Already active in Germany where it is adding €1m in assets every week, robo-adviser Scalable Capital has taken on its first clients ahead of a full UK launch.
The digital investment manager invited those that expressed an interest on its website to go through a risk assessment process and join a waiting list, before seeing their funds go live on the platform.
Scalable Capital has already attracted £8.8m in funding and intends to expand in the UK following its planned launch in early July.
The Financial Conduct Authority launched a specialist robo-advice unit in June to help firms enter the robo-advice market without being fully fledged or fully regulated and both the regulator and the government have said they are keen to encourage fintech companies to help plug the advice gap left by RDR with affordable and transparent automated advice.
‘feedback from the market has been overwhelmingly positive’
Scalable Capital’s service rests on a proprietary technology developed in collaboration with academic at the Center for Quantitative Risk Analysis, Stefan Mittnik, and allocates investors a portfolio of exchange traded funds (ETF) based on their appetite for risk.
It then weighs the assets in its portfolios on an ongoing basis, adjusting allocations in response to changing market conditions and projects future levels of investment risk based upon recent market developments.
Scalable Capital charges a 0.75% fee, which includes investment management, account management, custody fees and all trading costs; in addition the client pays the annual management fees associated with each of the ETFs that are held which average 0.25%.
Managing director Adam French said: ‘The UK waiting list has grown rapidly since we received FCA approval in February, and the feedback from the market has been overwhelmingly positive’.
‘We believe that Scalable Capital fills a gap in the wealth management market for clients that want access to a smart investment strategy at low cost, and we’re excited at the growth potential of the UK market.’