By Lisa Walls-Hester on Saturday 8 April 2017
Youyu's robo-advisor has attracted some big names
Yunfeng Financial Group Ltd, the financial services company backed by Alibaba-billionaire Jack Ma, has created a robo-advisor which it is calling the second generation of digital advisors.
The service, Youyu, has attracted some big names with the first batch of products available on the app include funds from AXA Investment Managers Asia Limited, Franklin Templeton Investments (Asia) Limited, Pimco Asia Limited, and T.Rowe Price Hong Kong Limited.
Youyu said its robo advisor differentiates from others on the market by applying a bottom-up approach for fund selection and leverages the active management capabilities and experience of top-tier fund managers to provide tailor-made asset allocation solutions for investors.
The team has established a database composed of approximately 10,000 funds and has developed a fund scoring mechanism that rates funds against five indicators, namely short-term and long-term performance; abilities of the fund manager; capital flows; and third party ratings.
Based on these findings, the team has selected a few hundred funds that have been made available on the Youyu Robo-Advisor app.