Top 10 Global Asset Management Applications: Manage Trillions of Rupiah

Asset management is the activity of managing assets or an investment portfolio for specific purposes, such as maintaining asset value in the long term and maximizing investment returns.

This task is generally performed by financial and capital market professionals. However, investors are now also utilizing robo-advisors, which are asset management applications based on digital technology or artificial intelligence (AI).

A robo-advisor is a software robot that can manage investment portfolios for companies or individuals.

This robot can formulate investment recommendations based on algorithms or generative AI technology, execute buy and sell transactions in the capital market for its clients, and provide financial consultations.

Robo-advisors typically charge lower service fees than human financial advisors or investment managers. Their services are also accessible via smartphone 24/7, unlike human advisors whose working hours are limited.

"Robo-advisors have expanded rapidly in the last decade as investors seek low-cost asset management services," says financial technology analyst Toni Nasr, as reported by InvestingInTheWeb.com (May 31, 2023).

"Some players in the robo-advisor industry are startups that are now able to compete with major management companies and are encouraging several banks to integrate similar services into their banking product offerings," he continued.

According to data compiled by Toni Nasr, the largest robo-advisor application in the world currently is Vanguard Digital Advisor.

As of the end of December 2022, they held assets under management (AUM) valued at USD 140.7 billion, or approximately Rp 2,110 trillion (assuming an exchange rate of Rp 15,000 per USD).

"This figure reflects investor confidence in Vanguard and the company's success in providing advanced asset management services," said Toni Nasr.

Below is a complete list of the top 10 robo-advisors with the largest global AUM, based on company financial reports from September 2022 to April 2023:

1. Vanguard Digital Advisor: USD 140.7 billion (December 2022)
2. Schwab Intelligent Portfolios: USD 70.3 billion (September 2022)
3. Betterment: USD 36 billion (April 2023)
4. Wealthfront: USD 34 billion (December 2022)
5. Questwealth Portfolios: USD 30 billion (September 2022)
6. Empower: USD 23.5 billion (November 2022)
7. Wealthsimple: USD 17.5 billion (September 2022)
8. Acorns: USD 6.2 billion (December 2022)
9. M1 Finance: USD 5.5 billion (September 2022)
10. Nutmeg: USD 5.03 billion (September 2022)

However, higher AUM does not necessarily indicate that the platform performs better than others.

"We encourage investors to check the company's financial reports and website, and conduct due diligence before using any robo-advisor service," said Toni Nasr.