FinaMaze, a hybrid asset manager regulated by the Abu Dhabi Global Market, said it will start to offer prime retail investors access to its algorithm-powered investment solutions across asset classes.
A hybrid asset manager offers investment advice through a combination of human experience and machine learning outcomes.
FinaMaze defines prime retail investors as those who invest a minimum of $2,000.
“Our view is that you cannot have a sound investment with $100. It is only beyond a certain amount that our algorithms can serve you best,” Mehdi Fichtali, founder and chief executive of FinaMaze, said on Tuesday.
While only professional investors had access to the wealth manager’s investment products until now, FinaMaze said gives prime retail investors access to 10 diversified investment themes, according to a statement from the FinTech company.
Elite professional investors (with more than $500,000 in wealth) have access to 38 diversified investment strategies on the wealth manager’s platform, Mr Fichtali said.
Robo-advisers have become popular within the wealth management sector because algorithms can crunch large and intricate data sets across different parameters faster, more precisely and at greater volumes than most people.
In addition, they reach a historically underserved market of middle-class investors unable to obtain access to portfolio management services due to minimum investment requirements.
FinaMaze customises profiles for investors from thousands of different options and then offers investment advice based on a combination of human experience and machine-learning outcomes.
The company was launched during the FinTech Abu Dhabi 2020 forum in November 2020 and is regulated by the ADGM’s Financial Services Regulatory Authority.
The site’s in-house AI algorithm uses this information to determine each investor’s personality.
“Our profiling questions do not only take into account the client’s personal situation, wealth, experience and objectives, but also dig deeper to understand how they behave in the face of risk,” Mr Fichtali said.
Clients then pick one or more investment themes – FinaMaze calls it a SmartFolio – across regional and global financial markets.
Retail investors can choose from diversified FinaMaze portfolios, with each one having a special focus.
Some of the available SmartFolios include global stocks; environmental, social and governance; Islamic (investing in Sharia-friendly stock indices); fixed income; currencies and commodities (sovereign bonds from G10 and emerging countries, G10 currencies and emerging market currencies, precious metals, oil, silver and renewable energy), Mr Fichtali said.
Retail investors can also consider other investment themes such as stock markets in the US, Gulf region, China and India, or sectors such as technology or G10 property.
FinaMaze charges a fee that ranges between 0.45 per cent and 0.85 per cent of a client’s investment per year, Mr Fichtali said.
Each SmartFolio is built, monitored and rebalanced by FinaMaze algorithms under the supervision of the FinaMaze investment team.
This allows it to remain suitable for an investor’s risk appetite and parameters, the company said.
The FinTech company launched two new investment themes – cryptocurrency and inflation protection – for professional investors in June this year in response to rising demand for digital assets.
It claims to be the first robo-advisory offering cryptocurrency investment solutions in the Mena region.