Adviser time is priceless, maximize it
Advisers Trust Pave to Manage $4B+ in Client Assets4
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FAQs
Once an RIA has made the decision to use Pave, it takes an average of 5 days to get everything up and running. There is no integration fee, and the onboarding process is simple:
- Sign off on Pave’s integration with your custodian
- Wait 1-3 days while Pave collects your client portfolio data
- Group client accounts, set investment preferences, and approve suggested trades
After that, trading and ongoing management are initiated. Portfolios only need to be adjusted when client preferences change.
Pave is currently integrated with Charles Schwab, Fidelity, Axos, and Interactive Brokers. If your firm is custodied elsewhere, please contact us by emailing sales@pavefinance.com and we can find a way to support you.
Portfolios are generated using Pave’s proprietary technology, which has been optimized over the course of 20 years and used to manage billions of dollars. The system works in the following way:
- Advisers select a benchmark that fits their investment style and their client’s risk tolerance
- Stocks are added and/or removed from that benchmark to create a custom group of stocks that fit the client’s personal preferences
- Each stock is scored on its expected risk and return using proprietary artificial intelligence models
- An optimal subset of those stocks is chosen to control expected risk to the selected benchmark while attempting to maximize expected return
Pave automatically updates client portfolios to keep them well-positioned as stock scores change in accordance with shifting financial and economic conditions. If your client’s preferences change, Pave will build a new portfolio that fits their current situation.
A similar process is carried out in the case of multi-asset class portfolios using ETFs to represent equity, fixed income, currency, and commodity exposure.
Yes, Pave can automatically update and place trades within client portfolios. However, we want to ensure advisers have complete control over how client assets are managed. As a result, we offer two trading methods:
- Automation: Pave automatically places trades when suggestions arise
- Manual: Pave notifies advisers and requires approval before placing trades
Many advisers start by using automation on their small accounts to save time and then grow to use automation on larger accounts as well once they become more comfortable with Pave.
Pave typically updates portfolios on a monthly cadence. Over decades of using Pave’s system, we have found that this approach strikes the right balance of adapting to changes in the market without overreacting to its whims.
Daily updates can be cumbersome and counterproductive to long-term investing. Conversely, holding indefinitely or only rebalancing quarterly can cause portfolios to miss out on returns. We view Pave’s monthly approach as the best of both worlds, where short-term and long-term trends can be captured.
Advisers do have the ability to place trades outside of Pave’s standard update cadence in the case holdings need to be liquidated to free up cash or recently added cash needs to be invested.
Pave provides insight into how changing investment preferences or placing suggested trades will impact portfolio allocation, fundamentals, and taxes. Analytics on individual assets are also provided to give a more granular view into investment decisions.
Pave sends a weekly market newsletter covering the impact economic and geopolitical developments may have on the financial markets. If additional context is required, our customer support team is happy to assist by talking advisers through market trends, how Pave’s technology functions, and why specific suggestions were made in client portfolios. They can be reached at support@pavefinance.com.
Tax management has traditionally been carried out through tax loss harvesting, in which assets are sold to realize a loss and replaced with similar assets. The downside to this approach is that “similar” assets are rarely similar beneath the surface, causing this approach to change the portfolio's risk and return profile.
Pave offers next-generation tax management by automatically balancing how beneficial it is to hold or sell an asset against the asset’s unrealized gain or loss. Only when it is truly beneficial from a post tax net return perspective will Pave decide to sell an asset. Pave will also attempt to package trades so that any realized gains are offset by realized losses.
Instead of replacing sold assets with “similar” assets, Pave identifies optimal replacements by considering client preferences, market conditions, and remaining portfolio assets. This allows Pave to carry out tax management while attempting to maximize potential returns and keep portfolio risk exposure consistent.
With Pave, clients can benefit from the upside of tax management without sacrificing sound portfolio construction.
Pave allows advisers to optimize to 9 different equity benchmarks and 7 different multi-asset class benchmarks. Performance will vary depending on the chosen benchmark and other investment preferences.
With that said, Pave has a robust risk management engine that attempts to control tracking error to the chosen benchmark. Advisers can choose how closely they want to control tracking error, meaning Pave can be used as a direct indexing tool, or tracking error can be loosened, and our alpha engine can be engaged to hunt outperformance.
No matter what preferences an adviser chooses, Pave offers transparency into client portfolios down to the individual asset and allows for preferences to be changed at any moment, giving advisers full control over portfolio construction.
Pave charges a flat monthly subscription fee per adviser. Unlike third-party managers, whose fees can exceed 1%, Pave offers consistent pricing that could save you millions. For specifics on cost per license, please reach out to our sales team by emailing sales@pavefinance.com.
Our team combines over 200 years of experience at financial institutions such as Goldman Sachs, Morgan Stanley, Bank of America, Merrill Lynch, J.P. Morgan, Fidelity, and numerous hedge funds as well as technology companies such as Google, Meta, Amazon, Wealthfront, DriveWealth, and E-Trade.

Start saving up to 18 hours per week with automated portfolio management
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