In a flurry of robo-advice launches last year, a provider offering a customised investment portfolio within 15 minutes stood out, but the initial promise of Wealth Builder has been short lived.
The company, which was founded in May 2016 as a joint venture between Devonshire financial planner Otter Financial Services and Parmenion, has withdrawn its services from the market.
Otter’s director Damien Clyburn said this was ‘due to the number of similar propositions that are on the market’, and therefore the team decided not to take the service forward.
The Wealth Builder service was expected to have a total cost of between 0.89% and 1.12% per annum, with an average investor likely to pay 0.95%.
Clients would have rated their risk appetite via a questionnaire provided by Otter Financial, before being placed in a Parmenion multi-asset fund.
At the time, Clyburn had said the reason they launched Wealth Builder was ‘to engage with younger people, such as the X-generation and millennials’.
He told Wealth Manager: ‘Our traditional client base, the people we deal with on a daily basis, are post-retirement so we are conscious of the fact that we need to engage with younger clients to make us a viable business.
‘I see it as a service for people who come into our office off the street, or the children of our existing client base, where we don’t really have the time and resources to service them fully, but we are already engaging with their parents and grandparents.’