Tag Archives: investments

Model portfolios, the fashion product in investments

Model portfolios in T-Advisor

Model portfolio is one of the main fashion concepts in investments. They are mentioned everywhere and the roboadvisor trend has underlined them as a standard solution to offer easy and cheaper investment products with interesting returns.

In T-Advisor, model portfolios are far from being something new. We saw it clear since the beginning three years ago. One of our modules is specific to provide two different kind of them: ETF portfolios divided in different risk profiles and share portfolios divided in different markets.

Our modeling strategy is based on quantitative calculations. These are complex mathematical models that help detect investment opportunities mixing several indicators, as historical returns, volatility, trend, alpha, VaR, correlations… the data cocktail depends on the developer and the strategist, who work together to find the appropriate composition of this data mix in order to obtain the most interesting assets and the best performance.

In our case, our model portfolios play with two criteria: best performance and capital preservation. We look for good returns to overperform the market, but we also reduce losses compared with the reference indexes in bearish periods. To keep these goals, we review every second month the model portfolios to rebalance the assets that are not working as we wish.

Model portfolios are easy for customers: the structure is clear, they are based on a disciplined strategy and changes are seldom, in order to make adjustments in certain periods. However, they are not easy products for the companies that offer them, because they need strong calculation systems, as we have developed in T-Advisor. In addition, we cannot say that the machine work alone, but wealth managers monitor also the process, creating the strategy and analyzing possible changes. Although model portfolios are linked to roboadvisor, they are not totally robotic and they are used by traditional investment houses.

Model portfolios are flexible, because the wealth manager can design them taking into account different diversification, risk, assets, currencies or geographical areas. They are also easy to explain to investors, because they look like bespoke boxes.

Take a look at one example in T-Advisor: our Mexico portfolio, composed by 10 local shares. The 1-year performance was 22.69%.

Mexico model portfolio in T-Advisor

The Mexican IPC index had a 1-year performance of… 0,46%.

Mexican IPC index performance

This is a clear example of how a model portfolio works. Individual investors choose them because they are easy to understand and wealth managers, because they are easy to explain. Communication plays a very important role in finance and easy products provide more trustworthiness.

Market opportunities by T-Advisor: DSM

T-Advisor, through its tool Market Opportunities, has detected the company DSM, listed in Euronext Amsterdam as an opportunity for investment.

These are the main figures about performances and volatility in the last years:

Kon DSM main figures in T-Advisor

Kon DSM trend analysis in T-AdvisorThe chart shows the evolution in the last year:

Kon DSM chart in T-Advisor

Historical performance in T-Advisor

The technical analysis reveals also more data:

Technical analysis in T-Advisor

Relative performance vs. index in T-Advisor

Finally, the risk analysis is as it follows:

Kon DSM risk analysis in T-Advisor

DSM is a multinational Dutch corporation specialised in the fields of nutrition, health and materials. Originally a mining state-owned company, it evolved to a chemical enterprise that has focused in special ingredients for feed and food, personal care and industrial materials, amongst others.

DSM net sales in 2015 reached 8.9 bn euros, a 3.74% less than in 2014. Ebitda improved slightly up to 1,170 million euros, a 0.3% more. Finally, the profit excluiding exceptional items decreased a 7%, up to 92 million euros. The net profit per share was 0.45 euros.

Weekly market opportunities in T-Advisor: the best on April, 4th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Oriola KD (Helsinki). A pharmaceutical company that provides its products and services to other companies of the same branch.

Oriola KD main figures in T-Advisor

Oriola chart in T-Advisor

  • GN Store Nord (Copenhague). A manufacturer of hearing instruments, audiological diagnostics equipments and headsets.

GN Store Nord main figures in T-Advisor

GN Store Nord chart in T-Advisor

AMERICAS

  • Thomson Reuters (Toronto). A major multinational mass media and information company specialised in financial news resulting from the merge of the Canadian Thomson and the British Reuters.

Thomson Reuters main figures in T-Advisor

Thomson Reuters chart in T-Advisor

  • Banco Santander Chile (Chile). The Chilean subsidiary of the main Spanish banking group.

Banco Santander Chile main figures in T-Advisor

Banco Santander Chile chart in T-Advisor

ASIA-PACIFIC

  • Aselsan (Istanbul). A corporation that produces tactical military radios and defense electronic systems for the Turkish Armed Forces.

Aselsan main figures in T-Advisor

Aselsan chart in T-Advisor

  • Shenzen Expressway (Hong Kong). A construction company specialised in building roads and highways and manage tolls.

Shenzen Expressway main figures in T-Advisor

Shenzen chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Weekly market opportunities in T-Advisor: the best on February, 1st

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Adidas (Xetra). The world second largest sportswear company.

