It was confirmed today that the investment backing the development and launch of the ground-breaking ‘Exo Investing’ retail digital wealth management platform included a private investment from Benjamin and Ariane de Rothschild.
The launch of Exo Investing earlier this year saw retail private investors gain access—for the very first time—to the same sophisticated AI-powered quantitative investment and risk management technology developed over 30 years by quantitative investment manager ETS for institutional investors and the wealthy clients of Private Banks.
Acting as an expert ‘investment co-pilot’, Exo’s use of AI sets it apart from even the most sophisticated of the existing robo-advice platforms, introducing new standards of control, personalisation and risk management.
Moving away from the traditional model of static products and predefined portfolios, Exo instead builds each investor a personal, adjustable portfolio of ETFs based on their own investment preferences. Each portfolio is then monitored 24/7 and recalibrated as frequently as daily to both the individual’s risk appetite and changing market conditions, continually managing each client’s long term risk.
Lennart Asshoff, CEO of Exo Investing said, “This investment paves the way for Exo to continue developing this ground-breaking solution for the retail market. Opening the door for thousands of private investors to the important benefits that quantitative investment science offers is very satisfying having seen what a pivotal difference it can make to investment outcomes during my years working at ETS.
“This level of individually tailored portfolio and risk management has never been available to the retail investor before. The wider public have never been more reliant on their personal investments for their future financial security and we want to open the door to a new category of investing for as many people as possible, making truly personalised investing available at scale.”
Hugo Ferreira, Chairman of Exo Investing said, “Exo Investing is an exciting example of how the latest advances in technology—from artificial intelligence to the growth in computing power available through the cloud—can be utilised to democratise access to the best services available. For years we have wanted to find a way to provide the huge financial advantage that ETS’s systems deliver to a much wider audience, and Exo is just that. The fintech zone has a track record of democratising finance and we are proud of Exo as the latest and one of the more significant additions, this time in the increasingly crucial world of private investing.
“My long career managing risk for large organisations around the world has taught me that to successfully ride out market turmoil like the 1987 crash, the internet crises of 2001 and the sub-prime debacle of 2008, you need humility, discipline, transparency and risk control. I found these in spades 20 years ago in the quantitative investing models developed by ETS. Now Exo is utilising AI and recent increases in computing power to offer the same portfolio management technologies to a far wider market and at a highly competitive price. This is a watershed moment for the private investor.”
With a potential market size of more than 3.2 million private investors in the UK, and armed with an obviously superior yet competitively priced proposition, Exo is set to shake up the existing online investing market significantly. No existing platform, of whatever scale, offers the private investor so much for so little. As this fact becomes more widely known by the UK’s mass affluent market, Exo is set to build enviable scale and accolades for transforming outcomes for the private investor.