The science behind TrueProfile (or as Shachar calls it in the video above, the “intel inside”) is grounded in microeconomic theory and econometrics. It is based on 15 years of Shachar’s academic research, published in top scientific journals around the world and tested across the most robust research panels in academia.
TrueProfile uses a client’s decisions to estimate a utility function unique to that client. This output is a mathematical expression that can be used to map an individual’s preferences to an asset allocation or model portfolio. This mapping is done by calculating a FitScore™ for the range of available portfolios. This FitScore™ is a measure that reflects the ‘distance’ between a given portfolio and the one that is the best fit for a client’s preferences. Those model portfolios to be used for scoring are input into the TrueProfile system at setup by you or your administrator.