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Singapore bionic advisor onboards first clients, eyes new markets

Singapore bionic advisor onboards first clients, eyes new markets

Singapore-based independent advisory firm Bento has onboarded its first clients for its bionic adviser, which has already started managing their assets.

It is specifically designed for the high net worth market.

It uses a proprietary robo algorithm to create a tailor-made portfolio for each individual investor.

Mesitis, the company behind Bento, first announced its plans to launch a bionic advisor in April.

For this initiative, Bento has teamed up with Willis Towers Watson (WTW) who will provide forward looking fundamental research on the expected behavior of various asset classes.

'Recent research has found that almost 80% of high net worth individuals in Asia Pacific are open to having a portion of their wealth managed by an automated advisory service,' said Chandrima Das, Bento co-founder and CEO, citing Capgemini figures.

'We are overwhelmed by the client response and the speed of their decision making to convert, given this model has all along been the forte of large institutional investors and is new to this specific segment.

'Therefore we are planning to expand into Hong Kong, the Middle East and certain European markets,' she added.

Exclusive to ETFs

Investments are made exclusively into ETFs that are selected on the basis of high liquidity and low fees with a construct to minimize withholding taxes accrued in other jurisdictions, the firm said.

Bento charges a fee of 0.3% for its service.

The service is able to combine existing customer assets into the optimization routine and portfolio decisions can be taken on a consolidated basis.

The investment engine constructs portfolios for the long term but keeps an eye on short term market dislocations.

Investment decisions are based on strategic allocation inputs with a quarterly dynamic asset allocation overlay.

'Singapore is the ideal location for our bionic advisory service given its position as a wealth management hub and its focus on fintech,' Das said.


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