Anyone on Robo-Advisors AUM?


#1

Anyone with latest AUM of Robo-Advisors, at least US,UK, EU, China?


#2

@paolo.sironi The most recent numbers based on latest ADV reports (not just talk)

and a total of over $55billion AUM

In one year, we will be able to see what the B2B penetration accomplishes; by checking on what the clients of Future Advisor report.


#3

I love Fintech Genome: you ask, you get the answer :slight_smile:


#4

Morningstar reviews Vanguard each year. From the recent report (Sep 2016) we understand that their robo offering isnt profitable YET!

"Personal Advsiory Services (PAS) had $36 billion in assets as of March 2016. Vanguard’s scale allows the firm to offer its relatively high-touch service at such an attractive price. But Vanguard has implied that the service is not yet covering its operating expenses.
This points at a tension that exists for Vanguard even though it is mutually owned. Specifically, how should its scale best be used for shareholders’ benefit? As PAS doesn’t yet cover its costs, it is implicitly subsidized by fundholders. "


#5

Though recognizing that any new business model has always a delayed breakeven, what about we use words differently and provoke some different thinking: “race to zero prices” or “market dumping”?
Wikipedia definition: In economics, “dumping” is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production. The purpose of this act is sometimes to increase market share in a foreign market or to drive out competition.


#6

Hi Paolo,

If you’re looking for more in-depth info on UK robo-advisors my research team at Orca Money has just conducted a ‘MoneyFarm Investment Review’ - https://www.orcamoney.com/blog/money-farm-investment-review-2016

May help, may not, but hope you find it of interest!

Thanks

(*some links on my website are affiliate links)


#7

Thanks @paolo.sironi paolo, we will steal that line for our promo! Just ending a trip to Singapore where the whole Robo movement seems a lot more nascent, don’t have the actual numbers but one limiting factor that came up a lot in conversation was the lack of Asian ETFs. Methinks it will get fixed because the economics are compelling - so a speed bump not a road block I guess.


#8

hi @OrcaJord orcajord, i see a good explanation of Money Farm and that was useful but I did not see the market data stats you mentioned, maybe I missed the link?


#9

8Securities initially launched using USD ETF in Hong Kong, but currency exposure is not a straight forward idea.


#10

I would love to get their take on this. @paolo.sironi do you know anybody at 8 Securities who you can invite into this thread (using the Invite button). Or @Efi can you reach out to them? We want more Asian perspective in here.


#11

I was recently on a panel about AI in Investment Management in HK with Charles D’Haussy from 8 Securities. I’ve let him know about this thread. Robo advisory was a big topic of discussion.


#12

Cool @EricForgy @BernardLunn, I was thinking of Charles too :sunglasses:


#13

Hi @paolo.sironi . Yes, Charles said he knows you too with very positive things to say :+1: :slight_smile: He probably won’t make an appearance here right away unfortunately, but we can try again after Wednesday.


#14

More numbers


#15

$150 Billion @paolo.sironi for the US
"Assets in the robo channel have increased to [USD] $150 billion over the last year, a 61 per cent increase during the 12-month period ending March 31".


#16

@Efi @OlgaZh @EricForgy @paolo.sironi Any data on Europe, UK, Switzerland, and Asian countries? It seems to be very US centric phenomenon for now, just starting in Asia, some momentum in Europe. But any numbers on that?


#17

Do you know any up to date list of US, UK and EU Robo-Advisors with their AUM like this one ?
Thanks
Yann


#18

Hi everybody, I just found out about Fintech Genome by searching for exactly that issue.

So I’d like to share a bit.

Regarding continental Europe I found just one Robo giving out data.

Scalable recently announced to have crossed 200 million euro in AUM.