- VALSPRESSO BRINGS TO MARKET A NEW WEALTH MANAGEMENT OFFERING THAT DISRUPTS THE STATUS QUO BY ADDRESSING THE NEEDS OF MILLIONS OF INVESTORS - THE MASS MARKET
RESTON, Va., July 24, 2017 – Valspresso, Inc., a financial technology innovator, has unveiled its plans to scale up its Robo-Money Management platform and business model by forging strategic partnerships with independent broker dealer platforms, advisors, and banks.
The platform, says Valspresso’s President and Chief Executive Officer Reginald Nosegbe, is designed to reduce investment complexity—while reducing investment risk and improving returns for investors, and widening operating margins for advisors and advisor platforms.
Today, the benefits of personalized, actively managed portfolios are typically available only to the affluent. Valspresso’s innovative automated money management platform disrupts this status quo. “We empower advisors and advisor platforms to deliver the same advantages of personalized, actively managed portfolios to small and mid-size clients,” Nosegbe says—“with less overhead than a hedge or mutual fund.”
Nosegbe adds that “what differentiates us from existing robo solutions are: 1) the wealth management functions that we automate and 2) the value that we deliver.”
Robo-Advisors automate the client intake and passive portfolio management functions. They deliver market risk and market returns for investors, and commoditization and margin compression for advisors and advisor platforms.
In contrast, Valspresso’s Robo-Money Manager automates the stock selection and active portfolio management functions. This delivers risk reduction and alpha for investors, allowing for differentiation and competitive pricing models that lead to margin expansion for advisors and advisor platforms—a win win value proposition for all parties.
Nosegbe underscores that “Valspresso’s goal is not to compete with robo-advisors, or traditional advisors. Rather, our goal is to partner with them and add value. Our Mantra is: Robo Advisor + Robo Money Manager + Human Advisors = Better Together.”
Nosegbe points to the wave of global asset management firms that are shifting away from assets managed by individuals towards machine. A new report from JPMorgan supports this view, saying that quantitative investing based on software formulas is quickly replacing stock picking by highly-compensated analysts and portfolio managers. Further highlighting the trend towards automation is a March 2017 New York Times article reporting that “At Blackrock, Machines Are Rising Over Managers to Pick Socks.” The move towards machine-based stock picking has resulted, CNBC reports, in some 13% of Blackrock’s portfolio managers being laid off—a trend that is likely to accelerate.
Valspresso’s CEO further notes that “our firm’s 18+ years of research and innovation that resulted to a U.S. patent and a suite of cloud-based automated investment technologies and strategies put us at a competitive advantage and at the leading edge of the industry’s shift to automation. Our automated investment platform has been validated via thousands of simulations back to 2004 and via live fund management for more than three years.”
Nosegbe further adds that Valspresso’s platform is designed to scale easily, and at minimal incremental cost, to accommodate the effective management of billions in AUM.
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