By Daniel Lanyon on Monday 30 April 2018
The AI-powered investment manager has launched to UK investors.
Digital wealth manager Exo Investing has launched to retail investors.
The firm is backed by quantitative asset manager ETS and former heads of Compagnie de Benjamin Rothschild, Hugo Ferreira and Daniel Treves. The UK is its first launch but it also has offices in Madrid.
Exo’s minimum investment is £10,000. Charges come in with an annual fee of 0.75 per cent on investments up to £100,000 and 0.5 per cent on larger amounts and it also charges an annual fee for the particular ETFs chosen, which it says average 0.25 per cent. Making a 1 per cent approximate all in charge.
There are no other additional charges, for trading, making withdrawals, Exo says.
From launch, an ISA wrapper is available, enabling some or all of a user’s portfolio to be sheltered from tax. This will be followed later by the launch of a SIPP wrapper. Unlike other digital wealth managers, Exo Investing does not operate static risk-targeted portfolios. Instead investors opt for a level of risk and – using its AI and machine learning risk management – the platform builds each investor a personal ETF portfolio around their own preferences.
This is includes a universe of over 500 low cost ETFs and investment objectives, any preferences they have as to sectors, regions and asset classes. Investors are free to make changes to their risk profile or portfolio composition at any time. Exo will instantly recalibrate their portfolio, at no additional cost.
The firm said in a statement: “Machine learning algorithms then monitor each portfolio daily, continuously recalibrating to both the individual’s risk appetite and market conditions to manage each client’s risk.”
Exo has been developed in partnership with leading quantitative asset manager ETS Asset Management, which has €14bn of assets under managment as well as key figures in institutional risk control, including the former heads of Compagnie de Benjamin Rothschild. Lennart Asshoff, CEO of Exo Investing says this level of individually tailored portfolios and risk management has not ever been available to the private investor before.
“Exo is all about democratising access to sophisticated investment technology, using the latest advances in AI and risk management technology to break down the barriers to wealth and open the door to a new category of investing for as many people as possible. We want to revolutionise investing, making personalised investing available at scale.”
“Our individualised service, made possible by the application of AI, is essential to managing each portfolio effectively. By taking into account each client’s specific circumstances - such as their investment objectives and point of entry into the market - we can optimise their allocation more effectively, exposing their portfolio to riskier assets in calmer markets and safer havens in volatile markets, maintaining their risk level and maximising the potential of each client’s investment.’’
You can read an additional short interview with Asshoff here.