How can External Asset Managers benefit from Alquant?

Advanced Risk Indicators

Follow proprietary data-driven and actionable indicators in order to make efficient decisions and enhance your portfolios' performance.

Ready-Made Investment Products

Easily invest in highly regulated investment products focused on tail-hedging as well as low-volatility, which were developed by Alquant after years of data-driven research.

Outsourced Quantitative Team

Make Alquant your quantitative team to develop tailored solutions you've always wanted and turn them into real investment products.

Enhance the performance of multi-asset mandates while maintaining the same risk profile

Your situation

Managing multi-asset mandates poses several challenges, such as achieving decent returns in a low interest rate environment. You could increase your allocation to equities, but you hesitate because this would lead to higher drawdowns in the next crisis. You are therefore looking to increase the performance of your multi-asset mandates while keeping the realized risk under control.

>> Our solution

Enhance the performance of multi-asset mandates while maintaining the same risk profile

Your situation

Managing multi-asset mandates poses several challenges, such as achieving decent returns in a low interest rate environment. You could increase your allocation to equities, but you hesitate because this would lead to higher drawdowns in the next crisis. You are therefore looking to increase the performance of your multi-asset mandates while keeping the realized risk under control.

Our solution

What's needed to generate alpha for your clients is a systematic approach to identify when to tactically overweight equity.

This is where Alquant comes in. We have developed innovative data analysis and advanced indicators that help you make better investment decisions. Known as Prisma, our solution provides clear, actionable indicators that alert you when it's time to overweight equity asset classes to generate higher returns while maintaining the same risk profile.

With Prisma, you benefit from the insight of Alquant's risk indicators while maintaining full control of your discretionary mandates. In addition, you can create your own indicators and apply them to different equity indices or even to specific portfolios.

Protect from market downturns without missing out too much upside

Your situation

As an asset manager, you are always looking for ways to mitigate equity drawdowns. But the risk control mechanisms you put in place to hedge against drawdowns can significantly reduce returns during bull markets and cap the upside potential.

>> Our solution

Protect from market downturns without missing out too much upside

Your situation

As an asset manager, you are always looking for ways to mitigate equity drawdowns. But the risk control mechanisms you put in place to hedge against drawdowns can significantly reduce returns during bull markets and cap the upside potential.

Our solution

Alquant's Prisma platform improves traditional asset management through quantitative methods. Its systematic risk indicators provide you with concrete actionable insights and alert you when it's time to reduce your exposure to equity or to reincrease it.

In this way, you can have the best of both worlds: increased protection during down markets and the ability to continue participating in bull markets. With Prisma, you can confidently keep control of your clients' portfolios without having to delegate. Moreover, you will be able to create your own custom indicators and apply them to different market indices or even to specific portfolios.

Alvola: The proactive tail-hedging solution

Your situation

The cost of continuous portfolio hedging via put options or existing tail hedge solutions is exorbitant. Thus, because you can't efficiently hedge your clients' portfolios against drawdowns, you maintain cash on hand when appealing buying opportunities appear after market downturns and corrections.

>> Our solution

Alvola: The proactive tail-hedging solution

Your situation

The cost of continuous portfolio hedging via put options or existing tail hedge solutions is exorbitant. Thus, because you can't efficiently hedge your clients' portfolios against drawdowns, you maintain cash on hand when appealing buying opportunities appear after market downturns and corrections.

Our solution

As an innovative tail-hedging product, Alvola aims to generate robust performance during periods of extreme market turmoil. Alvola also helps to make sure portfolios succeed in all market phases by targeting positive absolute returns over an entire market cycle and negatively correlated returns to the equity market.

To avoid the negative carry common to many hedging solutions Alvola dynamically targets long volatility exposure through derivatives during market turmoil while remaining mainly exposed to cash during bull markets. Alvola is a perfect equity diversifier and an attractive alternative to cash equivalents. By replacing a portion of your cash reserves with Alvola, you can significantly increase your downside protection and increase your purchasing power after a crash without adding derivatives that need to be rolled over and thereby avoiding complexity.

Convexus: Defensive equity 2.0

Your situation

You like defensive stocks because of their low realized volatility. However, they tend to underperform during bull markets and, in the event of a sharp decline, they often offer no real protection. To effectively protect your equity exposure, you would have to buy put options, but this is very expensive and would also negatively impact your long-term performance.

>> Our solution

Convexus: Defensive equity 2.0

Your situation

You like defensive stocks because of their low realized volatility. However, they tend to underperform during bull markets and, in the event of a sharp decline, they often offer no real protection. To effectively protect your equity exposure, you would have to buy put options, but this is very expensive and would also negatively impact your long-term performance.

Our solution

Alquant's equity UCITS fund called Convexus is an attractive alternative to defensive or put-protected equity solutions. Indeed, Convexus achieves lower realized volatility than blended equities while tending to provide better protection in major market downturns than standard low volatility solutions. Compared to put-protected solutions, Convexus seeks to better capture equity upside by minimizing hedging costs during strong market rallies without compromising on strong protection against sharp equity declines.

At its core, Convexus provides passive U.S. equity exposure enhanced by a dynamic derivative risk overlay based on Alquant's risk indicators. Through this dynamic risk overlay, Convexus aims to significantly reduce the impact of sharp equity declines while providing returns similar to the broad U.S. equity market during bull markets.

Quant as a service - Collaborate with Alquant, your Quantitative Lab

Your situation

Developing your own quantitative hedging solution can help to better protect your clients' portfolio against market declines. Not having an in-house quantitative team means lacking essential research capacity and missing out on having a solution adapted to your needs and specific investment constraints.

>> Our solution

Quant as a service - Collaborate with Alquant, your Quantitative Lab

Your situation

Developing your own quantitative hedging solution can help to better protect your clients' portfolio against market declines. Not having an in-house quantitative team means lacking essential research capacity and missing out on having a solution adapted to your needs and specific investment constraints.

Our solution

Alquant has considerable experience in creating customized hedging overlays for external asset managers. Instead of doing it alone, you can profit from Alquant's existing infrastructure, database, and experience. With the additional benefit of automation, Alquant gives you back precious time. Finally, thanks to its FINMA license, Alquant can even create and manage a certificate or fund following your hedging overlay, so it can be easily incorporated into all your client portfolios.

Interested to learn more?