My account at THEO is now open and operating. The last few steps to open the account were:
- receive a phone call from THEO last week to confirm my address
- receive a letter in the post (to confirm account details)
- upload my My Number information
- transfer 100,000+ yen to the account
Once you are in the account you can change your desired risk/return. The setting is very simple, just a scale from 1 (extremely safe) to 7 (100% equities).
I thought of going with 7, but if I am going to be paying them a (relatively) large fee to manage the account, I want them to do some more work, so I ended up going with 6:
- 55% developed market shares
- 11% emerging market shares
- 15% developed market government bonds
- 11% corporate bonds
- 4% high yield (junk) bonds
- 1% emerging market government bonds
- 1% REIT (real estate investment trusts)
- 1% commodities
- 2% cash
The interface is very simple, with the portfolio current value only being shown. It seems like a great way to get started investing without really having to think about it. As the fees are levied on total assets, you could transfer in small amounts regularly to gradually increase the portfolio -in contrast to buying shares through an online broker, where it's better to save up and buy larger amounts to reduce fees.
So far I'm liking THEO very much. This could end up being a good option for non-US residents of Japan.
I'm going to try the service for a couple of months, then write a more detailed review/guide.