Nomura buys a robo-adviser

By Daniel Lanyon on Tuesday 3 April 2018

Savings and Investment

The asset management giant has invested in the Hong-Kong based 8 Securities.

Nomura Asset Management has invested into fintech 8 Securities and its Hong Kong headquartered parent company 8 Limited as it looks to enter the fast growing robo advice market.

Nomura Asset Management (NAM) says it plans to invest approximately ¥1.6bn (£10.7m) in 8 Securities and will hold a majority of the outstanding shares.

The investment in 8 Limited will be approximately ¥1.1bn (£7.3m), and NAM will become a minority shareholder.

Based in Japan, 8 Securities provides discretionary robo-advisory services through iOS and Android mobile apps using exchange-traded funds (ETFs). 8 Limited also provides mobile app robo-advisory and online brokerage services in Hong Kong.

The investment in the 8 Group, NAM says, will help it “to leverage the functions of the 8 Securities platform to deliver high value-added services to its clients,” the firm said in a statement. 

NAM also aims to provide these services to other financial institutions, it adds.

8 Securities is preparing to offer NAM index funds and the two firms are developing a new app.

Japanese households have traditionally held high cash levels while eschewing holdings in the stocks and other risk assets although recent data suggest this trend to be reversing.

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