Investment managers are increasingly making use of technology to make managing money for clients cheaper, more accessible and simpler, and Vega prides itself on making this technology accessible.
No aspect of our processes is outsourced and we are a market leader in this respect. Investments, risk management, communications with IFAs, account openings, reporting, and ISA and SIPP transfers all take place on the same in-house platform, and the efficiency gained from this translates to a better product.
The portfolio construction algorithm is based on empirical research and up-to-date portfolio management techniques. We use technology to do the heavy lifting: the systems we have created enable us to make qualitative and quantitative assessments of 1,000s of securities every day. The result is an intelligently diversified portfolio with the greatest potential for return for a given risk profile.
You can be sure that the human biases of fear and greed, proven to be detrimental to long terms returns, do not play a role in how your investments are managed. Instead, every investment decision made is free of emotion and consistent with a growing body of investment and risk management research that spans decades.
You can't predict returns, but you can predict risks
This means we not only manage risk by maintaining well diversified portfolios and rebalancing frequently; we actively monitor and act on predictive market signals to pre-emptively de-risk portfolios. We are one of a select few investment managers who can claim to keep the actual risk in our portfolios aligned with their risk mandates.
We can trade in more than 9,500 funds which cover all major asset classes and geographies which we monitor daily. Funds are initially subject to a screening algorithm, the most important selection criteria being:
Our proprietary technical infrastructure gives us the capacity to evaluate a host of popular approaches to investment management including Risk Reward Optimisations (Sharpe Ratio, Calmar Ratio, etc.), Modern Portfolio Theory, as well as the Universe of Technical Indicators. All of these are subject to a powerful Machine Learning framework, ranging from decision trees to support vectors and neural networks.
We pride ourselves in applying the same high level of rigour to every aspect of the portfolio management process; from the strategies themselves through to settlement mechanics, allowing you to stay fully invested at all times. The brokerage system we use was custom built by our team drawing on their combined experience trading on both the buy- and sell-side. The system enables us to accurately assess the impact of costs (transaction, slippage, spreads, etc.) on every trade we make.
This is not a black box solution but we have built an infrastructure where we are able to identify exactly why an investment decision has been made. Unlike traditional fund managers who often claim to have a feel for the market, every decision we make is quantifiable. When an investment decision is made we can tell why it worked or didn't work - we measure everything.