Monday, April 11, 2016

Put your robot to work in stock



"In the bag, as in any market (also in those who are not organized) always have to know who to play one quarters, what are the opponents, methods, standards, the rules of the game, ultimately." Not worth last cries, when evil is done. In the bag, as in other markets, have changed the habits, rules and customs. Everything runs at speed of the beam in the Global world, all less oxidized economic machinery and the disastrous unemployment Spider Web. If the older ones were would become the Tomb, in the case of the stock market, to see what is front of you, as an investor, is a machine and not another person (which you buy or sell what you want to sell or buy, that is the secular law of supply and demand). Would also checked what we are already testing long time, both at the institutional level as particular: that it is impossible to compete with machines of last generation. In this new stage, what do we do? There are many customers who ask us this question. Our answer is simple: we do not know nor can you fancy us, racing machines. But this is also changing: there are rebates on robots, because there are robots for everyone, while the most expensive are not within the reach of everyone. Bad idea may not be buying a robot, put it to work in us and Exchange, to play golf or whatever".
Who speaks to me is the President of a major Fund Manager, who sends me one of the articles relating to this topic, just out of the oven.
Seeing is believing! As advocates of the free market, competition benefits consumers, since the struggle to win market share tends to translate into more and better products or services at lower cost. It is what starts to happen in the British market for automated advisory services that provide known as roboasesores or theft-advisors, one of the trends that are going strong in the world of investment and which is already on the radar of European supervisors.
The Italian firm MoneyFarm - who, like many of its competitors, allows you to invest in ETF portfolios selected according to the risk profile of the investor, offering a low-cost alternative to traditional equity managers - just cross the channel with a business proposal that represents a true Declaration of war: will not charge any kind of Commission to investors with assets exceeding one million pounds or less than 10,000 pounds , reports the Financial Times.
Nutmeg, so far leading in such services in United Kingdom - owned, - among others, by Schroders (LON:SDR), recently downgraded its platform of 1% to 0.95% Commission to prepare for the wave of European roboasesores that will try to conquer the British market in the coming months.
Although many analysts agree that the offer of free services or at very low cost could end up becoming standard at European level, others are sceptical. "When it comes to investing and managing money, consumers do not always choose by the newcomer cheaper", explained from the Lang Cat Financial consultant. "We found a high correlation between the cost of pallets and the market share that attract". Jeremy Fawcett, responsible for the D2C (direct-to-consumer) segment on Platforum consultant, adds that the price is not the priority of investors when they decide for one of these services, but that "they give much more importance to become a well known and reliable company".
In this sense, it may that banks and the traditional managers have an advantage over the newer firm, since they already have a solid reputation and a large market share. It is known that banks such as Barclays (LON:BARC), Royal Bank of Scotland (LON:RBS), Lloyds (LON:LLOY) and Santander (MC:san) UK, on one side, and managers such as Robeco, Fidelity Investments and Deutsche Asset & Wealth Management, are developing platforms for automated clients advice. BlackRock (NYSE:BLK), on the other hand, already has capacity in this area after acquiring last August the American platform FutureAdvisor.
             

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