Insights into the business of investing.

AI-led advice is 50bp lower than fee rate charged by non-robo advisors

AI-led advice is 50bp lower than fee rate charged by non-robo advisors

Retail investors are seeing the true value of AI-led investment management services. Customers in search of investment advice and financial planning are benefiting from the reduced costs associated with robo propositions. On average, their all-in fee of 25 bps is 50 bps lower than the rate charged by non-robo incumbents.

Investment managers are racing to offer digital financial services. This week, Blackrock invested €30 million (approx. £26 million) to buy a minority stake in Anglo-German digital investment manager, Scalable Capital. The company, which launched in the UK last summer, has since doubled its assets under management to €200 million (£176 million). Asset managers will need lower fund prices to compete, and this means lower costs for the end client. Investit provides business analytics to drive operational effectiveness. For more on this, please call Emma Haffenden on 020 7933 9900.

Source used –
FT Adviser: Blackrock takes stake in robo-adviser

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72% of institutional ETF investors use bond ETFs adding to pressure on

72% of institutional ETF investors use bond ETFs adding to pressure on

Bond management is more complex than equity management. Investit benchmarking shows that there are more managers and support staff per £1bn of Fixed Income AUM, even though FI fee rates are typically lower.

If ETFs take money away from active managers the already precarious finances of many Fixed Income desks will tip over into losses. Investit’s benchmarking helps firms understand productivity, strategy by strategy. To inform business decisions Investit is creating a CFO’s dashboard to monitor the health of the firm in the light of anonymised competitor data.

To find out more about how benchmarking will help you manage your business or to join Investit’s CFO Forum on 27th June please call Richard Phillipson on 020 7933 9912.

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