Clear Asset Management announced Monday it has launched a suite of software-managed separately managed account portfolios designed to "remove Wall Street bias and human opinion" by using software to evaluate more than 10,000 publicly traded U.S. companies. Each of the six equity portfolios of 20 to 25 stocks uses proprietary stock-screening algorithms based on 700 screening criteria apiece.
- The method will enable the funds to beat benchmarks in both bull and bear markets, the company said. The portfolios will also provide investors full disclosure of fees and holdings. Clear fund shareholders can view all portfolio holdings by logging on to the companys Web site. The company will also send them an e-mail alert whenever a buy or sell decision is made, providing not only the details of the transactions but also the rationale behind each move.
In addition, fund shareholders also get a fully transparent cost structure, one that charges a flat fee ranging from 80 basis points to 200 basis points depending on the amount invested. The flat fee will include trading commissions, which are broken out separately.
The new portfolios serve as an alternative to traditional mutual funds, which often deduct broker commissions directly from shareholder assets.
"After waves of financial scandal, individual investors are all too aware that their interests often come last with Wall Street and the mutual fund industry," said Andrew Corn, founder and chief executive officer.
The minimum investment for the new Clear offerings is $25,000 per portfolio, whereas mutual fund minimums are significantly lower.