Our systematic portfolio construction is top down, using Risk Targeting to construct portfolios. Our quant techniques reduce 1000+ ETF portfolios into risk and return parameters for portfolio construction, to maximize returns for a Risk Target.

ECIO 4.1 is our new Macro Economic derived Risk Targeting algorithm.

Our portfolio construction using Risk Targets derived from 10+ Macro Economic environmental variables is a new paradigm in finance and investing. This forms the missing connection between Economics and Investing.

The resulting model portfolios go well beyond bottom-up Trad-Finance, in concept and in returns.

We are no longer looking below us at the returns of Trad-Fi benchmarks (AGG, S&P, etc). We look up, and asprire to the Potential Returns that are possible in any set of asset classes. ECIO 4.1 is the first step.

TradFi owns individual securities, and its bottom up (Graham-Dodd) Risk DNA biases to liquid and 'safe' assets (UST, IG, Large Cap Equities), using techniques of security selection and diversification for risk management, and fears other asset classes. Trad-Fi is based on illiquid-markets- thinking and has not recognized recent improvements in liquidity.

With ETFs, liquidity is greater than the underlying assets, opening up portfolios to new risk and return options. We now use a Risk-Parity-like global asset set, as liquidity is no longer a constraint. Frequent rebalancing manages portfolio Risk and generates the Alpha, which is demonstrated in our Fact Sheets.

ECIO 3.6 Models - these are here to provide continuity and comparisons, and to demonstrate the order-of-magnitude improvements in the new models. These are based on our prior Risk Models, that targeted the risk of specific benchmarks (AGG, S&P, Risk-Parity).

They are not shabby, and are much better than the performance of Trad-Fi portfolios.

But the ECIO 4.1 Risk Targeting is way better, and is the future, and the ECIO 3.6 portfolios are being replaced.