Asset Allocation Settings

1. From the User Preferences menu , click Asset Allocation Settings.

Asset Classes

2. From the Asset Classes subtab, define asset classes for use in plans and assessments.
   • Select Add Asset Class to create a new row in the Asset Classes section.
   • For each asset class you wish to add, enter a unique Description (such as Cash or Bonds), then define the return rates and Standard Deviation that apply.

Correlations

3. From the Correlations subtab, enter information regarding how much you expect your clients' investments to change in value relative to each other.
   • Correlations work in the following manner:
     

     Correlation Value	Indicates that historically...
     1.00	The two asset classes move in exactly the same direction.
     -1.00	The two asset classes move in exactly the opposite direction.
     0.00	The two asset classes have no relation.

   • To change the correlation between Asset Class A and Asset Class B, in the Correlation table, locate the field where row A intersects column B.

Investor Profiles

4. From the Investor Profiles subtab, define profiles to classify your clients by their tolerance for risk.
   • Select Add Investor Profile. Profiles should be entered in order of most tolerant to least tolerant of risk.

   • Enter a Description for all Investor Profiles. You can also select to enter a description of the profile.

Portfolios

5. From the Portfolios subtab, edit the composition of the profiles you created on the Investor Profiles subtab.
   • From the Portfolio Criteria section, select a profile you want to edit. Then, enter values into the Weightings fields for each asset class. These weightings define the default allocation for the selected profile.

   • Repeat the step above until you have defined allocation information for all profiles.

6. When you are satisfied with these options, click OK.

1. From the Profile page (Plan Management section - Asset Allocation category), click Settings.
2. Follow steps 2-6 from the How do I set default Asset Allocation settings for all plans and clients? section on this page.

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