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Performance of robotIQ and other German robo advisors

Persephone Team, February 2019

2019 started in an odd predicament of mixed signals: The largest global economy experienced a partial government shutdown throughout January and the FED adjusted its expected future interest path downward (number and timing of expected future rate hikes) due to slowed economic dynamism. This was juxtaposed with a swift global stock market rebound that suggests regained confidence and renewed US outperformance.

Persephone provides an update on the performance of portfolios managed by its platform robotIQ. Since July, these portfolios, which follow a target risk approach and range from 5-25% annual Value at Risk, are compared to other robo advice offerings which are benchmarked by brokervergeich.de [1-3].

A comparison of January 2019 on a standalone basis shows a strong performance of Persephone’s portfolios. Our portfolios of comparable risk levels (indicated in Persephone red) are among the best performing with a remarkable monthly gain above 5% for risk levels above VaR 16%.

robotiq-jan

Based on Brokervergleich’s January stats we have also updated our comparison aggregating the last months (July 2018 – January 2019) [4].

robotiq-jan2

January’s positive performance has reduced the intermediate losses significantly and our own relative strength has improved the standing especially of the high-risk portfolios. Despite the bullish equity month, the low risk robotIQ portfolios (robotIQ 6% and robotIQ 9%) continue to occupy top ranks as their conservative risk structures dampened the recent losses. Persephone’s medium risk range portfolios (robotIQ 13% and 16%, which are broadly comparable to the set of brokervergleich’s portfolios) have performed well in January and showcase the value of combining algorithmically controlled risk management with expert-guided strategic market views.

The target risk approach combined with Persephone’s proprietary market view model shows how portfolio risk can be adequately modulated according to client preferences [5]. Over a longer horizon the strengths and weaknesses of the different asset management approaches will become apparent and greater dispersions are to be expected. We will keep updating.

Background:

Persephone operates a quantitative finance platform robotIQ© which runs one version of its digital asset management solutions in an operational fashion to manage a range of retail portfolios. These managed portfolios are published at wikifolio.com for an objective and transparent record [6]. They are compared to several robo advice offerings in the German market, which are tested by the comparison website brokervergleich.de [1].

[1] Source: Brokervergleich, Franke-Media.net, Leipzig
[2] Please see Brokervergleich Testverfahren for a detailed description of the test approach
[3] Performance of robo-advisory offerings calculated by Brokervergleich (see above), all calculations for robotIQ© portfolios based on data from Wikifolio, Ariva, Lang & Schwarz and Persephone-own calculations
[4] robotIQ© portfolios in solid color (VaR 13, 16, 19) have risk characteristics that are similar to the ones of other robo-advice portfolios Brokervergleich has chosen for comparison
[5] Please see separate article „Economic expectations and market views in automated portfolio management

[6] Persephone Portfolios at www.wikifolio.com

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