|8I Holdings Limited (ASX: 8IH) announced a strategic investment in AutoWealth Pte Ltd, a licensed regional roboadvisor that automates investing and provides comprehensive investment portfolio rebalancing and management for retail investors.
The investment is part of 8IH’s strategy to increase its product offerings and complement WealthPark, the Smart Investing Technology and Wealth Management Platform that 8Bit Global’s Pte Ltd, a subsidiary of 8IH, is developing.
8IH will invest S$1 million in AutoWealth for a strategic minority equity stake. The capital will be used to strengthen its branding and marketing to grow its assets under management.
AutoWealth, a digital financial advisor licensed by Monetary Authority of Singapore and a portfolio company of NUS Enterprise, uses a proprietary algorithm to provide financial advice and investment management online.
It has created an automated process that cuts the processing time and middleman costs while giving customers customised recommendations on the ideal composition of their investment assets, the initial sum to invest and the periodic investment instalments.
Investors start their investing journey by taking a three-minute questionnaire, which feeds into the roboadvisory system.
AutoWealth’s proprietary algorithm analyses their risk profile and recommends customised investment portfolios. All the investors’ investments are held in legal segregated accounts under their names through Saxo Capital Markets, its partner custodian.
This ensures that investors have legal claims on their investments in all circumstances.
AutoWealth was officially launched in August 2017 following a year of intensive beta testing.
“I believe robo advisors will start to play a bigger role in the asset management business in the very near future in Asia as shown in the emerging trends in US and Europe,” said Mr Ken Chee, Executive Chairman of 8IH.
“AutoWealth uses a proprietary investment strategy and auto rebalancing technology to simplify passive investing. I see this as a complementary product for our investors in Value Investing College’s community to maintain a balanced portfolio; and for the passive investors who prefer to maintain a passive portfolio. In addition, this strategic investment will add further depth and breadth to the smart AI investing tool and wealth management platform that we are actively building."