Strategy Optimization

Pave addresses the asset allocation challenges advisers face by enabling them to build personalized, risk-optimized portfolios without sacrificing performance. Advisers can upload Buy Lists—custom sets of preferred assets—which ensure client portfolios are composed exclusively of approved assets. Pave analyzes both the risk and return drivers of each asset using proprietary scoring models, forming a complete and nuanced foundation for allocation decisions.

Pave’s proprietary optimization engine then balances these risk and return insights to create allocations that minimize tracking error to a benchmark aligned with each client’s risk tolerance, while also seeking to maximize expected return. Portfolios are actively managed over time, automatically adjusting allocations as market conditions shift and asset characteristics evolve. This ongoing, automated optimization helps advisers deliver more resilient, high-performing portfolios that stay aligned with their investment style and clients’ goals.

In addition to portfolio optimization, Pave provides robust compliance oversight that helps financial advisers stay within established risk parameters. The platform monitors portfolio exposures, identifying deviations from client risk profiles or firm policies. Pave enables administrators to enforce firm-wide restrictions to prevent non-compliant actions. If potential issues occur, Pave triggers alerts to notify relevant parties. Our system also securely stores up to 6 years of client account data to help firms confidently navigate audits. This proactive approach to compliance not only reduces regulatory risk but also ensures consistency and accountability across all adviser-managed portfolios.