QIO.finance
Quantitative Investment Office
“for more degrees of freedom”
QIO – The analytical backbone for investment decisions and risk management
Far too often, people make investment decisions on a subjective basis without a structured fundamental framework. Subjective decisions not only suffer from cognitive biases but are also prone to errors. Furthermore, investment decisions are often influenced by possible conflicts of interest between the wealth owner and the wealth manager leading to a so-called moral hazard.
Quantitatively-supported investment decisions mitigate these biases and conflicts by introducing objective measures and a structured investment decision process. Providing quantitative models and advice on the design of robust investment processes is our core competence.
We forecast economic variables, long-term asset returns and volatilities based on our long-standing financial market expertise and state-of-the-art quantitative methods incorporating latest academic developments. We deliver full forecast trajectories dependent on economic scenarios beyond ten years for all major global and regional equity, fixed income and commodity indices, foreign exchange pairs as well as alternative asset indices with sufficient data history and quality.
Combining financial market theory and expert knowledge, we estimate long-term fair values for global, regional and sector-specific corporate earnings, equity risk premia, benchmark and corporate bond yields, credit spreads, commodity prices and foreign exchange pairs.
These fair values and their deviation from current market levels represent so-called fundamental forecasting factors, i.e. factors that are used as signals to enter or exit markets and therefore support investment decisions. The fair value estimates can also be used to build financial products replicating those market signals.
Applying our long-term return, volatility and correlation estimates, we deliver customized strategic asset allocations according to your defined investment goals, risk profiles and exclusion criteria. Recommended allocations can also allow for outside interests in specific sectors or asset classes stemming for instance from corporate ownership.
We support you in the design of your investment process, answering the following (non-exhaustive) questions: How do you split your strategic and tactical asset allocation (TAA)? On which basis do you deviate from your strategic asset allocation (SAA)? Which asset type should be included in the SAA and TAA? Should foreign equity exposure be hedged and, if so, how?
Due to our econometric modelling and asset allocation know-how we are able to offer a unique, modern and accessible application for goal-based investing. The application includes asset and liability aspects and can be fully tailored to cover various aspects of lifecycle wealth management including income origin, inflation or pre-existing asset holdings. Its area of application ranges from retail investors to sovereign wealth funds.
QIO – More than the sum of its parts
We are a Swiss-based group of senior financial professionals combining strong academic know-how in finance, economics and mathematics with long-standing experience in the financial industry. After we had developed quantitative methods and investment strategies for a leading global bank, we founded QIO – Quantitative Investment Office, the analytical backbone of all our services.
Contact Info
QIO – Quantitative Investment Office AG
Postfach
8802 Kilchberg Switzerland