Singapore-based Stashaway is planning to offer its digital wealth platform to investors in Hong Kong.
The firm has been awarded relevant licences, including dealing in securities (Type 1), advising on securities (Type 4) and asset management (Type 9), from Hong Kong’s Securities and Futures Commission (SFC) to operate in the special administrative region (SAR), according to the regulator’s records.
Stashaway’s responsible officers in Hong Kong are Chan Sik Lam, Michele Ferrario and Stephanie Leung, the records show. Ferrario is the firm’s co-founder and chief executive, while Leung heads Stashaway in Hong Kong.
The firm has been active in expanding outside of its home market. After first launching its platform in Singapore in 2017, Stashaway expanded into Malaysia in 2018, when it was awarded a capital market services licences to carry out fund management activities.
In November 2019, the firm launched in the Dubai International Financial Centre (DIFC) to service clients in the United Arab Emirates and the broader Middle East and Africa region.
As of January, Stashaway managed assets of more than $1bn (£720m, €830m).
Scratching the surface
“Reaching the $1bn milestone in less than four years is only one of the many signs we see that Asia truly wants a better way to create wealth,” Amanda Ong, country manager for Singapore, said at the time.
The firm, however, acknowledged that the robo-advisory segment continues to be underpenetrated in the region, with 46% of financial wealth still held in bank deposits, compared to 14% in North America.
“We’re still only scratching the surface for what’s possible when it comes to transforming wealth creation,” Ong said.
Stashaway has attracted financial backers globally. They include Eight Roads Ventures, the global investment firm backed by Fidelity and early investor in Alibaba; Square Peg, one of Australia’s largest venture capital fund; Asia Capital & Advisors, the private equity firm led by Francis Rozario and Aaron Rozario; and Burda Principal Investments, the growth capital arm of German media and tech company Hubert Burda Media.
Stashaway will be revealing its plans for the Hong Kong market in the next few weeks.
Competition leads to diversification
The digital wealth management landscape in Hong Kong, as well as other parts of Asia, is becoming competitive, with firms making moves to diversify their investment offerings.
For example, Hong Kong-based Magnum Research has recently moved away from just being an asset allocator to becoming a stock-picking manager with the launch of “SmartStock Portfolios” on its robo-advisory platform Aqumon.
Kristal AI, which offers its algorithmic advisory offering in Hong Kong and Singapore, gives users the option to invest in thematic “Kristal portfolios”, which invest in a collection of ETFs that fall under a theme.
Users also have the option to invest in individual ETFs that are available on the platform, the app shows. New ETFs are usually added to the platform on a monthly basis.
Futu Securities meanwhile made its foray into wealth management in the SAR with the launch of the “Money Plus” fund platform on its stock trading app in 2019.
Money Plus is a collection of equity, fixed income and multi-asset portfolios that invest in various mutual fund products. Users of the app also have the option to select individual mutual funds.
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