Money Design

About Money Design

Money Design Co., Ltd. is a Japanese financial technology firm that provides a suite of digital asset management services, most notably the AI-powered robo-advisor, THEO. The company was founded in August 2013 by Mamoru Taniya and Tomoyoshi Hirose. The founders aimed to address the challenges of Japan's changing economic landscape—including a depreciating yen and low interest rates—by making global diversified investing accessible to individual investors.

The firm’s flagship product, THEO, launched in February 2016 and was Japan's first robo-advisor service developed in-house. Named after Vincent van Gogh's supportive brother, Theodorus, the service aims to act as a financial supporter for its users. THEO provides a discretionary investment management service that uses an algorithm, co-developed with Professor Yasuyuki Kato of Kyoto University, to create and manage personalized portfolios. It constructs these portfolios from a wide range of Exchange-Traded Funds (ETFs), allowing for diversification across approximately 70 countries and over 20,000 individual stocks. The platform automates the entire investment process, from portfolio selection based on a few simple questions to rebalancing and tax optimization, making it accessible via smartphone for a minimum investment.

The business model is centered on a B2C offering with THEO and a B2B2C model called THEO+. The THEO+ service partners with other companies, such as financial institutions and major corporations like NTT Docomo, to offer co-branded robo-advisory services. The company primarily generates revenue through a simple asset-based fee, charging an annual management fee of up to 1.10% (including tax). In addition to THEO, Money Design offers other services, including "MYDC," an iDeCo (individual-type defined contribution pension plan) service, and provides financial solutions for B2B clients. In December 2023, Money Design became a wholly-owned subsidiary of Tokai Tokyo Asset Management Co., Ltd.