Synthetic Index

[elliots]

Mark,

I want to be able to create a "synthetic" index (actually several) and be able to use it in reports and graphs. By this I mean an index created out of other indexes. For example, 40% US Intermediate Term Bonds, 10% foreign stocks, 25% large cap US stocks, and 25% small cap US stocks. I would create several of these for different client profiles and use them selectively as appropriate.

I've got a sub-portfolio with a bunch of indexes. I've constructed a synthetic index by creating a separate sub-portfolio using initial purchases of the individual index investments (e.g., a $100,000 portfolio with $40,000 of the bond index on my starting date, etc.). Now I can do reports on this or graph it. (One problem I haven't fully thought through yet is how to "re-balance" I might have to create a separate version of each for different time periods. There might be something here for your new linked portfolios but I haven't looked at that feature yet.)

What I can't see is a way to overlay it on a real portfolio or add it to the index list on the Executive Summary. I think this would require creation of the synthetic index at the investment level rather than the portfolio level -- or is there a way to do it now? If not, please put it on my wish list.

Elliot

[Mark]

Hi Elliot,

Okay, thanks for the feedback. You cannot use a sub-portfolio as an index today. One work-around you could consider though is to export that sub-portfolio's value to a file, and then import that back into an investment, which you could then use as your index for the Executive Summary report.

For the export, see "File / Export / Other / Portfolio Value...".

For the import, first create an investment for this synthetic index with a unique symbol, and then use "File / Import / Generic / Prices..." with these settings:

Specify Date: OFF
Specify Symbol: ON and enter the symbol of synthetic index
Format String: MM-DD-YY,NAV

You'll end up with a synthetic index investment having a daily closing price equal to the daily value of that sub-portfolio you created.

[elliots]

Mark,

Looks like a decent work-around. I'll try it over the weekend.

Once again, many thanks for what is clearly the best tech support in the industry (based on my experience with 4 other adviser PM software packages). I've re-uped by paying my upgrade fee for V11. Cheap at twice the price.

Elliot

[Mark]

Hi Elliot,

Thanks for the nice comments. Would you mind if I added your quote on our "Reviews" page:

http://www.fundmanagersoftware.com/review.html

?

[elliots]

Go right ahead!

[Mark]

Hi Elliot,

Thanks, it has been added. It is the second review on the review page:

http://www.fundmanagersoftware.com/review.html