Saxo Bank’s digital automated investment service SaxoSelect, which enables clients to invest in pre-selected portfolios, reported a 43% increase in net capital flows to its growth and risk-on managed portfolios in Q2.
The Danish investment bank specialises in fin tech online trading.
The unit’s two equity portfolios of global stocks, which utilise strategies and research from Morningstar and Nasdaq to target medium-term growth, saw a 166% increase in net capital inflows in the second quarter compared to the first quarter, the group said.
SaxoSelect also offers diversified balanced portfolios which utilise Blackrock’s research and are based on low cost ETFs for long term investments and savings.
SaxoSelect head Kieran Phyo said: “There has been a clear investment shift towards our global stock portfolios and we believe this is as a result of self-directed retail investors wanting to maintain the high returns they have enjoyed in recent years.
“Whilst retail capital generally flows into funds, we find that the self-direct investor prefers to buy directly into stocks, which we feel is partly due to much greater transparency.
Phyo added that Saxo Bank expected that technology will profoundly change the asset management industry. “Access to technology, demand for transparency and cost efficiency, as well as a focus on performance will change the way individuals manage their capital,” he said.
Last month SaxoSelect partnered with Nasdaq to offer a new portfolio which, the group said, provides a cost-effective way to invest in a portfolio of 30-40 stocks based on the “relative strength” ranking formulated by investment research provider Nasdaq Dorsey Wright.