LONDON, UK – ETFmatic today announced the authorisation of its robo advisory financial service. The application uses advanced technology to customize investment portfolios based on client demands, giving a new generation of professionals a private investment experience, with transparent, low fees.
ETFmatic designs a unique portfolio based on the user’s risk preference and goal duration, and takes the human bias and manual efforts out of long term investments with a Discretionary Management solution. Clients create specific goals with the dashboard, such as saving for a house deposit, retirement funds, or a future education nest for children. Users can also define target dates, desired savings and monthly contributions, and are provided updated investment opportunities to adapt their portfolios to maximize their outcomes as the target day approaches.
The robo advisory service continually monitors and updates these goals so users can easily see how much money they have saved and check if their investment goals are on track with global market trends. They can also dig into the more detailed analytics if they choose, all through the easy-to-navigate web and mobile applications.
What’s more, the online portfolio management model requires minimal human intervention, meaning lower operational costs and service fees.
“ETFmatic’s robo advisors give unbiased advice through uniquely configured customized portfolios, with lower costs, minimal efforts and a greater potential return,” says CEO and Co-Founder Luis Rivera, former advisor to multi-national and private equity firms “We all deserve a simple and cost effective way to put our savings to work. Customers are better off with unique portfolios that use ETFs as building blocks than with expensive fund products managed by financial institutions.”
The previously insular world of financial advice is now being made available to a wide range of clients, many of whom have held a skeptical outlook on traditional options after witnessing the downfall of financial institutions during the 2008 financial crisis.
It has been predicted that by 2020 robo advisors will manage $2 trillion in the U.S., according to management consulting firm A.T. Kearney, a tenfold increase in 5 years. This growth is driven by the attractiveness of this solution for today’s Millennials, who may not have enough wealth to meet the high minimum for traditional investment firms and are looking for easy to monitor alternatives.
With this shift in investment behaviors, London’s tech scene is set to take on The City and Wall Street through providing a service that has, until very recently, only been available to high net-worth individuals.
“ETFmatic gives today’s professionals the chance to invest in a highly tailored portfolio. Our mobile offering gives intelligent forecasts and allows customers to easily manage their assets with any mobile device or laptop,” adds Riviera.
The simulation accounts have been available since late 2014 and the first live accounts will be by invitation in February 2016.
ETFmatic is led by a team of entrepreneurs who believe we all deserve a simple and cost effective way to put our savings to work. They provide diversified investments in regularly rebalanced portfolios of low cost index funds.
The advisory board includes executives with extensive experience in the financial industry, from private banking and fund management, professors from the most prestigious business schools, and experts in online distribution.
ETFmatic’s investment opportunity has been backed by top tier academics, such as Bernard Dumas (INSEAD), Raghu Rau (Cambridge Judge) and Drago Indjic (Former London Business School). Early investors include top executives from Towry Group, JP Morgan, Credit Suisse and Nomura.