The Science of Wealth Management

AQUMON utilises algorithms to determine smart and tailor-made solutions for investors to achieve their financial goals.

Many of us take pride in saving for a rainy day. Yet with so many choices in today’s financial landscape, a little help with managing investments is always welcome. AQUMON was founded with the aim of allowing algorithms to steer intelligent and bespoke investment portfolio management services. Its robo advisor solution was developed at the Hong Kong University of Science and Technology (HKUST) through its Artificial Intelligence laboratory in 2016.

“We believe wealth management should be scientific and data-driven,” explained Kelvin Lei, AQUMON’s CEO and Co-founder. “Our robo processes more than 100 terabytes of real time data in global financial markets to seek the best exchange traded funds (ETF) for our clients, and invests into more than 50 quality asset classes worldwide. With the help of our algorithm framework, we can intelligently help our clients select the best risk-adjusted investments, systematically maximise portfolio diversification to reduce downside risk, and in turn offer long term, stable performance.”

Quantitative investment strategies

AQUMON offers two main products for retail customers: US-listed ETFs portfolio and HKlisted ETFs portfolio. Their robo suggests personalised investment portfolio with the best risk-adjust return rate.

At the beginning of 2020, they also launched Basic ETF Series with a minimum of US$1,000 which makes their automated wealth management services more affordable to the general public. For its financial institution partners, AQUMON offers a more sophisticated and diverse range of quantitative-based investment strategies through global asset allocation.

Lei feels that Hong Kong is an ideal place for AQUMON to prosper due to it being a major financial hub. “Even though robo advisors are new to Hong Kong, we received ample support from the Securities and Futures Commission, who granted us our license to deal, advise and asset manage securities,” he noted. “The city’s reliable legal and intellectual property infrastructure gives us further confidence to be based here. Looking ahead, the issuance of virtual bank licenses provides AQUMON with potential partnership opportunities down the road. Almost all of the virtual banks have reached out to inquire about collaboration potentials.”

Path to the top

With over 40 employees in Hong Kong working in the realms of business development, quantitative research and operations, AQUMON endeavours to become the top wealth management service provider in Hong Kong and, eventually, Asia. To achieve these goals, it plans to leverage the city’s talented specialists in finance analytics, mathematics and research. “According to a recent survey by PwC, more than 95 percent of Hong Kongers do not have access to sufficient investment tools,” Dr. Don Huang, Head of Quantitative Research and Co-founder observed. “We are determined to change this through our robo advisor platform, which helps people build their wealth via investing with low investment minimums and reasonable fees. This passion keeps us motivated through all the hurdles we have faced.”

Lei has appreciated InvestHK’s support on various fronts. “Beyond introducing us to potential business partnerships, InvestHK has offered us valuable networking and publicity opportunities,” he said. “The added media exposure was one of the key reasons why AQUMON’s client base continues to grow strongly. Hong Kong is definitely a good place to work and to live—a very dynamic and vivid place with an energy that motivates me to improve.”