The robo-advisory function, Letou, is now available in Huatai International’s wealth management mobile application, Zhangle Global, Aqumon and Huatai told a media briefing this week.
Letou uses Aqumon’s robo-advisory technology and big data analysis to select funds to form up to 10 investment portfolios with different risk tolerance levels for investors to choose from.
“The new robo-advisory as a service model allows us to collaborate with regional financial institutions with greater efficiency and rapidly service retail investors at scale,” said Kelvin Lei, CEO & co-founder of Aqumon.
The robo-advisor selects funds from global fund houses such as Blackrock, Morgan Stanley, Efunds, and Franklin.
The system then weighs each of the funds in the pool with over 200 factors, including macroeconomy, industry operation, fund investment, historical performance, fund manager, and fund house.
Letou currently offers 10 investment portfolios, each with eight to 11 funds covering different types of assets.
The multi-asset portfolios invest in the US and other countries and regions across Asia and Europe, and popular investment themes such as healthcare, technology and finance.
Risk profiles
To use the service, investors first have to complete a risk tolerance questionnaire with about 20 questions, then the robo-advisor will assign a risk acceptance level to each investor.
The system then automatically recommendx portfolios based on the risk appetite.
For example, the most risk averse portfolio invests about 6% of its assets in stocks, with the rest of its AUM in bonds, while the most aggressive portfolio allocates 90% of the AUM in the equity market.
The robo-advisor then monitors the holdings automatically, providing recommendations to adjust positions when they deviate significantly from investment objectives, and review positions on a quarterly basis.
Letou has a minimum investment amount of $500, with no investment advisory fee or fund redemption fee.
Expansion plans
In the future, Huatai hopes to expand the service to more Chinese communities, such as in Singapore and the South East Asia, the firm said.
Powered by Huatai, Zhangle Global is a one-stop wealth management platform for the Chinese community around the world to trade stocks, funds, insurance.
The application made its debut in 2020 and has attracted around one million downloads, according to Huatai International.
Hong Kong-based robo advisory firm Magnum Research launched Aqumon in 2018 for retail investors.
It is one of the first robo-advisors in Hong Kong to be fully licensed by the Securities and Futures Commission of Hong Kong, the US Securities and Exchange Commission, and the Asset Management Association of China.
