-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanhan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Fun
-
Budding Writers
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Business_Markets
-
Shopping
-
Travel
-
Restaurants
-
Hotels
-
Investment
-
Yearend Review
-
In depth
-
Leisure Highlights
-
Sports
-
World
-
QINGDAO TODAY
-
Entertainment
-
Business
-
Markets
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> Business
Diversifying robo-adviser tops competition
    2017-July-17  08:53    Shenzhen Daily

Liu Minxia

mllmx@msn.com

PROPER global asset allocation has enabled an app-based wealth management service to bring gains to 99.6 percent of its users in the first year of its operation, a span of time when global uncertainties had led to dramatic market dips.

The performance of Toumi RA, launched by fintech firm CreditEase in May 2016, was in stark contrast to the fact that only roughly 10 percent of A-share investors made money in the past 12 months, Frank Wang, managing director of CreditEase and the chief designer of Toumi RA, told a press conference Friday.

Thanks to its cross-regional and multi-class asset allocation strategy, Toumi RA has brought investment returns of between 2.55 to 11.48 percent to its investors in its first year of existence, Wang said.

Brushing off the impact of Brexit in June 2016, Toumi RA saw even its highest-risk portfolio beat global indexes including S&P (-3.59 percent), NASDAQ (-4.12 percent), Eruostoxx (-8.50 percent), and Nikkei (-7.92 percent) with a smaller slide (-2.73 percent), Wang said.

As a result, the robo-adviser, which was ranked No. 1 among all Chinese robo-advisers in terms of performance in May, is gaining investors even faster than leading U.S. robo-advisers including Wealthfront and Betterment, according to Wang. Assets under management grew at a monthly average of 33.6 percent for Toumi RA in the first year of its operation, in comparison to 6 percent for Betterment and 3 percent for Wealthfront during the same period.

More than half of Toumi RA users increased their investment during the period and the average increase was 2.68 times their initial investment amount.

Compared to P2P (peer-to-peer) investors of CreditEase, Toumi RA investors are more mature, the company found. Nearly 59 percent of Toumi RA users are aged between 35 and 50 years old, while 78.5 percent of P2P investors are aged below 35 years old.

Average investment of each user at Toumi RA is 3.5 times that of a P2P investor. Toumi RA users hold investable assets of 500,000 yuan (US$73,000) to 3 million yuan, while P2P investors’ investable assets are between 200,000 and 500,000 yuan. Nearly 88 percent of Toumi RA users had experience investing in stocks or funds, while the proportion for P2P users was only 34.7 percent.

Seeking opportunities at a market that has the potential to become the world’s largest for robo-advising, an increasing number of Chinese firms have launched robo-advising services since early last year, but few had satisfactory performances.

“The biggest gap between Chinese and U.S. robo-advising is not in the technology, but the absence of diversification investment strategies in China,” said Tang Ning, founder and CEO of CreditEase.

Initially focusing on U.S. dollar assets, Toumi RA has diversified into a new set of yuan-denominated portfolios, which include nine actively-managed mutual funds Wang selected from more than 3,000 yuan-denominated funds.

The core target of the robo-advising industry, which is expected to manage up to 10 percent of Chinese investors’ 200-trillion-yuan investable assets by 2020, is the middle class, which, according to estimates of The Economist, totaled 225 million in China.

 

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn