Access to the Widest Opportunity Set Across the World’s Asset Classes, Regions and Sectors

Our Investment Solutions

We build portfolios for investors based on their risk profile and return objectives. We combine financial technology and quantitative finance within an institutional, systematic investment process in order to maximize risk adjusted returns and massively compress costs. We disrupt and outperform traditional Private Banks and Asset managers’ portfolios of similar asset class allocation.

We use technology to maximize performance and drastically compress costs.  To achieve this, the following principles underpin all of our portfolios:

  • Institutional Systematic Investment Process optimizes risk adjusted returns within a quantitative framework, based on clear return drivers.

  • Direct Market Access (DMA): We use DMA on the world’s regulated exchanges, such as Globex, in order to access institutional level financial instruments at the best price with no counterparty risk and no valuation uncertainty.  Read more about this in our thought piece.

  • Bypass all intermediaries to massively compress costs. We do not use banks or financial intermediaries.


Our competitive advantages:


Our Customized Solutions are based on these standard portfolio types:

Systematic Multi-Asset Portfolio (SMP): Provides long-term income and capital growth

SMP’s objective is to accumulate income and provide long-term capital growth by investing in Global Equity markets (target exposure of 60%) and Global Fixed Income markets (target exposure of 40%). The Portfolio’s risk-adjusted return is maximized through an institutional-level investment process allowing cash and income optimization. We use Direct Market Access to the world’s financial exchanges, by-passing intermediaries, in order to massively compress costs.

Contact us for a copy of the latest factsheet.

Global Fixed Income and Equity Allocation

Combining equity and fixed income investments is an effective way to improve risk-adjusted returns in a portfolio thanks to diversification. The 60/40 allocation rule allows the Portfolio to benefit from both stocks’ dynamic performance and bonds’ steadier returns.

GLOBAL EQUITY: 60% - The Equity portion of the Portfolio accumulates income from dividends and provides exposure to Global Equity markets. It is diversified in terms of regional exposure and overweights sectors that benefit from the secular trend of technological progress, such as information technology and health care. The Portfolio invests in Equity Index Futures, which are efficient instruments to gain precise sectorial and regional equity exposure, optimize dividend income and financing rates, and generate extra income from repo rates.

GLOBAL FIXED INCOME: 40% - The Fixed Income portion of the Portfolio takes advantage of the new paradigm of modern monetary policy applied by central banks, which provide low and controlled refinancing rates to financial institutions, corporations, and governments in order to minimize default events. The Portfolio invests in bonds that benefit the most from this low and controlled interest rates environment, especially dated maturity bonds (not perpetual bonds, nor preferred shares) from Investment Grade financial institutions, short-term High Yield corporate bonds, and government bonds. Most of these bonds are only available to professional fixed income investment managers, with large minimum investment sizes, which makes their yield attractive compared to other bonds with similar credit risk. The cash income is systematically reinvested in order to maximize the compounded returns of the Portfolio. The Forex risk is systematically hedged in the Portfolio’s base currency.

Systematic Investment Process

By using a “60% Equity / 40% Fixed Income” targeted asset-class allocation, the Portfolio tends to buy securities when they decrease in price and sell securities when they increase in price at every monthly rebalancing, corresponding to a “buy low, sell high” strategy. For each asset class, our systematic investment process optimizes the allocation within a predefined investment universe in order to achieve the Portfolio’s target regional and sectorial exposures and maximize its risk-adjusted return. All the positions are rebalanced accordingly on a monthly basis.

BOND INCOME PORTFOLIO (BIP): ACCUMULATES INCOME FROM BONDS WITH  COMPELLING VALUE AND YIELD. 

The portfolio’s objective is to provide income investors can count on regardless of market conditions.  It has been especially designed to take the opportunity to invest primarily (85%) in dated maturity bonds from Investment Grade Issuers that benefit from the support of central banks and the low interest rates around the world for the years to come.  It follows an ESG friendly investment approach: all the bonds from Investment Grade financial institutions in the portfolio are selected according to yield and ESG criteria with a target average bond issuer ESG score of minimum 8 out of 10. Bond issuers’ ESG scores are independently calculated by Refinitiv based on a systematic methodology using over 150 environmental, social and corporate governance-related metrics.

