On the Target Allocation screen, you can select a proposed new asset allocation for the client. This may be done by either selecting an allocation directly from a point on the efficient frontier graph or by selecting a model allocation or model portfolio.
The efficient frontier graph displays a curved line representing the maximum expected return value of an asset mix (based on current market assumptions) for any given level of standard deviation. Standard deviation is plotted along the X (horizontal) axis. Expected return is plotted along the Y (vertical) axis. The vertical bands represent different risk tolerance levels.
The risk/return position of the client’s current portfolio is plotted as a red circled dot.
For new plans, the default target portfolio is plotted as the point on the efficient frontier which is in the exact center of the risk region for the client’s risk profile. The target allocation is plotted as a green circled dot. Model allocations and portfolios are plotted as blue dots. The selected allocation is plotted as a solid red dot.
To change the selected allocation, enter new values into the yellow shaded boxes.
or
Use the + and - buttons under the efficient frontier graph or move the slider to change the standard deviation. The red dot moves along the efficient frontier and the values for the selected portfolio change.
To add an asset allocation for a different time period, click Add Target. The Multiple Target Allocations dialog box opens.
Click the Target drop-down to select the target allocation you want to view.
To set the selected allocation as the target, click Set Selected as Target.
If you have set the selected allocation as the target and want to the revert back to the original target allocation, click Reset.
Click Show Asset Classes to plot all the asset classes on the efficient frontier graph. Mouse over the points on the graph to view the names of the asset classes. Click Show Asset Classes again to remove them from the graph.
Click Find By to plot a specific expected return or standard deviation value on the graph.
To plot a model portfolio or asset allocation, click Models and select Load Model. The Find Portfolio or Asset Allocation dialog opens. Click on the name of the desired model and click OK. The model is plotted as a blue dot.
To remove models from the graph, click Models and select Clear Model Points.
To save the selected asset allocation as a model, click Models and select Save as Model. The Asset Allocation Profile dialog box opens. Enter a name for the model allocation and click OK. The model is saved to the Workspace area.
Click the View drop-down and select Post-Tax to view post-tax values.
See Also