Quantifeed has partnered with Mitsubishi UFJ Morgan Stanley Securities (MUMSS) to launch a smartphone-based discretionary investment service to retail investors in Japan, according to a statement from the digital wealth provider.
The app, Mirai Value, will be powered by Quantifeed’s robo-technology and will enable retail customers of MUFG Bank to invest in globally diversified portfolios.
The portfolios will be based on investors’ risk profile and are managed by MUMSS’s investment advisory team. The portfolios invest in equity and bond funds, with domestic and international exposure, according to the statement.
Currently, the app offers five portfolios of funds investing in stocks, bonds and real estate investment trusts (Reits). The minimum investment is JPY 100,000 ($917.75) and users can set up a regular savings plan that automatically takes JPY 10,000 out of their savings account per month and puts it into their portfolio.
While customers can top-up or withdraw funds at any time using their smartphones, the app also enables customers to fund their portfolios from ATM machines, facilitating offline-to-online transaction, given the continued importance of offline banking in the Japanese market, the statement noted.
“Making the Japanese public shift their savings into investments has historically been a difficult task, despite government and industry-wide efforts,” Naoaki Fujitani, deputy general manager for structured products division at MUMSS, said in the statement.
“Japanese customers are becoming more anxcious about their retirement amid a falling birthrate, a rapidly aging population and a constantly low-interest rate, low yield environment. Mirae Value responds to those who want to resolve this issue but are not sure where to start,” he added.
FURTHER MARKET EXPANSION
Quantifieed entered the Japanese market as part of the Tokyo Metropolitan Government’s “Global Financial City: Tokyo’s Vision” scheme in 2019. The scheme aims to attract financial companies from overseas with the goal of cultivating Tokyo’s asset management and fintech industries.
Following the rollout of Mirae Value, Quantifeed is set for further expansion in Japan, according to the statement. The firm will continue to collaborate closely with Franklin Templeton, one of its investors, to provide more wealthtech propositions to financial institutions in Japan, it added.
“We are delighted to be partnering with [Quantifeed] in Japan,” James Verner, vice president for digital strategy and wealth management at Franklin Templeton, said in the statement.
“Core to our distribution strategy is leveraging wealth technology to help our clients scale their wealth businesses,” he added.
Quantifeed has partnered with several other firms to roll out robo-advisory services. They include DBS’s “digiPortfolio” in Singapore, Cathay United Bank’s “CathayRobo” in Taiwan, China Citic Bank International’s Robo 360 and Everbright Sun Hung Kai’s “EBSHK Direct AI-Portfolio Investing” in Hong Kong and Kiatnakin Phatra Securities’s “Phatra Mandate Service” in Thailand.
Besides its headquarters in Hong Kong, Quantifeed has a presence in Singapore, Australia, Japan and India.