Robo advisors are taking off in Asia, attracting younger generations with digital, low-cost wealth management solutions.
In Asia Pacific (APAC), China, Hong Kong, Singapore, Australia, South Korea, India and Taiwan are expected to lead the robo advisory arena with a combined total assets under management estimated to reach US$500 billion by 2021, according to IDC Financial Insights.
Following up on our recent article covering the most notorious robo advisory platforms from Singapore, we look today at some of the top robo advisors and digital wealth management companies from Hong Kong.
Youyu Robo Advisor
Hong Kong-listed Yunfeng Financial Group launched earlier this year a mobile app named Youyu Robo Advisor in Hong Kong, which helps investors allocate global assets more efficiently.
The service operates on a bottom up approach to fund selection, leveraging the capabilities of top tier fund managers to provide customized asset allocation solutions. It has a database of approximately 10,000 funds and has developed a fund scoring mechanism that rates funds.
This differs from other robo advisors which adopt a top-down asset allocation style where underlying assets are categorized by asset classes and statically allocated on passive index-tracking ETFs.
Aqumon is a robo advisory platform developed by Hong Kong-based Magnum Research Limited which uses machine learning to create a balanced investment portfolio for clients.
The platform can provide five to ten risk profiles for each client. Based on individual risk appetite, the service then creates a portfolio, which will have 8-10 ETFs, or in mainland China, mutual funds.
The service, which launched in July, already serves several clients including Convoy Investment Service, a subsidiary of the Hong Kong IFA group Convoy, Shenzhen-based China Resources Bank of Zhuhai, brokers Guodu Securities (Hong Kong) and Fortune Federation Financial Technology, a Chinese independent wealth manager.
Chloe is a mobile-only robo advisory service developed by Hong Kong-based social trading startup 8 Securities. Chloe allows users to set goals and start investing in a globally diversified portfolios of ETFs with as little as HK$1,000. Chloe monitors the portfolios and automatically optimizes them.
The company launched the service in Japan earlier this year, eyeing the country’s Millennials who are looking for “simple, mobile and low-cost solutions for their savings and investment needs.” In Japan, Chloe invests in ETFs listed on the Tokyo Stock Exchange.
Privé Managers is an integrated wealth management, product creation, wealth planning and client relationship management platform that brings the client, advisor and the investment manager into one ecosystem.
The solution comprises more than 11 state-of-the-art modules powered by its bionic advisory engine. The bionic advisory solution combines the benefits of technology with the essential human qualities of judgment and empathy.
Robo generated models can be customized based on client preferences, and a built-in optimizer creates the bespoke efficient frontier on the fly, allowing to offer pure robo advisory to some clients and bionic advisory to others.
The firm serves a range of wealth management clients across Asia and Europe, including external asset managers, multi-family offices and banks by offering a wide range of connectivity options to custodial and distribution platforms.
Quantifeed develops and provides digital investment solutions to wealth management institutions in Asia.
Quantifeed’s software and financial models provide banks, brokers and wealth planners with a configurable solution to suit their wealth management objectives. The platform hosts portfolios of stocks, funds and other asset classes across all major global markets.
Investing solutions can be based on risk assessment, life goals and thematic ideas. The platform offers a library of portfolios for asset allocation, thematic investments and other trading strategies.
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