Q. What is a signals-based investment Roboadvisor?
It is a (properly) implemented robust across-asset class model (a model reflects a strategy in a quantified manner) that delivers systematic positioning signals at a pre-speficied frequency or mode for all the concerned (very) liquid markets
Q. Are there different generations of investment Roboadvisor?
Indeed, the first generation of Roboadvisors is focused on the allocation of (passive) Exchange Traded Funds and depending on the offering, they are meant to allow a certain hedging should the equity markets come down sharply (through reallocation of the assets). The next generation considers also short positions and therefore the instruments used are Exchanged Traded Derivatives that allow for easy-short-positioning. More in an article published in December 2017 that can be accessed here via Linkedin
Q. What is our approach?
Our innovative and disruptive approach is a risk-based one - and that is really different from trend-following, the much more common technique in the context of Managed Futures. Risk, in our context, is the source of return (not the trends per se). An example of common differences is that the contribution of the different markets in a balanced combination of strategies is more homogenous. We have a detailed comparison that is available upon request, please don't hesitate to contact us
Q. What makes our value proposition disruptive?
Our model approach constitutes a new style based on an anomaly related to risk. And risk is not only considered in different manners depending on the market, it is also impacted by the risk of other markets. Moreover, the conception is modular and therefore the signals are also available at the level of a single markets or a combination of markets. It should also be noted that the correlation with the common Managed Futures is (very) low long term
Q. What is an essential aspect of a "good" Roboadvising model?
It is the interaction between Equities and Fixed Income: a model shall in particular be able to address properly the "flight to quality" events (negative correlations.... when it matters). Essential is also the aspect that the Fixed Income part should not be too much leveraged because in that case, the returns get too much dependent on the "correct" Fixed Income exposure
Q. Are historical signals available from our side?
Yes, indeed. For multiple years and with particularly detailed risk and return information. The level of transparency is well above average high
Q. Is a very low equity volatility context an issue for risk-based models?
No, it isn't. While it is expected that very high volatility is a "better" source of returns, a very low equity volatility regime isn't an issue neither for equities nor for other markets: that is due to the existence of sub-regimes of higher risk even then. The possibility to consider both long and shorts (or at least the possibility to be completely out-of-the-market) is pretty relevant
Q. Are stress-tests available?
Yes, and the are thanks to the model design easy to prepare and to interpret. Moreover, any scenario can be considered: we have already prepared a set of stress-tests for our Reference Strategy (that is a combination of market strategies). Developing stress-tests is also one of our core-competences
Q. How can the market signals be implemented?
Through our strategic partner, currently in the form of mandates
Q. What are the key characteristics of our risk-based approach regarding ESG?
- The positions remain (very) small relative to the market activity (it brings liquidity to the markets to a certain extent). Key in that context, is to deal properly with maximum capacity and
- It does not have the potential to exacerbate a trend as the size of the positions are not significantly influenced by the intensity of the trend. The strategies being risk-based, not trend following
- it does not at all take physical position in any commodities as the exposures are of financial type and there is no dedicated directional exposure. And thanks to our extensive modular conception, it is even possible to completely avoid agricultural exposure, without affecting the performance
- Regarding the equity markets exposure, the strategies have only diversified indirect exposure (so no investments in the underlying stocks) and it is neither dedicated long nor dedicated short. Therefore, it is by no mean a searched exposure to low ESG level stocks
Q. When should one start with a global financial diplomas?
From the moment it is clear that the candidate would like to spend a relevant part of his/her career in finance, he/she should start with such a diploma - the sooner, the better. Which one depends on several factors but the generalist one is certainly a very good basis. A student in Economics could very well start a level 1 during his/her study in order to optimize the resources
Q. What are the advantages of Private Tutoring - especially for the global financial diplomas?
Q. What are the advantages of Company in-house training - again, especially for the global financial diplomas?
Q. For what type of Institute are the in-house educational services available?
EVOLIDS FINANCE LLC is a new disruptive & independent Swiss service company with currently two types of activities for Professional Clients: DISTINCTIVE QUANT INVESTMENT ADVISORY and ADVANCED FINANCE EDUCATION. INVESTMENT ADVISORY services also encompass QUANT ASSET ALLOCATION and RISK MANAGEMENT
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