8I Holdings announces a strategic investment in AutoWealth, a licensed regional robo-advisor that automates investing and provides comprehensive investment portfolio rebalancing and management for retail investors.

The investment in AutoWealth is part of 8IH’s strategy to increase its product offerings in the Company’s ecosystem and complement WealthPark, the Smart Investing Technology and Wealth Management Platform that 8Bit Global’s Pte Ltd, a subsidiary of 8IH, is developing.

Under the agreement, 8IH will invest S$1 million into AutoWealth in consideration for a strategic minority equity stake in AutoWealth. The fresh capital will be used to strengthen its branding and marketing to grow its assets under management.

AutoWealth, a licensed digital financial advisor by Monetary Authority of Singapore and a portfolio company of NUS Enterprise, uses a proprietary algorithm to provide financial advice and investment management online. It has created an automated process that cuts down on the processing time and middleman costs while still giving customers customised recommendations on the ideal composition of their investment assets, the initial sum to invest and the periodic investment instalments.

Possessing a Financial Advisers License (FA100064-1), investors start their investing journey by taking a three-minute questionnaire, which feeds into the robo-advisory system. AutoWealth’s proprietary algorithm analyses the investors’ risk profile and recommends a customised investment portfolio for each individual. All the investors’ investments are held in legal segregated accounts under their names through Saxo Capital Markets, its partner custodian. This ensures that investors have legal claims on their investments in all circumstances. AutoWealth was officially launched in August 2017 following a year of intensive beta testing.

commented Mr Ken Chee, Executive Chairman of 8IH,

“I believe robo advisors will start to play a bigger role in the asset management business in the very near future in Asia as shown in the emerging trends in US and Europe. We are proud to be a strategic shareholder and partner of AutoWealth. AutoWealth uses a proprietary investment strategy and auto rebalancing technology to simplify passive investing.

 

I see this as a complementary product for our investors in Value Investing College’s community to maintain a balanced portfolio; and for the passive investors who prefer to maintain a passive portfolio. In addition, this strategic investment will add further depth and breadth to the smart AI investing tool and wealth management platform that we are actively building”

Featured image edited based on photo by nattanan23 via Pixabay