For those willing or able to invest a certain amount of money, there can often be a great deal of money to be made through the stock market. There are no shortages of money managers out there, but former Goldman Sachs executive Sergey Sosnov and former Samsung executive Oksana Johannesson believe that there is a space for focusing on those who may not be as affluent and aims to take them to the next level with Zen Assets, a money-management firm which just launched this week.
Zen Assets, which is bootstrapped, targets serious investors, requiring that customers invest a minimum of 10,000 British pounds, but wishes to make the service accessible to the less affluent. Zen Assets estimates that there are 1 million affluent people across the U.K. who meet these standards as prospective investors who are willing to put serious cash in the market, but who are generally ignored by money managers.
For those who are willing to pony up that money, Zen Assets is offering a platform that can show how a hypothetical portfolio would have performed over a certain number of years (up to 15). Essentially, prospective investors have the option of selecting a “type” (from 11 different tailored portfolios) based upon how much risk they are willing to stomach and select the level of money invested.
Their formula for measuring this hypothetical performance includes an assumption of an annualized return of an average of 6.5% on a portfolio comprised of 50% equities and 50% investment-grade bonds. One of the key differences between typical money managers, who take an average of 3.65% (Zen Assets cites this article from the Financial Times), Zen Assets takes only a 0.5% advisory fee (+0.17% for processing transactions).