Our approach

Revolutionary technology

By harnessing the power of parallel computing, Exo runs hundreds of thousands of calculations in seconds to determine the leading funds from every ETF listed on the London Stock Exchange.

In combination with qualitative screening, the top funds, which are re-analysed every day, form the Exo investment universe. The starting point for building your personalised portfolio.

The algorithms

Exo is made up of a myriad of algorithms to ensure you have the right portfolio for you, all the time. These include both ETF analysis and rotation analysis.

Rotation analysis

Rotation analysis

Exo will analyse whether, and how often, it makes sense to change your portfolio.

Looking at market direction as well as taking into account trading costs, Exo will make adjustments based on risk parameters and output of the scenario analysis.

ETF analysis

ETF analysis

Exo analyses data on each ETF in the universe every day across the following parameters:

Price, Index, Tracking error, Fee, Bid ask spread, AUM, Volatility, Return.

Exo uses this information to form a complete picture of every single ETF and how the fund might react to certain economic pressures.

These are the two dominant areas where our algorithms are at work, but thousands of other algorithms and sub-algorithms are constantly running to drive the machine-learning process and optimise the efficiency of your unique portfolio.

Financial expertise

A portfolio built for current conditions and for the long-term

Exo takes both a short-term and long-term view in determining your portfolio allocation.

Long term

Strategic asset allocation for the long-term

  • The strategic asset allocation remains relatively stable over time and is established by identifying how every possible potential portfolio composition performs against different and multiple market scenarios.
  • These analyses are run both against historical market movements and also against synthetically created market scenarios which are built via machine learning algorithms.
  • The outcome of these calculations allows Exo to identify how best to diversify your portfolio for your specific risk level, over your defined time horizon and with your selected investment focus areas.
Short term

Tactical allocation for the short-term

  • Our algorithms compare performance of all possible portfolio weightings based on the current market environment to build your portfolio.
  • The tactical allocations of each portfolio changes dynamically on a regular basis, adapting to the changing market environment.
  • This both reduces the impact of negative market movements, helping to control the overall risk of your portfolio as well as allowing Exo to take advantage of favourable market conditions.

By running these strategies in parallel the machine learning algorithms decide how much weight to give each of the two approaches.

This helps to ensure the optimal allocation of assets, at each moment in time, whilst continuing to maximise the chances of reaching your investment goal over the long-term.

Individual portfolios

A key part of our investment philosophy is that every portfolio must be managed individually.

The inputs we use to ensure each of our investors remain on their efficient frontier are:

  • Entry point to the market
  • Investment amount
  • Risk appetite
  • Investment horizon
  • Investment preferences

Exo knows that an investor's capacity for loss differs greatly dependent on when they enter the market, even when their risk level is the same. Which is why we review every portfolio daily and use this data to make informed decisions about the distribution of each portfolio.

Individual portfolios

Managing your risk

Our portfolio management strategy minimises risk whilst maximising the potential for positive returns to increase the chance of you reaching your investment goals.

To do this Exo narrows the risk of your portfolio to give you as much possible upside without over-exposing you to a significant loss.

Risk chart

Smoothing your journey

So whilst you might miss out on the top of the market, the adjustments we make to your portfolio as we monitor it daily are designed to put you in a more stable situation as the markets move.

Benefits chart