Our New Portfolio Analysis Tool

Just after midnight Vancouver Island time, we went live with our Portfolio Analysis Tool, as described in this month’s commentary.

It brings together many features developed for other tools (like Watchlists and QuickSearch), but with one very unique difference … it computes in real-time the MFO risk and return metrics for the display/evaluation period specified.

In addition to computing those metrics for individual funds, it provides MFO risk and return metrics at the rolled-up portfolio level, based on the portfolio weightings (aka allocations) assigned by users.

Here’s link to the new tool, denoted on the navigator bar on top of each page: PORTFOLIOS.

To illustrate its utility beyond the couple examples presented in the commentary, we’ll run the example from the entry page …

MAPOX (Mairs & Power Balanced) 40%
IOFIX (AlphaCentric Income Opportunities I) 30%
DODIX (Dodge & Cox Income) 20%
ZEOIX (Zeo Short Duration Income I) 10%

Translated on the Portfolios input page:

MAPOX [40] IOFIX [30] DODIX [20] ZEOIX [10]

Then, press the Portfolio Name (or adjacent right arrow) and get the following:

At the rolled-up level, this portfolio rates an MFO Risk of 2, or “Conservative,” which means its volatility over the evaluation period is between 20 and 50% of the S&P 500 volatility.

The “evaluation period” defaults to the age of the youngest fund in the portfolio (similar to our Correlation tool). It can be changed (to periods shorter than the youngest fund) on the results page.

As mentioned in the commentary, we’ve launched a pretty basic version of this important tool and will be incorporating enhancements in weeks ahead.