Traditional Asset Allocation is Costly, Impersonal, Inefficient

Traditional forms of creating and delivering asset allocation advice are costly, impersonal and  inefficient. An astonishing 15-25% and more of annual retail investor return is destroyed through a combination of advisory fees and portfolio allocation inefficiencies. Financial advice based on costly in-person advice is broken. Financial firms can’t provide personal advice to everyone profitably, few customers want to pay for it, and many customers don’t trust financial advisors. Such advice typically puts investors in impersonal “model portfolios” that commoditize and marginalize financial  advisors. Worse still, investing clients rarely know how inefficient their portfolios really are, and financial advisors are unable to validate the value of their services.

ActiveAllocator scores consistently high across these criteria.



Author: Sameer_Jain

Partner. Sameer Jain is founder of FinTech, the world’s first portal that seamlessly integrates traditional, illiquid and alternative investments within portfolios. Prior to this he was Chief Economist & Managing Director at AR Capital. Before that he headed Investment Content & Strategy at UBS Alternative Investments. At UBS, he served as a non-voting member of the Wealth Management Research investment committee, and as a capital allocator was responsible for all illiquid investing including fund manager selection and due diligence across the platform. Prior to UBS he headed product development & investment research at Citigroup Alternative Investments that managed over $75 billion of alternative investments across hedge funds, managed futures, private equity, credit structures, infrastructure and real estate. Here he led a team that developed proprietary models for portfolio strategy and asset allocation with alternative investments, provided investment support and research to pension plans, sovereign wealth funds, endowments as well as internal clients including Citi Private Bank. Before this he was with Cambridge Alternative Investments and SunGard (System Access) where he travelled to over 80 countries for work across Europe, Asia, Middle-East and Africa. He has written over 30 academic and practitioner articles on alternative investments with thousands of downloads at SSRN, presented at over a hundred industry conferences and has coauthored a book, Active Equity Management. Mr. Jain has multiple degrees in engineering, management, public administration and policy and is a graduate of Massachusetts Institute of Technology and Harvard University. He is a recipient of the Alfred Sloan Fellowship and subsequently was a Fellow of Public Policy and Management at the Harvard Kennedy School of Government for a year. He holds Series 7 and 66 securities licenses.

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