Danish investment bank, Saxo Bank, released a report this Tuesday indicating that a segment of its SaxoSelect service saw a surge of activity in the third quarter of 2018.
SaxoSelect is an automated trading and investment service. It allows clients of the Danish bank to invest in pre-selected portfolios offered by different investment advisers like Morningstar and BlackRock.
According to Saxo Bank’s statement, assets under management in SaxoSelect’s Managed Trading Strategies rose by 36 percent in the third quarter of this year. That increase came despite economic uncertainty and the riskier nature of the investment strategies that those assets will be put towards.
SaxoSelect AUM Up Across The Board
Across all of its portfolios, SaxoSelect saw a 14 percent increase in the level of assets under management. Of that 14 percent, 10 percent came from capital inflows, and the remaining four percent came from investment performance.
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Two managed equity portfolios of global stocks, which are backed by research from Morningstar and Nasdaq, also saw a surge in capital inflows. Saxo Bank claims investors are looking at the Nasdaq DW Global Momentum portfolio in particular in order to gain cheaper access to emerging markets.
“There continues to be a clear investment shift towards our managed Equity Portfolios and our alternative Trading Strategies, which carry a higher level of risk,” said Kieran Phyo, Head of SaxoSelect. “In our experience many self-directed investors prefer to buy directly into stocks, which we feel is partly due to greater transparency and availability of information on the underlying companies.”
SaxoSelect has seen impressive growth throughout 2018. As reported by Finance Magnates in July, the second quarter of this year saw capital inflows to the aforementioned equity portfolios grow by 144 percent.
Taking into account all of its portfolios, the second quarter of this year saw SaxoSelects’ assets under management double in comparison to the first quarter of the year.