Persephone’s proprietary robotIQ© harbors, among others, various financial asset management models. robotIQ© manages our clients’ assets applying highly specific quantitative approaches. Two of the largest European banks rely on robotIQ© as the core algorithmic platform for their robo-advice offerings. Given the frequent inquiries and the high interest in Persephone’s developed models that drive these robo-advice solutions, we decided to disclose a set of real-life portfolios to the public.
In this particular case, robotIQ© applies the target risk approach to manage portfolios. The idea behind target risk asset management is to manage assets given a pre-defined risk level, which is denoted by the Value-at-Risk (VaR) indicator. In our case, the VaR has a time horizon of one year and a confidence level of 95%. Hence, the risk level represents one key parameter and might be contractually defined for a DPM mandate.
There are various other parameters that clients may specify when delegating the management of their assets. By this means, robotIQ© enables clients to customize a truly individual portfolio management approach that fits their personal needs and financial situation. For instance, clients may prioritize or restrict investments separately for single asset classes or foreign currencies. robotIQ© also offers clients to allow investments in crypto currencies (e.g. bitcoin). Moreover, clients may permit the use of leveraged investment vehicles to increase return potential, or for hedging purposes.
We have chosen Wikifolio as a neutral and objective platform for publishing a set of sample portfolios with different VaR levels. Our aim is to provide transparency and insights into the process, relevant risks and, most interestingly, into the performance behavior of one of the most advanced robo-advice systems.
Currently, the following portfolios are published on Wikifolio (Source: Persephone robotIQ© system)