Robo Adviser Performance Q3 2018

Who are the robo advisers?

In our latest robo performance update, we analyse the performance of nine leading robo advisers which together represent over 80% of UK robo adviser assets today.

Health warning: This is our industry site. If you are a 'normal person' looking for a bit of info, you will probably prefer our consumer site which has a lot less jargon, shows performance and also shares customer ratings and reviews. The following is quite geeky....

 

 

Average returns

 

12 months to 30th September 2018

Averaging the performance of the nine robo advisers included in our analysis; high-risk portfolios returned 7.1% over the 12 months analysed, followed by 4.3% for medium risk and 0.7% for low risk portfolios.  In comparison, investing in a passive FTSE 100 tracker would have returned 6.1% over the same period and a leading cash ISA would have paid only 1.2%.

Figure 1 - Returns on £5,000 invested from 1st October 2017 to 30th September 2018

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Dive deeper into the results. Our full report contains details of 9 providers and their:

  1. Low risk portfolios - returns, asset allocation, risk-adjusted return and inter-month drawdown
  2. Medium risk portfolios - returns, asset allocation, risk-adjusted return and inter-month drawdown
  3. High risk portfolios - returns, asset allocation, risk-adjusted return and inter-month drawdown 
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24 months to 30th September 2018

Seven of the nine robo advisers included in our analysis now have a 2-year track record. Averaging the performance of these seven robo advisers; high-risk portfolios returned 17.9% over the 2 years analysed, followed by 10.2% for medium risk and 2.3% for low risk portfolios.  In comparison, investing in a passive FTSE 100 tracker would have returned 17.2% over the same period and a leading cash ISA would have paid only 2.3%.

Figure 2 - Returns on £5,000 invested from 1st October 2016 to 30th September 2018

Full individual performance charts for three different risk profiles are available in our full report.  

 

What do robo adviser customers say?

 

On our consumer site we have collected thousands of consumer reviews, of more than 30 different DIY investment providers. 

We capture recommend scores as well as detailed analysis of value for money, website and service.

Those providers interested in tracking their customer ratings, NPS, market share and more on a regular quarterly basis can visit our POD data tool here or contact Michael for a sample of what we provide. 

 

Proposition summary

 

Here's a basic snapshot of the different robo providers. Drop us a line if you want to learn more, visit our consumer site or have a look at our Digital Wealth and Robo Report 2018 for full provider details, consumer feedback, trends, market stats and growth projections.

Robo Adviser
Launch Date
Accounts
Ethical Portfolios
Minimum Investment
Cost £5,000 portfolio2
Evestor
Apr-17
GIA
ISA
SIPP
JISA
No
£1
£27
IG
Apr-17
GIA
ISA
SIPP
JISA
No
£500
£46
Moneyfarm
Feb-16
GIA
ISA
SIPP
JISA
No
£500
£55
Netwealth
May-16
GIA
ISA
SIPP
JISA
No
£50,0001
£50
Nutmeg
Oct-12
GIA
ISA
SIPP
JISA
No
£500
£53
Scalable Capital
Jul-16
GIA
ISA
SIPP
JISA
No
£10,000
£50
True Potential Investor
Mar-14
GIA
ISA
SIPP
JISA
No
£1
£58
Wealthify
Apr-16
GIA
ISA
SIPP
JISA
No
£1
£52
Wealthsimple
Sep-17
GIA
ISA
SIPP
JISA
No
£1
£47
  1. Netwealth has a minimum investment of £5,000 if investing via an existing customer.
  2. Assumed to be a lump-sum investment into an ISA with no monthly savings plan. Calculated charges on deposits: assumed no investment growth and no impact of charges on investment.