Europe's first algorithm-as-a-service is here
With 9 out of 10 actively managed funds in Europe missing their benchmarks, could robo-investing be the answer the wealth management industry has been waiting for?
The launch of Analizo, Europe's first algorithm-as-a-service, could be the welcome news that asset managers and private banks have been waiting for.
The service, which brings quantitative investing technology to the wealth management industry, offers an intelligent solution to an otherwise struggling global sector.
It comes off the back of a report last year that, "almost all US, global and emerging market funds have failed to outperform since 2006".
"Overall in Europe, four out of five active equity funds failed to beat their benchmark over the past five years, rising to almost 9 out of 10 over the past decade, according to S&P’s analysis of the performance after fees of 25,000 active funds," the report said.
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Led by a group of experienced wealth managers, Analizo promises "theoretical outperformance by a wide margin" thanks to intelligent robo-investing.
"Computers are more adept at making rational and better investment decisions and are able to handle vast amounts of data that a biological brain is simply incapable of processing”, said Analizo CEO Wouter Verlinden.
“Artificial intelligence and algorithmic investing are on the brink of revolutionizing asset management."
Underpinned by scientific and evidence-based investment strategies, algorithms are developed for use by asset managers and private banks, said COO Jef Laurijssen.
"With algorithms building the portfolio, managers can focus even more on customer relationships and on guiding their clientele towards market-beating financial performance," Laurijssen said.
And with this technology offering the potential for tailor-made algorithm investment services with institutional banks, insurance companies and family offices, the days of underperforming funds may just be a thing of the past.
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