20 April 17 The Business Times by GENEVIEVE CUA
ROBO or digital investing may soon gain traction - at least among wealthy investors.
Homegrown independent fund manager Jachin Capital has secured a capital markets services licence that will enable it to offer its digital investment platform - called iAdvisor - to a wider audience of accredited investors.
There are currently 28 portfolios on iAdvisor, giving distinct thematic exposures, and designed strictly along a quantitative rule-based framework. Investors will get total transparency on holdings and real time updates of portfolio valuations.
Said Jachin founder and chief executive Joyce Woo: "We started our journey in 2014 with the belief that investors should have an efficient way of investing directly in the underlying stocks when they want to put their money into an investment idea. We also believe that investors should be empowered by knowledge."
iAdvisor provides investors with access to not just the individual stock holdings, but also data such as risk indicators, performance metrics and a profit and loss snapshot. Accredited investors are those who have net personal assets of at least S$2 million, or income of at least S$300,000.
iAdvisor was developed in collaboration with Hong Kong-based B2B fintech firm Quantifeed, which provides digital wealth management solutions in the Asia-Pacific.
In a statement, Quantifeed chief executive Alex Ypsilanti said the partnership enables Jachin Capital to deliver wealth management services at an affordable price. "Wealth management is rapidly progressing towards a more digital future and Quantifeed is at the forefront of the movement."
Some examples of the portfolios on the platform are a "China Online US" portfolio, which invests in a basket of 20 US-listed stocks domiciled in China such as Alibaba and Baidu. Investors looking for yield may consider the "SMART Real Estate Singapore" portfolio, which invests in Reits and property stocks, and offers an annual dividend yield of 5 per cent.
There is also the "Temasek Trackers" portfolio investing in around 28 Temasek-owned stocks. Other themes include banking and the "Fourth Industrial Revolution", which includes cybersecurity, robotics and driverless cars.
While the portfolios are managed on a quantitative basis, there are a number of screens to pre-select stocks, such as market capitalisation and liquidity. Stocks are also listed in any of five countries - Singapore, US, Hong Kong, Australia and UK.
Jachin offers two types of mandates - discretionary, where investment decisions are made by the firm; and advisory, where the client is self- directed. A discretionary mandate will need a minimum investment amount of S$5 million. For advisory services, the minimum to invest in a portfolio is S$1,000.