About Us

ActiveAllocator is…

For Long-Term Strategic Asset Allocation Decisions

  • Quickly analyze statistical properties such as risk and return of existing portfolios
  • Generate historical and predictive portfolio performance measures
  • Find the best combinations of assets that maximize return for every level of risk
  • Accommodate unique investor preferences
  • Compare existing portfolios with recommended allocation changes, generates what-if scenarios in a transparent easy to use interactive manner
  • Bring together passive and active, liquid & illiquid, traditional and alternative investments in an integrated framework (stocks, bonds, private equity, real estate, hedge funds, liquid alternative mutual funds, managed futures, infrastructure…)
  • Quantitatively demonstrate forward looking beneficial effects of utilizing various alternative investment types, complementary to traditional portfolio holdings
  • Generate implementable client proposal for strategic asset allocation

A Transparent, Interactive Platform

  • Build differentiation through demonstrating advice value add supported with facts and figures
  • Migrate up the value chain from product provider to becoming a solution provider
  • Deepen customer intimacy
  • Bring fact based approach to decision making in selecting and proposing passive asset classes, funds and actively managed products
  • Improve alignment through bringing together asset allocation, education, model portfolios and implementation advice
  • Utilize alternative investments to create directional, semi-directional and non-directional exposures
  • Enable technology driven personalization to create mass customization

An In-Depth Look

  • Enables technology driven mass personalization

    We focus narrowly in just asset allocation, something that is exceedingly hard to do, and when executed properly creates enormous investing value for clients and migrates a financial advisor up the value chain.

    ActiveAllocator helps financial advisors such as yourself analyze and arrive at personalized recommendations for each of your clients. We recognize that the “market of one” is the new norm. We do not lump people into broad amorphous categories such as the wide spectrum of "very conservative' to "risk seeking". In an age of technology driven mass customization, individual customers expect highly personalized offerings that are uniquely tailored to their own specifications. The portal is designed to drive the individualization of every aspect of asset allocation down to the level of a single client.

    Marrying our cutting edge, fact based algorithm-driven analytics, with your own special understanding of your client's unique circumstances, drives superior outcomes. We believe that this powerful combination goes far beyond anything offered by emerging digital financial advice platforms, robo-advice and digital investment managers.

    We assist you to sift through carefully generated choices to create timely, specific, and actionable recommendations. We, working with and for you, forever transform how your retail clients allocate to and implement actively managed portfolios.

  • Improves Long Term Strategic Asset Allocation

    It has long been widely recognized that the majority of investment returns come from long term asset class strategic asset allocation decisions. This simple, boring, yet extremely powerful insight is unfortunately often glossed over in obsessive search for ‘best products’ or the next hot investment theme.

    The asset allocation module within our portal optimizes on what your client already owns. It analyzes your client's aggregate portfolio, does a risk-return based analysis, generates numbers and metrics and makes recommendations to reallocate asset classes to improve the portfolio. In other cases, it suggests the addition of other asset classes such as alternative investments to complement and enhance existing holdings.

    We recognize, as you undoubtedly do too yourself, that any long term strategic asset allocation or a particular fund recommendation is made at a snapshot in time. In the real world your client's circumstances evolve and change continually; periodic rebalancing that comes at a price, may or may not be an option. While many are anchored in a long term view, most investors would benefit from refreshing a dated investment allocation model, revisit funds that they have allocated to in the past, as well as act on changes in markets and include their future assumptions.

    Until now, this however has been easier said than done. For instance, each wealth management firm, each wire house, often each broker dealer periodically arrives at their own future view of asset class expected risk and return. Yet financial advisors have no easy way to test such comparative views within the specific context of their particular client. ActiveAllocator allows you to do this in minutes. Our portal helps you quickly simulate such scenarios and allows you to quantify revision in views, triggering valuable dialog.

    ActiveAllocator, in minutes, helps you in establishing detailed, standardized assessments of your client's existing holdings. You will be able to quickly incorporate your client's preferences to develop long term portfolio objectives. The portal allows you to combine your judgment with quantitative asset allocation, incorporate constraint conditions and develop appropriate risk management controls. All investment processes are well defined, replicable and completely transparent to you.

    You will also be able to extend your fund manager sourcing capabilities to give your clients best in class asset exposure.

  • Strengthens Your Bond with Your Clients

    We hope you recognize, as do we, that many of the new generation of self-directed investors are less comfortable handing off investment decisions solely to their advisors. Today’s clients know more and want to actively participate in managing their investments as well as the asset allocation process collaboratively with you.

    ActiveAllocator strengthens your relationship with your client by enabling them to become more hands-on, should they choose to do so, and aided by your expert guidance. It makes remote interactions much more akin to face-to-face exchanges, helping you reduce client confusion, allay insecurity, and demonstrate value by drawing your recommendations to empirical data, facts and numbers. The portal is a valuable tool for you to grow your business and, unlike robo-advisors, not a disintermediation threat, for it marries the digital with the very special person-to-person relationship that only you bring to your client.

    The portal is built to increase the frequency of interactions that your clients have with you - through real time collaboration, generating and discussing what if scenarios on the fly in your meetings, changing preexisting assumptions on an asset class or a fund's future expected risk and return and modeling it as you converse.

    This deepens customer intimacy. You benefit along with your clients, for such collaboration raises the quality of your discourse, drives additional meaningful interaction and creates a positive effect on your relationship.

  • Built Around Cutting Edge Analytics and Algorithms

    ActiveAllocator is built on a back end engine of advanced analytics technologies that add speed, scale, visualization and predictive capabilities to investment decision modeling. By embedding analytics capabilities to financial advisor use in real-time and in the context of a business process, the traditional system of record of 'client portfolio holdings' now becomes a system of actionable new investment insight. These insights are gleaned from predictive analytics which drives nearly all aspects of its recommendations.

    There is a scarcity of good tools to analyze alternative investments. Given the absence of standards and recognized benchmarks in the alternative investments space, fund investors often lack meaningful performance comparison metrics. Our portal brings in best practices utilized by the most sophisticated institutional investors to the affluent and mass affluent main street investor. Our proprietary analytical tools and models will help you better support your clients. These include:

    New Approaches to Alternative Asset Allocation

    ActiveAllocator uses multi-variable stochastic alternative asset models that go beyond the traditional Markowitz mean-variance approach, or the Treynor-Black approach or popular variants of the modified Black-Litterman approach. For instance, allocations may be optimized to have the highest return per unit of specified risk. Constraint considerations may include investor preferences, reducing volatility, left skew, excess kurtosis, maximum drawdown, whilst reducing corner solutions.

    New Approaches to Investing and Funds Analysis

    ActiveAllocator is able to extract information from proprietary databases of historical returns performance which serve as input to our stochastic manager selection models. It answers questions such as the amount to allocate to single or to multi-manager funds, choice of fund categories, optimum mix of skills based and cheap market beta exposure amongst others.

    Models for Performance Measurement and Benchmarking

    ActiveAllocator algorithms use a variety of means for performance analysis, time series and cross sectional peer group comparison, estimating measurement error, alpha (skills) attribution, the effects of leverage as well as customized performance analysis.

    As you begin using this portal we urge you to contrast this to prevalent simplistic asset allocation approaches. We believe that approaches often built off simply analyzing historical data, using mean variance optimization, extrapolating with clever optics create false precision.