WiseAlpha, the online market offering retail investors access to corporate bonds, has launched an automated service for risk setting and sector selection.
Robowise differs from typical robo-managers in its flexibility. Investors initially choose from portfolios and risk profiles: Balanced or Adventurous. The former focuses on investment grade and senior secured bonds, while the latter adds exposure to high yield and subordinated bonds. Users are able to personalise Robowise further by directing it away from certain companies and industry sectors.
Once activated, Robowise buys and sells different bonds to rebalance the investor’s portfolio on a continual basis to maintain diversification. Cash arising from the repayment of bonds may be reinvested, including in new bonds becoming available through WiseAlpha. Similarly, users may choose whether to reinvest their interest payments or simply withdraw them.
At all times investors remain fully in control and may adjust the settings or indeed turn Robowise on or off. This flexible approach to investing is in stark contrast to the relatively opaque nature of bond funds, since it allows investors complete discretion with the option of using trading technology for day-to-day basic portfolio and cash management.
Wise Alpha’s market offers investors the opportunity to earn income of between 3% and 15% per annum, while backing some of the UK’s best known companies such as Virgin Media and Ocado.
Commenting on the Robowise launch, WiseAlpha CEO Rezaah Ahmad said:
“This is a very important milestone. First we opened up this wonderful asset class, with its broad spectrum of returns, to the everday investor. Now we’re empowering them to pre-select and put their portfolios on autopilot, with advanced tools previously only available to sophisticated institutions and global banks.”
WiseAlpha expects the prospect of superior returns to prompt a longer term shift of consumer investment into corporate bonds, moving away from P2P lending and traditional retail investor asset classes such as equities.
“While racy new asset classes such as P2P, equity crowdfunding and cryptocurrencies may have attracted huge attention in recent years, financial innovation and product diversity are fuelling substantial growth and attracting senior talent to the corporate bond market.”
Tom Macura, a 10 year veteran of Goldman Sachs, latterly European Head of Credit Trading Strategies, has joined WiseAlpha as Chief Operating Officer.
“WiseAlpha’s visionary strategy to open up the world of corporate bonds to retail investors is, I believe, one of fintech’s most exciting developments at present. I look forward to driving WiseAlpha’s technological and operational capability as it seeks to build industry-leading standards.”