New Robo-Adviser to Collect Management Fees Only When it Beats the Market

Post on October 05, 2018

Instead of a basket of ETFs, SGIM’s algorithm will actively pick individual securities

A new robo-advice startup expects to attract clients despite the increasingly crowded digital advice market by offering a unique fee structure and investment strategy.

Sean McDermott, Corporate Insight‘s director of brokerage research, agreed the approach is novel. However, he said the digital advice market might be too mature for a new player to break in.

“While SGIM’s unique approach may attract a segment of investors who have thus far spurned the digital advice model, it’s difficult to imagine them siphoning off existing digital adviser customers from competitors,” Mr. McDermott said.

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