May 2020 Newsletter

ETFmatic launches additional investment strategies

London, UK – May 2020
Hello from all the team here at ETFmatic. In May we reached some big milestones on the investment side, both on the Dynamic Market Portfolios that entered beta last month, as well as through the launch of a thematic investment proposition.

Our Dynamic Market Portfolios switch from Defensive to Balanced Mode

Last month we announced the beta launch of a product offering developed together with Eye Performance Technology, led by Mads N. S. Pedersen.

This product offering consists of a set of investment portfolios with systematic risk management and performance creation supported by finance-based behavioral algorithms. These algorithms are designed with the express purpose of actively mitigating against losses.

The portfolios have a base equity allocation, and shift into either a positive (i.e. more equity) or defensive (i.e. less equity) position when triggered by risk-off or risk-on signals respectively.

At launch the portfolios were in a risk-off position, but this week the algorithms signaled a move to the base position, which we implemented across the portfolios participating in the beta.

If you are interested in getting early access, please contact our D2C Support team to try it out directly. For enquiries about this or any other aspect of our B2B2C platform reach out to our Business Development team.

Thematic Portfolios launch into beta

One of our B2B partners asked us to develop a Thematic Portfolio Proposition to support their broader launch. Thematic portfolios enable investors to invest in firms, projects and securities that relate to major economic, technological and societal trends that will significantly impact the world in which we live. In collaboration with our partner we went from concept to live portfolios in less than a month. They will launch with three portfolios (low, medium, and high risk) that on the equity side consist of 50% of the market cap weighted global equity we use in our starter portfolios, and a 50% tilt towards four major trends:
  • Digitalisation
  • Robotics and Artificial Intelligence
  • Healthcare
  • Clean Energy
We already have live portfolios up and running, and are expecting our partner’s general rollout in June. This experience has bolstered our portfolio design capability and proven our ability to deliver a new investment proposition in a compressed time frame. We’re going to leverage our success by offering this service to existing and prospective partners as it’s apparent that many competitors lack this level of differentiation.

Platform Enhancements

As we continue to grow as a business we’re constantly reviewing our process design as well as our technology choices. This allows us to opportunistically refresh elements of our platform. We do this by giving consideration to both our scaling and performance requirements, as well as to the feedback we’re receiving from partners.

Our most recent effort centered on the post-trade transaction reports. While reviewing where this task fits into our overall trading process, we also took the opportunity to do a technology refresh. The result is a process that is not only more performant from an internal perspective, but more importantly reduces the time it takes until our partners and clients receive their reports by up to 12 hours. We’re very pleased with the results and are looking forward to delivering similar improvements in other processes and parts of our system.

If you are interested in more information about the new release of our API, please contact our Business Development team via email or contact us through the B2B section on our website.