SaxoSelect, the digital service that enables clients of Saxo Bank to invest in pre-selected investments, has reported a 36% increase in AUM for its range of Managed Trading Strategies over the third quarter. The sharp increase in riskier investment strategies comes despite an uncertain economic background throughout the quarter.
SaxoSelect saw a 14% increase in total AUM across all of its portfolios, with 10% coming from capital inflows and 4% from investment performance. The increase in AUM in the current market signals a desire from investors to make their money work, take calculated risk and look for a differentiated offering to traditional portfolios.
The two managed Equity Portfolios of global stocks, which utilise the strategies and research from world leading experts at Morningstar and most recently, Nasdaq, target strong growth over the medium term. In the third quarter, the Nasdaq DW Global Momentum portfolio enjoyed a significant uptick in capital inflows, pointing to the fact that some investors are looking at the portfolio to access cheaper emerging markets.
SaxoSelect also offers diversified Balanced Portfolios which utilise Blackrock’s iShares and are based on low cost ETFs for long term investments and savings. The higher risk Multi Asset ETF portfolio range saw growth, with investors once more favouring higher risk profiles, as its AUM grew by 24%.
Kieran Phyo, Head of SaxoSelect, comments:
“There continues to be a clear investment shift towards our managed Equity Portfolios and our alternative Trading Strategies, which carry a higher level of risk. In our experience many self-directed investors prefer to buy directly into stocks, which we feel is partly due to greater transparency and availability of information on the underlying companies. This is in contrast to many retail financial services, which often only offer funds.
“We have seen consistent inflows into SaxoSelect this year as we continue to collaborate with some of the best experts in the market in addition to offering proprietary trading strategies for more sophisticated investors. We are providing investors with access to innovative investment opportunities, and we are seeing that self-directed investors are attracted to consistent, strong performance and accept the associated risk.
“Technology is enhancing our clients’ experience and control, making investing simpler and more transparent, plus reducing costs to benefit our clients. We believe strongly in our partnership model for the purpose of bringing institutional level of investment expertise to individual investors. Our SaxoSelect offering is underpinned by the belief that technology will profoundly change the asset management industry. We continue to source and have ongoing discussions with other potential partners to offer clients more portfolios.”