A recently launched online investment manager has revealed an impressive rate of asset growth.

Scalable Capital is growing its assets under management by between €2 million ($2.2 million) and €4 million per week, its founder Adam French said at its press launch event last week.

The robo-advisor, which launched in Germany in January this year, netted £5.6 million in its second funding round in April after securing a licence from the UK's Financial Conduct Authority. In July, it expanded its footprint to Austra. 

Scalable Capital’s technology allocates each investor’s portfolio based on a quantitative measure of their risk appetite. It uses forward-looking projections, based on recent market developments, to measure the risk level of exchange-traded fund products the client is invested in, and then reallocates their portfolio according to their risk category. The firm charges an all-in annual fee of 0.75 per cent, which includes investment management, account management, trading costs and custody, as well as an annual 0.25 per cent cost  of the ETFs.

The firm was founded by a team of former Goldman Sachs employees. Its typical client profile, it said, is a 45-year-old on an income of €120,000 with a liquid net worth of €250,000 to €1 million.

As reported in August, assets held in “digital advice” business models, aka “robo advisors”, are forecast to explode to $2.2 billion by 2020, from an estimated $55-$60 billion at the end of last year, according to KPMG in a recent US-based study of this disruptive wealth management area. The value of the robo-advice market will be around $500 billion by 2020, the report said.