Saxo Bank, a Copenhagen-based investment bank, has teamed up with BlackRock, the world’s largest asset manager, to provide a large-scale, online portfolio management service for retail investors. The move will combine the bank’s online portfolio management tool (informally known as a ‘robo-advisor’) SaxoSelect and BlackRock’s range of iShares exchange-traded funds as the building blocks for portfolio construction.
SaxoSelect, the newly launched robo-advisor from Saxo Bank and BlackRock will provide one of three ETF-based investment portfolios depending on the objectives and risk tolerance of the investor.
The online portfolio management space has seen strong levels of growth recently as younger, more technologically-savvy investors increase their levels of investable wealth. Companies launching such online services are increasingly developing their financial technology to keep pace with these emerging trends to provide real-time accessibility and greater investor interaction, while keeping costs down. ETFs have subsequently become a popular vehicle choice, due to their low cost and transparent characteristics.
Michael Gruener, Co-Head of iShares EMEA Sales at BlackRock commented: “It is exciting to see continued demand for integrated ETF-based portfolios that provide investors with a low cost, transparent, and flexible way to invest. The growth of the European ETF market shows no sign of abating, but it is paramount that these tools are delivered to investors in a way that complements their digital habits. We remain focused on ensuring service providers like Saxo have the relevant building blocks at their fingertips to construct diversified investment solutions for investors.”
Kim Fournais, Saxo Bank’s Chief Executive Officer, added: “This initiative is underpinned by the belief that technology will profoundly change the asset management industry. Access to technology, demand for transparency, and focus on performance will change the way individuals manage their savings. By combining our leadership in trading technology with BlackRock’s investment tools, we are shaping the future of how people invest.”
The Saxo platform provides three pre-selected strategies for long-term investors based on varying risk attitudes – defensive, moderate, or aggressive. The portfolios are managed by Saxo Bank based on research provided by BlackRock. They are currently available in euro- or pound-denomination and carry an all inclusive service fee at the portfolio level of 0.90% per annum. The service is due to be rolled out in Denmark, Finland, Italy, Norway, the Netherlands and Sweden by the end of Q1 2016.