R4A by Lumen

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Precision Investments, Personalized Performance

Generating an extensive menu of investment solutions across global markets, asset classes, industries, themes, factors, benchmarks, ETFs, and securities to match any objective, strategy, and style…increasing the likelihood of successful investment outcomes

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Watch Video Series: “What’s Under the Hood” By Our Founder

Why Choose Lumen R4A?

Bespoke Portfolios: Tailored to fit your unique investment goals and risk preferences.
Innovative Methodology: Beyond volatility, focusing on strategic, value-based meticulous asset selection.
Dynamic Market Integration: Leveraging real-time opportunities and decades of investment experiences for optimal asset allocation.

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R4A, Robo4Advisors

What is Lumen R4A

A fully digital investment engine powered by the modern Total Portfolio Approach (TPA).

A Standalone Digital Investment Engine

Lumen R4A is a standalone digital investment engine delivering the full toolkit to build end-to-end, institutional-grade portfolios that are, first and foremost, genuinely customized; or built around the customer’s objectives such as income, capital distribution, growth, etc., instead of the typical cookie-cutter conservative, moderate and aggressive risk buckets. And second, portfolios that are highly diversified by exploiting the full set of global opportunities, instead of a limited number of major benchmarks.

Lumen R4A’s Real Innovation

In addition to this unique setup of institutional-grade tools and unlimited global reach, the real innovation in R4A lies in breaking away from the increasingly inefficient SAA and risk-bucket-driven portfolio construction that invariably leads to the convenient but obsolete 60/40 model. Instead, Lumen has pioneered and successfully adopted the modern Total Portfolio Approach (TPA) as the backbone of R4A’s operating system and investment philosophy.

Total Portfolio Approach

TPA has recently been featured prominently in the financial press (FT, WSJ, Barron’s, Bloomberg, Institutional Investor, etc.) as the most innovative, efficient and high-performing portfolio construction style. In fact, the approach is now actively implemented by investment powerhouses and trailblazers such as GIC, Temasek, the major Canadian pension funds, the Australian and New Zealand super funds, etc. and more recently, CalPERS, providing a strong anchor of credibility.

The consultants’ community is also praising TPA. According to leading industry consultants such as Mercer, Russell Investments, Willis Towers Watson and others, TPA is already redefining wealth management, moving beyond increasingly inefficient Strategic Asset Allocation and the old Yale endowment playbook—and is poised to reshape the industry across the entire spectrum. Mercer, in particular, is strongly advocating for it and recommending it for family offices, endowments, etc.

How Does It Work

Goal-driven, data-powered portfolios: Uses TPA to build customized, globally optimized investments that chase outcomes—not benchmarks.

Delivering Best Total Portfolio Outcome

In its simplest definition, instead of starting with the usual question – “How much do we put in equities, bonds, real estate, etc.?” – TPA begins with a different one: “Given the investment objectives and constraints, what combination of all globally available investments delivers the best total-portfolio outcome?” – truly aligning the investment function with modern market realities and opportunities.

Meeting Investors’ Objectives

Strategies are tied directly to the investment goal (income, preservation, growth, etc.), rather than to generic risk buckets such as conservative, moderate or aggressive. By construction alone, TPA increases markedly the probability of meeting the customer’s objective and the probability of successful outcomes and performance. In a 10-year study on major institutional investors, Willis Towers Watson found that early adopters of TPA increased their performance on average by more than 2 percentage points compared with their stated benchmarks.

Reversing the Logic of the SAA Approach

Strategic Asset Allocation (SAA) does the opposite. It first carves the world into asset-class silos – equities, bonds, real estate, etc. – fixes a static mix such as the “convenient” yet obsolete 60/40, and then manages each sleeve relative to its own benchmark, independently (and inefficiently!) from the rest of the portfolio. In other words, SAA chases benchmarks, not objectives, and produces cookie-cutter, one-size-fits-all model portfolios defined by risk labels rather than by clear goals.

