Setting benchmark

[galway2]

Mark-

When setting the benchmark for the beta calculation, is there anyway to use an investment other than what I have, for example, the S&P500?

[Mark]

Hi galway2,

You can use any investment you want for the benchmark. Just create an investment if you don't already have it, and then assign it under "Options / Report Preferences / Benchmark".

If you want to use the S&P500, create an investment to track the S&P500. You might like to read:

http://www.fundmanagersoftware.com/faq_ ... arison.php

[alan green]

I don't see this choice under Options or Report Preferences.

[Mark]

Hi alan green,

You must be using the Professional or Advisor versions to see this option. The "Benchmark" tab in the "Report Preferences" dialog is used for calculating some of the advanced statistics like Beta, Sharpe Ratio, etc...

[KCarlander]

Mark,

If I create a new investment to serve as a benchmark (ie MSCI Emerging Index) and then create a report specifying it as the benchmark, the problems result that: 1) the benchmark has a $ value that is added to the portfolio and 2) the performance of the benchmark effects the calculated performance of the portfolio. Is there a way to avoid these problems and simply display the benchmark?

Kristin

Hi galway2,

You can use any investment you want for the benchmark. Just create an investment if you don't already have it, and then assign it under "Options / Report Preferences / Benchmark".

If you want to use the S&P500, create an investment to track the S&P500. You might like to read:

http://www.fundmanagersoftware.com/faq_ ... arison.php

[Mark]

Hi Kristin,

Do you want your benchmark displayed on the report? If not, just put it in a different sub-portfolio hierarchy from what you are reporting on. Your benchmark can be assigned for calculating beta, sharpe ratio etc, while not being displayed in a report. The assigned benchmark for these calculations can be located anywhere in the sub-portfolio hierarchy.

If you do want the benchmark included on your report, but don't want it affecting overall totals, try this option:

1) Put the benchmark at the same sub-portfolio level as the sub-portfolio you want to report on. For example:

Code: Select all

Master Portfolio
  My Account 1
  <benchmark investment>


Create the report at the "Master Portfolio" level. Turn on "sub-total by sub-portfolio", and turn on the option to "Hide Totals In Footer". This will leave the benchmark and your 'My Account 1' summarized at the bottom of the report, but there is no total shown for the combination of the benchmark and your "My Account 1". The benchmark is not included in your My Account 1, and won't affect those totals.