.   Fincast’s technology is unique amongst other automated advice capabilities, enabling appropriately licensed advice providers with 2nd generation technology that automatically adapts […]

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Mar
18

Stockspot set to revolutionise the investment landscape with new technology

Fintech company Stockspot is set to revolutionise the Australian investment landscape, by becoming the world’s first automated investment service to offer clients the option to personalise their portfolio with investment themes. Stockspot Themes is a new offering that lets qualifying investors steer the direction of their portfolio, by choosing from 14 different investment themes, including socially responsible shares, global shares, property and international bonds. Themes are combined with the Stockspot Model Portfolios to create personalised portfolios that are diversified across thousands of companies. “Some of our clients already own Australian shares, so want more of a tilt towards global shares in their portfolio. Likewise we have clients coming to us […]

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Mar
14

Decimal ‘pivots’ to institutional market

Nic Pollock, who commenced as Decimal’s new chief executive on 23 November 2015, spoke to InvestorDaily about Decimal’s change in strategy as well as its new executive structure. Decimal began the marketing push last week, with the announcement it now has over $3 billion in funds under advice on its platform. Along with the staffing changes, Decimal has also abandoned its adviser-targeted strategy (which saw it competing with the likes of IRESS, Rubik and Midwinter) by shifting its focus to building relationships with financial institutions. “In the second half of last year, that’s when we decided to pivot back to the enterprise view of the world and really make our […]

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Mar
10

Meet the Australian robot financial adviser managing $3 billion

Decimal Software’s white label robot financial adviser platform now has more than $3 billion in funds under advice. The latest $1 billion was gathered since December, according to a market update today. The first $2 billion came in the six months since it was launched in June last year. The growth came without an official marketing launch for the robotic adviser on investments, superannuation, insurance and loans. Robo advice promises lower overheads for financial services companies. And for those making investments online, there’s no comfortable chat with an adviser but, hopefully, it means lower fees. Decimal Software CEO Nic Pollock says real people are using cloud-based robo-advice in Australia. “We’re […]

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Mar
09

Infocus to launch robo-advice solution

Non-institutionally-aligned firm Infocus Wealth Management has announced it will launch a new direct-to-consumer robo-advice solution, which will give clients the option to manage their own investments online. The new solution, to be launched in May, will incorporate the Morningstar Wealth Forecasting Engine as well as investment management services from Morningstar’s Ibbotson Associates Australia. Speaking to ifa, Infocus managing director Rod Bristow said the robo-advice service will not compete with the firm’s existing advisers. “We’ve been talking to our advisers for some months about this. What we’ve been saying is robo-advice is something that will come into the Australian market and will make a difference in terms of helping consumers understand […]

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Mar
09

Target market for robo-advisers to grow with net usage

Robo-advice does not work well in complex situations but suits people in their 30s and 40s who are already using the internet to manage their finances and are starting to save serious money toward retirement. Robos work very well where the investor’s situation is not complex and a person neatly fits into one of several predetermined categories. For example, the small but relatively focused subset of people in their 30s and 40s who are starting to save serious money toward retirement are perfect for robos. They may have already looked at negative gearing and margin lending to grow their savings but feel disinclined to take on the added risk in […]

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Mar
04

Robo-advice not ’biased’ during volatility

Human advice may be outperformed by robo-advice during times of market volatility, considering automated tools are not subject to behavioural bias, says BetaSmartz. BetaSmartz chief executive John James said eliminating behavioural bias means that robo-advisers will accurately manage risk, and “will always have an advantage over humans”. Mr James argued that robos are not subject to a domestic or “home bias” to the extent that human advisers are. “This [domestic] bias can limit diversification and, in a volatile environment, completely exposing an investor to just one market may not be the optimal way to meet their goal,” he said. He explained that robo-advisers can easily navigate volatility because they have […]

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