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Portfolio Optimizer Portfolio Optimizer

Portfolio Optimizer

A portfolio construction framework that allows cost-effective customisation at scale.

There is no perfect portfolio, but there is a right portfolio for a specific individual.

An increasing number of investors want investment portfolios that reflect who they are: environmentally and socially minded with opinions about the markets and the future. And they are unlikely to be very loyal to a “one-size-fits-all” offer from their financial service providers.

Constructing individualised, core, and satellite portfolios while tracking an index with a reduced set of instruments or limiting absolute or relative risk to a benchmark is no small feat. But with Portfolio Optimizer, it takes only seconds. And the best thing? You can get started today.

Key characteristics of our Portfolio Optimizer.

The broadest possible investment universe

The universe can consist of ETFs, stocks, crypto assets, (OTC) mutual funds, Sukuks, and others.

The construction of each portfolio starts with a self-defined universe that can be further restricted through positive and negative selection, including (but not limited to):

  • Portfolio limits on the number of positions, their sizes, and more.
  • Transactions settings such as costs, size, tax implications, turnover constraints, and rebalancing triggers.

Complete personalisation can then be achieved through exposure constraints & tilts on sectors, regions, fundamental factors, ESG, etc.

Investment preferences allowing for hyper-personalisation

Explicit views and thematic investing are key to portfolio customisation. Market views can be incorporated via allocation and other limits or the explicit input of expected returns.

Hyper-personalisation of the portfolios can be done via a range of objectives such as expected return, risk, ESG tilts, fundamental factor tilts, tax liability, etc.

Next-generation risk framework

iVaR, our human-centric measure of risk, addresses the shortcomings of traditional risk measures and is ideally suited to retail portfolio optimisation. Of course, commonly used measures of risk such as volatility, VaR, and cVaR are also supported.

Use our proprietary statistical and factor-based risk models or your own custom risk models.

We also support a wide range of risk-based portfolio construction methods such as minimum risk, maximum diversification, equal risk contribution, or hierarchical risk parity.

Rapid setup & scalable

Integrate our web based platform or REST API. The setup is scalable thanks to our serverless architecture in the cloud and supports a large number of optimisations running in parallel.

Leverage our tools and knowledge to get to market with new value propositions quickly.


Enhanced & Direct Indexing

Tailor Indices and Portfolios to your clients' needs.

The rise of zero-commission stock trading has created an opportunity for investors to apply customised index investing strategies, away from ETFs.

Our indexing capabilities allow you to create fully personalised portfolios that follow any benchmark, including customised benchmarks. Customised benchmarks replicate the financial performance of an index or another other benchmark, but with personal beliefs.

Personalised portfolios or customised benchmarks required a lot of computation but scalability is guaranteed via our cloud-based serverless deployment.

  • Aside from the traditional “tracking error”, our Portfolio Optimizer can minimise relative drawdowns compared to an index, allowing for more effective long-term index tracking.
  • The configurable investment framework allows limits such as the number of instruments in the portfolio or the exposures to certain sectors or fundamental factors.
  • Sustainability preferences are incorporated via positive and negative selection. This can involve both high-level ESG scores and tangible measures such as carbon emissions.
  • Our approach makes a natural trade-off between tracking the index, optimising tax liabilities, minimising transaction costs, and other selected investment preferences such as exclusions, ESG tilts or factor tilts.

ESG booster

Get portfolios in line with ESG preferences.

Take out assets that drag your score down, replace them with ones that boost it and incorporate strong beliefs about ESG aspects in portfolios or indexing strategies.

Our suite of portfolio optimisation tools allow you to tilt portfolios to take into account personal convictions while maintaining the properties of your original portfolio. Despite the incredible calculation power required, scalability is guaranteed thanks to our serverless cloud architecture.

  • Select multiple positive or negative ESG metrics scores and boost them in line with your indicated level of importance. We support custom (ESG) data ingestion.
  • We offer a range of options to control the similarity to the original portfolio or impose further limits.
  • iVaR can limit the relative downside risk relative to the starting portfolio or index.

Hyper-personalised portfolios

Meet your customers' preferences.

Customers need to be invested in portfolios they feel comfortable with.

An optimal portfolio for an individual depends on their risk appetite and other constraints: their tax situations, ESG preferences, their time horizon, asset classes preferences, etc. There is no perfect portfolio, but there is a perfect portfolio for a specific individual. It is a lot of work to determine that portfolio with the investor. We make it easier.

Portfolio Optimizer offers a range of tools to tailor portfolios to the investors’ preference, so they stay with you forever.

  • Investors tend to underperform investments because they sell portfolios they are not comfortable with when they get anxious.
  • Our InvestSuite Value at Risk (iVaR) metric can control the drawdowns in the portfolios, to give comfort in line with the risk tolerance.
  • The risks and ESG profiles are translated into concrete investment preferences.
  • Thematic investing allows clients to tilt their portfolios towards their market beliefs.
  • Our InvestSuite Protector Algorithm can offer explicit, individualised downside protection.
  • An unlimited number of optimisations can be ran in parallel to offer customisation at scale.

iVaR for better Crypto Portfolios

You can start offering Digital Assets intelligently with iVaR.

Offer Crypto portfolios, add crypto assets in your portfolio, or build “satellite” portfolios with nothing but crypto. Optimally.

Our Portfolio Optimizer with iVaR has been used to build crypto portfolio since 2019 and offers a unique take on this new asset class.

  • iVaR is ideal for crypto because traditional risk measures don’t work well there, because they assume a normal distribution of risk.
  • Indices and “baskets” are equally sub-optimal allocation mechanisms as they often don’t screen for quality or liquidity, don’t allow investors to capitalise on up-and-coming narratives, and rebalance too infrequently to avoid catastrophes.
  • With Portfolio Optimizer you can add crypto / digital assets to your portfolio or build “satellite” portfolios with nothing but crypto and seamlessly optimise them frequently.

Mix & Match to suit your desired use case

Our APIs can be combined in any number of ways to build your optimal solution.

The advantage of our offering is that the pieces are available for you to combine in any way you want. Like Lego blocks, you can use some or all of them in any combination that makes sense to you, to build exactly what you need.

  • Portfolio Construction and rebalancing API: a portfolio construction framework that provides cost-effective scalable solutions for more efficient portfolio management.
  • iVaR or (relative) iVaR: an empirical investment approach based on how markets actually behave, which fits with the human perception of risk, that you can use instead of traditional risk measures.
  • Custom risk model: upload your own factor-based risk model to be used for portfolio construction.
  • Model Portfolios: index tracking / direct indexing.
  • Floor Protection: explicit, individualised downside protection.
  • X-Ray API: fundamental data transformed into actionable insights. It scores stocks on 8 understandable dimensions: valuation, growth, momentum, stability, financial health, profitability, sentiment and ESG.
  • Access via:
    - APIs for direct system-to-system integration and to build your own front-end
    - the web-based console for portfolio managers or back-office teams.
Would you like to know what our Portfolio Optimizer can do for you and your customers?

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At InvestSuite, we help financial institutions accelerate their digital wealth transformation journey and launch the most engaging investing experiences for their customers.

With our suite of white-label InvestTech solutions, we help our clients extend their product range in an agile, fast and cost-effective way so that they can stay ahead of the curve and thrive in this increasingly digital world.

InvestSuite is a place where bankers, creative designers, imagineers, computer and behavioural scientist work together to create user experiences that open up new markets and drive commercial success for our clients.

We're looking forward to meeting you.