Scalable Capital outperformed its peers in its first year in the UK
Robo-advisor Scalable Capital has outperformed its peers during its first year in operation, which it attributes to its risk management technologies.
Its most adventurous portfolio made a return of 21.12 per cent in the year-to-date from June 20, 2016. All three of the firm’s portfolios outperformed the Asset Risk Consultants Private Client Indices, according to Scalable.
Its highest risk strategy outperformed the ARC equity risk category by 2 per cent. The platform’s middle portfolio grew 17.02 per cent, compared to 15.85 per cent by the steady growth asset ARC category. Its most cautious platform returned 13.72 per cent compared to 11.89 per cent by the balanced asset ARC category.
“The political landscape has been utterly transformed since 20th June last year but our portfolios still achieved strong positive performance, with the highest-risk category increasing almost 25 percent, after fees,” said Adam French, Scalable CEO and co-founder. “We believe that our dynamic asset allocation and risk management technologies have meant that our clients’ portfolios avoided the market lows and benefitted from the market highs.”
One of the reasons for the high returns is that the firm had very low exposure to Brexit and instead has high exposure to U.S. and international indices. The firm’s portfolios benefited greatly from the strength of the dollar against the weaker pound.
Scalable also operates in Germany and passports its services into Austria. It uses automated technology to monitor the risk of its portfolios and make investment changes daily so that the risk percentage does not go over the maximum an investor would be willing to lose in a bad year.
This article first appeared on www.roboadvicenews.com