principia mutual funds advanced module -...
TRANSCRIPT
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© 2009 Morningstar, Inc. All rights reserved.
Principia Mutual Fund Advanced Module
× Matt Eckstein, Training Manager
Agenda
× Investment Detail Report× Fund vs. Fund Report× Investment Comparison Report× Portfolio Mode Reports× Find Similar Fund× Creating an Investment Policy Statement
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The Investment Detail Report
× Press <F8> to bring up the Find a Fund dialog box
× In the Find a Fund dialog box, type AIM Real Estate A
The Investment Detail Report (cont.)
× The fund is selected in Research mode
× Click View…PDF Fund Detail
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The Investment Detail Report (cont.)
× The Investment Detail Report opens with the FINRA compliance materials included
Viewing the Fund vs. Fund (PDF)
× Compare any two open-end mutual funds
× In the Find a Fund dialog box, type T. Rowe Price Real Estate
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Viewing the Fund vs. Fund (cont.)
× At the bottom of Research Mode, the status bar indicates 2 items have been selected
× Click View…Fund vs. Fund (PDF) to view the report
Viewing the Fund vs. Fund (cont.)
× The Fund vs. Fund report compares:× Performance× Fund Strategy× Morningstar statistics× Expenses
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Viewing the Fund vs. Fund (cont.)
× The Fund vs. Fund report compares:× Equity Style Box× Portfolio Profiles
Viewing the Investment Comparison Report
× Select at least two investments from any managed product
× Choose up to four securities× Click View…Investment
Comparison Report
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Viewing the Investment Comparison Report (cont.)
× Assign a benchmark × Customize the report pages
Viewing the Investment Comparison Report (cont.)
× In the search field, type iShares Dow Jones US
× Single-click iShares Dow Jones US Real Estate
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Viewing the Investment Comparison Report (cont.)
× Alternatively, click the Find Investment icon and find securities by:× Investment Universe×Name, or ×Ticker
Viewing the Investment Comparison Report (cont.)
× From the Universe dropdown, select an investment type (SA)
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Viewing the Investment Comparison Report (cont.)
× Type GMO, then click Go
Viewing the Investment Comparison Report (cont.)
× From the list of investments, click GMO Real Estate Strategy, then click Add
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× Four investments have been added to the Investment Comparison Report dialog box
× To change the benchmark, click the Benchmark dropdown and find Idx: DJ US Real Estate TR USD
Viewing the Investment Comparison Report (cont.)
Viewing the Investment Comparison Report (cont.)
× Before generating the report, you can select which pages you would like to view, then click OK
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Viewing the Investment Comparison Report (cont.)
× The Investment Comparison Report compares:× Historical Performance× Trailing Performance× Performance Analysis× Relative Performance
Viewing the Investment Comparison Report (cont.)
× The report compares:× Style and Sector Trails× Asset Allocation information
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Viewing the Investment Comparison Report (cont.)
× The report compares:× Fair Value vs. Cost of Equity for ETFs× Morningstar Rating (for any investment with a rating)
Viewing the Investment Comparison Report (cont.)
× The report compares:× Expense Analysis graphs an investment’s expense compared to its Morningstar Category× Premium/Discount and trading costs are graphed for ETFs
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Viewing the Investment Comparison Report (cont.)
× Tax Analysis breaks down an investments’ Capital Gains and Dividend distributions annually, for up to 10 years
Viewing Portfolio Mode Reports
× In Portfolio Mode, you can generate the FINRA-reviewed Snapshot Report and the Portfolio Comparison Report
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Viewing Portfolio Mode Reports (cont.)
× Make sure you are in Snapshot View and a client and portfolio are open, then, click File...Portfolio Snapshot Report (PDF)
Viewing Portfolio Mode Reports (cont.)
× The Portfolio Snapshot includes three pages of data and FINRA-reviewed compliance and disclosure
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Viewing Portfolio Mode Reports (cont.)
× On the second page, the Risk/Reward Scatterplot demonstrates the risk and return of a client’s portfolio compared to a benchmark
× Evaluate a portfolio’s consistency with the Performance History Graph
Viewing Portfolio Mode Reports (cont.)
× For the Portfolio Comparison report, from Snapshot view, highlight a portfolio, then <CTRL>+click on a second portfolio
× Right-click one of the highlighted portfolios, then select Portfolio Comparison Report
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Viewing Portfolio Mode Reports (cont.)
× The Portfolio Comparison Report displays Composition, Style and Sector analysis for the two portfolios
Viewing Portfolio Mode Reports (cont.)
