Monegasque WealthTech Privatam unveils the new version of its digital platform, PARity 5.0, which aims to facilitate the investment process for tailor-made products. The opportunity for Wealth Monaco to learn more about their solution and their vision of current markets.

Privatam launches its new version of its digital platform. PARity 5.0 must meet multiple objectives.

For the first time on the global market, asset managers can create their products in less than 2 minutes and get the best price among offers from 11 major investment banks. PARity connects asset managers to more investment banks than any other independent advisor in the market.

Taking the time to check out the products available on the market and compare their prices with different providers of investment products are tasks that can quickly become complex and time consuming for asset managers.

As pioneers in the sector, the founders of Privatam wanted to respond to this pitfall by facilitating the identification, benchmark, purchase and monitoring of tailor-made investment products based on technology.

In 2015, Privatam launched the very first multi-investment banking product monitor, followed by the full digitalization of the investment process in the PARity platform in 2018. Today, Privatam is the first independent company in the world to offer access to so many issuers, products and types of returns in its digital platform, PARity.

As COVID-19 accelerated the adoption of technologies globally, Privatam responded quickly by offering asset managers a new version of PARity even more suitable for remote working. Our market-leading platform gives investors faster access to more information than any other provider, says Stan Perromat, co-founder of Privatam

The solution also offers to find new sources of investment

Indeed, which can quickly become a challenge for investors as there are so many possibilities. The investment themes, created by Privatam expert team and PARity algorithms, highlight topical issues and offer around twenty actions associated with these themes. This allows asset managers to choose the products that best suit their needs out of hundreds investment offers.

What other features?

PARity was created with the aim of simplifying the life of asset managers. Thanks to smoother navigation and a more intuitive design, PARity 5.0 is even easier to use. The platform has been enriched with new features to facilitate investment:

  • The “Coupon Barometer” notifies asset managers when their target sectors and stocks become attractive.
  • The consolidated portfolio allows asset managers to easily consult the analysis of their cash flow as well as the exposure of their portfolio. They can also instantly download their reports in PDF format.

By making investment product information digestible and visible at a glance in one place, PARity saves asset managers valuable time.

How has the asset class evolved since the 1st / 2nd wave of COVID?

The COVID19 crisis and the resulting decline in financial markets have generated a very strong increase in volatility which is one of the most important sources of value when creating a structured product.

On the other hand, structured products, by virtue of their diversity and the personalization of the risk / return profiles that they allow, are probably one of the only investment vehicles capable of adapting in crisis times.

Thus, we have observed since the 1st wave of COVID a renewed interest in:

  • Structures that offer sufficiently comfortable partial capital protections in front of market uncertainty
  • Structures that give a second life to products whose valuation has been negatively impacted, with the possibility of regaining the invested capital at maturity.

This increase in volatility also offered great investment opportunities in the secondary market thanks to discounted valuations, thereby optimizing returns.

Is there a difference in trends in terms of ESG criteria / labels?

Socially responsible investing is a long-term trend, particularly in Europe and Switzerland.

However, this is a less noticeable trend in the Latin American markets despite the fact that the health crisis combined with the victory of Joe Biden tend to strengthen its attractiveness.

More and more issuers of structured products are now offering investments that include social and environmental criterion by integrating ESG filters in the selection of the stocks underlying structured products, or by creating proprietary indices.

Some issuers even offer to investors the opportunity to participate in very concrete social or environmental actions through the financing of positive impact projects. One of the projects is to offer investors the opportunity to contribute to the reforestation of forests that they themselves can choose in exchange for slightly lower returns on their investments.

These various initiatives offer a range of varied solutions that adapt to this growing and sustainable demand from the industry.

Are we seeing any changes in the American vs European markets following the presidential election?

It is still too early to comment on the potential impacts of the presidential election, but it suggests the start of a sector rotation.

Technology stocks, healthcare and renewables are among the sectors that should be supported by the election of Joe Biden, to the detriment of fossil fuels or financial stocks. It will also be necessary to be attentive to the American position towards China. After years of political conflicts marked in particular by the trade war of 2018/2019, the election of Joe Biden is now generating expectations of normalization of relations between the two powers.

However, we note that for the moment the markets have been more impacted by the announcement of the discovery of vaccines against COVID-19 than by the result of the American elections.

Interview : Elisa Arnelli, Julien Tomaiuolo, Jocelyn Metzger and Stan Perromat, co-founder of Privatam.