Robo-advisory service for UOBAM corporate clients

UOB Asset Management (UOBAM) is starting an initiative to enable corporate investors to set up customised digital investment portfolios to meet specific investment goals.

The initiative is being offered through the enhanced UOBAM Invest, a digital advisory service that is now in its second phase. Corporate investors can go online at UOBAM Invest and use the Digital Adviser planner to invest in a customised portfolio based on their goals, investment horizon and risk profile.

Previously, corporate investors were able to choose from only static model portfolio proposals, meaning that two people of the same risk appetite would probably get the same suggestions.

They can now key in their specific investment goals, for instance, to maximise returns or to plan for capital expenditure, the level of goal priority, planned capital contributions and investment horizon.

They start by completing a questionnaire to determine their company's risk profile. They will then get a customised investment proposal created from a range of UOBAM-managed products and global exchange-traded funds spanning equities, high-yield and investment-grade bonds.

The portfolio will be generated by an algorithm which considers the investor's risk profile, and plausible portfolio results based on various economic and market scenarios.

If the investor adjusts the planned capital contributions, investment goals or risk appetite, the portfolio planner will recalculate the probability of meeting the desired outcomes. It will also fine-tune the proposed portfolio by setting limits on the allocation to various asset classes. An alert will pop up if the potential volatility of the recalibrated portfolio falls outside the company's risk profile.

After confirming the desired settings for the portfolio, corporate investors can then leave it to UOBAM to monitor the investments and to rebalance the portfolio quarterly and whenever funds are injected or withdrawn. They can log into UOBAM Invest any time to monitor or make changes to their investments.

Corporate investors who prefer an independent approach can build and manage their own investment portfolio of UOBAM-managed funds using the new "self-serve" feature, Fund Direct. This lets them buy or sell holdings when required.

Access to UOBAM Invest has now been expanded from UOB commercial banking clients to include all corporate investors. The minimum sum to invest through Digital Adviser is $500,000, and $500,000 for Fund Direct for Singapore dollar accounts, or US$500,000 for US dollar accounts. UOBAM said the advisory fee of 1 per cent a year for the use of Digital Adviser will be waived until the end of this year. There is also a 0.3 per cent a year platform charge for Digital Adviser and Fund Direct.

A version of this article appeared in the print edition of The Straits Times on October 31, 2018, with the headline 'Robo-advisory service for UOBAM corporate clients'. Print Edition | Subscribe