US asset manager Legg Mason has invested $4 million in Quantifeed, a business-to-business robo advisor headquartered in Hong Kong.
Led by Cathay Financial Holdings, the investment was raised during Quantifeed’s Series B round of funding, and garnered $10 million in total for the automated investment platform.
Lennie Lim, head of Asia distribution for the $747 billion global asset manager said the investment reflects Legg Mason’s intent to back its global intermediary clients in the digital transformation of their businesses.
The funds will be used to support Quantifeed’s Singapore expansion, where it currently has three employees following a launch in November, as well as accelerate the firm’s research and development in behavioural analytics and data science.
Starting out with a $3.5 million funding from venture capitalists, the digital advisory firm founded by former investment banking executives Alex Ypsilanti and Ross Milward has raised $18 million till date.
Targeting mass affluent investors, it provides white-labelled robo advisory services to nine financial institutions, including the private and premier banking divisions of five banks in Asia.
The platform conducts goals-based portfolio management and provides customised portfolios by utilising existing products on a private bank’s funds platform in addition to exchange-traded funds and other listed securities.
Other institutional investors have made similar investments in recent months.
In April, Nomura Asset Management announced that it was investing $25 million in 8 Securities, a Japanese fintech company, as well as its Hong Kong-headquartered parent, 8 Limited.
Prior to that, Singapore-based robo-advisor Stashaway raised $5.3 million in Series A funding from family offices in the country.