The Investment Proposal PDF simulates the Historical Return of your proposed portfolio going back 10-years using the Initial value entered. Additionally, it plots portfolio performance against a relative Blended Benchmark:
- The Blended Benchmark is comprised of market indices representing each specific asset in the same proportion as the proposed portfolio.
- The Blended Benchmark is designed to provide insight in the periodic return behavior and the resulting end value of the proposed portfolio assets relative to the blended benchmark indicies over a specified period.
- If your client is equally diversified Canadian and US and equities, only using a Canadian index would not be a true measure of asset performance relative to all markets.
- Rather, you may want to use an average of the TSX Composite and S&P 500 Index combined.
See the following for more details on how a Blended Benchmark works with simulated portfolio valuation: