Ed. Note: This article first appeared in Enterprise Innovation Marvelstone Capital, a data-driven asset management company, will launch the first licensed robo-advisor platform for family offices in Asia in Q3 this year.
The platform is being developed in partnership with Singapore-based Smartfolios, which focuses on building advisory and thematic investment technologies.
The robo advisor product is set to be available on desktop and mobile for Marvelstone Capital’s clients.
Unlike traditional financial advisors, robo-advisors aim to provide financial advice or portfolio management online with minimal human intervention.
They provide digital financial advice based on mathematical rules and algorithms.
Marvelstone Capital aims to leverage technology and innovation to grow the wealth of new generations of family offices in Asia. Marvelstone Capital is aiming to bring a quantitative analysis-driven approach to managing family offices’ wealth more dynamically, as well as onboarding new investment strategies and opportunities that they may be more open to given their longer-term horizons.
Family offices in Singapore recorded an average return of 1.2 per cent in 2015, according to the Global Family Office Report by Campden Wealth Research and UBS.
The same year, the average value of assets under management (AUM) at Singapore family offices was US$753 million.
Real estate, particularly branded assets like hotels, has long been the core investment of wealthy Asian families.
Increasingly, however, families are branching out into new sectors including technology, energy, and healthcare to diversify their portfolios.
“We’re delighted to share our plans and roadmap for Marvelstone Capital for the first time today. It’s an ambitious project and offering that combines our passion and expertise for the world of finance and technology. Asian family offices continue to look for alternative investment strategies to diversify their portfolios and excite a rising tech-savvy generation. We’re extremely pleased to be on the cusp of delivering the first family office robo advisor platform anywhere in Asia,” said Joe Seunghyun Cho, CEO, Marvelstone Capital.
“Demand for innovative solutions is growing as more investors become familiar with new alternatives. This has been a key driver for our product development activities. By joining forces with Marvelstone Capital, we will bring to their clients digital investment opportunities placed at the cross road of active and passive investing. This next step in Smartfolios’ journey aligns with our vision to empower financial institutions to turn disruption into avenues of opportunity, stay ahead of the curve, and accelerate growth,” said Julien Le Noble, Co-founder, Smartfolios.
Marvelstone Capital is a licensed registered fund management company, regulated by the Monetary Authority of Singapore.