How they describe themselves: Sophisticated investment management has, until now, been reserved to an elite of very wealthy people or institutional investors. Scalable Capital makes investment management accessible to everyone, using a smart, technology-based approach. Its USP is a proprietary risk-management technology, akin to investment methods used at some of the world’s biggest hedge funds, which constantly monitors and optimises portfolios, and was developed in cooperation with renowned financial econometrics professor Stefan Mittnik. Scalable Capital is the first independent InvestTech company to have received a license from the German regulator BaFin, and is currently going through the process of obtaining an FCA license for the UK.
How they describe their product/innovation: Scalable Capital offers customers globally diversified and highly cost-efficient ETF portfolios, tailored to their individual risk limit. Clients can select from more than 20 different risk categories, which indicate an annual loss that should not be breached with a probability of 95 percent. The higher the risk category, the higher the return potential. Using Monte-Carlo simulations, Scalable Capital predicts whether an investor’s risk limit will be breached in the course of the next year, and if so, automatically adjusts the weights of each asset class in the portfolio until the risk limit is again being met, while optimising portfolio composition with regards to return potential. Total costs are 0.75% p.a., with no hidden fees.
Product distribution strategy: Direct to Consumer (B2C), Direct to Business (B2B)
Bus. Dev.: Adam French, Managing Director, firstname.lastname@example.org
Press: Marianne Slamich, Head of PR & Social Media, email@example.com, +44-7871-278663
Sales: Ella Rabener, CMO, firstname.lastname@example.org