FutureAdvisor
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File:FutureAdvisor logo.png | |
Private | |
Industry | Investment services |
Founded | 2010 |
Headquarters | San Francisco, California, United States |
Area served
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United States |
Key people
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Products | Financial services, asset management, portfolio management |
AUM | $600 million [1] [2] |
Owner | Sequoia Capital, Canvas Venture Fund, Devonshire Investors |
Number of employees
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~45 (2015)[3] |
Website | futureadvisor |
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.[1][2][4] Among its investors are Sequoia Capital, Canvas Venture Fund, and Devonshire Investors, the private investment arm of the owners of Fidelity.[5]
On Wednesday, August 26, 2015, FutureAdvisor announced its intent to be acquired by BlackRock.[6]
Product
Like other robo-advisors, FutureAdvisor automates portfolio management with software that adjusts for investors' age and risk appetite.[7] 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.[8]
College Investments
FutureAdvisor manages tax-advantaged educational investment accounts such as 529s, Coverdell ESAs, UTMA/UGMAs for free.[9] 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.[10]
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.[11]
References
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External links
- Pages with broken file links
- Pages using infobox company with unsupported parameters
- Official website not in Wikidata
- Companies based in San Francisco, California
- Companies established in 2010
- Financial services companies of the United States
- Y Combinator companies
- Privately held companies in the United States
- Financial services companies based in California
- Investment management companies of the United States
- 2010 establishments in California
- Online companies
- Financial technology
- Financial markets
- Financial services
- Web applications
- Financial advisors