BetaSmartz’s technology, based on six decades of Nobel prize-winning research and industry expertise, utilises a wide universe of investment products to create portfolios that equal the performance and sophistication of those in use at global fund managers, on a platform flexible, scalable and efficient enough to suit institutions, adviser groups and individuals.

Founder and CEO John James sees BetaSmartz as the vendor of choice for the robo-advice industry. “Robo-advice is a buzzword right now, but basically it’s the application of technology to what is otherwise a manual, inefficient process. Many firms are looking for a solution for their particular clients and BetaSmartz gives them a smart platform that can automate the production of sophisticated global portfolios for any investor. By applying the techniques of sophisticated global investors to a flexible technology platform we are democratising algorithmic investment.”

Mr James said the BetaSmartz algorithms were based on over 60 years of academic research as well as industry expertise. “The difference is in the scalability and access – technology is at a point now where this level of sophistication should be available to everyone,” he said. “The basic aim of all investors is to protect and grow their investments. Our algorithms create goal-based portfolios based on investment size, time horizon and risk appetite. Whether the investor wants global exposure, currency hedging, tax optimisation or socially responsible portfolios, the algorithms adjust to suit their specifications while meeting that same basic desire for investment growth.”

BetaSmartz will initially implement its platform at a number of Australian institutions. “Our platform lends itself ideally to white labelling,” said Mr James. “It solves the buy-vs-build conundrum for large institutions, and gives smaller ones the ability to offer world-class technology to clients under their own brand. It’s very well suited to large super/pension funds, who can offer a much wider and more tailored range of portfolios to members at a lower cost, as well as to small investors.”

BetaSmartz portfolios utilise funds from around the world, with significant weighting towards highly liquid, low-cost ETFs. The use of actively managed funds and socially responsible funds offer more depth, risk management and flexibility. The potential combinations of BetaSmartz investments are virtually infinite.