Working in Stockspot’s favour has been the decline in traditional financial advisers amid an exponential growth in Australians needing advice.
The robo-adviser said that in this environment, it has been able to offer a “convenient and affordable alternative” to the less-accessible traditional advice.
The growth in funds under management is attributed to the rise in new kids’ accounts, regular investing plans from existing clients, and growing interest in sustainable portfolios, Stockspot said in a statement on Monday.
Commenting on its milestone result, founder and chief executive, Chris Brycki, said: “We’re humbled to have the opportunity to help thousands of Australians invest their money and grow their savings.”
“This new milestone is a significant vote of confidence in Stockspot by our loyal customers who have entrusted us with their savings,” he said.
Brycki explained that Stockspot’s portfolios have outperformed 98 per cent of equivalent diversified funds over the past five years.
Namely, in the 12 months to 30 June, its five core options returned 11.1 per cent to 15.4 per cent after fees, while its sustainable options returned between 11.7 per cent and 14.9 per cent, the firm said in its performance update in July.
Earlier this year, speaking on an episode of the Relative Return podcast, Brycki explained that Stockspot emerged from his vision of a direct-to-consumer wealth management service that diverges from traditional models by offering a hands-off investment experience.
“We basically help mum and dad investors in Australia build diversified portfolios and then we manage it for them so they can be hands off and get on with their lives. And I guess we’re different to an online stockbroker, which requires you to pick the investments and manage them yourselves, because ours is entirely hands off,” Brycki said.
“We’re also different to a traditional adviser in that we’re obviously online. And although we do provide personal advice to all clients, it’s largely an online-driven service.”
Stockspot is also due to soon launch Stockspot Super, Australia’s first “ETF only” superannuation product which will invest exclusively in publicly listed ETFs, excluding unlisted assets that are “prone to delayed valuations”.
“Over the years, many of you have expressed an interest in a super product that aligns with our commitment to transparency, low costs, and an indexed investment philosophy,” the firm said in May when announcing the new product.
