Please use the sharing tools found via the email icon at the top of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Morgan Stanley has made a late push for dominance in the fast-growing market for “robo-advice” in America, launching an automated service aimed at the offspring of its well-heeled customers. Over the past few years automated investment platforms such as Betterment and Wealthfront have lured hundreds of thousands of investors with the promise of managing their money at a fraction of the cost of human advisers, mostly by offering cheap exchange traded funds and rebalancing periodically to optimise profits and taxes. Big asset managers such as Vanguard and Fidelity have responded by launching similar services, while broker-dealers such as Bank of America and Wells Fargo have also joined the fray. Funds managed by software will grow to $385bn by 2021, according to Cerulli Associates, more than quadrupling from today’s levels. Automated platforms “will probably be table-stakes for most firms in the financial-advice industry in the next handful of years, rather than a massive differentiator”, said Devin Ryan, an analyst at JMP Securities in New York. Morgan Stanley is the latest to pitch in, offering a choice of ETFs, mutual funds and seven themed portfolios, among them sustainability, gender diversity and next-wave technology. The new online tool, known as Access Investing, is designed to appeal to a younger generation, many of them members of wealthy families.
/ / Morgan Stanley enters robo-advice investment market