Sample Data Import from: AAII - QMFU Import from: AAII - ETF Standard Worksheets: Allocation Sample data is provided only for the Demo Version. There are 400 funds in the sample data, with fields redaccted that would identify the fund. All other data is accurate. The purpose of the sample data is to enable a user to use all features of the Premium Version (except Import) without having to purchase real data. It provides the ability top kick the tires before buying the car! Imports data for Mutual Funds that is acquired from the American Association of Independent Investors (Quarterly Mutual Fund Update). Imports data for ETF s that is acquired from the American Association of Independent Investors. This Sheet shows a Pie Chart of the distribution of investments in the Portfolio across (8) different categories: Domestic Stock Foreign Stock Preferred Stock Conv Securities Domestic Bonds Foreign Bonds Other Cash This Sheet contains a Matrix for either the Funds Sheet or the Portfolio Sheet. All funds are listed horizontally and vertically. To find the correlation between any two funds, find the symbol for one vertically and the symbol for the other horizontally. Funds Options The shading in each cell indicates the degree to which the funds are correlated. Funds with HIGH correlation tend to have an ORANGE color. Funds with LOW correlation tend to have a YELLOW color. Funds with VERY LOW or NEGATIVE correlation tend to have a GREEN color. This sheet contains Mutual Fund and ETF data imported from Excel workbooks acquired from the American Association of Independent Investors. It allows the user to filter out funds that are not considered acceptable. It provides the ability to generate a portfolio from those funds that are acceptable, as well as the ability to select or de-select funds manually. This sheet contains Options used throughout the product, which includes: Year Range Menu Position Import File Names Start-Up Options Background Color Codes Generate Parameters Page 1 of 6
Performance The Performance Sheet compares the performance of the Portfolio Funds (in Blue) with those in the Benchmark Funds (in Red). Only the time between the From and To Years is considered. The From Year and To Year may only be changed in the Options Sheet. The Benchmark may be changed via the pulldown menu. When you select a Benchmark from the pulldown, the benchmark data in the charts changes. Benchmarks available in the pulldown menu are: Dow Jones 30 Industrial Russell 2000 Russell 3000 S& P 500 This sheet is a subset of the Funds Sheet. It contains the funds that were: Generated in the Funds Sheet according to the Generate parameters in the Options Sheet Selected manually in the Funds Sheet. Portfolio The Portfolio Sheet is the source of data for the review sheets: Performance Sheet Allocation Sheet Risk Sheet What If Sheet When funds are generated, the Weight field in the Portfolio Sheet is blank. When the Performance Sheet is selected after the initial fund generation, weights will be equally distributed across all funds. Subsequent changes to the Weight field will result in changes to the weights of other funds when the Performance Sheet is selected. Weights that were changed manually are exempt from the re-distribution of weight when the Performance Sheet is selected. The Risk Sheet contains risk data for the Benchmark selected in the Performance Sheet, as well as the Portfolio. The following statistics are shown: Standard Deviation This is a measure of variability of return and higher standard deviations translate to greater variability and therefore, greater risk. Risk Total Risk Index The average standard deviation of return for the category divided by the average standard deviation of return for all funds. Standard deviation is a measure of return volatility and is computed using monthly returns for the last three years. Beta Beta, also known as the beta coefficient, is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market. Page 2 of 6
Extended Worksheets: Case Summary Clones Periodic Table for Benchmarks Trace What If Cursor Sensitive Shortcuts: A Sort Ascending on Any Field R-Squared R-squared is a statistical measure that represents the percentage of a fund or security s movements that can be explained by movements in a benchmark index. This sheet contains data that is saved when Save Case is selected from the Portfolio Sheet. Information in the following categories is saved each time a case is saved: Options Counts Performance Holdings Risk Performance vs Benchmark What If Symbols Weights Saving several cases with different parameters allows a user to view a side-by-side comparison of the results. To view the results in detail in the other sheets, a user can elect to Load a saved case, which returns all sheets to their content when the case was saved. This sheet contains a list of funds that were ignored during Generate, because they are clones of a fund that has already been generated. The Clones Sheet lists the name of the fund that was ignored, the fund for which it is a clone and the correlation between the funds. The Clone Tolerance option controls when a fund is identified as a clone. It defaults to 0.95, which means that a fund will be considered a clone of another if the correlation factor is 0.95 or higher. The Periodic Table shows the variability of performance for different Asset Classes over the past (10) years. For further information about the Callan Periodic Table, click on the following link to the Bogleheads wiki Web Site: www.bogleheads.org/wiki/callan_periodic_table_of_investment_returns This sheet contains a list of the decisions that were made during the Generate process. The list contains a section for each pair of funds (HPF / LCF) that were generated. This sheet allows you to speculate on what might have been had you replaced your current investments with those in the Portfolio that you created here. To use the What If feature, you must specify the value of your existing investments for the years that you want to compare. Enter these values under "Investment History" in the "Options" Sheet. Also enter any additions or withdrawals that you made for each year. For comparison purposes, additions and withdrawals are applied to the Portfolio that you created here, so that you are comparing apples to apples. Sort fund data in Ascending sequence by the column in which the cursor is placed. Available on the Funds, Selected and Benchmarks Sheets. Page 3 of 6