Contact us for a copy of the latest factsheet.

Fixed Income Market Opportunity                                  

The portfolio allocation takes advantage of the new paradigm of modern monetary policy applied by central banks that provide low and controlled refinancing rates to the financial institutions, corporations and governments in order to minimize default events. The portfolio’s components are bonds that are benefiting the most from this controlled and low interest rates era, especially dated maturity bonds (not perpetual bonds nor preferred shares) from investment grade financial institutions, short term high yield corporate bonds and government bonds. Most of these bonds are only available to professional fixed income investment managers, with large minimum investment size, which makes their yield attractive compared to other bonds with similar credit risk.

Systematic Fundamental Investment Process

The Bond Income portfolio accumulates income from bonds with compelling value and yield. From the cash proceeds, it generates regular income regardless of market conditions. The cash income is systematically reinvested in order to maximize the compounded returns of the portfolio. The risk adjusted income objective is calibrated for an investment horizon of at least two years. In the absence of a default credit event, the portfolio yield on the investment date is the expected income of the portfolio. 

The portfolio is based on 3 pillars:

  1. Three robust fundamental return drivers: “Carry”, “Value” and “Quality”. The portfolio is continuously monitored. Profit is systematically taken on expensive bonds and replaced by quality bonds with compelling valuation and substantial income.
  2. Income generation from bonds’ proceeds: The bond holdings continuously generate income. When there is an adverse credit curve movement (i.e. “widening of the credit spreads”), bond prices decrease and as time to maturity gets shorter, the prices progressively increase back towards their principal value whilst generating income (“pull to par” mechanical price recovery).
  3. Risk Management: The forex risk is hedged and the interest rate risk is mitigated in order to reduce the portfolio volatility. In case of negative credit deterioration that could affect a bond redemption, the bond may be sold and the issuer eliminated from the investment universe. Advanced risk management techniques of the highest standard as well as uncompromising risk monitoring procedures, efficiently mitigate capital risk.

The portfolio is supervised by Fixed Income expert portfolio managers: It is an Actively Managed portfolio.

SYSTEMATIC TECH PORTFOLIO (STP): TECH EQUITY INVESTMENT POWERED BY FINANCIAL TECHNOLOGY

STP is a systematic equity portfolio with the objective to provide investors with a diversified exposure to Global Digital Transformation across world regions and sectors. SystematicEdge combines Financial Technology and Direct Market Access to the world’s stock exchanges in order to capture the growth potential of technological innovation.  The Portfolio’s return is maximized through an institutional-level investment process designed to optimize equity exposure, income generation, and cash consumption, with the goal of capital preservation. Thanks to Direct Market Access, we bypass intermediaries in order to massively compress costs.

Contact us for a copy of the latest factsheet.

Global Equity Exposure

The Portfolio provides exposure to equity sectors related to Global Digital Transformation and accumulates income from dividends. It is diversified across world regions and themes such as technology disruption, new generation telecommunications (e.g. 5G), artificial intelligence, Chinese digital economy, robotics, cyber security, smart mobility, e-commerce, and health tech.

The Portfolio invests in Equity Stocks and Equity Index Futures, which are efficient instruments to gain precise sectorial and regional equity exposure, optimize dividend income, and generate extra income from repo rates.

Systematic Allocation: Global Digital Transformation

Our systematic investment process optimizes the Portfolio’s equity exposure within a predefined investment universe in order to achieve its target regional and sectorial exposures and maximize its risk-adjusted returns. All the positions are rebalanced accordingly on a monthly basis.

