Automated investment platform BetaSmartz has hit the Australian market today, providing both institutional and retail investors the ability to build risk-adjusted and goals-based portfolios.
BetaSmartz utilises a range of investment products – most notably highly liquid and low-cost ETFs – to create portfolios that can be used by institutions, adviser groups, SMSFs and individual retail investors.
BetaSmartz founder and chief executive John James said: “Plenty of firms are looking for a solution for their particular client demands and BetaSmartz gives them a smarter, more efficient platform that can automate the production of sophisticated global portfolios for any investor.”
He added: “By applying the techniques that underpin the success of sophisticated global investors to a flexible technology platform, we’re essentially democratising algorithmic investment.”
Mr James said BetaSmartz builds goal-based portfolios based on investment size, time horizon and risk appetite.
“Whether the investor wants global exposure, currency hedging, tax optimisation or socially responsible portfolios, the algorithms adjust to suit their specifications while meeting that same basic desire for investment growth.”
According to Mr James, an additional benefit of automated advice is that it removes the “behavioural bias” of human advisers – “an automated system just does the maths.”
“That’s not to suggest the replacement of advisers or professional investors. Instead, we’re providing the technology to help them scale their businesses and give clients the control and stability they’re looking for.”
He said automated investing is key for advisers looking to grow their client base, and engage with Millennials.
“It’s very well suited to this demographic and those who take the lead in providing it will be well positioned to capture this valuable segment,” he said.
BetaSmartz will initially be offered as a white-label solution, giving advice practices the opportunity to offer the solution under their own brand.