New Robo Offers Hedge Fund Strategies

Note from the Publisher:  While we cover a lot of fintech news, it’s not SUPER often that we see something that stops us in our tracks.  Today we did, and it’s a big wake up call for the hedge fund industry at large.  We all know that there is signficiant fee compression going on for both wealth managers and hedge fund managers, but now there is a new Singapore-based investment advisory which is offering a hedge fund-type offering through its roboadvisor for accredited investors.  The catch is rather than the usual 2/20, or now more frequent 1/10, fee structure, the fees are .4%, with Pershing as custodian.  All I can say is UH OH.  This may be in Singapore at present, but how long before a similar offering may come to the US and elsewhere?

“Lighthouse Canton, an investment manager with USD400m AUM, now offer accredited investors access to hedge fund strategies without hedge fund costs, via their App Store robo-advisor. In partnership with WeInvest, a Platform-as-a-Service provider, it grants ease of access across a fully supported range of strategies, asset classes and currencies. Lighthouse Canton offer their clients access to these strategies starting from 0.4 percent versus the traditional hedge fund 2-and-20 fee structure. Executed & custodized with Pershing, a BNY Mellon company, investors will have the added security of one of the world’s largest custodian.

Research from advisory PwC found that 62 percent of high-net-worth individuals in Asia-Pacific believe it is important for their financial advisor or wealth manager to have a strong digital offering. ‘Lighthouse Canton operates at the cutting edge of technology. We believe our partnership with WeInvest will help us to service our clients better, with a robust and seamless offering,’ according to Lighthouse Canton CEO, Shilpi Chowdhary.

……..’Our primary goal remains to offer world class investment solutions to meet the specific financial needs of our clients’ from CIO, Rajesh Sundaresan. ‘We will continue to provide our clients with transparent and unbiased financial advisory services, using the most advanced solutions in the market'”. 

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