How it works
ePrivate Banking
An alternative method of wealth management.
Robo-Advisory: the right balance between
traditional wealth management and direct trading
In the past, the only options for people looking to grow their wealth were to entrust their money to a fund manager or to opt for direct trading. The first case implies placing full trust in one’s fund manager, while the latter requires constantly keeping a close eye on the markets.
The alternative innovative solution based on a powerful algorithm
Our Robo-Advisor develops a personalised portfolio for you and then monitors it 24 hours a day, 7 days a week.
- Determine your risk profile and your investment universe
- Entrust the creation of an optimal investment strategy to the algorithm
- Modify and compare strategies at any time
- Have the security of never being exposed to a risk that is greater than your predetermined risk
Investment strategy: create, simulate, compare, adapt.
Create your own investment universe
Choose the optimal portfolio created by the algorithm or your personalised investment universe.
Simulate the optimal strategy chosen by the algorithm
The historic strategy is developed based on the defined investment universe and parameters.
Compare different strategies
Choose an index or a strategy and compare it with the one you have chosen.
Change your strategy at any time
Create a new optimal portfolio which takes account of changes to your parameters.
How does the algorithm work?
• It analyses thousands of securities
• It concentrates on the interactions between assets
• It selects and combines securities to reduce the portfolio’s overall risk
• It regularly readjusts the portfolio
• Strict compliance with the risk profile
Risk management
The algorithm seeks the best performance for a given overall level of risk by exploiting interactions between assets.
The Robo-Advisor bases its choices on historic data and the phases of economic cycles. Out of the thousands of securities in the investment universe, it searches for those that are likely to cancel each other out to create a portfolio that offers the best expected return at a given level of risk.
As prospects for securities change over time, Robo-Advisor regularly readjusts the portfolio to permanently retain an optimal balance between risk and expected return.
In a multi-currency investment universe, forex fluctuations can lead to big fluctuations in the value of the portfolio.
In order to dissociate market performance from currency trends, the Robo-Advisory solution offers full hedging of the currency risk.
The algorithm automatically buys financial instruments that hedge currency fluctuations and thus preserves the overall value of the portfolio.
Since it is continually monitored and optimised, the portfolio continually matches your risk profile.
The Robo-Advisor assesses the market risk to which a portfolio is exposed by considering the average loss that the investor is willing to suffer over an investment horizon of a week, with a probability of 5%.
This measure, known as the Conditional Value at Risk, is freely determined on a scale from 1 to 10 and may be changed at any time. When the portfolio is developed, the algorithm looks for the combination that offers the best expected return for the chosen level of risk.
When the strategy is implemented, the algorithm continually compares the level of risk that you have chosen with the actual market risk. If the characteristics of a security change in a manner that causes the portfolio’s overall level of risk to exceed the level you have chosen, the security is sold to bring the portfolio back within the chosen risk limits.