Modeling Investment Performance: Exploring What-If Situations through Model Portfolios

How Would My Account Have Performed Had I Invested Differently?
The Investment Modeling Tool is an innovative collection of dailyVest performance and asset allocation analytics that lets your investors see how their investments might have performed had they invested differently among your firm's recommended model portfolios or specific investments. It lets investors experiment with asset allocations or other investments they are considering which might be right for them.

How It Works...
It works by applying an investors' net investments -- buys and sells but not internal exchanges – to the model portfolio they select. In other words, it hypothetically buys or sells funds (or stocks) comprising the model portfolio on the same dates and in the same amounts as their own net inflows or outflows. It also reinvests all dividends and capital gains according to the model portfolio’s underlying funds’ history, if applicable. And finally, the tool automatically rebalances the hypothetical portfolio periodically.

Features...

Define Underlying Compositions of Model Portfolios.
Firms can define their own underlying fund, stock or index composition of each model portfolio to realize a desired asset allocation. And there are virtually no limits to the number of model portfolios wich can be defined.

Side-by-Side Comparison of Personal Performance & Ending Market Values.
The Investment Modeling Tool calculates personal rates of return and ending market values by applying the investor's net cash flows to the hypothetical model portfolios. Format and layout are completely customizable such that actual and hypothetical results can be compared side-by-side or any way you want.

Calculates and Models Risk.
The Investment Modeling Tool also calculates Risk -- a representation of portfolio volatility measured as standard deviation over a given period -- for the hypothetical model portfolio and the investor's actual portfolio.