An Uncertain Market
Following the market decline of 2008, investors began looking for better ways to invest.
2000 Tech Bubble
2008 Sub-Prime Mortgage Meltdown
The Robo Advisors Arrive...
For the first time in history, automated investing is embraced by institutions and the financial world.
Betterment
Personal Capital
Wealthfront
Motif Investing
Learnvest
SigFig
Future Advisor
Investment & AUM
Capital Investment and Assets Under Management almost doubled in these firms in 2016 alone.
Company Raised (M) AUM (B)
Betterment $205.0 $8.0
Personal Capital $175.5 $3.5
Wealthfront $129.5 $5.0
Motif Investing $126.5 n/a
Learnvest $72.1 n/a
SigFig $60.0 $0.1
Future Advisor $21.5 $0.97
$790.1 M $17.57 B
Source: www.investorjunkie.com March 2017
Performance
Of the Top 6 Robo Advisors listed in this 2017 report, FutureAdvisor was the only one that published client account performance.
Modern Portfolio Theory
Harry Markowitz published his “Modern Portfolio Theory” in 1952.
MPT uses historical returns to predict future returns and risk.
The MPT Model
After analyzing the movement of stocks, bonds, etc. over a long history, MPT determines a fixed allocation for each Asset that is then maintained through “Re-Balancing.”
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
The Percentage Mix does not change over time.
The Problem with Fixed Asset Allocation
When the Market goes down, these
ETFs go down with it. Jan-Oct
2015
ANY fixed allocation of assets does not work across all markets.
Simulated Account Performance
Higher Returns. Less Risk.
... achieved this by:
Applying Market Personality to determine asset mix.
Switching assets based on Artificial Intelligence.
Adjusting Allocation to the User’s Risk Tolerance.
A.I.
Market Personality
Market Personality is always changing (Volatile, Trending, ...)
It makes no sense to stay invested in the same assets in all market conditions.
We adjust our asset mix depending on what the market is doing.
Artificial Intelligence
Our Artificial Intelligence Engine enables us to identify securities with higher appreciation potential at each switching interval.
Signals generated by our A.I. Engine identify points with
high appreciation potential in the next interval.
Risk Adjustment
The investor can easily adjust between “Conservative” and “Aggressive” allocation models.
Robo Advisor +60%
½ the Risk
The Result.
4 TIMES the Return
OmniFunds +280%
Higher Returns with Less Risk
MyOmniFunds.com
Our OmniFunds web site, launched in October 2016, has undergone some significant improvements.
MyOmniFunds.com
OmniFunds are a combination of Aggressive and Conservative Portfolios.
Conservative Aggressive
Building OmniFunds
Each OmniFunds is based on:
• A Symbol Universe
• Market States
• Filters
• Ranking Functions
• Allocation
Now we can easily create new Funds in the OmniFunds Lab!
Demo to follow...