Active Markets Require

An Active Approach

Our data analytics-driven solutions differentiate us from traditional investment management. We use proprietary signaling algorithms to make timely portfolio adjustments designed to mitigate risk and optimize long-term returns.

Active Markets Require An Active Approach

Since 2017, FINIAT has provided actively managed solutions for portfolio managers to confidently lead their clients through uncertainty by optimizing returns and managing risk. Using a technology-driven approach to deploy proprietary algorithms engineered to both select and modify the exposures of individual assets, we seek to generate alpha by systematically selecting the most productive assets on a risk-adjusted basis within different areas of the market.

Advisors see that financial markets have become more volatile than ever before, making the process of selection and allocation tremendously challenging. Investors are recognizing the value of quantitative strategies that can eliminate the emotion and bias associated with discretionary investing.

Our quantitative engine is a real-time, algorithmic-based signal platform that scores assets daily for all possible holdings within its universe of securities. Ignoring arbitrary metrics and modeling off data points directly correlated to the asset’s price, our process has shown to make well-informed decisions both in the selecting and weighting of positions within a portfolio.

Typically, we rotate portfolios between low-cost, passive ETFs across equities, fixed income, and alternatives (cash). The equities seek exposure across the nine major style box cells for domestic and international securities. Fixed income is limited to ETFs investing in debt products, including convertibles, high yield, corporate, treasury, floating rate, and preferreds. Alternatives serve multiple roles depending on the use but primarily serve as a lower-risk alternative during times of high volatility investing in cash and money markets. Over ninety percent of portfolios using our process allocate more than half of the assets to strategies run by FINIAT.

Holding and allocation changes over a two-year period in one FINIAT process…

Performance Disclosures

FINIAT offers various pre-constructed model portfolios comprised of investments available on the FINIAT platform that can be customized by users based on the individual securities and investment parameters available on the FINIAT platform. FINIAT also offers our users the opportunity to construct their own model portfolios using such available investments and parameters. The specific components of each pre-constructed model portfolio, along with the specific investment characteristics, risk ratings, guidelines, and restrictions (“investment parameters”) for each model portfolio are described in more detail in other areas of the FINIAT platform.

A model portfolio is NOT an actual portfolio, and there is no actual trading or management of such model portfolios by FINIAT.

Any performance results presented with respect to a model portfolio reflect hypothetical, backtested performance results. Hypothetical performance results reflect theoretical performance of a given portfolio that has not been actually traded by FINIAT.

Backtested performance represents results created by applying a strategy to market data from a prior time period when the strategy was not actually used during the prior time period. These presentations aim to show returns that theoretically would have been achieved if the strategy had been used during the time period shown and is often used when no actual track record exists. Backtested results are constructed with the benefit of hindsight. As a result, FINIAT can tweak a strategy to obtain favorable performance results. There is no assurance that the backtested results could, or would, have been achieved had actual client accounts been managed/traded during the time presented. Likewise, there is no guarantee that the same allocations underlying for the strategy would have been selected if actual client accounts were managed during the period presented. The strategy underlying the backtested results may be changed at any time with the benefit of hindsight in order to obtain and show more favorable performance results and the allocations may continue to be tested and adjusted in the future.

In calculating and presenting hypothetical backtested performance results, FINIAT has utilized a number of assumptions including, without limitation, the following: (i) each model portfolio is comprised only of a subset of the investments available on the FINIAT platform and does not consider all of the investments available in the marketplace; (ii) each investment available in the universe of potential investments is given equal consideration throughout the duration of the performance measurement period to the extent such investment was available during the performance measurement period; (iii) performance results assume no changes in the investment parameters for each model portfolio during the measurement period; (iv) FINIAT’s algorithms determine the allocation for each investment within a portfolios investment universe on a daily basis, and appropriate adjustments to the model portfolio are made daily; (v) backtesting assumes that trading signals are generated based on the closing prices of securities at the end of each trading day which may or may not reflect the price realized for an actual transaction. These signals are then considered executed at the closing price of the subsequent trading day; (vi) the model portfolio performance results do not account for any investment advisory fees or transaction-related expenses that would be deducted for actual management of the portfolio; and (iii) the model performance results do not reflect the reinvestment of dividends and/or other earnings. There is no guarantee as to the reasonableness of such assumptions or that such assumptions would exist in the real world at any given point in time. In addition, the hypothetical backtested performance results do not reflect how anyone managing the portfolio would factor in changes in economic or market conditions or the individual objectives or financial circumstances of individual clients in deciding how to manage the portfolio. As such, readers should be cautioned that such hypothetical, backtested performance results have inherent limitations, and readers should be guided accordingly. Actual trading results could, and very likely will, diverge significantly from the backtested performance results presented.

Performance results may be estimated and are unaudited, and past performance does not guarantee any future results. Investing involves the risk of loss, including the potential loss of all amounts invested.

FINIAT ADV Part 2A Brochure

FOR FINANCIAL PROFESSIONAL USE ONLY.

ALL RESULTS ARE HYPOTHETICAL & ARE NOT RECOMMENDATIONS ON WHICH SECURITIES TO PURCHASE. INVESTING ALWAYS CARRIES RISK THAT CAN CAUSE SIGNIFICANT LOSSES.

FINIAT ADV Part 2A Brochure

FOR FINANCIAL PROFESSIONAL USE ONLY.

ALL RESULTS ARE HYPOTHETICAL & ARE NOT RECOMMENDATIONS ON WHICH SECURITIES TO PURCHASE. INVESTING ALWAYS CARRIES RISK THAT CAN CAUSE SIGNIFICANT LOSSES.

FOR FINANCIAL PROFESSIONAL USE ONLY.

ALL RESULTS ARE HYPOTHETICAL & ARE NOT RECOMMENDATIONS ON WHICH SECURITIES TO PURCHASE. INVESTING ALWAYS CARRIES RISK THAT CAN CAUSE SIGNIFICANT LOSSES.