Assets on wealth management platforms, including so-called robo advisors, are expected to nearly double in the next five years. The global market for wealth management platforms is expected to grow from $1.7 billion in 2017 to $3.2 billion by 2022, according to research from ReportLinker. The forecast also takes into account a compound annual growth rate of 13.4 percent during that period.
Late last month, Matt Hougan stepped down from his position as CEO of Inside ETFs to join cryptocurrency index fund manager Bitwise Asset Management. His first order of business in the crypto space? To make the case for diversification. Hougan released a new research report analyzing the monthly returns of the 10 largest coins over the past year. What he found: monthly differentials are massive; split returns are common; most coins suffer difficult months; top-performing cryptos in one month rarely repeat the pattern; reversals in performance occur regularly; and return differentials show no sign of diminishing. The average monthly differential in returns between the best and worst performers over the past year is over 300 percent. “The value of diversification is taken as a given in traditional financial circles—few investors would build a portfolio with a single stock or bond—but in crypto, concentrated bets on a single coin or handful of coins is the norm,” Hougan writes. “The data suggests that diversification is perhaps more critical in crypto than it is in any other asset category.”
Oranj has added four asset managers to its OranjMax platform. First Ascent Asset Management, Marisco Capital Management, OppenheimerFunds and SpiderRock Advisors are now able to host model portfolios and funds on OranjMAX, the firm announced. OranjMAX, which was announced in October, combines Oranj’s client-facing and account aggregation tools with institutional-grade trading and rebalancing software from TradeWarrior, which Oranj acquired in April. OranjMAX removes multiple layers of fees that advisors are forced to pass on to their clients by offering direct access to model portfolios and funds. The new asset managers join BlackRock, Direxion, ETF Securities and Frost Investment Advisors in hosting their model portfolios and funds on OranjMAX.