The Institute’s Mission Is To
Provide Artificial Intelligence capable of facilitating the procedural process necessary to manage the benefits of diversification through the reduction in Uncompensated Risk (UCR). The benefits of diversification are readily achievable using the Affordable-User-Driven Artificial Intelligence developed by The Institute especially for small and medium size financial-accounting-legal firms, trustees, fiduciaries, profit and non-profit boards, consultants etc.
The process starts with an existing portfolio, one that has already been constructed using Modern Portfolio Theory (MPT) techniques of mean-variance efficient frontier optimization, Monte Carlo Simulation, etc. Often, MPT creates UCR and made worse due to constraints on some investments.
Diversification benefits are realized by utilizing the Institute’s algorithms to add optimized uncorrelated investment sectors with return per unit of risk momentum that significantly improve return and reduce volatility. Additionally, advisers can use the same process to show prospects how their existing portfolio would be improved under their stewardship.
All computer simulations are designed to achieve maximum portfolio diversification while using data only available prior to the starting point of the period being reported with no knowledge of any information available during the period.
Once you become a member you will have instant connection to the platform where you can easily transfer portfolio details from an Excel worksheet or manually enter them into the system. Then, after millions of calculations that portfolio will be analyzed and you will get a fiduciary score telling you if the portfolio complies with fiduciary standards and illustrates ways you can improve the return with lower volatility thereby achieving a significant increase in return per unit of risk (alpha).
This is done through multiple simulations assuming the portfolio’s risk asset allocation is decreased by 10%, 20%, 30% 40%, 50% and 60%, respectively. Millions of calculations later, the algorithm determines which sector and/or industry proxies to use as well as their percentage allocation for each one of the simulations. From there you can choose any, some, or all of them and make changes on your own and see what the results might have been. This is a User-Driven Process and NOT a ROBO or Black Box.
The platform, algorithms and optimizer are simple to use and as an Institute member you will also have step-by-step assistance when help is needed. The Institute will be continually upgrading and expanding the capabilities of the platform. For instance, for those investing internationally access and optimization on data from all major world security markets will be coming soon.
Quarterly or Yearly for 3 devices. Multiple User rates are available by request. And an Enterprise License is also available upon request.