Investec has decided to close its robo-adviser Click & Invest owing to a lack of take-up of the service and in the robo-advice market generally.
Launched two years ago, Click & Invest was the South African wealth manager and bank’s foray into robo-advice.
However in its financial statements, Investec announced this morning it has decided to close its robo-adviser. The move follows UBS also pulling out of the robo-advice market last summer.
‘The reality has been the appetite for investment services such as ours remains low and the market itself is growing at a much slower rate than expected. At the same time, Investec has outlined new operating targets and strategic objectives for the group, which include a focus on improved capital allocation and cost management,’ Investec said in a press statement.
‘We fully appreciate this announcement will be of real sadness to both clients and staff of Investec Click & Invest. Our prime concerns from this point are to minimise disruption for clients and ensure that employees are treated with respect and fairness.’
Clients have now been written to and given the opportunity to sell their investments and take the cash, move the investments to a new provider or transfer out in their own name over the next 90 days.
‘For employees affected by the closure of Investec Click & Invest, a consultation process will begin in the next few days,’ Investec said.
The closure of the robo-adviser has resulted in a £6 million software write-off as well as this business contributing to an underlying loss of £12.8 million last year.
As revealed by New Model Adviser® last August, Investec Click & Invest was one of the robo-advisers involved in a plan to lobby the regulator for softer regulation of the sector.