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SaxoWealthCare: A Look Into Saxo’s Digital Wealth Manager

What is SaxoWealthCare?

SaxoWealthCare is brokerage Saxo Market’s latest asset management service. The digital wealth manager manages your money for you based on your investment plan.

Is it a robo-advisor?

SaxoWealthCare is similar, but not exactly a robo-advisor.

Robo-advisors use algorithms to automatically monitor and rebalance your portfolio. There is no human advisor to offer financial planning advice; the robo-advisor just focuses on allocating your funds.

Digital advisors like SaxoWealthCare are a cross between robo-advisors and traditional financial advisors. Algorithms are still used to help allocate your money, but there are fund managers involved to provide support and offer customised investment plans as well.

READ MORE: A Beginner’s Guide to Investing With Robo Advisors in Singapore.

What’s great about SaxoWealthCare

1. Personalised Investment Plans

SaxoWealthCare offer each customer a personalised investment plan. This is unlike most rivals, which invests for you pre-set risk levels.

To get started, you need to complete a short questionnaire to determine your budget, risk profile, investment timeframe, and financial goals. Then SaxoWealthCare will draft a customised plan for you.

You can also add personal goals such as mortgage payments, retirement sum targets, and your own unique financial goals. These goals are assessed based on a simulation of 1000 scenarios before SaxoWealthCare comes up with a plan just for you.

If you agree with the plan and go with it, SaxoWealthCare will manage and monitor the account for you.

2. Always trying to reduce risk

To reduce risks, SaxoWealthCare has four asset allocation strategies. It will choose the right strategy based on your risk tolerance.

Asset AllocationStrategy
Fixed Mix
A constant distribution between stocks and bonds. Necessary adjustments will be made as your account grows to ensure the same risk exposure.
Portfolio Protector

A dynamic allocation between stocks and bonds based on market conditions and potential opportunities. Based on your risk profile, Saxo will strive to protect a percentage of your portfolio, known as the floor.

SaxoWealthCare monitors your account based on your floor. The relative position of your portfolio to your floor will determine your level of exposure to stocks and bonds.

*New floor levels are automatically recalculated every 12 months or you can manually adjust your floor by retaking the questionnaire for a new financial plan. This can help lock in your gains when the market is doing well.

Risk Reduction

If you are about to meet your goals, a risk reduction strategy helps you to stay on track and avoid any sudden impact to your portfolio when the market turns.

Your stock exposure will be reduced and funds will be moved into bonds.

*If more than 50% of your SaxoWealthCare account is allocated to one goal, the platform will automatically adopt the risk reduction strategy.

Risk Reduction and Portfolio Protector
This is suitable for investors who are not comfortable taking up risks, and where at least 50% of their portfolio are allocated to their financial goals.

3. You can update your plan any time

SaxoWealthCare does not charge any lock-in or withdrawal penalties. Investors can withdraw their money at any time.

You can also adjust your investment plan at any time. Once you update your profile and approve the updated investment plan, your investment plan will be updated within three working days.

4. Useful information

This chart compares between “more likely” and “less likely” scenarios to help you determine whether your financial goals are achievable.

SaxoWealthCare also breaks down your portfolio to show you how your funds are managed and allocated.

Drawbacks

1. High minimum deposit

SaxoWealthCare requires an initial deposit of S$3,000, higher than other digital wealth managers. This could deter potential clients who do not have enough money.

2. Limited ways to fund account

SaxoWealthCare currently only supports cash investments. You cannot invest your Central Provident Fund or Supplementary Retirement Scheme money through SaxoWealthCare.

Fee Structure

SaxoWealthCare’s collects both a management fee and product fee. The management fee is charged by SaxoWealthCare and depends on your investment amount, while the product fee is charged by the fund manager(s) and is based on your portfolio’s product mix.

Investment AmountUntil 31/07/22After 31/07/22
Management Fee
First S$50,0000.45%0.75%
Next S$50,0000.45%0.70%
Next S$100,0000.45%0.60%
Next S$800,0000.45%0.55%
Above S$1,000,0000.45%0.45%
Product fee0.17% – 0.45%

Where does my money go?

Your SaxoWealthCare funds are invested in Exchange Traded Funds (ETFs), a basket of shares, and bonds. Saxo has chosen to use ETFs as they are publicly traded, offer competitive prices, and are transparent with no hidden fees or charges.

You can choose from one of three investment styles that resonate with you:

Investment StyleDescriptionIdeal For
Global GrowthThe Global Growth investment style analyses market megatrends and themes and helps you to invest in markets across the world.
Ideal for growth investing and people who want exposure ot an international market.
Asian GrowthThe Asian Growth equity style invests across the world, but with a large proportion coming from Asian markets.
Ideal for investors betting on Asia.
Sustainable GrowthThe Sustainable Growth equity style keeps your investments invested only in companies with high sustainability ratings.
Ideal for growth and impact investing.

Conclusion

Saxo is a global financial institution with 30 years in the industry, making it a reliable fund manager. But SaxoWealthCare is still a new service, so it remains to be seen if it can produce results. As with all kinds of investment, do your research and enter into something only if it suits your needs.

Read more about Saxo Markets and what others have to say here.

Keen to check out SaxoWealthCare? Click here. If you open an account between now and 7 September 2022, you stand a chance to win either S$888 weekly, S$8,888 monthly, or a grand prize of S$50,000.

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