43
DIY Investor Magazine
/
September 2016
WHAT SHOULD AN INVESTOR LOOK FOR WHEN
SELECTING A ROBO-ADVISER?
I think this goes to my point on the ‘packaging’ and
the ‘product’. Investors are starting to demand more
from robo-advisers, because they understand that
technology can not only improve the customer service
and user experience aspects, but also fundamentally
change the investment processes that are available to
retail investors. So my advice would be to look carefully
at each provider’s investment strategy and make sure
they can maintain the level of risk appropriate for your
future.
DOES THE ADVENT OF AUTOMATED ADVICE
SPELL THE END FOR TRADITIONAL FINANCIAL
ADVISERS, OR INDEED, THREATEN ONLINE
BROKING PLATFORMS?
No, I believe it is a chance for partnership and
collaboration. All in all, I believe it will lead to more
competition which will in the end create better services
and products for clients.
HOW DOES THE NEW BREED OF PLATFORMS
DEAL WITH CHANGES IN AN INVESTOR’S
PERSONAL CIRCUMSTANCES OR MARKET
SENTIMENT – E.G. THE UNCERTAINTY POST JUNE
23RD.
Our technology-based investment strategy is
specifically beneficial in times like this. It analyses
market data using cloud computing and thus assesses
the risk situation of various asset classes.
The system constantly monitors each client’s portfolio
and uses these risk projections to know if and when to
adjust the portfolio’s allocation to stay in line with the
client’s risk category.
The EU referendum was an important stress test for
us – responding to increasing market volatility ahead
of the Brexit decision, our dynamic risk management
approach had already shifted our clients’ portfolios
into a more conservative mix of investments in recent
months, shielding them from the investment pitfalls of
the day.
DOES THE ADVENT OF AUTOMATED ADVICE
HERALD A NEW ERA FOR SAVINGS AND
INVESTMENT AND WHAT WILL BE THE MOST
SIGNIFICANT CHANGE?
With the advent of digital investment management,
retail investors will no longer carry the burden of
unnecessary costs and hidden fees, which are
prevalent in the industry today.
But technology won’t just make investment
management cheaper: it will allow advisers to provide a
better service for retail investors.
Thanks to cloud computing, it is now possible to offer
real portfolio personalisation to investors. Until now, this
personalisation had only been available to investors
with enough assets to afford a private wealth manager.
Those without that access have had to content
themselves with ‘model portfolios’.
The new wave of robo-advisers can offer retail investors
access to uniquely optimal portfolios specific to their
circumstances where every trade is made only if it
makes sense for them.
