betterinvesting portfolio manager portfolio asset allocation

BetterInvesting Portfolio ManagerBetterInvesting Portfolio ManagerPortfolio Asset Allocation DecisionsPortfolio Asset Allocation Decisions

Created by: QUANT IX SOFTWARE, Inc.

Revised: November, 2005

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BetterInvesting’s Portfolio Manager for asset allocation and diversification

BetterInvesting, Portfolio Manager and Asset AllocationBetterInvesting, Portfolio Manager and Asset Allocation

What is BetterInvesting?

BetterInvesting is a community of like-minded people committed to becoming better, more

informed investors. For over 50 years, BetterInvesting’s community of individual investors

has used the power of collaboration to take the mystery out of investing.

What is Portfolio Manager?

Portfolio Manager is BetterInvesting’s official software offering providing complete portfolio

management and investment record keeping.

What are asset allocation and diversification?

Asset Allocation refers to the process of combining asset classes (i.e. stocks, bonds, and

cash) in a portfolio in order to meet your investment objectives.

Diversification refers to the variety of investments within an asset class or portfolio.

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Asset Allocation and Portfolio DiversificationAsset Allocation and Portfolio Diversification

Asset Allocation

Combining asset classes such as stocks, bonds, and cash in a

portfolio in order to meet your goals

Diversification

Spreading portfolio assets over sufficient number of securities to

avoid excessive risk from any one security

Common stocks should be diversified by industry sector and

company size

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Portfolio Manager and asset allocationPortfolio Manager and asset allocation

Asset allocation:

How to distribute investment funds among

different broad asset classes – i.e. cash,

bonds, stocks and others.

Over time, the major source of investment

risk and return is based on the asset

allocation decision.

Determined by an investor’s objectives:

o risk tolerance profile.

o short-term and long-term needs.

o goals and expectations

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Portfolio Manager and diversificationPortfolio Manager and diversification

Diversification

Spreading portfolio assets over

a variety of securities to avoid

excessive risk from any one

security

Common stocks should be

diversified by industry sector

and company size

One of the BetterInvesting’s

guidelines for successful long-

term investing

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Importing allocation and diversification data Importing allocation and diversification data from BetterInvestingfrom BetterInvesting

Import BI S&P Stock

Data Service

S&P Stock Data

Service: online

access to

CompuStat

financial data

provided by S&P

on over 7,000

publicly traded

companies

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Importing S&P Stock

Data Service data

allows examination

of the characteristics

of stocks held in

portfolios

Additional common

stock data used for

fundamental analysis

is also retrieved from

BetterInvesting

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Importing S&P Mutual Fund

Resource Center data allows

examination of the true asset

allocation and diversification

characteristics of a portfolio

Provides detailed fund

characteristics for

asset class, industry

sector and stock size

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Importing S&P Stock Data Service and Mutual Fund Resource Center data allows examination of the true asset allocation and diversification characteristics of a portfolio

Mutual Fund Resource Center Provides Standard and Poor's mutual fund data and Standard and Poor's Mutual Fund Reports on over 17,000 mutual funds

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Asset Allocation and Portfolio DiversificationAsset Allocation and Portfolio Diversification

Important point: When Portfolio Manager examines your portfolio’s asset allocation and

diversification, the software will include the proportional impact of any mutual funds you may

hold.

In other words, based on the dollars you have invested in each fund, Portfolio Manager will

drill-down into the funds characteristics to allocate your mutual fund investments.

Provides true asset allocation and diversification analysis

Identifies rebalancing needs

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First setup your portfolio allocation targets …First setup your portfolio allocation targets …

Portfolio Manager allows you

to set your portfolio target

allocations ( File Menu |

Portfolios | Portfolio Targets)

These targets are used to

compare your objectives

with the actual allocation

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Selecting the reportsSelecting the reports

Select one of Portfolio

Manager’s several useful

reports to examine your

actual portfolio allocations

versus your target

allocations

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Compare your targets to actual asset allocationCompare your targets to actual asset allocation

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Analyze your targets to sector diversification:Analyze your targets to sector diversification:

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Compare targets to stock size diversification:Compare targets to stock size diversification:

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Understand portfolio allocation &

diversification

Maintain accurate, timely investment records

Review current holdings

Identify rebalancing needs

Implement changes to weed and feed

portfolio to maintain proper diversification,

meet new objectives or goals

Ongoing process for long term investing

success!

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BetterInvesting’s Portfolio Manager for asset allocation and diversificationPortfolio Manager for asset allocation decisions

BetterInvesting’s Portfolio Manager will lead you to better BetterInvesting’s Portfolio Manager will lead you to better portfolio management decisions. portfolio management decisions.

Please visit these web sites to find out more about the Please visit these web sites to find out more about the software, and to try a free demo version:software, and to try a free demo version:

www.betterinvesting.orgwww.betterinvesting.org

www.quantixsoftware.comwww.quantixsoftware.com (developer’s site)(developer’s site)

Thank you for your interest in Portfolio Manager!Thank you for your interest in Portfolio Manager!

betterinvesting portfolio manager portfolio asset allocation

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