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, and their variable mortgage payments are going up.”
The Portfolio
The US Rates Protect Smartfolio is accessible by individual investors who may already own a property and are paying a monthly mortgage: in case the interest rates keep on increasing, this Smartfolio will generate a positive performance. On the other hand, if rates fall back, its performance would turn negative, while variable rate mortgage payments may not necessarily fall.
FinaMaze App allows clients to track the performance of their US Rates Protect Smartfolio in real-time. They may also exit for zero fees, at any time and in two clicks from the App, as is the case for all FinaMaze Smartfolios.
FinaMaze is now well known in the market for its use of revolutionary technology to create innovative investment products for its clients.
This year alone, the digital wealth manager introduced several AI-powered products such as the “Contrarian Bitcoin”, “Flight-to-Safety” and “Black Swan,” all with the AI Autopilot personalized rebalancing, offering relevant investment solutions to its clients.
