Press Release

 

PRESS RELEASE

 

iProtect has been launched as a new tool for iPhone and iPod Touch with which investors can create their own bespoke, capital-protected portfolio in a unique and easy-to-understand way. The application provides an asset allocation into bonds (which might be risk-free) and equities or derivatives (which carry an element of risk). The innovation makes the asset allocation easy to understand for the untrained or non-expert. No market prediction is needed and the outcome is a capital-protected portfolio where risk is viewed as absolute loss, not under-performance.

 

With the application, the investor or financial advisor can: 

 

  • create a strategic asset allocation consisting of bonds and equities 
  • identify which assumptions about future market development are built into the allocation
  • check the usefulness of the suggestions that have been given
  • calculate the average, minimum and maximum return of the portfolio at any time
  • experiment with different scenarios to find the best solution and avoid unwanted speculation at the same time
  • be educated, or educate others about the risk/return trade-off 
  • overcome fear and the lack of professional knowledge

 

People often seek professional advice because of the complexity of markets and worry about the question of future market performance. Frequently, they end up by owning complex portfolios which create stress for them during difficult times. They mistakenly believe that they need to rely on others being right about predicting the future. That is wrong and, what is more, costly.

 

iProtect can serve well as an educational tool for presenting the risk/return/horizon trade-off. Investors can educate themselves before they invest. Financial advisors will have a tool to build a higher quality relationship with their clients who will understand what their advisors are talking about.

 

Armed with the asset allocation from iProtect, the investor can then buy inexpensive and transparent index funds without paying high fees. Products which are structured in a complex and complicated way in order to charge or hide such fees can be avoided. It is highly recommended that a combination of a diversified equity portfolio and Treasury bond for a risk-free investment, is used. Investor can use an index fund for a widely accepted market index or an actively managed fund with proven long track record as well.

 

iProtect can be used by anybody. An individual needs only to enter a Horizon (in years) and a Risk Tolerance. (e.g. 0% means that he or she does not want to tolerate any loss of the investment on a given horizon). The modeling capabilities of the application range from the extremely conservative to the highly aggressive and risky . The tool can be used for dollars, euros, pounds or any currency for which a government bond market exists.

 

 

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