Robo-advice 

Robo-adviser launches tax monitoring feature

Robo-adviser launches tax monitoring feature

A Europe-wide robo-adviser has launched a capital gains harvesting feature to help its clients optimise their investments and reduce the need for aggressive asset allocation rebalancing.

ETFmatic's new feature will work by identifying and selling those ETFs that have increased in value and replacing them with similar ones to ensure the same asset allocation exposure is maintained for clients.

The robo-adviser claims to be Europe's only digital wealth management platform that offers ETF portfolios in sterling, Euros and US dollars.

Luis Rivera, chief executive of ETFmatic, said: "Investors in Europe deserve cost effective portfolio management with asset allocations that make sense to them. Our aim is to offer clients more of the kinds of services that have historically only been available to individuals with several million to invest.

"Since our launch two years ago, we have continuously been developing new solutions which add further value to our services. The new capital gains feature lays the groundwork for further tax optimisation tools around loss harvesting in the future."

ETFmatic will begin rolling out the service to clients in 32 European Union states. Initially, it will only be available to eligible clients with portfolios of GBP/USD/EUR 50,000 plus.

The company has said those who are not familiar with capital gains tax or the tax-free allowance should seek professional tax advice before deciding whether to enable the feature on their account.

It charges 0.48 per cent on portfolios of up to GBP/EUR/USD 25,000, and 0.29 per cent for those of more than GBP/EUR/USD 25,000 and above.

ETFmatic has not disclosed how much it has in assets under management.

damian.fantato@ft.com

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