More investors are now using Grab Financial Group (GFG)’s retail wealth solution, according to a statement from the firm.
Launched in the middle of last year, “AutoInvest” is a micro-investment solution that enables users to invest as they spend with their everyday Grab transactions. Users can choose how much they want to invest per Grab transaction, from as low as S$1 ($0.73).
GFG said that AutoInvest’s monthly users nearly doubled in December last from the previous month, but declined to provide exact figures.
AutoInvest makes use of funds managed by Fullerton Fund Management and UOB Asset Management.
Around 53% of AutoInvest’s portfolio is invested in two money market funds, while the remaining assets are invested in two short term interest funds, according to the firm’s website.
The four funds’ target allocation and returns
|Fund||Fund Manager||Target Allocation||2020 Return|
|Fullerton SGD Fund||Fullerton FM||28%||0.78%|
|United SGD Money Market Fund||UOB AM||25%||0.67%|
|Short Term Interest Rate Fund||Fullerton FM||15%||3.23%|
|United SGD Fund||UOB AM||32%||3.05%|
At the time of its launch, the firm said that the portfolio’s expected return was 1.8% per annum. As of the end of December, the portfolio achieved a total return of 0.96% net of fees for investors, which equates to an annualised return of 1.91%, the website said.
However, it noted that in line with the lower interest rate environment globally, the firm is working on a downward revision of the portfolio return expectations.
$300 MILLION FUNDING
Separately, the firm said that it has raised at least $300m in its Series A funding round, led by Seoul-based Hanwha Asset Management, according to the statement. Other investors in the round include K3 Ventures, GGV Capital, Arbor Ventures and Flourish Ventures.
The firm will use the new funds to continue helping more individuals and small and medium-sized enterprises access the benefits of financial services. It will do so by further investing in talent, and expanding its offerings in Southeast Asia with more affordable, convenient and transparent financial solutions, the firm said.
GFG is involved in other financial services. For example, it has distributed at least 70 million insurance policies since it launched its consumer insurance business in April 2019, according to the statement. The Grab-Singtel consortium was also recently selected by the Monetary Authority of Singapore to set up a full digital bank, it added.
“We are at an inflection point in Southeast Asia, as the pandemic has accelerated the need for digital financial services that help us grow and protect our incomes,” Reuben Lai, senior managing director at GFG said in the statement.