Exo Investing, a London-based digital wealth manager, has officially opened its doors to business, offering private investors access to sophisticated artificial-intelligence-powered ETF portfolios for a low online fee.
Lennart Asshoff, CEO, Exo Investing.
Acting as an expert ‘investment co-pilot’, Exo aims to turn the traditional model of static products and predefined portfolios on its head, instead using AI to build investors a personal ETF portfolio around their own specific preferences.
Machine learning algorithms then monitor each portfolio daily, continuously re-calibrating to both an individual’s risk appetite and market conditions to manage risk.
Exo has been developed in partnership with quantitative asset manager ETS Asset Management Factory and key figures in institutional risk control, including the former heads of Compagnie de Benjamin Rothschild.
Unlike a number of digital wealth management platforms, there are no predefined portfolios at Exo — each investor gets a bespoke portfolio, chosen from a universe of over 500 London Stock Exchange-listed ETFs and based on their individual risk appetite, investment objectives, and any preferences they have as to sectors, regions and asset classes.
Each portfolio is built individually by AI-powered risk management technology, using quantitative management techniques and machine-learning algorithms.
Once a portfolio is built, Exo will monitor the investment environment and portfolio performance, and optimise portfolios continuously to ensure alignment with both market conditions and an investor’s individual risk profile.
Investors are free to make changes to their risk profile or portfolio composition at any time. Exo will instantaneously recalibrate their portfolio, at no additional cost.
Lennart Asshoff, CEO of Exo Investing said, “This level of individually tailored portfolio and risk management has never 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.”
The minimum investment at Exo is £10,000 with an annual fee of 0.75% on investments up to £100,000 and 0.50% on larger amounts. The only other charges are the total expense ratios of the underlying ETFs chosen, on average 0.25%.
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.