Exo Investing Blog

Exo Investing Performance Analysis: May Update

blog-performance@2x.png

As a fully automated investment platform which draws on decades of algorithmic trading experience, this data serves as a proof point of the AI-driven technology that sits at the heart of Exo.

This analysis looks at data from May 2018 to 30th April, using real (although anonymized) customer data.

Our investment focus is based on delivering a strong risk-adjusted performance rather than just chasing high returns because we believe the path to reaching your financial goals matters. The aim is always to optimise the ratio of performance/risk of Exo portfolios. This strategy has not changed as a result of the covid-19 pandemic.

Exo continues to monitor and tailor the decision-making on a per portfolio basis, respecting each of our individual investors’ preferences and quickly implementing any changes to these preferences by our customers, as always.

Our response to covid-19

While the absolute performance has been impacted across all portfolios, relative to current market conditions, the algorithms have adjusted well, reducing risk as the uncertain economic climate continues.

The proprietary investment algorithm was always designed and calibrated to change as necessary during unprecedented times like these. As the markets continue to evolve, the algorithm will adapt portfolios over the coming weeks and months.

The overall response has been to materially reduce the exposure to equities with a corresponding increase in short-term bond exposure.

Net performance analysis

In terms of net performance, these Exo portfolios are purely AI managed since inception - meaning the user has not explicitly set any preferences. Based on the analysis against standard UK benchmarks Exo performed better than passive investment and, in the aggressive category, reduced the risk significantly. Our three chosen categories, - aggressive (8-10), moderate (4-7) and conservative (risk level 1-3) - are defined by our initial risk profiling we carry out during client onboarding.

EXO_AGGRESSIVE_VS_FTSE_100.jpg

EXO_AGGRESSIVE_VS_FTSE_100_TABLE.jpg

*Data sourced from Bloomberg, Xignite and Exo customer data (1st May 2018 - April 2020)

EXO_MODERATE_VS_FTSE_100.jpg

EXO_MODERATE_VS_FTSE_100_TABLE.jpg

*Data sourced from Bloomberg, Xignite and Exo customer data (1st May 2018 - April 2020)

EXO_CONSERVATIVE_VS_FTSE_100.jpg

EXO_CONSERVATIVE_VS_FTSE_100_TABLE.jpg

*Data sourced from Bloomberg, Xignite and Exo customer data (1st May 2018 - April 2020)

Exo’s performance summary

Looking at the analysis provided, relative to benchmarks we see strong performance from Exo portfolios across all three approaches.

For example, the maximum drawdown for Exo’s ‘aggressive’ portfolio vs FTSE 100 is 21% vs. 34% respectively.

The data analysed here is, as mentioned, entirely taken from the portfolios without customisations, to maximise insight into how Exo’s methodologies operated. Of course, we can also point to the customisation available to users which further enhances the engagement they can have with their investments.

What Exo strives to deliver is an excellent service for its clients that provides them with the tools and access they deserve to control their investments, with the enhanced risk-management Exo’s technology can provide.