A South African Robo-Advisor Wants To Help You Automate Your Investment Decisions

One of South Africa’s low cost independent investment product platforms, Itransact, has announced availability of its investments robo-advisor ItransactGO.

Itransact say their robo-advisor will help investors and financial advisors set, track and achieve investment goals by creating personal low cost investment portfolio or retirement annuities that will automatically rebalance the portfolios and track the markets.

“ItransactGO is 100% independent. Once it understands your profile, it will look across all the asset classes like cash, bonds, property, domestic and offshore equities, comprising over fifty low cost Exchange Traded Funds (ETFs) for the most efficient mix and then combine them in such a way to form a portfolio that will best suit an investor’s investment goal. It will not favour one asset manager or fund over another, it will only pick the best funds for investors. It will automatically rebalance your portfolio so that you never have to worry about the mix of assets you have chosen. It will allow you to switch between different risk profiles as your life style changes and where one need to speak to a human, one can call a highly trained contact centre. Investing in the market has never been simpler” said Lance Solms, Head of Itransact.

Most investment robo-advisors currently available offer a particular fund managers view and are not independent. That is different with ItransactGO, as Solms confirmed, not only is their robo-advisor independent but also providers of the funds underlying the portfolios will be well known financial services companies such as Absa Capital, Ashburton, db x-trackers (Deutsche Bank), Coreshares, Investec, Stanlib and Satrix ETFs, all of which are governed by the Financial Markets (FMA), Collective Investment Schemes (CISCA) and Financial Advisory & Intermediaries (FAIS) Acts.

Another interesting angle that Itransact have taken with their investment robo-advisor is that, despite popular sentiment surrounding similar robo-advisors, they don't see ItransactGO replacing financial advisors but complementing their work and helping them as well.

"If correctly deployed, ItransactGO could significantly reduce the number of face-to-face meetings required between financial advisers and investors in order to sign up a new client, thereby reducing the costs of acquiring new clients while still allowing the advisor to charge advice fees where due,” said Solms.

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