CGS-CIMB Securities has launched eWealth, a robo-advisory platform that taps on the company’s strong research capabilities to provide goal-based and thematic portfolios to help investors meet their need for investment diversification through pairing portfolios with investors’ risk profiles and investment objectives.
Ms Carol Fong, Group Chief Executive Officer of CGS-CIMB Securities (Singapore), commented:
“CGS-CIMB eWealth is a good complement to our existing brokerage business which helps clients to grow their wealth with mid-to-long term strategies. Leveraging our strong research capabilities, we will provide clients with a wide range of portfolio selections, from conservative options for those with a low-risk appetite to aggressive ones for investors who possess a higher risk tolerance and want to achieve above-market returns.”
The platform uses algorithms to offer guided investment journeys with regular rebalancing of investment portfolios, which helps clients stay on track with their investment objectives. Digital savvy investors are the target audience for the eWealth platform, which allows clients to start investing in 1 to 2 days.
eWealth’s strategies include goal-based investing – focusing on providing portfolios that seek to achieve market returns with an initial investment starting from S$3,500 – and thematic investing, which combines quantitative strategies with factor-based investing in constructing baskets of stocks to capitalize on the latest market trends, seeks to achieve above-market returns. An example of a thematic portfolio is “US Refining”, which is made out of companies that are likely beneficiaries of rising oil prices, and the “S-REITs” portfolio, which provides a cheaper way of investing in ten individual listed REITs.
Alan Inn Wei Loon, Regional Head of Wealth Management at CGS-CIMB Securities (Singapore), said:
“CGS-CIMB eWealth is tailored to clients who want the flexibility to grow their wealth but do not have the time to manage their investments constantly. By leveraging the expertise of the eWealth robo-advisor and our research capabilities, investments are made simple for clients as they can invest with a click of the button while the professionals take care of the portfolio construction and portfolio rebalancing with the consent of the clients.”
Given that investing through the eWealth platform, investors hold the stocks purchased under the portfolio, customers are able to enjoy potential capital gains and corporate actions, such as dividend payment, taken by the companies in the portfolio.
Adam Reynolds, CEO Saxo Capital Markets Pte. Ltd., added:
“We strongly believe that partnerships and technology sharing will be defining the financial industry in the coming years bringing enormous improvements in quality of service and offering to clients. Our combined solution with CGS-CIMB and WeInvest is a hallmark example of Fintech partnerships in Singapore. Through our collective strength, CGS-CIMB’s clients now get access to unique and cost-effective investment opportunities that have previously only been available to a select few. We support the solution with our core strengths in global capital markets access, automation as well as flexible and open technology through our OpenAPI solutions.”
Bhaskar Prabhakara, CEO and Co-founder at WeInvest concluded:
“Our collaboration with CGS-CIMB Securities is aimed not only at the young or digitally savvy investors through a self-service advisory solution, but also empowering the advisors to provide the best possible investment solutions for their esteemed clients. This hybrid approach to service clients across the Asia market is a first and an exciting way forward. Both goal-based and thematic investing journey also reshapes traditional views on digital advisory.”