Globe Advisor ProStation release notes
Globe Advisor ProStation release notes
www.globeadvisor.com

Blended Benchmarks in Investment Proposals

 

Improvement

 

 

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.

blended.PNG

For example:

  • 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:

https://www.theglobeandmail.com/globe-investor/personal-finance/how-to-create-your-own-weighted-average-benchmark/article624919/