TPA reverses that logic. It is goal-driven rather than risk-bucket-driven, it takes a total-portfolio view rather than an asset-class-silo view, and every position is judged by its contribution to the total fund and consistency with the customer’s objective, not by its “performance” relative to its own benchmark. In short: TPA chases outcomes, not benchmarks.

A Winning Combination: R4A + TPA

Using TPA as our philosophical backbone, we have successfully combined into a user-friendly platform all the necessary tools and data to generate, at large scale, bespoke and globally diversified portfolios, exploiting modern finance and innovation, Big Data, technology, and, last but not least,our long-dated and acclaimed experience as global managers across all assets and markets.

R4A starts with a proprietary open-architecture database of the global opportunity set across countries, asset classes, including alternatives, sectors, themes, factors, ETFs, benchmarks and proprietary products. We then rank the components by their intrinsic value and future expected return, and then screen that ranking using an extensive set of filters to match specific opportunities with investment goals. We finalize the process by stress testing and calculating the probability of meeting the objectives and goals.

Why It Works

R4A empowers clients, advisors, and institutions alike with goal‑focused, tech‑driven portfolios that deliver better outcomes, stronger engagement, and a distinct competitive edge. Get in touch →

For Clients

TPA + R4A means they not only get a higher probability of reaching their objectives and better long-term performance, but they also get portfolios that are rational, coherent and clearly goal-aligned, where each holding has a visible role – thus making it much easier to stay committed and satisfied through volatility and market cycles.

For Private Bankers and Advisors

They can now sound and act like well-informed global strategists, explaining to clients, in very concrete terms, how the portfolio is constructed around a specific goal and strategy. Crucially, they also gain a consistent, repeatable process that can be delivered on a scale across a more extensive book of customers, with no loss of quality. In the era of AI, we strongly believe that “no person is more powerful than a machine, but no machine is more powerful than a person with a machine”.

For the Banks/Distributors/Family Offices

It becomes a distinctive, hard-to-copy differentiating tool: goal-focused, regulator-friendly, anchored in state-of-the-art portfolio theory and global diversification, and fully aligned with the shift toward technology-enabled, outcome-oriented wealth management. In a landscape still dominated by static SAA, 60/40 mixes and benchmark-chasing model portfolios, a TPA-based digital investment engine is a clear and credible differentiator.

Learn More: R4A Investment Methodology

This is next-generation asset allocation. We’ve moved beyond optimization as a theoretical exercise. Our platform uses real data, in real time, to build solutions that reflect both the investor’s objective and the current reality and granular opportunities of modern global capital markets.

~ Simon Nocera, Founder, CEO, and Managing Partner

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What We Provide

A comprehensive toolkit for end-to-end portfolio creation, delivering everything needed to take the driver’s seat in investment journeys.

R4A provides the car, the GPS, and the fuel–you choose the destination!

Functions

Comprehensive Global Database *
- Securities, ETFs, Benchmarks
- Global Markets, Asset Classes, Sectors, Industries, Themes, Factors
Global Search Engine with 3 Ways *
- Discovery by Countries/Sectors
- Global Strategy
- Predefined Strategies Matching
  Objectives
360 Degree Risk Profiling
- Psychometric Analysis for Risk
  Tolerance
- Risk Capacity
- Required Returns

Tools

Selection Tools *
- Rank Investments based on
  Fundamentals
- Aggregation Tool/Custom Indexing to create Customized Benchmarks
Strategy Enhancement *
- Our Proprietary Version of the Black-Litterman Model that Includes Personal Views/Insights
Portfolio Optimization by B&L**
- Building an Efficient Frontier for Best Balance of Risk and Return
Risk Measurement
- VaR, CVAR, and Monte Carlo
  Simulations to Measure
  - Downside risk, Stress Test,
    Probability of Success

Reports and Analytics

Positions and Allocations
Portfolio Attributes
Risk Analytics
Probability of Goal Reached
Risk Profiling

*Available in the Enterprise version only

**Maximum 3 portfolio runs for Freemium users

Sample customized portfolio summary from R4A

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Our Insights

Noteworthy Articles

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R4A—Built by Lumen Global Investments

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