The collaboration will make use of Schroders’ investment management skills and Lu’s digital capabilities to co-develop multi-asset products and services, including thematic and sustainable investments, for various types of retail clients in the region.
The service will officially launch in early Q4 2021, a Lu spokesperson told FSA.
“We believe that digital wealth management will play a big role in the future of investing, given the growing demands of investors in the region, with their digital-led lifestyles and access to vast amounts of information at their fingertips,” said Lily Choh, country head, Schroders Singapore, in a statement.
Lu’s wealth management platform in Singapore currently offers a range of investment products (including mutual funds by Schroders), but this strategic partnership focuses on “co-innovating digital wealth solutions for investors in Southeast Asia,” a Schroders spokesperson told FSA.
The firm will bring to the partnership know-how in data analytics, artificial intelligence and cloud technology.
Lu is a subsidiary of retail fintech enterprise Lufax Holding, an associate company of Ping An Insurance of China. Lu’s wealth management platform was set up first in Singapore in 2017, and then extended across the region to Malaysia, Indonesia and also Thailand through a partnership with Kasikornbank.
Lu also launched an app in Hong Kong in August 2020, that has subsequently expanded to include offerings of US-dollar denominated funds.
“We offer investors the opportunity to invest easily with small investment amounts, and with low commitment, and to 24/7 online access to a wide range of high-quality investments,” said the Lu spokesperson.
Customers can invest on Lu’s mobile (Lu Global) app, and the firm requires “very low minimal thresholds”, although all potential users must pass all KYC onboarding criteria, and some funds might have investment thresholds than others.
“Our collaboration with Schroders is two-fold: first, to co-develop innovative tailored digital wealth solutions for our clients; then to work with our local and strategic partners in the region to expand the reach of these solutions,” said Joanna Tang, CEO of Lu International.