Algo-Chain, a FinTech company specialising in ETF portfolio strategies, has launched an AI Driven Model Portfolio Toolkit, targeted at financial advisers and wealth managers.
The firm writes that, delivered via Algo-Chain’s online platform, this service provides advisors access to a Model Portfolio construction tool that will take the heavy lifting out of the fund selection and portfolio construction process. What used to take three to four days can now be achieved in 10 minutes, the firm says.
Algo-Chain’s founding partners, Dr Allan Lane and Dr Irene Bauer, who both hold PhDs in Mathematics, have developed a framework that captures the latest market conditions and the impact across a range of asset and sub-asset classes, and for each level of Target Risk, translates this into a set of suggested portfolios, which an adviser can use as the suggested asset allocation for any client recommendations.
Increasingly as wealth managers look to offer a bespoke service in the guise of a core/satellite construction, less time spent constructing the core portfolios provides the perfect opportunity to select satellite investments that match the client’s interests and expectations, the firm says.
Allan Lane, one of the Co-Founders says, “With close to 2,500 ETFs listed on the London Stock Exchange, it is becoming a full-time occupation knowing which funds to include in any given portfolio. Consequently, if the insights that AI can bring to the process of fund selection leads to better outcomes and lower costs, then advisers need all the automation tools they can lay their hands on.”