Lufax Holding’s subsidiary LU Hong Kong has partnered with BNY Mellon Investment Management to launch an open robo-advisory platform, offering tailor-made asset allocation solutions through its professional AI investment consultant “Lucy”.

The Hong Kong Securities and Futures Commission (SFC) had granted LU Hong Kong regulatory approval in June 2020 to provide investment and wealth management services for its Hong Kong customers.

Under the agreement, BNY Mellon will provide investment advice to LU Hong Kong based on the risk profiles and investment restrictions defined by the latter.

BNY Mellon does not consider circumstances of individual investors in offering investment advice to LU Hong Kong.

It will be the first Asia Pacific ex-Japan collaboration for both LU Hong Kong and BNY Mellon Investment Management.

LU Hong Kong’s AI-backed Lucy offers professional wealth management services and asset allocation solutions with a low investment threshold.

Advisory fees will also be waived for a limited period to allow users to experience the new service.

LU Hong Kong’s professional AI investment consultant Lucy will offer portfolio options taking into consideration the investor’s financial profile including their income, financial objectives, risk appetites and investment objectives.

By using LU Hong Kong’s open robo-advisory platform, retail customers will invest in a model portfolio that may include BNY Mellon Investment Management funds and other leading asset managers across equities and fixed income in both developed and emerging markets.

Cai Hua, CEO of LU Hong Kong said,

“The launch of LU Hong Kong’s robo-advisory service is the result of our drive to provide a suitable risk management and investment analysis tool for retail investors that is more robust than individual efforts.

 

AI-backed solutions can enable retail investors to choose an appropriate strategy that will be executed by sophisticated algorithms offering peace of mind.”

Doni Shamsuddin, Head of Asia-Pacific (ex-Japan) at BNY Mellon Investment Management said,

“Since the launch of our OCIO business in Asia Pacific last year, we continue to see strong demand from intermediaries for our capabilities.

 

We are looking forward to working more closely with digital banks, fintech startups, as well as wealth managers and family offices looking for an outsourced investment solution.”

Featured image: Screengrab from Lu Hong Kong