Top performance report marked first anniversary of CreditEase Wealth Management Toumi RA

BEIJING, July 26, 2017 /PRNewswire/ -- CreditEase Wealth Management Toumi RA released its performance report in Beijing on July 14, 2017, showing the platform's stable return and outstanding risk control capability amid severe turbulence of global capital market in the past year.

Based on global ETF portfolios optimized by intelligent algorithm, Toumi RA achieved 2.55% - 11.48% of cumulative return during the period, remarkably higher than its competitors, and generated gains for 99.6% investors while only 10% investors earned returns from A-shares market. The assets under management of Toumi RA increased by 33.6% monthly, compared with 6% of Betterment and 3% of Wealthfront, and the reinvestment rate reached 52.2% with an expansion by 268%.

According to Toumi RA's first investor profile, 58.97% of its clients are aged between 35 and 50, compared with the P2P investors of which 78.5% are under 35. Besides, Toumi RA investors' average investment amount ranges from RMB 500,000 - 3,000,000, which is 3.5 times as high as that of P2P investors. Moreover, 87.4% of Toumi RA clients ever invested in relatively more complex financial products such as stocks or funds while only 34.7% of P2P users have similar experience. Such a profile indicates that Toumi RA's target group is Chinese middle class, the 225-million population who is wealthier, more rational and eager for better wealth management driven by technology.

Although Chinese robo-advisors are still lagging behind the US peers in terms of investment amount per head, service scope and banks' willingness to engage with the business, said Frank Wang, Toumi RA's Head and CIO, the domestic industry shows greater momentum and stronger potential due to growing middle class, rising popularity of mobile internet and the lack of traditional investment advisors.

Ning Tang, CreditEase's Founder and CEO, pointed out that the idea about asset allocation, rather than technology, presents the biggest gap between Chinese and US robo-advisors. To a greater extent, he said, the key to FinTech innovation lies in insights into clients' demands especially intangible and long-term demands and better serving them by technology and model innovations.

Tang predicted that asset allocation will become a keyword for the next decade. Since traditional asset allocation services are unable to meet the increasing demands of middle class and mass affluent groups, those investors will increasingly rely on technology to build 20-year-long or 30-year-long portfolios, he said. 

The capital market will become quite stable when robots take over as portfolio managers, Tang added, noting the promising future of wealth management in the next four decades if life expectancy would reach 100 then.

Toumi RA's idea of long-term asset allocation and more diverse products drive the transition from fixed return investment to equity investment and at the same time contributes to sustainability of Chinese capital market by offering stable and long-term options for otherwise speculative capitals.

At the event, Toumi RA launched its RMB-based services which offer nine cross-regional, multi-class and weak-relativity portfolios covering a wide range of Chinese and US stocks, bonds and gold investment products.

About CreditEase Wealth Management

CreditEase Wealth Management is the wealth management arm of CreditEase, and focuses on comprehensive global asset allocation services for high-net-worth individuals and mass affluent Chinese investors. It also offers a wide range of services such as investment immigration and international education advisory, and products across different asset classes including fixed income, private equity, capital markets, real estate and insurance. CreditEase Wealth Management is committed to providing high-quality products and services in line with customer needs and expectations, as well as helping to formulate comprehensive plans for wealth preservation and growth. On December 14, 2016, CreditEase Wealth Management was named winner of the "Best Non-Bank Private Wealth Product" by The Asian Banker, a Singapore-based leading provider of strategic intelligence on the financial services industry.

About CreditEase:

CreditEase is a leading FinTech company in China, specializing in inclusive finance and wealth management, in addition to payment technology, marketplace lending, crowdfunding, robo-advisory, insurance technology and blockchain products and services. CreditEase actively engages with global FinTech innovators through business incubation, commercial co-operation, and investment.  Better tech, better finance, better world.

SOURCE CreditEase