FIA A.M. has translated its skills in funds selection into an algorithm.
Among different basic quantitative strategies, FIA has developed an automated portfolio management strategy based on an algorithm – Algoritmica – that allows the investment team to identify trends in the investing universe (identifying the best funds, for risk profile and performance) and to propose a portfolio allocation based on risk containment.
Funds selection is carried out through the analysis of automated parameters defined in house, which are continuously optimized and back tested.
Moreover, the investment team developed Volper, a tool based on an algorithm dedicated to the overall portfolio risk management. Whenever portfolio effective volatility exceeds the one observed in the market, the algorithm suggests a portfolio reallocation, where the portfolio’s main volatility contributor is automatically excluded.
The outcome is the creation of two management lines dedicated to institutional and retail investors: Algoritmica Best of SRI Bonds, which is entirely focused on bonds funds and Algoritmica Best of SRI Balanced, a line which introduces a 50% equity investment.
The investment process:
Our Best of SRI thematic investment lines are the first management lines investing 100% in underlying assets with high ESG rating. With the aim of improving the risk-performance ratio while creating long-term value, Best of SRI lines represent the perfect solutions for responsible and sustainable investments.
Algoritmica Best of SRI Bonds
Algoritmica Best of SRI Bonds aims at generating stable returns with limited risks, through a portfolio investment strategy 100% based on SRI bonds.
Algoritmica Best of SRI Balanced
Algoritmica Best of SRI Balanced aims at generating stable returns with limited risks, through a double strategy: 50% of the portfolio is invested in SRI bonds and the other 50% is invested in SRI equities.