Ex hedge-fund bosses launch robo adviser

Tiller Invest will offer exposure to both actively managed exchange traded funds (ETFs).

Tiller, a new online wealth manager, has launched targeting both retail investors and institutional partnerships including private banks, insurers, asset managers and financial advisers. 

Formed by the duo behind hedge fund boutique Ermitage, the firm is offering portfolios from as little as 0.75 per cent per year (not including fund fees) with a minimum £10,0000 investment. It is launching with an individual Savings Account (ISA) and general investment account (GIA) with plans for a SIPP to follow.

The firm has raised £9m so far with £2m from its senior management team.

At launch investors have three options before selecting from one of five risk-rate rated portfolio bands. The first and cheapest is based on a basket of exchange traded funds (ETFs) with charges of 0.75 per cent plus a typical 0.25 per cent for ETF fees . Secondly, investors can opt to blend ETFs with actively managed funds. Thirdly, investors with £100,000 plus can opt to add a thematic overlay their portfolios so as to have added to exposure to for example regon, asset class or theme. The latter two options carry a 0.9 per cent fee base with an average underlying fee of 0.54 per cent fund charges.

There are no other additional charges for custody, administration, or for making trades or withdrawals.

With a “promising” pipeline of  and several deals “at an advanced stage”, Tiller is looking partner with institutions such as private banks and asset managers as well as retail customers.

“Tiller’s various components can be white-labelled, customised and integrated to an institution’s existing infrastructure,” the firm said in a statement.

Its shareholder-base, the firm says, is made up of  entrepreneurs across financial services, media and technology. Tiller uses a platform powered by SEI investments.

Ian Cadby, chief executive officer & co-founder of Tiller, has 30 years of financial services experience with a specialism in derivative trading and hedging strategies.

He says the company is a straightforward investment manager embracing technology rather than a tech firm who saw an opportunity in the world of wealth management.

“We have developed a fusion of talent, techniques and technology that is a leap forward to the next generation of online wealth management”.

Jonathan Wauton, chief investment officer & co-founder, says the firm is foucsed on how  to perform in turbulent markets.

“Irrespective of whether it is our ETF-only portfolios or blended, we never leave your money to the fate of the markets. We combine intelligent technology and proactive management,” he said.