Adidas main figures in T-Advisor

Adidas chart in T-Advisor

  • Imperial Tobacco (London). The world fourth largest producer of cigarettes and the largest producer of cigars.

Imperial Tobacco main figures in T-Advisor

Imperial Tobacco chart in T-Advisor

AMERICAS

  • Promotora y Operadora de Infraestructuras (Mexico). A company focused on construction, operation, development and financing of all kind of infrastructures, as highways, railways, ports, airports and water and waste treatment plants.

Promotora y Operadora de Infraestructuras main figures in T-Advisor

Promotora y Operadora de Infraestructuras chart  in T-Advisor

  • CGI Group (Toronto). One of the world’s largest independent IT and business process services companies.

CGI Group main figures in T-Advisor

CGI Group chart in T-Advisor

ASIA-PACIFIC

  • Sojitz (Tokyo). A conglomerate of several companies that operates in different fields, as manufacture of products, import, export and provision of services.

Sojitz main figures in T-Advisor

Sojitz chart in T-Advisor

  • Harvey Norman Holdings (Australia). A franchise and retailer of electrical, computer, furniture, entertainment and bedding goods.

Harvey Norman Holdings main figures in T-Advisor

Harvey Norman Holdings chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Weekly market opportunities in T-Advisor: the best on November, 23th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Capital and Counties Property (London). A London property company with assets focused on two main districts in the British capital city: Earls Court and Covent Garden.

Capital and Counties Property main figures in T-Advisor

Capital and Counties Property chart in T-Advisor

  • Raysearch Labs (Stockholm). A world leader in the field of advanced software for radiation therapy.

Raysearch Labs main figures in T-Advisor

Raysearch Labs chart in T-Advisor

AMERICAS

  • United Dominion Realty Trust (NYSE). A real estate investment trust in targeted US markets.

United Dominion Realty Trust main figures in T-Advisor

United Dominion Realty Trust chart in T-Advisor

  • Quebecor (Toronto). A Canadian leader company in telecommunications, entertainment, news media and culture.

Quebecor main figures in T-Advisor

Quebecor chart in T-Advisor

ASIA-PACIFIC

  • Borusan Yatirim (Istanbul). The investment company of Borusan Group. It invests in Group companies operating in steel, distributorship, logistics and technology sectors.

Borusan Yatirim main figures in T-Advisor

Borusan Yatirim chart in T-Advisor

  • Kotak Mahindra (Bombay). A leading Indian financial group with subsidiaries in all kind of services.

Kotak Mahindra main figures in T-Advisor

Kotak Mahindra chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Weekly market opportunities in T-Advisor: the best on November, 16th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Qiagen (Xetra). A provider of sample and assay technologies for molecular diagnostics, applied testing, academic and pharmaceutical research.

Qiagen main figures in T-Advisor

Qiagen chart in T-Advisor

  • Swiss Prime Site (Zurich). The Switzerland’s leading real estate investment company with a portfolio around CHF 10 bn.

Swiss Prime Site main figures in T-Advisor

Swiss Prime Site chart in T-Advisor

AMERICAS

  • Lojas Renner (Sao Paulo). The second largest Brazilian department stores clothing company.

Lojas Renner main figures in T-Advisor

Lojas Renner chart in T-Advisor

ASIA-PACIFIC

  • Ramsay Health Care (Australia). A global hospital group owning and operating healthcare facilities across Australia, France, Indonesia, Malaysia and the United Kingdom.

Ramsay Health Care main figures in T-Advisor

Ramsay Health Care chart in T-Advisor

  • Mahindra and Mahindra (Bombay). An Indian multinational automobile manufacturing corporation. It is one of the largest vehicle manufacturers by production in India.

Mahindra and Mahindra main figures in T-Advisor

Mahindra and Mahindra chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Weekly market opportunities in T-Advisor: the best on November, 9th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • DBV Technologies (Paris). A biopharmaceutical company focused in inmunotherapies and treatments for food allergies.

DBV Technologies main figures in T-Advisor

DBV Technologies chart in T-Advisor

  • Neste Oil (Helsinki). The world’s largest producer of renewable diesel.

Neste Oil main figures in T-Advisor

Neste Oil chart in T-Advisor

AMERICAS

  • Express Scripts (Nasdaq). A provider of integrated pharmacy benefit management services, network-pharmacy claims processing; home delivery pharmacy services or medical and drug data analysis services to manage drug plans for health plans, self-insured employers and government agencies.

Express Script main figures in T-Advisor

Express Script chart in T-Advisor

ASIA

  • Hindustan Petroleum (Bombay Stock Exchange)An Indian oil and gas supplier.

Hindustan Petroleum main figures in T-Advisor

Hindustan Petroleum chart in T-Advisor

  • Muji (Tokyo). Known in Japan as Ryohin Keikaku, it is a Japanese retail company which sells a wide variety of household and consumer goods.

