Type Private Area served United States Assets under management 600 million USD Headquarters San Francisco | Industry Investment services AUM $600 million Founded 2010 Parent organization BlackRock | |
 | ||
Key people Bo Lu (Co-Founder, CEO)
Jon Xu (Co-Founder, CTO) Products Financial services, asset management, portfolio management Profiles | ||
Futureadvisor review investors need to beware angelkings com
FutureAdvisor is a digital investment manager registered with the U.S. Securities and Exchange Commission and based in San Francisco. Founded in 2010, the company is reported to have $600 million in assets under management. Among its investors are Sequoia Capital, Canvas Venture Fund, and Devonshire Investors, the private investment arm of the owners of Fidelity.
Contents
- Futureadvisor review investors need to beware angelkings com
- Futureadvisor ceo bo lu
- Product
- College Investments
- Methodology
- History
- References
On Wednesday, August 26, 2015, FutureAdvisor announced its intent to be acquired by BlackRock.
Futureadvisor ceo bo lu
Product
Like other robo-advisors, FutureAdvisor automates portfolio management with software that adjusts for investors' age and risk appetite. Robo-advisors apply modern portfolio theory, the Black-Litterman model and other algorithms to manage investments passively, much like a traditional financial adviser. They adjust asset allocation according to notions of a "balanced" portfolio, rather than pursuing "active" strategies like market timing, stock picking and value investing. FutureAdvisor manages assets directly across multiple Fidelity Investments or TDAmeritrade brokerage accounts and IRAs.
College Investments
FutureAdvisor manages tax-advantaged educational investment accounts such as 529s, Coverdell ESAs, UTMA/UGMAs for free. The company has a financial planning service that helps investors estimate the price of college tuition for their children. It also helps them select and create educational savings accounts online, and manage those investments until the day the funds need to be used for college or other educational expenses. In addition, FutureAdvisor automates the monthly contributions to those accounts, as well as the disbursement to schools when the child attends college.
Methodology
FutureAdvisor uses index funds and low-fee exchange-traded funds to create portfolios that adhere to modern portfolio theory. Under MPT, the proportion of assets allocated to foreign and domestic equities, bonds and Real estate investment trusts should vary according to an investor's age and risk appetite.
History
FutureAdvisor was founded by two former Microsoft engineers - Bo Lu and Jon Xu - in Seattle. The company graduated from the incubator YCombinator in 2010, took $1 million in seed funding, and raised $5 million in Series A funding from Sequoia Capital in 2012. Canvas Venture Fund led FutureAdvisor's Series B round worth $15.5 million in 2014.