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 […]
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 […]
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 […]
Robo-advice drives Decimal revenue
Software provider Decimal has announced its half-year net loss after income tax has decreased by 14 per cent thanks to lower operating costs and increased revenue from its robo-advice offering. During the six months to December 2015, the company’s net loss after income tax was $4.2 million, down from $4.8 million during the same period one year ago. “The company completed a strategic and operational review during the period under review which led to a decision to reduce operating costs,” the statement said. “The Decimal platform has reached a level of maturity to enable enterprises to fully benefit from the business model in terms of low implementation and maintenance cost […]
Macquarie takes stake in fintech minnow
It’s a positive sign to see Macquarie Group investing more in the Australian FinTech sector. They seem to be getting very active very quickly. It will be interesting to see which of the other big banks will follow suit… Macquarie Group has waded deeper into the fintech sector with an equity agreement with listed marketplace lender DirectMoney to assist in the development of what the minnow claimed would be a new securitisation funding market. In a boost after a bumpy listing in July, DirectMoney yesterday said it had sold $5 million of personal loans to Macquarie and secured the investment bank as an adviser to assist access to funding, […]
Sydney roboadvice startup ProAdviser is a cheaper way for millennials to get investment advice
When finding good financial advice is outside your budget, important questions about goals and risks can become hard to manage and execute. Buying based on recommendation means that your needs are met through a wider range of more realistic choices, and a realistic assessment of what your money can do gives you more protection and certainty, but like most things it comes at a price. Sydney startup ProAdviser aims to slash the hefty price of financial advice with an online fund manager and investment adviser. The online platform manages all the trades, investment, and administration for the client. “What we’ve essentially brought to the market is a quicker, cheaper and […]
Announcing a new partnership: Republic Wealth Management
Sharesight are pleased to announce a new partner, Republic Wealth Management. Republic is a robo-adviser catering to financial planning companies. They take care of the portfolio construction, execution, and on-going management of portfolios on behalf of financial planning companies. The portfolios consist mainly of ETFs. Republic and the advisers they serve will be utilising a branded edition of Sharesight and API to administer and report on client portfolios. This B-to-B approach makes sense. One of the challenges for any asset manager is convincing people to hand over money. This is especially true in the online advice space, which by nature lacks face-to-face meetings and a track record. Portfolios constructed of […]
The rise of robo advisers
The notion of robots delivering financial advice is one of the hottest topics in financial planning circles. Even Australian Securities and Investments Commission chairman Greg Medcraft has weighed in, saying “robo advice” could slash investment costs and eliminate conflicts of interest. Judging by the number of new offerings coming on the market, this will be a growth sector, but how easily will people accept advice delivered by rules-based algorithms? The most common answer is that “millenials” will lead the way on “robo-advice” take-up, as they trust technology in a way their forbears do not. The cost of delivering advice is generally estimated at one-fifth to one-tenth of fee-based financial advice, […]
