On this page, we present a simple and effective investment strategy, based on an intuitive approach that embraces the different asset classes, overcoming the traditional asset allocation logic (40/60, balanced funds, life strategy, Golden Butterfly). In fact, in Economics and Finance, theoretical models as well as modern quantitative approaches are not able to fully grasp the dynamics of the markets and this explains why blind faith in theory or statistics can lead to disastrous practice.

Our approach to asset allocation takes the form of an investment strategy that favors simplicity over complexity, generating a model that produces better and more stable results by considering risk and value as primary evaluation factors and not just total performance.

For these reasons we decided to develop a unique strategy, called Smart Ladybug, a model that proves capable of returning reliable and consistent results even in difficult market conditions such as 2022.

This asset allocation model is based on the effective selection and rotation of 7 ETFs, expertly balanced with each other and chosen based on some particular characteristics that favor fundamental analysis, cash flow and value.

Here are some of the fundamental criteria that make this strategy stable and profitable:

• No exchange rate risk. All assets are denominated in Euros.

• No specific risk. All the selected ETFs include baskets of hundreds of diversified securities and assets.

• No leverage risk. The strategy does not include any financial leverage.

• Limited equity exposure. Exposure to stock markets is limited to 35% of the total.

• Solid investments. No investments in emerging, exotic markets or crypto assets.

• Low Volatility.

ETFs have numerous advantages over traditional open-end funds or stock picking. The 3 most important benefits are liquidity, portfolio diversification and cost reduction.

Imagine you have invested €20,000 for 10 years in mutual funds. In the best case scenario you faced 1.65% annual management costs which correspond to approximately €3,300 in 10 years. It is clear that with the same performance, the mutual fund strategy is already a loser from the start. Let's also add other inefficiencies and related banking costs. To be clear, the annual expense ratio of our ETF strategy stands at 0.19%.

No consultancy costs, no fixed commissions!

It is statistically proven that active mutual funds are unable to obtain better performances than the reference benchmarks or passive ETFs, even in relatively short time horizons. In the long term, asset management in mutual funds does not bring any further benefit to the investor.