By Lisa Walls-Hester on Monday 9 January 2017
European wealth management firm Novofina is bringing its 'Neue Finanzen' robo-advisor to the UK. Its trading algorithms target high returns, and were previously only available to the super-rich.
The firm will launch its first two products Novofina 7plus and Novofina 20plus which, based on past simulations, target average annual net returns of 7 per cent and 20 per cent respectively.
The products have no management fees, no subscription fees, and no performance fees, there is a minimum deposit recommendation of £30,000.
The company has cooked up a storm after the FT reported the product launch and received a backlash from financial advisors who claim the high level of returns promised by Novofina, are unrealistic.
Novofina founder, Harald Helnwein, stands by his claims and says he is confident about his offering because his model is based on sophisticated algorithms.
He calls the Novofina concept Neue Finanzen and says “People are fed up with the banks, after bailing them out in the financial crisis, and fed up that their savings are barely earning them anything. They don’t like the old financial systems, with advisers who are more interested in their own commissions than their clients’ interests. Neue Finanzen is a fair and open solution in which the customer stays in control of their own money, has access to sophisticated algorithms to optimise their position and complete transparency over trading with the freedom to leave at any time.”
He continues: “I see some people as quite skeptical, skeptical towards new entrants like us. But this is what we like. We have the best success with critical people. People who raise concerns think about where to put their money and whom to trust. They should neither trust us blindly nor anyone else – this includes new players and established ones.”
“Even if they don’t choose to invest in us, but start thinking about what their adviser did to them over the last years was fair, I am already happy. Every unnecessary fee or kickback commission avoided is good news for everyone.”
Helnwein, claims to be one of the leading systems trading experts in German-speaking Europe. He previously trained investors and fund managers on how to develop trading systems in the US.
Novofina is identified by Deloitte in its report on robo-financiers as a 'fourth generation' model, offering new sophistication to investors with its self-learning artificial intelligence algorithms.