The online asset manager Minveo was founded in 2014 and has been active in the market for almost three years. Until just over half a year ago, the provider focused exclusively on commercial customers, in particular banks, family offices and asset managers. In this area, Minveo still offers a whitelabel solution for banks and asset management companies, whereby a complete portfolio management including strategies can also be optionally used by commercial customers. The Munich-based FinTech company has also been active in the private customer sector for just over half a year. There it acts as a classic Robo Advisor, who has a license in accordance with Section 32 of the German Banking Act and is thus allowed to act as a financial portfolio manager.
The business model of the Robo-Advisor in the B2C segment
The business model of the Robo Advisor Minveo in the now developed private customer area primarily involves combining experience and innovative technology. First of all, an experienced management team puts together individual investment strategies for different client risk profiles. This is followed by technical support, which consists in particular of observing the markets in real time and 24 hours a day, every day of the week. Any fluctuations should be detected as early as possible in order to be able to react. Another task of the system is to manage numerous customers at the same time.
The strategy at Robo-Advisor Minveo
The offer of the Robo-Advisor Minveo, from which naturally also the suitable strategies result, is based in particular on the following characteristics:
- risk minimization
- Avoid losses through active management
- Manually compiled portfolio
- Self-learning technology
- Modern financial theory
On this basis, a total of 65 individual strategies are used that are tailored to the client's risk appetite. Thus, the Robo-Advisor uses significantly more strategies than most of its competitors. In particular, there are three overarching risk profiles which are described as "cautious", "optimistic" and "ambitious". In order to implement the strategies, the Robo Advisor deliberately does not rely exclusively on ETFs. Instead, the strategies are implemented not only with ETFs but also with other financial products, namely funds and individual equities. This is where active management comes in, so that changes in asset classes and products can of course also be made if necessary.
The following three graphs >> show how the three risk profiles mentioned above present themselves in terms of asset classes at Minveo.
Costs and conditions at Robo-Advisor Minveo
A very positive aspect in the area of conditions for the Robo Advisor Minveo is that investors can already use the professional online investment advice from a minimum investment amount of 50 euros. This makes Minveo one of the few Robo Advisors to have such a low minimum deposit. This should be particularly pleasing for small investors and savers who would like to start with a little less capital or do not have more money to invest.
The costs at Minveo are transparent and easy to understand. They consist of a fixed all-in-one service fee of 1 percent plus fund costs, starting at 0.1 percent, but averaging 0.3 percent according to Minveo itself. The average total fees of 1.3 percent already include all transaction and custody fees. Nevertheless, the Robo-Advisor Minveo is more in the middle of the field, as there are several cheaper as well as more expensive Robo-Advisor offers. The funds and custody account balances are not held by the Robo Advisor itself, but instead by the well-known DAB Bank.
Conclusion on the Robo-Advisor Minveo
As one of the few Robo Advisors at all, Minveo is active in both the B2B and B2C sectors. The second main pillar is still relatively new with the B2C sector, but from our point of view it is definitely competitive. The costs move in the comparison in the middle field, while it is extremely positive that the use of on-line asset management is possible already starting from 50 euro and thus in principle for each investor. There are a variety of investment strategies and the Robo Advisor deliberately works not only with ETFs, but also with funds and individual stocks. In our opinion, Minveo is a Robo Advisor who could establish himself in the market with his business principle in the long run.