Singapore: WeInvest’s robo-adviser executes first trade ever in Southeast Asia
A SINGAPOREAN investment company has just executed the first trade in Southeast Asia using a robo-adviser platform, by buying a position in the diversified risk All Weather Portfolio.
Lighthouse Canton, an investment manager with US$400 million worth of assets under management (AUM), partnered with WeInvest to carry out the trade. An All Weather Porfolio is based on the idea that the future is impossible to predict, and therefore allocates a percentage of the portfolio’s risk to a potential economic scenario so that the risk is spread out.
The WeInvest robo-adviser provides banks and wealth and asset managers with an end-to-end investment platform that minimizes capital and operational expenditure. Robo-advisers are becoming increasingly common in the investment world thanks to its ability to give automated, algorithm-based portfolio management advice.
This makes robo-advisers a favorable low-cost method of online wealth management, perfect for anyone looking for safe, passive investments.
WeInvest CEO Bhaskar Prabhakara said: “Our Platform-as-a-Service is a fully supported end-to-end model; our clients can launch and execute with minimal outlay. The inbuilt flexibility allows for a high degree of customization with the shortest time to market.”
Financial research firm Cerulli Associates puts total assets on digital advice platforms at an estimated US$71.5 billion at the end of the third quarter of 2016, reports the Wall Street Journal.
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Research from Business Insider Intelligence shows that robo-advisory services will be mostly used be pre-existing investors, and predicts that robo-advisers will be managing 10 percent of global AUM by 2020.
Lighthouse Canton CEO Shilpi Chowdhary said: “This is a significant day for the investment management community as we turn the page on robo-advisory in Southeast Asia.”