UAE-based FinaMaze unveils new Smartfolio to protect investors from US rate hikes

UAE-based FinaMaze unveils new Smartfolio to protect investors from US rate hikes

As high inflation and subsequent interest rate hike by US Federal Reserve cripples investor liquidity, FinaMaze, the ADGM-based innovative digital wealth manager, has unveiled its latest product, US Rates Protect Smartfolio, available for all investors.

Estimates have revealed that to fight decades-high inflation, central banks across the globe will have to employ consistent, aggressive interest rate hikes as part of their policy.

Mitigation

Large real estate institutional funds typically enter into hedges that can compensate for the impact of the interest rate rise. However, individual buyers with a variable mortgage rate are unprotected as the rising interest rates result in ever-increasing mortgage payments. Worse, this happens at a time many other assets in their financial portfolios are also decreasing in value.

Mehdi Fichtali

CEO & Founder

FinaMaze “We understand our clients’ concern about inflation and the subsequent rise in interest rates as impulsed by Central Banks. Rising interest rates hurt them at two levels: their stock markets investments fall (Stock Markets went down -20% to -25% this year), and their variable mortgage payment is to increase. We, therefore, built the US Rates Protection Smartfolio: its performance moves in sync with the rates: when rates increase, its performance is positive while their stock markets portfolios are losing,