D Sort Descending on Any Field C Show P Show Performance S Select / De- Select Toggle Sort fund data in Descending sequence by the column in which the cursor is placed. Available on the Funds, Selected and Benchmarks Sheets. Show Funds that have a Low to the Symbol in which the cursor is placed. Available from any Sheet that contains Symbols. Displays the Performance Section of the Funds Sheet for the Symbol in which the cursor is placed. It is available from any Sheet that contains Symbols. Available from any Sheet that contains Symbols. This is a toggle that switches between Selecting or Clearing a Fund. It may be used only from the Funds and Sheets. It operates on the Symbol in which the cursor is placed. It is available only on the Funds and Sheets. Filter Accept Apply Criteria Reset Show/Hide Generate Options: Clone Tolerance Define Performance As High Performance / Low The Accept Action deletes all excluded funds. This must be done before you can use the Generate Control. The Apply action uses the Filter criteria specified in rows 5-7 to exclude some of the funds in the Funds Sheet. Funds that fail any of the Filter Criteria are excluded by hiding the row. Filtering is the process of excluding funds from consideration that do not meet the Filter Criteria. Filtering is only available on the Funds Sheet. Rows 5-7 contain Filter Criteria. For every Field (Column), one of (3) conditions can be set - Equal To, Greater Than or Less Than. The Reset action will undo the result of the Apply action, which means that no funds are excluded. This is a toggle that will either show rows 5-7 or hide them. These are the rows that contain the Filter Criteria. For every Field (Column), one of (3) conditions can be set - Equal To, Greater Than or Less Than. For example, to exclude funds that have Bear period losses of more than 50%, specify -50 in the Bear field in row 6. This says that the Bear return must be greater than -50%. Specifies the Tolerance for a fund to be considered a clone of another. If the correlation between two funds is greater than the Clone Tolerance, then the funds are considered to be clones. Defaults to 0.95. Specifies the field that will be used to identify the performance of a fund. Defaults to 3-Year ROI. For Every X High Performance Funds Generate Y Low Funds Page 4 of 6
The values specified for X and Y provide the ability to weight the generation of funds toward HPF or LCF, or to weight them equally. This provides the ability to approximate the characterization of investment styles, as illustrated below. Characterization Reward Risk Ratio of HPF : LCF Aggressive 3:1 Moderately Aggressive 2:1 Balanced 1:1 Moderately Conservative 1:2 Conservative 1:3 Figure 1 - Ratio of HPF : LCF LCF Band LCF Tolerance LCF Selection Type Specifies the number of number of funds to consider when selecting an LCF. Defaults to 10 LCF Tolerance Specifies the Tolerance for a fund to be considered when selecting a LCF. If the correlation of a fund to an HPF is greater than the LCF Tolerance, then it will not be selected. Defaults to 0.40 Specifies how LCF funds are selected from the funds in the LCF Band. Can be one of the following: LCF Selection Type: Select the Fund from the LCF Band based on: ROI Highest ROI Lowest Adjusted ROI Highest Adjusted ROI, defined as: ROI 1 + Defaults to ROI Number of Funds to Generate Case Processing: Case Summary Specifies the number of funds that are to be generated. Some will be High Performance Funds (HPF), while other will be Low Funds (LCF). Defaults to 40 A Case Summary is generated in the Case Summary Sheet when Save Case is selected in the Portfolio Sheet. Page 5 of 6
Load Case Save Case When Load Case is selectd in the Case Summary Sheet, the Portfolio Sheet is populated with the symbols and weights that are contained in the case to be loaded. When Save Case is selected in the Portfolio Sheet, an entry is made in the Case Summary Sheet that reflects the results of the funds contained in the Portfolio Sheet. Miscellaneous: Fund Weighting When funds are generated, the Weight field in the Portfolio Sheet is blank. When the Performance Sheet is selected after the initial fund generation, weights will be equally distributed across all funds., including a Cash fund that is added to account for cash in a users portfolio that is not currently invested. After a portfolio is generated, a review of results may show that the portfolio is weighted too heavily in one investment type. Typically, equities are a higher percentage of the total portfolio than many user could tolerate. To correct for this, a user can lower the weight for funds that are heavy in equities and raise the weights for funds that are heavier in bonds. Subsequent changes to the Weight field will result in changes to the weights of other funds when the Performance Sheet is selected. Weights that were changed manually are exempt from the re-distribution of weight when the Performance Sheet is selected. For more information, see the Section Ajust Weights in the User Guide for more information. Help Link to FSA User Guide Link to Fund Company Tutorial Most sheets have a Help control. When the Help control is selected, a window is displayed that has a short explaination of the controls available it the sheet. A Tutorial control is available in the Funds Sheet and the Portfolio Sheet. If you select Tutorial, scroll down and select User Guide, then the FSA User Guide will be displayed in PDF form. In the Funds Sheet and the Portfolio Sheet, tab or scroll to the General section. You will see a column with the control View Website. Place the cursor in the row for any fund and click on View Website. Your browser should display the Web Site for that Fund Company. A Tutorial control is available in the Funds Sheet and the Portfolio Sheet. Page 6 of 6