The ARIA Investment Platform has come up with a range of portfolio strategies, targeted at US investors facing legislative constraints.
The Cautious Income Balanced and Adventurous Strategies are advised by Parala Capital, which was established by Professor Allan Timmermann and Professor Russ Wermers, reports International Adviser.
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Both Timmermann as well as Wermers formerly served as consultants for the European Central Bank.
According to ARIA, the new strategies have been launched to cope up with significant demand among UK and international adviser community for a home for the savings of US Nationals working abroad.
The strategies, based on the Parala Macro Multi-Asset Allocation strategies, intends to phase out investment hurdles created by investment vehicles and services.
The hurdles exclude investment by US persons due to regulation, and deliver clients with a risk rated solution.
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By GlobalDataThe new strategy includes three risk graded strategies to cover different investment risk profiles of clients.
Parala portfolio manager Steven Goldin said, "It has long been accepted that asset allocation is a major determinant of investor returns, and the Parala proposition process focuses solely on this area.
"Parala brings a new level of expertise and advanced econometric modelling capability, previously only available to the institutional clients, to help investors navigate challenging markets and changes in asset class returns and risk premia across economic cycles."
The strategy will be particularly beneficial for US investors regarding the Foreign Account Tax Compliance Act (FATCA) legislation.
In July, FATCA launched requirements for foreign financial institutions to disclose all US related information about new and existing clients to the US Internal Revenue Service, or pay a 30% witholding tax.
The new strategy aims to create a portfolio comprising US investments to alleviate the reporting requirements related to FATCA.
The strategy is 1% exclusive of any platform custody fees.
