In the second stage of the portfolio creation process, we give you the opportunity to set your investment focus: from a list of the main asset categories (i.e. government bonds, socially responsible investments, commodities, etc.) you can choose the ones that you want to see included in your portfolio.
However, selecting investment focus areas is not an obligation: you determine what level of control you want to have over your investments and can decide to let our risk management technology create the optimal asset allocation for you.
In concrete terms, if you select an investment focus area, this means that the related asset category will represent at least 3% of your global asset allocation. As you can choose up to 10 different investment focus areas, your decisions can account for 30% of your portfolio's composition.
It is important to note that the methodology which underlies Exo's risk management technology is based on two pillars:
- The diversification of the assets included in your portfolio, in order to adjust to your risk profile;
- The maximisation of your portfolio's overall return, in line with your objectives.
Therefore, while the asset categories that are part of your investment focus will always be taken into account, our algorithms will make sure not to overemphasise their risk exposure.