www.internationalforumgroup.com

Mirroring the

Performance of Top

Investment Managers

To achieve steady growth, private wealth

managers have to pick money managers with a

history of low maximum drawdowns, says Asheesh

Advani, Chief Executive Officer of Covestor.

Unfortunately, the industry is missing a real sense

of accountability and transparency with regard to

returns, so private wealth managers are making

some of their manager selection decisions with

their eyes half closed. The Covestor platform could

be part of the solution, according to Advani.

Covestor attended the recent IFG Wealth

Management Forum 2013. Here, Advani describes

Covestor’s platform and how it addresses issues

troubling the private wealth management industry.

IFG - How can private wealth managers achieve

steady growth that outperforms the S&P 500?

Advani - My recommendation is to focus on picking

managers who have a history of low maximum

drawdowns. It is simple math. When the market is

in deep decline, it is easy to dig yourself into a hole

that is hard to come out of. Losing 30 per cent of a

$10 million portfolio in a rough patch means you

will need a 42 per cent gain just to break even.

With an average of six per cent gain a year, you will

need six years to get back to where you were.

IFG - Tell us more about the Covestor platform

and what issues it addresses.

Advani - We are a marketplace for money

management talent. Covestor allows investors to

shop for money managers, based on the metrics

they consider important.

Wealth managers have tried to come up with their

own solutions to the accountability problem, with

seeding programs for example, but we have

accelerated that and made it much easier and

cheaper for them to access the information they

need. They can now compare managers with the

metrics they want and get access to top managers

they would not have found on their own.

IFG - What metrics should private wealth

managers look for?

Advani - Everyone has a different set of goals and

investment philosophies, so we try to provide

many metrics of value. We have volatility and

performance measures, including verified

historical performance metrics. This might be an

obvious one, but I am always amazed when a

portfolio is presented as having beaten the

markets by a certain date, when the story is

different if the date is changed. It is important to

check how a manager has performed relative to

the market or benchmark on different dates.

IFG - What are the benefits of synched co-

investing?

Advani - Our technology allows private wealth

managers to replicate the trading activities of

professional and experienced individual investors

in real time. In order to succeed, a portfolio

Interview with: Asheesh

Advani, Chief Executive

Officer, Covestor

Asheesh Advani, Chief

Executive Officer of

Covestor, discusses how

private wealth managers

can overcome the

difficulties of selecting

investment managers.

FOR IMMEDIATE RELEASE

IFG WEALTH MANAGEMENT FORUM THE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICES

October 21-22, Florida

www.ifgwealthmanagement.com

www.internationalforumgroup.com

IFG WEALTH MANAGEMENT FORUM THE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICES

October 21-22, Florida

www.ifgwealthmanagement.com

manager should be good at presenting himself to the industry, but many of the best investors are not good at doing so. We give

wealth managers access to these people, who can focus more on investing than on selling themselves to raise capital.

Salpi Balian

Press Manager – IFG

pressifg@ifgemea.com

For more information: pressifg@ifgemea.com

About the IFG Wealth Management Forum 2013

IFG’s Wealth Management Forum 2013 provides a unique platform for investment decision makers from single and multi-family offices

to engage in vibrant benchmarking sessions and gain practical solutions and best practices to achieve optimal portfolio returns. The

upcoming event will take place in Florida, October 21-22, 2013.

For more information please send an email to pressifg@ifgemea.com or visit the event website at www.ifgwealthmanagement.com

About International Forum Group

International Forum Group is a world-leading business information company, organizing exclusive, invitation-only gatherings of

business leaders across multiple industry sectors.

Providing a platform for senior executives to build mutually beneficial business partnerships, International Forum Group has

designed an unparalleled system for matching the core buying needs of the world’s largest organizations with the best solutions

available in the global marketplace. Empowering all our clients with the knowledge they need to lead in their respective fields is a

fundamental goal of all our forums.

For more information, please visit: www.internationalforumgroup.com

About Covestor

Covestor brings the clarity and efficiency of an online marketplace to the world of money management. Investors can compare and

select from a transparent marketplace of money management talent that includes top performing portfolio managers and successful

investors. Covestor’s Portfolio Sync technology automatically replicates trades, providing clients the convenience of “set and forget”

functionality and the protection of Covestor’s proprietary trade filtering.

For more information: www.covestor.com

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