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					BetterInvesting Portfolio Manager
Portfolio Asset Allocation Decisions
Created by: QUANT IX SOFTWARE, Inc.




Revised: November, 2005
BetterInvesting’s Portfolio Manager for asset allocation and diversification

BetterInvesting, Portfolio Manager and Asset Allocation

    What is BetterInvesting?
      BetterInvesting is a community of like-minded people committed to becoming better, more
        informed investors. For over 50 years, BetterInvesting’s community of individual investors
        has used the power of collaboration to take the mystery out of investing.
    What is Portfolio Manager?
      Portfolio Manager is BetterInvesting’s official software offering providing complete
        portfolio management and investment record keeping.
    What are asset allocation and diversification?
      Asset Allocation refers to the process of combining asset classes (i.e. stocks, bonds, and
        cash) in a portfolio in order to meet your investment objectives.
      Diversification refers to the variety of investments within an asset class or portfolio.

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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Asset Allocation and Portfolio Diversification

    Asset Allocation
      Combining asset classes such as stocks, bonds, and cash in a
        portfolio in order to meet your goals
    Diversification
      Spreading portfolio assets over sufficient number of securities to
        avoid excessive risk from any one security
      Common stocks should be diversified by industry sector and
        company size


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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Portfolio Manager and asset allocation

    Asset allocation:
      How to distribute investment funds among
         different broad asset classes – i.e. cash,
         bonds, stocks and others.
      Over time, the major source of investment
         risk and return is based on the asset
         allocation decision.
      Determined by an investor’s objectives:
            o   risk tolerance profile.
            o   short-term and long-term needs.
            o   goals and expectations

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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Portfolio Manager and diversification

    Diversification
      Spreading portfolio assets over
         a variety of securities to avoid
         excessive risk from any one
         security
      Common stocks should be
         diversified by industry sector
         and company size
      One of the BetterInvesting’s
         guidelines for successful long-
         term investing



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BetterInvesting’s Portfolio Manager for asset allocation and diversification
Importing allocation and diversification data
from BetterInvesting
    Import BI S&P Stock
    Data Service
      S&P Stock Data
        Service: online
        access to
        CompuStat
        financial data
        provided by S&P
        on over 7,000
        publicly traded
        companies


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BetterInvesting’s Portfolio Manager for asset allocation and diversification
Importing allocation and diversification data
from BetterInvesting

    Importing S&P Stock
    Data Service data
    allows examination
    of the characteristics
    of stocks held in
    portfolios
    Additional common
    stock data used for
    fundamental analysis
    is also retrieved from
    BetterInvesting




       Portfolio Manager
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BetterInvesting’s Portfolio Manager for asset allocation and diversification
Importing allocation and diversification data
from BetterInvesting
    Importing S&P Mutual Fund
    Resource Center data allows
    examination of the true asset
    allocation and diversification
    characteristics of a portfolio
      Provides detailed fund
         characteristics for
         asset class, industry
         sector and stock size




      Portfolio Manager
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BetterInvesting’s Portfolio Manager for asset allocation and diversification
Importing allocation and diversification data
from BetterInvesting
    Importing S&P Stock Data
    Service and Mutual Fund
    Resource Center data allows
    examination of the true asset
    allocation and diversification
    characteristics of a portfolio


    Mutual Fund Resource
    Center Provides Standard
    and Poor's mutual fund data
    and Standard and Poor's
    Mutual Fund Reports on
    over 17,000 mutual funds


      Portfolio Manager
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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Asset Allocation and Portfolio Diversification

     Important point: When Portfolio Manager examines your portfolio’s asset allocation and
     diversification, the software will include the proportional impact of any mutual funds you may
     hold.


     In other words, based on the dollars you have invested in each fund, Portfolio Manager will
     drill-down into the funds characteristics to allocate your mutual fund investments.

       Provides true asset allocation and diversification analysis
       Identifies rebalancing needs




       Portfolio Manager
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BetterInvesting’s Portfolio Manager for asset allocation and diversification

First setup your portfolio allocation targets …

     Portfolio Manager allows you
     to set your portfolio target
     allocations ( File Menu |
     Portfolios | Portfolio Targets)


     These targets are used to
     compare your objectives
     with the actual allocation




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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Selecting the reports

     Select one of Portfolio
     Manager’s several useful
     reports to examine your
     actual portfolio allocations
     versus your target
     allocations




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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Compare your targets to actual asset allocation




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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Analyze your targets to sector diversification:




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BetterInvesting’s Portfolio Manager for asset allocation and diversification

Compare targets to stock size diversification:




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BetterInvesting’s Portfolio Manager for asset allocation and diversification




 Understand portfolio allocation &
     diversification
 Maintain accurate, timely investment records
 Review current holdings
 Identify rebalancing needs
 Implement changes to weed and feed
     portfolio to maintain proper diversification,
     meet new objectives or goals
 Ongoing process for long term investing
     success!

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Portfolio Manager for asset allocation decisions and diversification
BetterInvesting’s Portfolio Manager for asset allocation


 BetterInvesting’s Portfolio Manager will lead you to better
             portfolio management decisions.

     Please visit these web sites to find out more about the
            software, and to try a free demo version:

                          www.betterinvesting.org

                  www.quantixsoftware.com
                       (developer’s site)
        Thank you for your interest in Portfolio Manager!
      Portfolio Manager
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