Avanza launches Sigma automated investment service

Avanza has launched Sigma, an automated equity management service aimed at its private banking clients. The service utilizes an algorithm to make direct investment decisions in stocks based on a customer’s chosen strategy, providing each client with a unique portfolio rather than pooling funds into a common fund.

The technology is derived from Sigmastocks, a robo-advisor acquired by Avanza in December 2024 for 21.1 million SEK. The algorithm is described as research-based, analyzing millions of data points and performing major rebalancing on an annual basis.

Aimed at challenging traditional discretionary management offered by major banks, the service features fees ranging from 0.55% to 0.85% and requires a minimum investment of one million SEK. Jacob Smith, head of Avanza’s private banking, noted that the service seeks to address issues of high costs and low transparency often found in traditional banking models. Avanza’s private banking sector has seen significant growth, with customer numbers increasing by 22% over the past year to approximately 47,000 clients.