San Francisco, a direct indexing platform for self-directed investors, has begun a feature of portfolio allocation. The new vehicle enables investors to choose how and when to reproduce portfolios rather than automatically reprinting.
“For years, Robo advisers have promoted the idea of ​​continuous re -standing as a golden standard, but this approach of a suitable size often does not match the needs of real world investors,” said the founder and CEO of Frec Mo Al Adham One statement. “With our portfolio allocation feature, we are disconnecting from this flawed model. Investors can now reproduce at their own pace, ensuring that their portfolios reflect their personal strategies, and more efficient tax alternatives.”
Frec began in 2021 and left Stealth Mode in 2023, supported by $ 26.4 million in seed A and series A funds led by the Greylock Entrepreneurship Capital firm. There are currently $ 170 million in customer assets throughout his mediator/trader and registered entities of investment advisers. The firm uses apex cleaning for custody.
Assets in direct indexing products are increasing with an annual double rate and are ready to reach $ 800 billion By the end of 2026, according to Cerulli Associates.
FRC claims that automatic re -establishment can lead to “suboptive performance” because it may require the sale of “high -performance assets to buy them subformer”. Instead, the feature of allocating the FREC portfolio will enable investors to make one-time money deposits to resolve the re-establishment.
As an example, an investor can set a desired portfolio allocation, and FRC offers opportunities such as “sold and buy”, “money deposit” or “Leverage UP” to determine when and how to rebalance.
FREC, in its issuance, argues this flexibility “allows users to avoid the usual barriers to forced re -ribalancing, such as the realization of unnecessary profits of capital or the sale of high -performance assets when other options exist.”
“Departing from automatic ribalances, investors can now approach strategically re -establishment, deciding when it is time to act based on their goals, market conditions and tax considerations,” Al Adham said in one statement.