Neptoon ApS – www.neptoon.dk
By CEO Thomas Peter Clausen, 10-05-2022
What and who is it?
Danish entity, Neptoon ApS, provides professionally made investment platforms for primarily private investors. This concept or business is generally labeled “Digital Investment Banking” (DIB) or Digital Asset Management” (DAM).
The philosophy and objective is to equip investors with access to smart financial modelling, currently in the hands of multi-asset experts in banks only. Although the Neptoon backend financial engineering is very technical, investors will not meet this.
All frontend tools on the platform are designed and integrated in an intuitive and easy-to-use framework, that allows even investors with only little financial understanding to build fast optimized solutions, tailored their own risk-return trade-off and future wealth desire.
Neptoon ApS is not a bank
Neptoon ApS builds software solutions, with an in-build professional Asset Management structure, created by former professionals from the global banking industry and PhD’s.
The Asset Management structure is founded in academics principles and is rule-based to secure lowest cost and highest diversification (system backend) in a setup of investor-driven optimal risk-return preferences (system frontend). All underlying assumptions, are dynamically calibrated to market expectations of risk, return and cost of financial ETF products. Investor as such uses the software to build and analyze his wealth structure on the platform.
No money is transferred to a portfolio, or any account to be managed by Neptoon. So, investor uses Neptoon.dk to build a test portfolio. Not a LIVE portfolio. Exactly what professionals do.
Following the step-by-step procedure investor builds his portfolio, which then ultimately constitutes a solution suggested by Ubanking. Not an advice. It’s merely the best solution given the objective market assumptions and investors “overlay” modifications (see more on “How it Works” below).
What and why is it unique?
That’s easy to answer. Because Digital Investment Banking, simply does not exit currently in market. Or at least it does not exist in a globally integrated setup for investors looking for global investment solutions.
Neptoon in principle is a simple step-by-step procure, where investors (Users) are guided by an underlying Robot, that sets constraints and suggests dynamically the best risk-return way of investing. 24/7.
Motivated by new technology and ETF products, for many years the academia and independent bank industry observes, have advised financial institutions to offer clients investment API platforms.
Platforms where clients can build their own portfolio based on a transparent investment universe of e.g. Mutual Funds and ETF. For 2 reasons banks so far have rejected this. 1) transparency about costs and how costs work over time. 2) more fierce competition as Funds and Fund differences become more clear to investors or clients.
Only on the liability side (loans), are Digital Banking available. Why? Products are already very homogeneous. A 3-year annuity loan is mathematically a 3-year annuity loan, that can be compared between institutions on the % rate only. 30-year mortgage loans are in many countries backed by 30-year bonds that have same market price across bank or mortgage institution issuances.
Who is it for?
The www.neptoon.dk platform is designed for international investors with a global investment allocation approach. The www.neptooninvest.dk is designed particularly for Private Banking investors in the Nordics.
Science has for many years documented that private investors fail to be invested according to even the most accepted financial theorems. One big issue is underdiversification. 95% of all investors have inadequate risk profiles on divertsification, which means they are not according to theory rewarded sufficiently for the risk they otherwise take.
Another issue is that investors are unaware of the impact of the risk they take. The trade-off between risk and return. Now, and in the future. A third issue are costs. Investors still on a large scale, seek into high-cost Mutual Funds although similar ETF’s out there are priced at 1/10 of the cost.
Essentially, www.neptoon.dk facilitates and make transparent the investment decision, within a framework of lowest cost and full analytical scope. For all investors. Not only private investors.
What is the difference in the 8 investor gates?
Ubanking.dk has 8 different investor gates. This means the underlying financial modelling is engineered to address local challenges and opportunities for investors in US, UK, EU, India and the 4 Nordic countries (DK, SE, NO, FIN).
For example, an UK investor entering, will build his global portfolio in a setting with GBP, and UK equity home-bias. His ultimate portfolio composition will include UK instruments, where those are not perfect substitutes to EU instruments. Perfect substitution apples on OECD AAA government bonds.
What is the investment universe?
www.neptoon.dk has a system-defined multi-asset class set of 7 global ETF funds (+cash). These funds are monitored and changed from time to time, according to a set of evaluation parameters. Costs (TER) is not the only parameter. Accessibility on the SAXO BANK trading platform, currency, liquidity and main market ETF representation, are all parameters too. Investor can decide to include other ETF Funds, Mutual Funds or stocks too.
How does it work – The unsophisticated investor
The fast track works via a 4-level risk selection feature, that brings investor to a dashboard with a system and market calibrated suggested global solution. With expected return, risk, cost etc. In the dashboard, investor can click the “Trading View” and get all trading details, like Funds, ISIN, currency, amount etc. This can be exported to PDF or sent to E-mail. Maybe to a bank contact that can execute trades.
How does it work II – The sophisticated investor
The dashboard allows investor to scrutinize his portfolio with various tools. At any time investor can select pre-defined structures. But he can also use eg. the global equity weight and return modification. Likewise, its possible to individualize weight and return in eg. UK or Denmark equities.
Investor can build a future wealth plan based on his portfolio composition, and also select whether to add monthly or subtract monthly amounts from the expected portfolio value over time. Uniquely, the dashboard addresses investors looking for a dissavings plan all the way to 0 value at some future point in time. For example, a retiree expecting to live another 20 years, and that does not want to leave money, but still likes to have a toe in the market until then.
What happens after I purchased the portfolio?
At any time, investor can go back to www.neptoon.dk and find recalibrated solutions. So, an UK investor who 2 months ago accepted the High-risk (#3) solution, can reenter this solution, and rebalance his actual portfolio according to this.
If investor is a paid member (see below) he will receive an E-mail, when we suggest to revisit Ubanking.dk, because of market fluctuations that has caused the actual portfolio to drift away from the suggestion.
What is the price?
We offer the fast-track to 4 solutions for free. However, activating the modification tools and products investor must upgrade to either “Basic” or “Premium”. Both prices are around EUR7-12 moths.
Where can I get more information?
Videos are available in the “Academy” and info in the “FAQ – How it works” menu.
Otherwise contact Thomas Peter Clausen, +45-256857 or sent to [email protected]
Copenhagen, 10-05-2022