What is the buzzword these days? FinTech – otherwise known as financial technology.
Disrupt Or Be Disrupted
The good old ways of doing business may no longer carry you as far as you think they would. This is especially so in the area of finance where epic changes are happening.
I’m particularly interested in Robo-advisors. The arrival of automated, intelligent and diversified portfolio with low fees is basically a dream-come-true for index investors, and definitely a game-changer. Let’s look at the world as we know it. Robo-advisors have already begun making splashes in other countries.
US – Wealthfront, Betterment
Japan – 8 Now
Korea – Quarterback
UK – Wealth Horizon, Nutmeg
Australia – Stockspot
C’mon, as a financial hub, shouldn’t Singapore be in the list too?!
Not too long ago, I briefly mentioned the emergence of Doctor Wealth and what would have been Singapore’s first Robo-Advisor. I wrote a short post here but it seems like it has died a quiet death.
Today, I shall introduce a new contender – SMARTLY.
SMARTLY
I have been keeping an eye on SMARTLY since I read about it in FinTech news in February 2016. Details are still sketchy but things are looking rather promising based on the information available on the official website of SMARTLY.
For example, we can look forward to an amazingly low monthly amount of $50 to start investing with fees that are just as enticing.
In the website example, it gave a sample account size of $14,000 which charges only 0.7%Â 0.5% – that’s nice.
Average management fees in the industry have been ranging from 2%-3% annually. Smartly’s smarter technology allows us to lower the fees significantly and save you more.
At the moment, it is targeting a July 2016 launch, which is not too far away. I’m keeping my fingers (and toes) crossed this time that something will materialize.
Meanwhile, check out their website and join their waiting list for first-hand information. Want more? Check out their well-produced video.
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Wow!!! I’m really excited about this TI! I had just recommended my relative living in the US to check out Betterment! The whole time I was explaining it, I felt so sore that we don’t have such a solution in Singapore yet.
Looking forward for it!
Hi GMGH,
Likewise, me too 🙂 Can’t wait for the details to be firmed up so that we can have a much better idea of what to expect from SMARTLY.
This is great news for investors in Singapore! Just checked out the website of Smartly and it’s looking good. Your post has gotten me more interested with Robo-Advisors!
Hi TFS,
That makes two of us 🙂 I’ve grown more interested in Robo-advisors recently and it could turn out to be a massive time-saver for portfolio creation and maintenance.
Thank you for the positive feedback. If you have any suggestions or feedback what we could improve please let us know.
What a great surprise for us to read about Smartly, you guys keep us motivated, thank you. We do have to apologise for being a bit conservative with our marketing, publications and for not showing the platform yet but this all is about to change. If anyone has anymore questions/feedback to give please let me know. You can visit our office or we can arrange a call. All the best, Keir
I wonder if the ex-hedge fund “Long-Term Capital Management” which combined of noble-prize winner & PHD genius failed miserably.
What chance do these “Algo” advisors have?
Hi Calvin,
I think that’s two different matters altogether trading vs investing. PHD and noble prize don’t equate to good investors. Besides, LTCM is based on trading strategies if I’m not mistaken.
These algorithm-based robo-advisors I’m referring to invests in ETFs.
Well.. it’s August and nothing’s happened yet…
If I have anything new, you all will be the first to find out!
Suggest you double check the fee calculations….
On the home page they say you need $100k to get a 0.5% fee, a $14k investment is charged a 0.7% fee..
And… they don’t include the expense ration fees ( those management fees embedded in the EFT’s). On average the ETF management fees are between 0.25% and 0.60%…
So… a $14k investment attracts a fee of between 0.95% and 1.3%.,.. still better than an Adviser, but now will less accountability when things stuff up….
Hi Enda J,
Thanks for the comment, I have corrected the percentage. Yes, it is what it is. Will be keeping a close watch on the details at launch before deciding whether I’m taking the plunge.