Create Blended Investment Dialog

This dialog is available from the File / File Operations / Create Blended Investment... menu command in the Professional and Advisor versions of Fund Manager.

This command creates a new investment by merging varying percentages of source investments together. You choose between 2 and 10 source investments, and apply percentages to each of the sources, totaling 100%. This can be useful to create blended or synthetic benchmark/index investments. This created investment can then be used anywhere you use an investment. These can be used as an index or benchmark investment.

The prices will be updated for every weekday between the first and last recorded prices in all of the source investments. Split adjusted and non-exchange rate adjusted prices will be used for the update. The destination investment is updated by applying a daily weighted average of the percent gain of the source investments.

Example: Assume you have 2 source investments (Src1 and Src2) combined as 60% Src1 and 40% Src2 to create your destination investment. If between Day0 and Day1 Src1 increases by 10% and Src2 increases by 1%, then the destination would be increased by 6.4% (60% * 10% + 40% * 1%) on Day1 relative to Day0. The percent change of each source is determined from the closing prices. As an example, if a source investment changes from $100 to $110 that is a 10% increase ((110 - 100) / 100) = 10%.

The "Starting Price" of the destination investment can be set to any value you prefer. After the starting price, all subsequent prices are calculated based on the user-specified weighted averages of each source investment's daily percent gain.

Existing Blended Investment List:

Blended investments are automatically updated whenever any of the source investments are updated. You can see the list of all your automatically updating blended investments (and their sources/percentages) by choosing the View Existing Blended Investment List... button. To stop an automatic update, delete it from the list. To edit how a blended investment is being calculated, choose the Edit... button in this dialog. Automatic updates handle recording any new destination prices when any new source data is recorded. No data is ever automatically deleted from a blended investment.

Note on Interpolation: You can control whether or not Fund Manager interpolates missing price points when recording prices in the destination investment. In the Existing Blended Investment List dialog see the option Only Update Destination for Dates When All Sources Have Pricing (Do Not Interpolate). This is a global option that applies to all destination investment updates. If this option is checked, prices will only be updated in the destination investment if all source investments have a price recorded for that date. If this is not checked, Fund Manager will interpolate a source investment price from the most recent recorded price before the date being updated. Changing the value of this option only applies to future updates in the destination investment, and existing pricing data is not changed.

Note on Updating Prices: To update the price of a blended investment, update the source investments pricing, and the blended investment will automatically be updated. Blended investments are set to not retrieve prices, as they are not available on the quote servers. They will instead be automatically updated whenever any of their sources have their prices updated.

Note on Naming Blended Investment: The initial name/symbol of the blended investment is assigned by Fund Manager. You can edit the name or symbol to anything you prefer, without affecting the blended investment's functionality.

See Also