Muji main figures in T-Advisor

Muji chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Weekly market opportunities in T-Advisor: the best on November, 2nd

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Indutrade (Stockholm). A Swedish industrial group that conducts development and sales of high-tech components, systems and services.

Indutrade main figures in T-Advisor

Indutrade chart in T-Advisor

  • KBC Ancora (Brussels). A listed company that holds approximately 19% of the shares in the listed KBC Group, one of the main Belgian banking groups.

KBC Ancora main figures in T-Advisor

KBC Ancora chart in T-Advisor

AMERICAS

  • Teleflex (NYSE). A global provider of medical devices used in critical care and surgery, as for vascular access, general and regional anesthesia, amongst others.

Teleflex main figures in T-Advisor

Teleflex chart in T-Advisor

  • Inversiones La Construcción (Chile). A holding of several companies of different branches, as healthcare, retirement, education and IT.

Inversiones La Construcción main figures in T-Advisor

Inversiones La Construcción chart in T-Advisor

ASIA

  • Gubre Fabrikalari (Istanbul). The main Turkish producer of chemical fertilizers.

Gubre Fabrikalari main figures in T-Advisor

Gubre Fabrikalari chart in T-Advisor

  • Japan Airlines (Tokyo). Known in Japan as Nihon Koku, it is the flag carrier of Japan and the second largest airline in the country.

Japan Airlines main figures in T-Advisor

Japan Airlines chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Weekly market opportunities in T-Advisor: the best on October, 26th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Halma (London). A company specialised in technology to save lives, prevent injuries, and protect people and assets, for instance, explosion protection, smoke detectors or medical diagnosis.

Halma main figures in T-Advisor

Halma chart in T-Advisor

  • Ebro Foods (Madrid). The largest Spanish food processing company, with its main business lines: rice, pasta and biotechnology.

Ebro Foods main figures in T-Advisor

Ebro Foods chart in T-Advisor

AMERICAS

  • Reinsurance Group (NYSE). One of the largest reinsurance company around the world with approximately $2.9 trillion of life reinsurance in force and assets of $44.7 billion.

Reinsurance Group main figures in T-Advisor

Reinsurance Group chart in T-Advisor

  • Ienova (Mexico). A Sempra Energy Company, that develops, builds and operates energy infrastructure in Mexico.

Ienova main figures in T-Advisor

Ienova chart in T-Advisor

ASIA-PACIFIC

  • GPT Group (Australia). One of Australia’s largest diversified listed property groups, with a portfolio of offices, logistics, business parks and prime shopping centre assets.

GPT Group main figures in T-Advisor

GPT Group chart in T-Advisor

  • Hang Seng Bank (Hong Kong). One of the largest banks in Hong Kong with business in retail banking and wealth management, commercial banking, global banking and markets, and private banking.

Hang Seng Bank main figures in T-Advisor

Hang Seng Bank chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

What can you expect for your investments the second half of the year?

T-Advisor investment opportunities

Tomorrow is the beginning of August, a typical month for holidays. However, investments do not take any rest and markets become more fragile in this month, as there is a decrease in the market volume of operations. While VIX index shows a historical low point in the market volatility, there are some reason to be warned: the crisis in Ucraine and the commercial fight between Europe and Russia, the crisis in Palestine, the end of the QE in US and the chance of an interest rate rise in the middle term or the continuous rumors about a possible turndown in the markets with current peaks.

Experts from different entities agree that the economic recovery is a real fact and the trend will keep on, but investors have to be watchful about the possible developments. Wells Fargo advises an investment strategy taking into account that low volatility does not mean absence of risk. It recommends a diversified portfolio underweighting fixed income and overweighting equities. Fixed income yields are now not interesting, but a tighter monetary policy in the US will push them up.

BlackRock maintains its view as in the beginning of the year. In US, it expects more volatility linked to the Federal Reserve policy evolution. In Europe, the trend is also linked to the ECB, but with other gear: the fight against deflation. Cyclicals, energy and large cap values are some bets. In Asia, the fund manager is bullish with Japan and cautious with China, as it considers that the growth is not sustainable.

The Swiss Julius Baer predicts for the next half a continuation of many of the trends. The general relaxing monetary policy in almost all central banks, a controlled inflation and a moderate economic growth are the basis of the scenario. The bank focuses in two points: European peripheral debt is not interesting anymore, because the risk premiums are low and reached the convergence point; and the company balance sheets in the non-financial sector, as they expanded significantly in the last years and that is a strong argument to invest again in equities instead of corporate debt.

Generally speaking, there are risks as mentioned above, but the outlook is positive mainly for equities in the second half of the year.