Advertisement

The rich return to robo-advisers

Total US assets looked after by “robo-advisers” – online sites that give tailored financial advice to investors – hit $19bn in December 2014.

Total US assets looked after by "robo-advisers" online sites that give tailored financial advice to investors hit $19bn in December 2014, according to consulting firm Corporate Insight. Though robo advice is not yet as common in the UK, it is becoming an increasingly popular way of avoiding the high costs of active money management. The majority of products are aimed at customers with smaller investment pots, but one of the more recent additions to the market, Netwealth, is specifically targeting higher-net-worth clients.

Advertisement - Article continues below

Netwealth was launched in 2015 and is now backed by Boris Johnson's former economic adviser, Dr Gerard Lyons. Founders Charlotte Ransom and Thomas Salter developed the product after finding that "a core financial consumer base was either underinvested or unhappily invested, due to concerns over cost, transparency, performance and quality within discretionary wealth management". The product has a £50,000 minimum investment and will aim to attract clients from private banks such as Coutts and Brewin Dolphin.

Netwealth charges a tiered 0.65% fee, which is cut to 0.5% for investments over £250,000 and 0.35% for investments over £500,000. The latter fee equates to around one third of the cost of the average actively managed portfolio. Fee amounts cover investment management, execution charges, tax reporting, transaction fees and regulator performance reporting. Although Lyons will give macroeconomic advice, the portfolios are put together using an algorithm that takes people's financial goals and saving habits into account.

Advertisement
Advertisement

Recommended

Four investment trusts that should profit from the EU's Great Leap Forward
Investment trusts

Four investment trusts that should profit from the EU's Great Leap Forward

Debt issuance by Brussels makes the euro more stable and bodes well for risky assets. These four investment trusts should profit.
10 Aug 2020
ESG investing provides shelter in the storm
Funds

ESG investing provides shelter in the storm

Funds focusing on environmental, social and governance (ESG) issues proved resilient during the market slump.
23 Jun 2020
Asian income stocks: where to find the continent's top money machines
Share tips

Asian income stocks: where to find the continent's top money machines

International dividends shouldn’t only mean companies in the US or Europe – the Far East has plenty of big payouts to offer. Cris Sholto Heaton looks …
22 Jun 2020
Could an ill wind hit renewable energy funds?
Renewables

Could an ill wind hit renewable energy funds?

Infrastructure is a good investment – but watch out for hidden risks, particularly in renewable energy.
9 Jun 2020

Most Popular

Eagle Lightweight GT: the reincarnation of the E-type Jag
Toys and gadgets

Eagle Lightweight GT: the reincarnation of the E-type Jag

Jaguar’s classic E-type sports car has been reinvented for the modern age. The result – the Eagle Lightweight GT – is a thing of beauty.
7 Aug 2020
Should you take advantage of the UK’s new breed of domestic holidaymakers?
Buy to let

Should you take advantage of the UK’s new breed of domestic holidaymakers?

With Britons choosing to holiday in the UK this year, the owners of the country’s holiday cottages are cleaning up. Should you buy in, too? Merryn? So…
10 Aug 2020
The pound has been trending higher against the dollar – will it last?
Sponsored

The pound has been trending higher against the dollar – will it last?

Sterling has been rising against the dollar. Dominic Frisby sets his trend lines in the charts to see where the pound is heading next.
10 Aug 2020