× Regional Exposure, Trailing Returns and Risk Measures are also displayed on the report
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Using the Find Similar Fund Tool
× The Find Similar Fund tool is accessed from any managed product universe in Research Mode
× Type Vanguard Small Cap Index in the Find a Fund dialog box, then click OK
Using the Find Similar Fund Tool (cont.)
× The investment is highlighted in Research Mode
× Click the Find Similar Fund icon to launch the tool
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Using the Find Similar Fund Tool (cont.)
× The Find Similar fund window appears
× It displays similar securities across the managed product universe
× You can limit search criteria and select investment types
× Click the Search button to view the results
Using the Find Similar Fund Tool (cont.)
× You can also:× Export× Generate an Investment Comparison Report× Find similar securities to another investment
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Presentation and Sales Materials
× The Hypothetical Module is launched from Portfolio Mode
Presentation and Sales Materials (cont.)
× Step 1 - Security Selection× From the Select dropdown,
choose an investment universe
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Presentation and Sales Materials (cont.)
× In the Find field, type the ticker or investment name
× Click the Add button to add investments to the securities list
Presentation and Sales Materials (cont.)
× Step 2 - Choose a Time Period× From the dropdown, select
Trailing 3yr× In the lower left hand corner,
click Apply to All to apply the same time period to all of the investments
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Presentation and Sales Materials (cont.)
× Step 3 - Setting an Initial Investment
× You can alter the dollar amounts or shares, or accept the default amount of $10,000 per holding
× Decide whether to reinvest dividends and capital gains
Presentation and Sales Materials (cont.)
× Step 4 - Subsequent Investments and Withdrawals
× Investments or withdrawals can be assigned following the initial investment
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Presentation and Sales Materials (cont.)
× Step 5 - Deducting Plan Fees from the Illustration
× Asset-based fees or sales fees can be applied to investments in the scenario
× In the Annl Fee field, type 1.00, then click the Apply All button in the bottom-right corner of the screen
Presentation and Sales Materials (cont.)
× Step 6 - Rebalancing or Transferring Investments
× You can rebalance or transfer investments in a portfolio, but not both
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Presentation and Sales Materials (cont.)
× Step 7 - Choosing the Report Options
× On this step you can:× Edit tax information× Specify whether to use a benchmark× Decide how much performance information to display× Include other report material
× Click Generate Report to view the output report for the hypothetical scenario
Presentation and Sales Materials (cont.)
× Hypothetical Portfolio Illustration can compare the hypothetical portfolio to a benchmark
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Presentation and Sales Materials (cont.)
× The Illustration details returns for the investments in the scenario
Presentation and Sales Materials (cont.)
× The Presentation and Education Module is a FINRA-reviewed library of 20 PowerPoint presentations, PDF brochures, and advisor continuing education material
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Presentation and Sales Materials (cont.)
× Investors Brochures range from three to six pages and address retirement risks for investors
Presentation and Sales Materials (cont.)
× Sales Ideas are also available in PDF format
× They can be printed and distributed, or sent to clients in electronic format
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Presentation and Sales Materials (cont.)
× The Education section provides advisor continuing education materials
× Other Resources includes FINRA-reviewed material disclosure
Investment Policy Statement
× The IPS Generator allows the advisor to define and document goals, risk, and an approach to a financial plan.
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Investment Policy Statement (cont.)
× In the Goal section, enter agreed upon client goals.
Investment Policy Statement (cont.)
× In the Associated Parties tab, select a Classification from the drop-down.
× Also, enter demographic information for the Associated Party.
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Investment Policy Statement (cont.)
× In the Risk Tolerance tab, select Risk Level and Assessment Method.
× Optional notes can be entered.
Investment Policy Statement (cont.)
× In the Financial Constraints section, enter details regarding the client’s tax and liquidity constraints.
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Investment Policy Statement (cont.)
× In the Proposed Portfolio section, enter the target allocation for each asset class.
× Optionally, you can enter Allowed Range Bottom %and Top % for each asset class.
Investment Policy Statement (cont.)
× In the Portfolio Securities step, you can decide which asset classes to include or exclude from a client’s portfolio.
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Investment Policy Statement (cont.)
× In the Portfolio Monitoring section, you can define the frequency with which the asset allocation and portfolio implementation will be reevaluated.
× You can also determine the criteria for reevaluation.
Investment Policy Statement (cont.)
× In the Report Settings section, you can generate the IPS Report.
× You can also Edit the Cover page for the IPS Report.