The Institute’s Mission Is To

Provide a highly advanced and affordable internet-based system to quickly and accurately measures the level of diversifiable risk present in an investment portfolio; then help determine if the measured risk complies with the diversification requirements for a fiduciary.  The diversification improvement seamlessly guides users through a documented prudent process that integrates user customization and testing in portfolios exhibiting reduced diversifiable risk and/or increased anticipated rate of return.  We will complete our mission without subjecting members to annoying 3rd party ads.

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YOUR TOOLBOX FOR PORTFOLIO DIVERSIFICATION

• A Prudent Diversification Procedural Process 

Start with Our Artificial Intelligence Algorithms to ANALYZE & OPTIMIZE

Apply YOUR Intellect to CUSTOMIZE, ANALYZE, OPTIMIZE & FINALIZE

The process is User-Driven and NOT a robo or black box. It starts with an existing portfolio, possibly one that has already been constructed using Modern Portfolio Theory (MPT) techniques,  mean-variance efficient frontier optimization, Monte Carlo Simulation, etc. by removing redundant information caused by disparate weightings and positive correlations. The  Diversification Score is the metric for assessing compliance with fiduciary standards. The entire process from upload to having the Diversification  Scores along with some world class portfolio analytics takes only a few minutes.

The system moves into its Optimization Stage creating six iterations of the existing portfolio by decreasing the legacy portion in increments of 10%, 20%, 30% 40%, 50% and 60%, respectively.  Millions of calculations later, the modeling algorithms produce recommend sub-sectors and/or industry proxies and their percentage allocations to achieve the best outcomes. From there the member would study the Correlations, Sharpe Ratios and other Performance Metrics provided by the system to decide what current portfolio constitutes might be reduced and replaced utilizing their own portfolio limitations and biases.  Then, in a few minutes Members can Analyze to see what the results might have been.  This testing can continue until a final allocation is decided on by the member-user.

The resulting improvements are presented in a report that documents the advisor’s prudent process, a necessary ingredient for fiduciary compliance.  From a marketing standpoint 'The Process' is used to show prospects how their existing portfolio’s risk/return management could improve under their stewardship.

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. Once you become a Member you will have immediate access to the system and can easily upload your existing portfolio’s symbols and allocations from an Excel worksheet.   Then, with one left mouse click you can enjoy all the benefits of membership.  The Process can also be used to analyze potential investment choices included in a sector, sub-sector, or industry by evaluating the performance metrics of constitutes within a proxy. The Institute plans to continually upgrade and expand the capabilities of the platform. 

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