Our project

The only way to feel comfortable in such a deeply personal area as investing is to keep this process under control and even do it yourself. Especially when you are confident that you are doing so with minimal subjective judgment, in the most efficient and cost-effective manner...

 

What is IskraIndex?

 

IskraIndex is an online platform for personal investing that utilizes globally diversified model portfolios based on ETFs, optimized for various risk levels. The core of the project is the construction of the efficient frontier for a set of investment portfolios, which represent the optimal trade-off between risk and return. The ETF universe for optimization includes the 10 largest funds across 10 asset classes, ranging from short-term bonds to commodities and Bitcoin, and are geographically split (where possible) between emerging and developed markets.

IskraIndex moves away from the risk of incorrectly selecting individual investment instruments (stocks, bonds), shifting to a diversified index level. Furthermore, IskraIndex expands investment opportunities by including asset classes that are difficult to invest in directly, working with their individual representatives – such as real estate, commodity markets, and cryptocurrency. Essentially, IskraIndex offers a dynamic model of triple portfolio diversification – within asset classes, between asset classes, and geographically – with a built-in risk management system.

 

What is the essence of the IskraIndex methodology?

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Working with asset class indices allows us to operate with return distributions that are the closest to Gaussian (normal) — unlike the return distributions of individual instruments. This, in turn, allows to rely on the continuity of historical and future probabilistic dynamics. This approach significantly simplifies the optimization process, avoiding numerous assumptions and speculations while remaining within the framework of classical portfolio theory.

At the core of the IskraIndex methodology lies the Markovitz theory, which received the Nobel Prize in Economics in 1990 (Modern Portfolio Theory). The IskraIndex has managed to address the main drawback of this theory that hindered its practical application - the use of historical asset class returns in the optimization process. The IskraIndex works with expected returns - a probabilistic adjustment based on the fact that, in the long term, the risk premium is the same for all asset classes and depends solely on their level of risk.

Enhanced by a risk management system, the IskraIndex model finds optimal combinations of index ETFs in the Expected Return – Risk dimensions. The regularly performed optimization accounts for changes in expected returns based on the dynamics of asset class indices, macroeconomic shifts, and changes in the correlation relationships between asset classes, allowing the investor to remain in the best possible investment position.

 

Advantages of the IskraIndex solution

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• Support for all accessible asset classes, including alternative investment ETFs (real estate, commodities, and cryptocurrency), opens the way to achieving higher-return portfolios at lower risk levels
• The optimization model relies solely on a probabilistic approach, unlike widely used regression-based factor models
• No costs associated with broker's investment products
• Full investor control over the investment process
• Dedicated support from CFA-certified IskraIndex managers
• Freedom to choose external financial and non-financial services

If an investor is a Private Banking client, they are offered a wide range of services, including advisory, tax consulting, insurance packages and other services. However, access to these services often comes with restrictions — such as the requirement to maintain a minimum amount on deposits with that bank or in its investment products. With IskraIndex, the investor can independently choose external services without any limitations, which will cost significantly less than a banking package.

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IskraIndex model portfolios allow setting up an investment processes in small Family Offices, Private Banking divisions, and other structures created to manage the capital of High-Net-Worth Individuals. The IskraIndex approach minimizes the problem of investor's distrust in investment products by offering a high-quality solution with minimal costs.

 

IskraIndex Team

 

The IskraIndex team consists of CFA charterholders with over 20 years of experience in asset management on global markets, investment products design, development and market promotion.

 

Andrey Stoyanov, CEO and Project Idea Co-Author

Worked at major Russian investment banks, advancing from an analyst to a manager of mutual funds, pension assets, and individual discretionary accounts. Participated in the development of robo-advisory services for Russian brokerage firms.
CFA charterholder (2015), graduate of the Carnegie Mellon Center for Financial Analysis and Security Trading, holds a Master's degree in Physics.

 

Dmitry Morozov, Project Idea Co-Author

Worked in the investment banking business (PPF Group, Home Credit Bank) and Private Equity firms, with experience in banking risk management and the development of retail banking products. Has extensive experience in evaluating and developing strategies for fintech companies as part of M&A transactions in the banking sector.
CFA charterholder (2005), graduate of the Prague School of Economics.

 

Contact us

WhatsUp: +77784042574
Email: info@iskraindex.com
Telegram: @iskraind

 

 

 

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