(Money Marketing UK) According to media reports, Vanguard, the passive investment giant, is planning to launch a new digital advice proposition in the US.
Last week it filed an initial disclosure with the Securities and Exchanges Commission revealing plans to make inroads to the digital advice market.
Currently the new proposition is called Vanguard Digital Advisor and aims to bring a more affordable and purely digital option to a greater number of investors.
According to Investment News Vanguard’s Personal Advisor Services already dominates the robo-advice space with roughly $140bn (£113bn) in assets under management.
The brochure explains the service will be offered through Vanguard’s advisory arm and can be used in a variety of settings.
Employer-sponsored 401(k) retirement plans that are the US equivalent of workplace defined contribution plans will be able to provide digital accounts to employees with Digital Advisor.
There is a $5 (£4) minimum 401(k) account balance required to enrol an eligible 401(k) member into the plan.
The brochure says: “You are encouraged to access your account to personalise your risk attitude, set additional goals once available, and complete your profile, which will trigger Digital Advisor to reassess your asset allocation.
“If your plan sponsor enrols your account and you do not take action to un-enrol from Digital Advisor, your decision to remain enrolled in the service will constitute your approval of the investment strategy selected for your portfolio.”
