ESTABLY VS CLASSIC ROBO ADVISORS
What distinguishes us from classic Robo Advisors?
July 22, 2020 | Digital Asset Management
Thanks to its low minimum investment amount and ease of use, Robo Advisor offers a good opportunity to invest in a wide range of equity markets. Unfortunately, the core element – investment expertise – is often neglected by many providers. Estably was born from this insight.
Uncomplicated, transparent… profitable?
A real added value is the ease of use that most Robo Advisors offer their customers. You can easily open a portfolio at any time and from anywhere – even after closing, you keep a digital eye on your portfolio. The low minimum investment of €500 allows even the smallest investors to get a first taste of the stock markets.
Computer-controlled algorithms are responsible for investment decisions at most providers. Most of these algorithms carry out a simple rebalancing of assets, some attempt to minimise risk and fluctuations and time the market based on historical data and calculation models.
In our opinion, however, the algorithms are not yet mature enough to make targeted good investments and achieve satisfactory returns. Computer-based algorithms are currently not able to take into account the complex mechanisms of the markets and to assess companies based on their business models, strategies or managers. AI experts such as Anand Rao of PriceWaterhouse Coopers also emphasize that artificial intelligence still faces major challenges, especially in unpredictable markets.
An example:
A manager plans to integrate a company. This statement was communicated in a conference call to shareholders and investors. How should an algorithm find this important information and evaluate the manager's strategic decision for the company? What will the company be worth after the merger? What are the implications for the company's profitability? No algorithm asks these and the resulting questions.
Therefore, hardly any Robo Advisor manages to perform better than the average. Due to their passive investment strategy, most providers are satisfied with average returns right from the start and do not even try to perform better than the market.
Robo Advisor with focus on performance
Our idea is to adapt and further develop the advantages of the already existing Robo Advisor. Our customers should get the typical usability and transparency of the existing providers, but not have to forego better returns. As a digital asset manager, Estably’s top priority is investment expertise and thus the growth of your assets.
Instead of computer-controlled algorithms, we therefore prefer to rely on our experienced portfolio managers of flesh and blood, who have been generating above-average returns for many years with the Value Investing strategy. Unlike most of our competitors, we do not invest in a broad market via ETFs or passive funds. We buy carefully selected individual securities (stocks and bonds) into your own portfolio, making you direct owners of high-quality companies.
Since most Robo Advisor acquires entire market shares through products such as ETFs, they are forced to buy both “winner” and “loser” stocks. Our strategy, on the other hand, allows us to avoid buying poor-performing companies in the first place and to invest your assets more effectively and selectively in fewer, higher-quality companies.
Active value investing has never been so accessible
Until now, investing with an active value investing strategy through asset management was reserved exclusively for wealthy clients of several hundred thousand euros or more. Estably now offers for the first time the same benefits of this investment style to smaller investors starting from €20,000, extended by the digital convenience.
The main differences at a glance
| Estably | Classic Robo Advisor | |
|---|---|---|
| Investments | Individual stocks & Bonds | ETFs, Index funds |
| Strategy | Active | Passive |
| Investing done by | Our portfolio managers | CPU based algorithms |
| Account opening | Digital | Digital |
| Costs | 1,2% p.a. | Ø 1,17% p.a. |
| Returns
Value 30 (moderate) Value 60 (growth) Value 100 (Chance) |
(36 Months)
+17,44% +32,49% +35,56% |
(36 Months)
depending on the strategy: -5,46% bis +19,77% |
| Minimum investment | €20.000,- | €500,- |
What’s important to you?
Are you looking for a low-cost investment that automatically invests in markets and products from a small investment amount? Then you can choose one of the common Robo Advisor.
If, on the other hand, you want to invest your money in outstanding companies with a view to achieving a good return, then you’ve come to the right place!
Estably is the first digital asset management company from Liechtenstein to offer first-class wealth management from € 20,000 through a mix of technology and human investment expertise. Thanks to the portfolio managers' many years of experience in the field of value investing, above-average returns are targeted. This is intended to make professional asset management, previously available exclusively to large investors, accessible to everyone - conveniently, transparently, and profitably.
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