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IntroductionRavi BeegunKPMG Luxembourg

10:30am Introduction

Ravi Beegun, KPMG Luxembourg

10:35am The Khube for Digital Fund Series

Junjie Peng, The KHUBE – KPMG Luxembourg

10:50am Robo-advisors: a no brainer for asset management

Debate with:

- Serena Torielli, Advise Only

- Sebastian Hasenack, Investify

- Geoffroy Linard, Birdee Gambit

- Cyril Alvarez-Pereyre, Oriskany

moderated by Said Fihri, KPMG Luxembourg

11:40am Closing and Q&A

WiFi: VisitorNetUsername: kpmgplagePassword: 8091

#KPMGDigitalFund

© 2016 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved

Document Classification: KPMG Confidential

The Robo-Advice debate?

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No way…..

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Really?

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Are Robo-Advisers gaining ground ?

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AuM($ million)

Source: Financial Technology Partners, 2016 JuneSEC Fillings



Will Robo-Advisers be disruptive?

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The Khube for Digital Fund SeriesJunjie PengThe KHUBE – KPMG Luxembourg



What are we going to talk about today

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BIG DATA

AI

FINTECH

GOOGLE GO

SOCIAL MEDIA

TECHNOLOGYTWITTER

ROBO ADVISOR

BITCOIN

EDTECH

REGTECH

MEDTECH

MACHINE LEARNING

GLOBAL WARMING………

CLEAN DATA

BLOCKCHAIN

FACEBOOK MESSENGER

AMAZON STOCKS



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Source: Financial Technology Partners



The Relevance to Luxembourg

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Algorithm basedAdvisor based

High investor evolvement

Hand-off investment experience

Financial Advisors, Wealth Management, Private Banking etc….

Robo Adivisor



Why Robo Advisor Now?CPI of electronic product in the US from 1997 to 2015

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Dec

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Televisions Personal computers and peripheral equipment

Computer software and accessories Internet services and electronic information providers

Audio equipment Photographic equipment and suppliesData:U.S. Bureau of Labor Statistics, US

*100= price level in December 1997



Why Robo Advisor Now?Do you understand the new generation of customers

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Why Robo Advisor Now?Change in Wealth Management Behaviour

Source:MorningstarFinancial Technology Partners

US Equity Rolling Flows (Open-End and ETF)



Why Robo Advisor/FinTech Now?

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DECREASECost of Technology

DECREASETrust in Banks

INCREASEInfluence of Millennials

INCREASEAvailability of Data

Democratization of Technology & Banking Solution- New channel of reaching new investors -

- Different customer relationship -- New distribution channel -

- New business model -



How does it work?

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CUSTOMERS Digital Platform(laptop, mobile)

Cash

Information )

Portfolio Creation

Rebalancing

Monitoring

Modern Portfolio Theory Market Data

0 1 1

1 0 1

1 1 1

Data Analytics

EXCHANGES, BROKERS, CUSTODIANS, DISTRIBUTORS etc.

)

Tax Harvesting



How does the portfolio look like

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What are the differences between them

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Fees structure Portfolio AuM Date of Creation Minimum investment Key difference

0.25% Up to 7 ETFs $ 3.3 bn 2011 $ 500Can change portfolio

weightings

0.15%-0.35% Up to 12 ETFs $ 4 bn 2010 0Change goals and

weightings

free Up to 20 ETFs $ 5.3 bn 2015 $ 5,000 Can remove up to 3 ETFs

0.3%Custom $ 31 bn 2015 $50,000 Consult real adviser

Data source (2016): The Wall Street JournalFinancial Technology Partners

Personal Advisor



SegmentationAverage AUM per account

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Source: Financial Technology Partners, 2016 June



EvolutionAuM of Leading Robo Advisors ($ million)

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EvolutionClient Accounts of Leading Robo Advisors



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Different game, different rule

Launching,2015

H1 2016

$ 17 bn $ 31 bn

Launching, 2011

2015

$ 2 bn

H1 2016

$ 3.3 bn



The NEW things? How new?

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April 2016

+

Paypal’s $30 million round in Acorns investing APP

Small young mobile payment app owned by Paypalpopular with millennials

Volume: 2.5 Billion 2015

Lets assume:5% will use Venmo

5% of their payment goes to Acorns

$ 6M



• Better client experience• Better understanding of client

• New distribution channel• New investment• Higher business efficiency• More technology friendly IT infrastructure

• Better business efficiency • More time on core business

• Benefit from new technology

Robo Advisor for Advisors

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Algorithm basedAdvisor based

High evolvement Investment experience

Hand-off investment experience

Financial Advisors, Wealth Management, Private Banking etc….

Advise Only - B2B2C advisor

- Full financial instruments Robo Advisor- Founded in 2011, Italy

Investify- Consumer advisor

- Personalized & emotionalized Robo Advisor- Founded in 2015, Germany / Luxembourg

Birdee / Gambit- Robo Advisor for the affluent

- Spin-off of traditional advisor- Founded in 2010, Benelux

Oriskany- Data analysis support for asset allocation

- The brain of Robo Advisors- Founded in 2012, London

Panel Discussion: Practical implicationsOur Speakers

Serena TorielliAdvise Only

Sebastian HasenackInvestify

Panel Discussion: Practical implicationsModerated by Said Fihri

Geoffroy LinardBirdee / Gambit

Cyril Alvarez-PereyreOriskany

Do you think Robo Advisors will create a systemic risk on the AM?

Have your company already worked with Robo Advisors?

Do you think Robo Advisors area threat for your business?

Are you hungry? Are you thirty?Do you want to go to the KPMG Plage?

Q and A & Closing remarks

Thank you

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