Outsurance has launched a new retail investment service to complement its suite of direct to consumer short-term and life insurance products.
The new service, Outvest, offers goal-based advice and passive investment solutions via a website and an app, combining technology and financial advisors based in a call centre.
It aims to differentiate itself from similar services by including an intuitive do-it-yourself digital front-end, low fees and intelligent goal-based calculators – which will help investors understand how much to save to achieve their goals.
Clients benefit from both algorithmic passive investment strategies and professional human advice, the company said in a statement.
“In a country with a low savings rate, a large advice gap and expensive investment products, we want to help consumers easily and cheaply save and invest,” said Willem Roos, Group CEO of Outsurance.
“Just like Outsurance turned insurance on its head, we’re aiming to do the same with investing. We’re living in a digital age where people are more comfortable using smart websites and apps to make decisions previously only entrusted to a face-to-face advisor. Outvest makes investing simpler, smarter and more affordable with the consumer at the centre.”
One of the key innovations behind the new service is the introduction of “Crowdvest” – a social version of investing.
“We’ve made it easy to invite friends and family to collectively invest towards making a meaningful financial goal become reality,” said Grant Locke, head of Outvest.
“For instance, grandparents will easily be able to contribute towards a tertiary education savings goal for grandchildren, or friends will be able to collectively save towards a trip or sports tour, and invite others to support them.”
Clients can add or withdraw funds, stop, start or change contributions at any time at no cost and with no penalties.
You will also be able to completely comply with usually frustrating FICA requirements speedily via the app or website, said Outsurance.
Fees are competitive and extremely transparent and investments start from R100 per month, it said.
Outvest has partnered with CoreShares, a leading index tracking passive fund manager, which has registered four advanced and cost effective unit trusts to cater for the different levels of risk and investment horizons of Outvest clients.
These unit trusts were developed in conjunction with S&P Dow Jones indices, one of the largest index providers in the world.
In addition, Outvest has partnered with Granate Investment Management, a member of RMI Investment Managers to offer its money market unit trust to complete the investment offering.
“South Africans need to save a lot more but they just don’t know where to start, how much to start with, who to choose, or what fees they will end up paying to the asset manager and advisor. Outvest bridges these gaps by creating access to high quality and excellent value for money investment solutions, said Locke.
“Everyone who has a goal worth saving for, no matter how big or small, could be an Outvestor.”