Product Review: AllocationMaster by John Sweeney
Some investment advisors have problems. Oh, sure,
they get fat fees for compensation, but their biggest problem is explaining risk and return to potential clients. If they can get that arcane concept across, they can then sell a host of assessment, asset allocation, repositioning, monitoring, and related services.
AllocationMaster not only helps with that problem but actually solves real issues using analytics based on modern portfolio theory (MPT). If you believe that most returns derived from the market are due to the size and the value versus growth choice, AllocationMaster may be your vehicle for determining how much goes where. The software steps both the advisor and the client through profiling the client’s portfolio and risk abhorrence, projecting cash flows for current and alternative portfolios, constraint specification (“Don’t sell any of the Microsoft!” is one example), optimization, and projected results. There is even a limited form of backtesting for the prospective portfolio.