SaxoSelect, the fully digital and automated investment service that enables clients of Saxo Bank to invest in pre-selected portfolios, has reported that its growth and risk-on managed portfolios have seen a 43% increase in net capital flows in Q2.
The two Equity Portfolios of global stocks, which utilize the strategies and research from world leading experts at Morningstar and most recently, Nasdaq, target strong growth over the medium term. In the second quarter, these portfolios saw a 166% increase in net capital inflows over first quarter flows.
Another group of portfolios, Trading Strategies, which are managed by experienced traders, carry higher risk and focus on alternative trading styles, have also enjoyed net capital inflows.
SaxoSelect also offers diversified Balanced Portfolios which utilise Blackrock’s research and are based on low cost ETFs for long term investments and savings.
Saxo has seen substantial net capital inflows across the complete SaxoSelect portfolio range, with total AUM up by 100% compared to the same period last year.
Kieran Phyo, Head of SaxoSelect, comments: “There has been a clear investment shift towards our global stock portfolios and we believe this is as a result of self-directed retail investors wanting to maintain the high returns they have enjoyed in recent years. Whilst retail capital generally flows into funds, we find that the self-direct investor prefers to buy directly into stocks, which we feel is partly due to much greater transparency.
“We’ve seen consistent inflows in SaxoSelect so far this year. This is because we have continued to collaborate with some of the best experts in the market in addition to offering unique trading strategies for more sophisticated investors. We are giving more and more clients access to actionable investment opportunities, and the trend that we are seeing is that self-directed investors are attracted to consistent, strong performance and accept the associated risk.
“Our SaxoSelect offering is underpinned by the belief that technology will profoundly change the asset management industry. Access to technology, demand for transparency and cost efficiency, as well as a focus on performance will change the way individuals manage their capital. We believe that our partner oriented facilitator model is more relevant than ever. We are actively having ongoing discussions with other potential partners to offer more portfolios.”
Last month SaxoSelect partnered with Nasdaq to offer a new portfolio, named Nasdaq DW Global Momentum, which provides a smart and cost-effective way to invest in a portfolio of 30-40 quality stocks based on the “relative strength” ranking formulated by Nasdaq Dorsey Wright (DW), a provider of investment research, tools and solutions that help investors manage complexity.