Do Robots Produce Better Investment Returns?

According to a panel of asset managers during the TSAM Buy-Side Conference in Midtown Manhattan, the value of assets being managed by Robo advisers has exploded from zero approximately five years ago to around $100 billion today. Investors have flocked to the Robo adviser offering, which is particularly attractive to the younger generation who are not interested in paying high fees for wealth managers that often underperform. The sudden demand for computerized asset management has sparked an arms race among established firms. A wave of new Robo advisers has also set themselves up as entrepreneurs, and venture capital investors try…