Scalable Capital, the European digital investment manager, is launching an ISA wrapper for its UK clients on 12 September. Under the new product, current and future clients will be able to access tax-free returns from investments with Scalable Capital for up to £15,240 for the 2016/17 tax year.
In parallel with the launch of the ISA wrapper, Scalable Capital is reducing the minimum investment threshold from £10,000 to £5,000, in order to allow current and prospective clients more flexibility when allocating funds to their ISAs. The change will allow Scalable Capital clients the option to build up incrementally their tax-free savings, while ensuring that the company’s sophisticated algorithm can continue to deliver strong investment performance.
Adam French, Managing Director and Co-Founder of Scalable Capital, said: “The average cash ISA now pays under 1%, and with the launch of our ISA wrapper we want to help UK savers get better returns on their money. Those who are apprehensive of the risks of investing into the capital markets will appreciate our unique ability to give them a clear picture of the risk that they are exposed to in their investments, and to ensure this risk doesn’t exceed the level they feel comfortable with.”
Scalable Capital, unlike traditional wealth managers or other robo advisors, makes use of new developments in research and technology to provide a data-driven investment service that doesn’t have to rely on simplifying assumptions about the behaviour of capital markets.Its risk management technology analyses market data using cloud computing and thus assesses the risk situation of various asset classes. This allows the company to proactively adjust portfolios in order to maintain their risk level, and to offer personalised rather than standardised portfolios to investors, where every trade is made only if it makes sense for them. Until now, this personalisation has only been available to investors with enough assets to afford a private wealth manager.