It is easy to forget that the choice of benchmark plays an important role in calculating risk-adjusted performance metrics such as alpha, beta, the information ratio, up/down capture ratios and more.
The S&P500 index (a benchmark for US large cap equity) is the industry-wide default benchmark, but it may not be appropriate for your investments and portfolios. For example, you may prefer a total market index, or a specialized index.
In Portfolio Lab, you can change the index to be used as a benchmark for these ratio calculations.
In the Backtest/Stats view, click on the edit icon (pencil) at the right of the benchmark name, to assign an index of your choice, as show in the red circle above.
As you generate a proposal or report, you can easily customize the section describing the portfolio holdings:
- Point-and-click the rows of the holdings table to change the order of the positions (sort alphabetical, by symbol, by weight).
- Point and click the columns to specify which of shares, value, portfolio weight should be displayed for each position.
In addition, the edit columns function allows changing the portfolio hypothetical value (in case this is a model portfolio) to something different than the default value, to tailor the proposal to your client’s situation.
“Three visual analytics to educate clients about risk in a bull market” is our latest article as published in Financial Advisor Magazine.
In the face of a relentless bull market in equities, advisors have the difficult task to justify balanced allocations to clients who have grown increasingly ambitious on returns. The article suggests practical steps to manage their expectations.
This summer, several enhancements were unveiled for Portfolio Lab PDF reports.
Earlier we reported that you can now upload your logo into the reports.
The second enhancement is to keep track of the customization made on each portfolio report. Whether you add or remove sections, charts, or change time spans in a PDF report, Portfolio Lab will save the report configuration with the portfolio. When you restart Portfolio Lab at a later time, your custom PDF configuration for the portfolio will be restored.
Finally, we upgraded the standard format for several pages in the report. In particular, we added flexibility in the ‘holdings’ page so that you have a choice of the columns displayed. For example, for real portfolios you may select to show both weight and value for each position whereas for a model portfolio, only the weights are shown.
Kwanti’s default asset allocation view is based on data licensed from Morningstar Institutional, to present a detailed asset allocation of the portfolio based on a 13 asset classes breakdown (5 for stocks + 5 for bonds + commodity + cash + other).
Following a request by many advisors, we added a summary view that sums up the classes in stocks and bond asset classes:
To toggle the summary view, click on ‘summary’ on the top right corner of the window.
The summary view is automatically included in the PDF report along with the detailed view.