Learn how folioPilot™ does it job.

• Know Your Client

  The workflow starts with client onboarding. Our onboarding process has been designed to meet the specific informational needs of our solution. That said, external Customer Relationship Management (CRM) systems can be easily integrated into folioPilot to further drive efficiency and maximize the use of client KYC data.

• Multi-Class Strategies

  folioPilot's Strategy Builder™ is used to build and maintain a library of intelligent, quantitative, smart-bata strategies from which the system will select a strategy for each investment vehicle class to be included in a client's portfolio. Based solely on the system's current model strategies, there are 3,000 combinatorial possibilities thereby ensuring the diversity of strategies deemed essential to the system's tri-directional diversification approach that has proven to result in the maximization of reward and the minimization of risk.

  The platform ranks each strategy for client suitability based on that client's KYC information. Those strategies with higher rankings will have demonstrated their ability to meet that client's investment return objectives within their investment horizon and risk tolerance.

• Strategy Validation

  The folioPilot high-speed simulator sits at the interface of pont-in-time data and advanced simulation technologies. folioPilot's strategies are constructed based on fundamental or technical styles of investment. folioPilot then simulates the strategy's rules over it's point-in-time database to pre-validate each strategy. That way, the client gains an understanding of how the strategy is likely to perform over up-, down-, or sideways-markets. folioPilot does not do curve fitting or regression analysis. Each stratgy is simulated, that is, the simulation starts with the construction of a portolio 30+ years ago in accordance with the it's rules and then is actively managed over 30+ years to determine how it would have performed. Poorly formed strategies will perform poorly, well formed strategies yield superior results.

• Capital Allocation

  From a client's profile, folioPilot ascertains their desired ROI, risk tolerance, and investment horizon, which enables folioPilot to not only select strategies, but calculate an optimum allocation of capital to each of the chosen strategies. Should a client's profile change, folioPilot recalculates the allocation which then leads to a portfolio rebalance.

  folioPilot uses non-linear optimization to allocate capital to each chosen strategy. The goal is to allocate capital in such proportions that returns are optimized while minimizing risk.

• Portfolio Construction

  In creating folioPilot, we've taken a different approach to portfolio construction. Unlike other platforms, which allocate capital to individual investment vehicles by solving the "Efficient Frontier" using Mean-Variance Optimization, we let the rules of the strategies guide the selection and disposition of investment vehicles to create a custom, highly personalized and highly diversified portfolio.

  Over the past 36 years, which includes eight major market downturns, we’ve found this approach to be superior to that of other methods.

• Portfolio Management

  Since folioPilot's capital allocation methodology differs from that of other platforms, the need to rebalance client portfolios is less often. Daily, folioPilot monitors client portfolios relative to the rules of the strategies chosen for each investment vehicle class initiating a rebalance when a holding no longer meets a strategy's rules or when the portfolio just needs to be re-optimized in order to maintain its target allocations among the chosen strategies. folioPilot also initiates a rebalance when significant dividends accrue or a significant deposit or withdrawal has been made. What constitutes a significant event is adjustable.

• Trades

  System recommended trades can be placed automatically by folioPilot via an application programming interface provided by the advisor's broker-dealer/custodian, or optionally, they can be placed manually.

• Documentation and Reporting

  In addition to simulation performance reports and portfolio performance reports, folioPilot maintains its own transaction logs, trading records, and suitability records. As all records are stored in a SQL database, custom reports can be easily generated on demand.