Get to Know Principia Creating Custom Benchmarks

Transcription

1 Get to Know Principia Creating Custom Benchmarks Searching for Mutual Funds Using the Find a Fund feature Creating an Investment list Saving Selected Items Using the Search feature Using Search to find funds Saving Search Criteria Saving and Retrieving a Search Integrating Research and Portfolio Mode Creating a portfolio from Research Mode Creating a Custom Benchmark Creating a Custom Benchmark Creating a Model Portfolio Creating a Model Portfolio Generating Portfolio Mode Reports Generating the FINRA-reviewed report Generating the Portfolio Comparison report Version 1.0 i

2 Get to Know Principia Creating Custom Benchmarks This document explains content covered in the Get to Know Principia - Creating Custom Benchmark online training class. It demonstrates how to find mutual funds, and then, create a client and portfolio from Research Mode. It also shows you how to a create custom benchmark and generate Portfolio Mode reports. Version 1.0 1

3 Searching for Mutual Funds Searching for Mutual Funds There are two ways to find Mutual Funds in Research Mode. You can: find a single fund create a search to find multiple funds You can use the Find a Fund icon to locate a security by one of the following: Fund Name Family Name Manager Name, or Ticker. Using the Find a Fund feature You can also use the Find a Fund tool to create a list of your favorite securities. Note that the Find a Fund feature searches against only those items you have showing in the Research view. Therefore, if you have recently run a search by criteria or used the Quickscreen drop-down field to filter out some items, you might need to click the New icon to reset the universe and show all rows. As you create your list by selecting items from the Find a fund dialog box, monitor the status bar at the bottom of the screen; it tracks of the number of investments you have selected. In this exercise, you will use the Find a Fund feature to create an investment list composed of the securities and benchmarks. Principia has three types of benchmarks: Indexes (abbreviated Idx:), Categories Averages (abbreviated Cat:), and Objective Averages. (abbreviated Obj:). Do the following: 1. Click the New icon to refresh Research Mode. The New dialog box appears. The option for Mutual Fund Research File should be selected. 2. Click OK. This resets the universe, and returns all rows and data columns to Research Mode. 3. From the toolbar, click the Find a Fund icon. The Find a fund dialog box appears. 4. Type Alger SmallCap Growth A, then click the OK button. Creating an Investment list Note that as you type a name, the system automatically scrolls to that location. 5. Repeat steps 1-3 to find and select the following four additional items: AIM Small Cap Growth A Columbia Acorn USA A IDX: Russell 2000 Growth TR CAT: Small Growth If you accidentally select a wrong item, you can deselect it from the Research View by holding down the CTRL key, and clicking on the name of the security. Version 1.0 2

4 Searching for Mutual Funds Now that you ve used the Find a Fund feature to create a list of securities and benchmarks, you might also want to save the securities as a list. The Save Selected Items feature allows you to do this. To save selected items from the above example, do the following: 1. From the menu toolbar, select File Save Selected Items. The Save As dialog box appears. Saving Selected Items Select this item from the File menu to save items to a list. 2. In the File Name field, type Favorites List, then click Save. Note the file type (.msv) and location for the file being saved. 3. To view only the items from your saved list, click the Open icon from the toolbar. The Open dialog box appears. 4. Select the Favorites List item, then click Open. Select the name of the list you want to see, then click Open. Version 1.0 3

5 Using the Search feature Using the Search feature Search allows you to narrow the database and find securities that meet your needs. A search can be created using any of the 200-plus data fields in Principia. The Search dialog box prompts you to select the Relationships, Fields, Conditions, and Values that make up your search criteria. By default, data points, or Fields, are organized into five main categories with several dozen sub-categories. Double-click any category or sub-category in bold text to see the actual field of data. To create a Search, do the following: 1. Click the Search icon on the toolbar. The Search dialog box appears. Using Search to find funds Category Sub-category Data field Click Alphabetical to view data fields in alphabetical order. 2. Create a search with the following criteria and settings: Line Rel(ationship) Field Operator Value Morningstar Category = Large Value 2 And Mstar Rating = QQQQQ 3 And Special Criteria = Distinct Portfolios only (C) Hint: Double-click an item in the Search dialog box to select it. Also, the Mstar Rating field is under the Performance - Morningstar Ratings subcategory. Version 1.0 4

6 Using the Search feature Using Search to find funds 3. Click the Search button on the dialog box to see how many funds meet your criteria. Distinct Portfolios only (C) finds only the oldest share class for funds with multiple share classes available. 4. Click OK to return to Research Mode to see the results. Version 1.0 5

7 Saving Search Criteria Saving and Retrieving a Search Saving Search Criteria Now that you have created a search you might want to save your work and access it later. This section shows you how to: Save your work Retrieve your saved work After conducting a search, you might want to save the results for use at another time. Saving and Retrieving a Search To save and retrieve your current search. Do the following: 1. Click the Save icon on the toolbar. The Save As dialog box appears. 2. In the File Name field, type Large Value. Note the file type (.msv) and location for the file being saved. 3. Click Save to close the Save As dialog box. Enter a name for the search, then click Save. Version 1.0 6

8 Saving Search Criteria Saving and Retrieving a Search 4. Click the New icon on the toolbar. The New dialog box appears. 5. Make sure the option button for Mutual Fund Research File is selected, then click OK. Select this option, then click OK. 6. Click the Open icon on the toolbar. The Open dialog box appears. 7. Select Large Value, then click Open. Principia retrieves the Large Value search, as well as the customized layout. WIth each Principia update, all research files are automatically updated, so you might not see the same investments you did when you first saved the file. Select the name of the file you want, then click Open. Version 1.0 7