SYSTEMATIC EQUITY PORTFOLIO (SEP)

SEP’s objective is to accumulate income and provide long-term capital growth by investing in Global Equity markets. The Portfolio’s risk-adjusted return is maximized through an institutional-level investment process allowing cash and income optimization. We use Direct Market Access to the world’s financial exchanges, by-passing intermediaries, in order to massively compress costs.  

Equity exposure: 100%. Diversified global exposure which overweights sectors that benefit from the secular trend of technological progress, such as information technology and health care.

Contact us for a copy of the latest factsheet.

Global Equity Exposure

The Portfolio accumulates income from dividends and provides exposure to Global Equity markets. It is diversified in terms of regional exposure and overweights sectors that benefit from the secular trend of technological progress, such as information technology and health care.

The Portfolio invests in Equity Index Futures, which are efficient instruments to gain precise sectorial and regional equity exposure, optimize dividend income and financing rates, and generate extra income from repo rates.

Systematic Allocation  

Our systematic investment process optimizes the Portfolio’s Equity exposure within a predefined investment universe in order to achieve its target regional and sectorial exposures and maximize its risk-adjusted returns. All the positions are rebalanced accordingly on a monthly basis.

All Weather (AWP): Has been designed to benefit from secular technological progress and economic sectors that will thrive in the years to come

Within the new global market paradigm of low interest rates, uncertain economic growth, asset volatility and high impact geopolitical events, it aims to maximize the portfolio's growth overtime with the goal of capital preservation. The portfolio is leveraged up to two times with down-side protection. 

Contact us for a copy of the latest factsheet.

Liquid World Markets across Asset-Classes, Regions and Sectors

The portfolio is primarily invested in Equity and Bonds indices with opportunistic exposures in Commodity and Currencies. The Equity allocation will favor secular technological progress and economic sectors that will thrive in the years to come. The fixed income allocation provides recurrent income to the portfolio and participates to capital preservation.

The investment in equity and bond indices is systematically enhanced using derivatives when available: Futures are used to optimize dividend income, financing rates and generate extra income from asset repo rates. Futures provide a leveraged exposure to the invested assets. Options are used to generate income by monetizing asset volatility and allow precise and conservative purchase of assets at the price target with optimal sizing.  The Portfolio is only invested in liquid, listed exchange traded markets: securities, futures & options.  Advanced risk management techniques of the highest standard as well as uncompromising risk monitoring procedures, efficiently mitigate capital risk.

Value, Quality and Carry Fundamental Factor Methodology

The allocation’s rules are based on three fundamental return drivers: “Quality”, “Value” and “Income”. Yet, the process continuously adapts to changing market regimes: valuation and secular momentum indicators drive the portfolio's long term Investment themes. The investment process is supervised by expert portfolio managers. It is an active strategy.

  1. Value: Compelling asset valuation - AWP invests in assets with attractive valuation and at a discount if the opportunity is available.
  2. Quality: Sustainability - The valuation of the purchased assets must be sustainable within a given future time period. AWP seeks to purchase assets from healthy sectors or countries where valuation is robust in order to be stable over time or appreciate. In a world of moderate growth, we focus on capital stability and strength rather than capital appreciation.
  3. Carry: Income generation from assets - The income collected in the portfolio comes mainly from five sources.

Main recurring income:

  • Dividends from equity indices
  • Credit yields from corporate bond indices
  • Interest rates from currencies

Opportunistic income:

  • Commodity term premiums
  • Volatility premiums

Our Methodology - Alt-B2G

There is a clear return and risk objective
It continuously adapts to market risk regimes and new events.
It is actively supervised by experts.

In our White-Paper, we describe and explain the investors’ needs, preferences and requirements regarding the evolution of the systematic and factor investing investment process. Find out more about our proprietary systematic methodology:

Contact us to learn more about our investment and risk hedging solutions: insights@systematicedge.com

All SFC regulated activity is conducted by Privium Fund Management Limited, Suite 2606, 26th Floor, Prosperity Tower 39 Queen’s Road, Central Hong Kong,  SFC License No. CE: BGR298

Privium Fund Management

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