Avanza challenges major banks' multi-billion market – launches algorithm-driven discretionary portfolio management for stocks at half the price

Following the acquisition of the fintech company Sigmastocks, the result of their joint development work is now being launched: Avanza Sigma, a service that breaks with how the industry has traditionally conducted discretionary management. Instead of letting subjective assessments and individual opinions guide decisions, Sigma is built on the research-backed strategy of factor investing. By utilizing an algorithm to analyze millions of data points, the optimal stock portfolio is tailored to each customer’s chosen strategy and market focus.

With this launch, Avanza expands its product offering into a new segment, taking the step for the first time from helping customers do it themselves to managing the entire portfolio on their behalf.

"When we acquired Sigmastocks, we promised to take on the battle for the SEK 1,000 billion currently held in traditional discretionary management. This is a market that has long been somewhat of a black box for customers, plagued by hidden fees, high prices, and low transparency. With Avanza Sigma, we are opening the doors, taking our Private Banking offering to the next level, and launching automated discretionary equity management at half the market price," says Gustaf Unger, CEO of Avanza.

Avanza Sigma is provided within the framework of an endowment insurance policy (Kapitalförsäkring) with a total fee of 0.55–0.85 percent, giving customers real-time visibility into their holdings via the app or desktop. The service is designed for long-term investing, with risk levels and asset allocation monitored and adjusted on an ongoing basis, while dividends are automatically reinvested. Once a year, a larger rebalancing takes place, with holdings updated based on the latest factor analyses.

Unlike the market's robo-advisors, which invest entirely in underlying funds, Avanza Sigma can invest capital directly in equities. This means customers get directly owned stock investments without the burden and complexity of underlying fund fees.

"We know that many people want help managing all or parts of their capital. Perhaps they have received an inheritance, made a profit in their business, or simply want to spend their time on things other than following the stock market. With Avanza Sigma, customers get research-backed, disciplined management with a long-term strategy. It is a clear example of how Avanza makes Private Banking better, cheaper, and simpler," concludes Gustaf Unger.

Avanza Sigma in Brief:

• Target Group: Private Banking and Pro customers.
• Minimum Deposit: SEK 1,000,000.
• Price: 0.55% – 0.85% total fee (no transaction costs or hidden fees). Avanza Sigma’s base fee of 0.85% corresponds to half the market price for discretionary management. Throughout 2026, a launch offer of 0.55% applies.
• How it works: Research-backed factor investing within the framework of an endowment insurance policy. Customers select their market focus (Sweden, Global, or both) and sustainability preference, after which optimization and annual rebalancing are handled automatically.
• Holdings: Primarily directly owned equities. At lower risk levels, as well as for exposure to emerging markets (EM) and fixed income, where the portfolio is supplemented with funds. Customers are compensated for underlying fund fees.

Investments involve risk, and you may not recover the full amount of invested capital. Avanza Sigma’s highest fee corresponds to half of the average cost among Swedish Private Banking players according to Private Banking Insights 2024 (Affärsvärlden). The comparison refers to high-risk portfolio management.

Revenue from Avanza Sigma will be reported under Other Income.

For more information, please contact:
Elias Nilsson, Head of Communications
+46 (0) 70 154 00 53
elias.nilsson@avanza.se

Karolina Johansson, Head of Investor Relations
+46 (0) 8 409 422 08
IR@avanza.se

Avanza is a digital platform for savings and investments, founded in 1999. The Parent Company, Avanza Bank Holding AB (publ), is listed on the Stockholm Stock Exchange. Avanza’s customer promise is that you as a customer will have more left in your own pockets than with any other bank or pension company. Services include saving in shares, funds, savings accounts, mortgages, and a strong pension offering. Avanza has over 2.3 million customers with more than SEK 1,200 billion in total savings capital. This is equivalent to 8.7 per cent of the Swedish savings market. Avanza is the largest Swedish player in terms of number of transactions and turnover on the Stockholm Stock Exchange, including First North. During the last 16 years Avanza has won SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”. For more information visit: avanza.se/ir