9 Integrating Research and Portfolio Mode Integrating Research and Portfolio Mode The New icon in Research Mode allows you to quickly create a client and portfolio file in the Advisor Palette. Use a saved Research Mode file to add holdings directly from Research Mode. To create an unscheduled portfolio from Research Mode. Do the following: 1. From Research Mode, click the New icon. The New dialog box appears. 2. Select the option button for Unscheduled Portfolio, then click OK. Creating a portfolio from Research Mode Select this option, then click OK. 3. In the Save As dialog, type Jill Green. 4. In the Portfolio name line, type IRA and click Save. The IRA portfolio appears under Jill Green in the Advisor Palette. Note the information entered here. 5. While in Research Mode, click the Open folder and retrieve the file Large Value. 6. Click a fund to highlight it. Version 1.0 8

10 Integrating Research and Portfolio Mode Creating a portfolio from Research Mode 7. Hold down the mouse button and drag the fund into the Advisor Palette. When the IRA portfolio is highlighted, release the mouse button. A message confirms the addition of the security to the portfolio. Drag and drop the fund from the spreadsheet area onto the Advisor Palette. 8. Double-click the IRA portfolio in the Advisor Palette. 9. Click the Allocation icon and add $5000 to each of the holdings. 10. Click OK. Be sure to click the Save icon to save your work. Version 1.0 9

11 Creating a Custom Benchmark Creating a Custom Benchmark You can create a custom, blended benchmark to compare a client s current allocation to a proposed allocation. The proposed allocation can be agreed upon between the advisor and client, based on the client s investment goals. A custom benchmark can also help in rebalancing a portfolio, to bring the portfolio in line with the asset allocation of the custom benchmark. To create a custom benchmark and apply it to Jill Green s IRA Portfolio. Do the following: 1. Go to the Snapshot View. 2. In the Advisor Palette, right-click Custom Benchmarks, then choose New Custom Benchmark. The Add Holding dialog box appears. 3. In the Add Holding dialog box, include the following indexes: S&P 500 TR S&P SmallCap 600 TR, and US TREAS Treasury Bill 3 Mon. 4. Click OK. The Custom Benchmarks dialog box appears. Enter the following allocations: Creating a Custom Benchmark Benchmark Allocation % S&P 500 TR 70 S&P SmallCap 600 TR 20 US TREAS Treasury Bill 3 Mon In the Name box, type Growth Benchmark. Enter the benchmark target allocation here Note the target asset mix for the benchmark here 6. Click OK to close the Custom Benchmarks dialog box. Version

12 Creating a Custom Benchmark Creating a Custom Benchmark 7. Double-click Jill Green s Retirement portfolio to open it. 8. To assign the custom benchmark, right-click the Retirement portfolio in the Advisor Palette, and choose Assign Benchmark. The Assign Benchmark dialog box appears. 9. On the Assign Benchmark dialog box, click the From drop-down field and select Custom Benchmarks. 11. Select Growth Benchmark, then click OK. Select this option in the From field. Version

13 Creating a Model Portfolio Creating a Model Portfolio In addition to creating portfolios of actual holdings, you can also create model portfolios of your favorite fund line-ups. Once you have your model portfolios created, they can be saved to an existing client. Creating a model portfolio is exactly the same as creating normal client and portfolio. This time, though, you will allocate by percentage instead of dollar value. You ll create a client called Model, and then a portfolio called Moderate Allocation and allocate it by percentage. You will also assign the portfolio to an existing client. Do the following: 1. In the Advisor Palette, right-click Practice and selected New Client. 2. Name the client Model, then click Open. 3. Click Yes when asked if you want to create a new portfolio, and make sure the Unscheduled option is selected. 4. Add the following holdings: Amer Funds Bond A Vanguard 500 Index Vanguard Mid Cap ETF Cash: Money Market - Taxable Creating a Model Portfolio The last item in the list can be found on the Proxies list. 5. Under the Input by area at the top of the dialog box, select the Percentage option button. Note that the Keep shares static, update dollars option is selected automatically. 6. In the $ Value cell for the first holding, type 500, In the % of Assets column, enter the following allocations: Item Amount Amer Funds Bond A 20 Cash: Money Market - Taxable 10 Vanguard 500 Index 50 Vanguard Mid Cap ETF Click OK. 9. Click the Save icon. In the Portfolio Name line, type Moderate. Version

14 Generating Portfolio Mode Reports Generating Portfolio Mode Reports From Portfolio Mode, you can generate he FINRA-reviewed Snapshot Report as well as the Portfolio Comparison Report. Note, the Portfolio Comparison report is only accessible from Principia Advanced modules. To generate the FINRA-reviewed Snapshot report, do the following: 1. Make sure you are in the Snapshot View. 2. From the menu bar, click File Generate Portfolio Snapshot (PDF). The Portfolio Snapshot Report (PDF) opens with the FINRA compliance material. Generating the FINRAreviewed report With the Principia Advanced module, you will gain access to the Portfolio Comparison Report PDF. The report compares portfolio composition, Style Box Analysis, Sector Weightings, and trailing returns. To generate the Portfolio Comparison Report (PDF), do the following: 1. Make sure you are in the Snapshot View. 2. In the Advisor Palette, highlight a portfolio. 3. Then, <CTRL> + click on a second portfolio. 4. From the menu bar, click File Generate Portfolio Comparison Report (PDF). Generating the Portfolio Comparison report Version