Our multi-asset portfolios are constructed using a proprietary algorithm. Around 75 ETFs spanning the entire gamut of sectors, asset classes & regions are used with liquidity and size being key criteria for selection. We construct an efficient frontier of portfolios (portfolios with the best potential returns across varying risk levels) by incorporating a modified Black-Litterman model along with a mean-variance optimization model.

We incorporate instrument-level maximum and minimum weights in the algorithm during the portfolio construction process to ensure that portfolios are not too concentrated in a few instruments. Our portfolios are rebalanced every month, to ensure that we adapt to both macro and micro-economic changes.

Asset allocation portfolios are Risk-Based, i.e. they are designed to perform according to an investor’s tolerance for risk. From the entire set of efficient frontier portfolios, volatility bands ensure that we can select optimal targeted portfolios for different risk categories of investors. This can range from conservative (Risk level 1) to aggressive (Risk level 5), whereas the aggressive-style portfolio would have a much higher allocation to equities or alternatives.

Our portfolios have consistently outperformed both competing products and benchmark performance by 8%+ on a 5-year annualized return basis and in at least 7 of our 10 calendar years.

This can primarily be attributed to:

Selection of best-in-class 75 ETFs which constitute the universe of products,
Our proprietary algorithm has used a modified Black-Litterman optimization approach along with a classic modern portfolio theory approach,
Regular rebalancing to ensure that both micro and macroeconomic trends are addressed,
Usage of managed accounts to keep cost structure efficient.