Exo Investing Blog

Exo Investing Performance Analysis

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Launching in early 2018, we were the first of our kind - a fully automated, AI-powered wealth management platform. Within the first year of operation, we’ve won two industry awards (Best digital wealth manager OTY + Industry Innovator OTY at the AltFi awards 2018), were named as a finalist in three more and selected to two disruptive company annual indexes (Wealthtech 100 and Disruption50’s 100 most disruptive UK companies).

In operation since May 2018, we now have enough data to release an initial performance snapshot for the first time, both as an indicator of Exo’s performance and a vindication of the AI-driven advisory technology that sits at the core of our product. We will analyse data from May 2018 to present date, using real (although anonymized) customer data in our analysis.

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.

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 the chosen UK benchmarks Exo performed better than passive investment and, in the aggressive category, reduced the risk significantly. Our three chosen categories, - conservative (risk level 1-3), moderate (4-7) and aggressive (8-10) - are defined by our initial risk profiling we carry out during client onboarding.

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*Data sourced from Bloomberg, Xignite and Exo customer data (1st May 2018 - October 2019)

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*Data sourced from Bloomberg, Xignite and Exo customer data (1st May 2018 - October 2019)

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*Data sourced from Bloomberg, Xignite and Exo customer data (1st May 2018 - October 2019)

Exo’s performance summary

Looking at the analysis provided, there is a very strong performance from Exo portfolios across all three approaches. In terms of risk-adjusted performance, it is noticeable that most Exo portfolios performed well when compared to the portfolios - compared to the FTSE 100 and Gilts 0-5 yr.

While many of our competitors (robo-advisors) will show simulated returns, we believe there is also a benefit in showing real returns, which is what matters most at the end. Our performance so far has been strong and we are proud of that. However, there may even be too much attention to that area of the methodology - we also prioritise aspects like personalization and an enhanced customer experience in Exo’s service.

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.