Robo-wars: Investec axes Click & Invest
If Nutmeg’s increasingly desperate need for cash wasn’t evidence enough, the closure of Click & Invest has proven how hard it is for robo-advisers to make money. These platforms offer relatively low investment management fees compared to traditional financial advisers (although still not as low as simply buying a tracker fund) and are having to spend excessively on marketing to attract new users. The outlook therefore looks pretty bleak.
Investec has decided to close its robo-adviser Click & Invest, just two years after launch. The company has written down £20m of investment in the venture after revealing that “the appetite for investment services such as ours remains low and the market itself is growing at a much slower rate than expected”.
It seems a shame Investec has given up so quickly. In March we conducted a thorough review of the robo-advisers and declared Click &…
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