Smart Interest on EUR account

Hello everyone,

I wanted to share my thoughts on the removal of the Smart Interest product from the EUR market.

As it currently stands, the EUR market in Wisealpha does not have a lot of depth with only a limited number of bonds and lack of a robo service.

That makes very difficult for investors who already hold funds in smart interest products to diversify effectively and I believe will lead to a reduction of the funds in the EUR accounts as the existing Smart Interest accounts mature and the investors have a limited number of alternatives.

I do realise that the removal of the Smart Interest product was a conscious decision that would allow Wisealpha to focus on the core products but I really do not think that at the EUR market things are mature enough for such a move.

George

Smart Interest (SI) was removed because probably it wasn’t profitable. WA probably got a hit in Feb/March and the portfolio underlying SI may not have returned to positive yet, let alone generate cash to pay back customers.
We don’t know how much money WA is making from smart interest as they don’t detail it in the accounts. So this is just speculation.
SI carries some risk to WA, so it’s normal they don’t want a lot of it. It was important in the beginning to pre-fund bond purchases, but now they can just leverage on the portfolio; I don’t see yet they would need the SI money anymore.

Hi George,

Thanks for your feedback.

Our focus over the past year or so has been growing our GBP market which we have successfully done to include broad market coverage of over 120 bonds.

Our EUR market is still in its infancy but we do plan to build on this in 2021, adding more bonds to the market and work towards offering Robowise for EUR.

Again, we really appreciate the feedback from yourself and other investors, it is taken into account during both our decision making processes and reviews.

Many thanks,
Lizzie
WiseAlpha Team