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Performance of robotIQ and other German robo advisors

Persephone Team, September 2018

August was a rocky month for capital markets observers with a German perspective.  Globally, both equities and debt securities broadly registered a sideward movement. Volatility was fairly low throughout the month with broad equity and bond indices having maximum differences[1] of around 3 per cent.

Persephone introduced its platform robotIQ™ last month which runs one version of its digital asset management solutions in an operational fashion to manage a range of retail portfolios. These managed portfolios, which are published at wikifolio.com for an objective and transparent record are compared to several robo advice offerings in the German market, which are tested by the comparison website brokervergleich.de [3].

The monthly stats are out since yesterday and here is an updated comparison [3],[4],[5].

robotiq-aug2

The comparison indicates that robotIQ portfolios of medium to high risk (robotIQ 16 – robotIQ21) continue to occupy the top ranks among all robo advisors over the course of the last two months. On a risk-return basis the low (robotIQ 6 and 9) and moderate (robotIQ 13) risk portfolios are even more impressive.

robotIQ portfolios which include crypto currencies as asset class dropped more in August than the standard robo solutions but still handily outperform the field on a two month comparison. The portfolio containing derivatives (robotIQ 21 L “leveraged”) is an impressive outlier that shows the potential of incorporating sophisticated approaches into robo-advice.

The target risk approach combined with Persephone’s proprietary market view model appears to outperform its competition over the observable period. We will keep updating

[1] 1-max/min of monthly index levels
[2] Source: Brokervergleich, Franke-Media.net, Leipzig
[3] Please see Brokervergleich Testverfahren for a detailed description of the test approach
[4] Performance of robo-advisory offerings calculated by Brokervergleich(see above), all calculations for robotIQ© portfolios based on data from Wikifolio, Ariva, Lang&Schwarz and own calculations.
[5] robotIQ© portfolios in solid color (VaR 13, 16, 18) have risk characteristics that are similar to the ones of other robo-advice portfolios Brokervergleich has chosen for comparison

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