The investment advice industry is abuzz about robo-advice. Overseas, especially in America, online-only investment advice is all the rage. Locally SmartRand, an online investment advice platform powered by Galileo Capital, launched recently.
What makes SmartRand different from the usual American robo-advisors is its implementation of a combination of investment advice and investment education via its platform. It does not use an algorithmic auto-picker to determine in which investment products to invest. Rather, its principals created custom-made investment funds according to a specific remit.
The SmartRand system applies its proprietary algorithm to automatically recommend one of these custom-designed investment funds, personalised according to each individual’s requirements.
Working with FirstRand Group’s Ashburton Investments, Galileo Capital’s Theo Vorster and Warren Ingram created three bespoke investment funds that reflect the Galileo Capital investment advice philosophy. The funds had to be straight-forward, cost-efficient and provide appropriate exposure to upside market growth, with managed risk.
The result is a range of special RMB Fusion Funds: RMB Cautious Fusion Fund, RMB Moderate Fusion Fund and RMB Growth Fusion Fund.
An investor that follows the SmartRand system online is taken on a journey during which his or her answers to a range of questions are analysed by the platform, with a specific investment fund recommendation at the end. (Investment accounts are opened automatically.)
The SmartRand robo-advice platform offers investment advice for significantly reduced advice fees. Investment advice usually costs the investor 1% of investment value per annum, while SmartRand charges 0.29%.
The automation of previous manual systems is an increasing hallmark of our modern society. Investment advice is one of many industries that could be transformed over time through the automation of systems and procedures online. (At this time SmartRand offers single-goal investment advice online.)
Disclosure: Twisted Toast Digital created the technology platform for SmartRand and Louis Eksteen is an investor in SmartRand
