Crossbridge Capital, an independent asset manager (IAM), has launched a digital advisory platform.
Called Connect Prime, the platform will host products and services that are typically the preserve of private banking clients, with a minimum account size of SGD 500,000 ($375,231).
The new platform is an extension of the IAM’s robo-advisor, Connect, which services high net worth and ultra-high net worth customers, and will be available to accredited investors.
Charlie O’Flaherty, partner and head of digital strategy & distribution at Crossbridge Capital said Prime will be open architecture and digitally-enabled, allowing clients to log in and see their accounts real-time.
‘We won’t be doing ultra-sophisticated products like over-the-counter options and swaps but for the most part, they’ll have access to capital markets products, structured products, packaged products, funds – anything that a normal high net worth account would have,’ he told Citywire Asia.
Additionally, Prime investors will not have access to portfolio leverage options.
Instead of using banks, Crossbridge will directly use BNY Mellon Pershing for more affordable custodian services for Prime users, noted the Singapore-based executive.
As a result, clients will pay a service fee of 75 basis points, approximately half of what is charged by private banks and priority banks. Crossbridge said that the fee structure will be transparent, with no hidden charges.
The service has been launched for those unable to meet minimum thresholds at private banks, which are gradually rising to $5 million from $1 million amid falling fee margins and rising regulatory costs.
The London-headquartered IAM also announced changes to its original Connect platform in a statement on Monday, introducing an artificial intelligence-based learning model to recommend goals and investment timelines to clients.
One of the new functions will track life goals visually on a timeline giving investors an overview of the status and health of their financial plan.
Connect offers actively-managed, goals-based portfolios to the $200 million assets under management through partnerships with Julius Baer and Morningstar.
The platform was launched in November 2016, especially targeting US expatriate investors based in Singapore who were being rejected by private banks due to burdensome tax reporting requirements.