facebookShould I go for a robo-advisor that holds my investment custodised in my own name or is it ok to go for one co-mingled with other client's assets? - Seedly

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Anonymous

23 Jul 2020

Robo-Advisors

Should I go for a robo-advisor that holds my investment custodised in my own name or is it ok to go for one co-mingled with other client's assets?

I am considering investing in one of the 3 robos: Stashaway, Syfe and Endowus.

I came across this article.

https://endowus.com/insights/4-points-to-consid...

It states it's safer if my investment assets are custodised in my own name.

I know this is the case for Endowus. It is not explicitly stated on Stashaway and Syfe's websites. Hence, can I assume that the custodian accounts are not in client's name?

Is Endowus indeed safer?

Discussion (1)

What are your thoughts?

Shengshi Chiam, CFA

Shengshi Chiam, CFA

23 Jul 2020

Level 10·Personal Finance Lead at Endowus

Hi Anon,

Great question, I think ultimately we have to consider

  1. How much we are putting in with the platform

  2. How risk adverse we are

  3. What happens to the robo/platform when the company goes bust

In our case we have securred with UOB kayhian to allow you to hold on to your investments at the same fees, so that you can liquidate as and when you want.

Read more about how we keep your assets safe here.​​​

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