British vertical fintech uses AI to create a low-cost investable product

British vertical fintech uses AI to create a low-cost investable product

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Dubai: Stalwart Holdings, a vertical fintech company based in the United Kingdom focused on the development of niche solutions for the alternative investment market, has announced that it will open to external investors the ability to participate in the Performance Linked Bonds (PLBs) issued in August 2020 as part of a private placement deal.

According to the media release, these bonds have no fixed maturity date but can be redeemed daily via the automated functionality developed by Stalwart Holdings to provide liquidity to investors. The outstanding principal is indexed by the performance of the investment strategies Stalwart Holdings has been running since the second half of 2020 when the company opened a subsidiary—Stalwart Holdings UK LLP—that became a regulated investment management business. Since its inception, the portfolio of the LLP subsidiary has demonstrated consistent performance above that of its peers, the release added.

PLBs, known in continental Europe as Actively Managed Certificates (AMCs), are a hybrid between hedge funds and debt securities.

According to the company, the investment strategies driving the indexation of the PLBs issued by Stalwart Holdings are systematic, based on quantitative and Artificial Intelligence models developed by Fabio Dias, the lead lecturer of financial modelling