BKLN is an innovative self-serve investment platform that leverages artificial intelligence (A.I.), machine learning, and quantitative investment techniques, alongside your interests and values to design an equity portfolio for you. Before we begin investing on your behalf, we ask that you take a few minutes to review your Investment Policy Statement (IPS). This document is intended to establish a clear understanding between you and BKLN, LLC, a registered investment advisor, on the objectives and policies applicable to your investment account.
BKLN personalized stock portfolios are designed to be part of our Members’ overall asset allocations. For most Members, BKLN is not a complete investment program. For example, Members who have ‘Conservative’ risk profiles are recommended to have 30% of their investment assets in personalized BKLN equity portfolios and the remainder in low risk investments such as investment grade bonds. For Members with ‘Moderate’ risk tolerance, this recommendation is 50%. ‘Aggressive’ BKLN members may have up to 100% of their investment assets with BKLN. Our risk profiles are defined in the table below.
Reaction to a 10% fall in portfolio value in one month
Sell some of the portfolio to reduce risk
Do nothing, such volatility is part of investing
Invest more to take advantage of market dislocation
Our process begins with your input. As you search for your interests, investment themes or personal values, BKLN scans millions of data points to find stocks relevant to your search. Our A.I.-based algorithm continues to monitor the investable universe to ensure that the stocks in your portfolio stay up-to-date as new companies become relevant while others become irrelevant.
PORTFOLIO OPTIMIZATION AND ESG VALUE ALIGNMENT
Your portfolio is crafted with our robust optimizer that takes your search interests and additional preferences along with expected returns, risks and uncertainties to form an optimal portfolio. You may express such additional preferences by indicating whether certain company impacts are important to you in Your Values tab. BKLN focuses on tangible company impacts as estimated by us and our data partners. Our optimization process continues to monitor the market and adjusts your portfolio periodically to ensure that it remains optimal.
Your portfolio is rebalanced as needed to ensure it remains close to the optimized target portfolio while avoiding unnecessary adjustments to minimize transaction costs.
STOCK-LEVEL TAX LOSS HARVESTING (OPTIONAL)
By enabling automated tax loss harvesting, BKLN will push your portfolio to work even harder by seeking to generate tax savings, whenever possible. Specifically, our system identifies opportunities to harvest tax losses in your individual portfolio holdings, which can reduce your tax bill. Minimum account size may apply. Please consult your tax advisor before enabling Tax Loss Harvesting.
We do not wish to generate small trades to raise cash whenever fees are payable. As such, we will set a target cash balance of up to 0.5% for all portfolios, from which fees will be paid periodically.
The following risks are not all-inclusive but should be considered carefully by a prospective or existing Member before entering or changing their portfolio. These risks should be considered as possibilities, with additional regard to their actual probability of occurring and their impact:
Theme-based and value alignment investing
Stock Market risk
Small Company Risk
Legislative and Tax
Public Health Emergency
Please refer to the most recent ADV 2A in your documents portal for more details on these risks.
REPORTING AND REVIEWS
You will receive a monthly statement via the website, detailing all transactions that occurred during the prior month.
BKLN will charge a management fee described in the fee schedule.