Media release

OpenInvest and The Strategy Data Exchange (SDX) enter MOU

12 January 2021

Firms to combine resources to deliver end-to-end model manager portfolio capability to institutional distribution partners throughout APAC


OpenInvest, Australia’s leading new-technology investment platform and The Strategy Data Exchange (SDX), APAC’s leading model manager hub, have signed an MOU to deliver model manager portfolio capabilities to end clients throughout APAC.

“The flexibility of the OpenInvest platform enables our partners to offer their clients a curated menu of institutional-grade portfolio management, together with relevant and engaging content from those managers,” said Andrew Varlamos CEO and co-founder of OpenInvest.

“Our design is based on the principle that investors want to know more than what assets they own – they want to understand the rationale behind the decisions of their portfolio manager. We are pleased to be partnering with SDX to take our capabilities into Asia, including in an upcoming release offering greater levels of customization for all investors, including those with very small portfolio balances.”

Such functionality – often referred to as “direct indexing” or “custom indexing” - allows investors to customize the managed portfolio they have selected to suit their particular preferences. When combined with share fractionalization capability, it means every investor, no matter how small their portfolio balance, can have their own professionally-managed portfolio, customized to suit them.

“As financial institutions in the region, both incumbent and new entrants in the banking sector, continue to re-assess their wealth management offerings and engagement strategies with the fast-growing emerging middle class of Asia, we see a significant shift in the requirement for fractionalized investment offerings under a commission-free trading model,” said Gerald Ferguson, General Manager APAC for SDX.

“With fractionalization, we believe our clients’ investment strategies will become ubiquitous in APAC. Now with small, incremental round-ups from purchases such as food orders or taxi rides, everyone can begin saving for their futures. We also believe that the end consumer should be able to access world-class portfolio management via their own personalized, transparent portfolio no matter their wealth level,” said Ferguson.

“Some commentators and founders have hailed the rise of free share trading apps as 'democratising', by giving everyone access to the stock market. But the data shows people struggle to know what to buy and when to sell, and how to achieve a suitably diversified portfolio. In our view, the real revolution is in giving every person no matter how small their savings access to their own personalized and transparent portfolio, managed by their choice of portfolio manager,” said Varlamos. ”That is our mission at OpenInvest, and through our partnership with SDX we look forward to making this a reality in Asia”.

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About OpenInvest

OpenInvest is a Melbourne, Australia-based fintech platform that enables its partners to offer managed portfolios to investors, either via the OpenInvest marketplace or their own online interfaces, alongside informative and engaging content. Through OpenInvest’s technology, investors of all sizes are able to obtain professional assistance in a low-cost, digital environment.

About The Strategy Data Exchange (SDX)

SDX, a portfolio company of Move 78 Pte Ltd, is APAC’s largest manager model gateway. Based in Singapore, the platform has over 75 of APAC’s largest institutional sponsors and distributors. SDX provides portfolio managers the opportunity to distribute their strategies to the world’s largest investment banks, private banks, digital banks, super-apps, and social media platforms.

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