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Kelly Trinh

Backoffice technical at financial services firm

11 Dec 2019

Robo-Advisors

What is the fair price for wrap fee of a Robo?

Just saw DBS getting into ETF based Robo (previously using UT which meant two layers of fees so not compelling). For their new offering the wrap charge is 75 bps. Seems like the competition is hotting up as some of the smaller brands charge similar levels and would get crushed by DBS brand but still perhaps room for niche/cost players - wondering what is community view on how low it could go?

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Hariz Arthur Maloy

10 Dec 2019

Independent Financial Advisor at Promiseland Independent

I think 0.6-1.2% p.a of AUM as advisory fee is fair. I see some thematic portfolios charging a little higher due to the nature of research and active management required.

I also think that if the portfolios managed are fixed income heavy or more conservative in nature, a reduction in fees would also be reasonable. Closer to 0.4-0.75%.

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