In this tab, you'll enter allocation methods, initial investment amounts, and time periods for all of your investments. Note that you can enter an allocation of $0 for a security and allocate to that security later in the hypothetical time period by setting up rebalancing on the Reinvest/Rebalance tab.
Currency
Use the drop-down menu to select the desired currency. The currency format and label will vary throughout the application, depending on the currency selected here.
Allocate by
You can choose to allocate by currency amount (according to the selection you made in the Currency menu), by percentages, or by number of shares. If you are using holdings you brought in from an existing portfolio or hypothetical illustration, the Allocate by field defaults to a currency, regardless of what you have selected in your Hypothetical Illustrations Preferences.
If you select to allocate by percentages, the Total Value and Total % Allocated fields becomes available.
Total Value - The total value for all selected investments, shown in the currency chosen in the Currency menu. Click in the box and type a new amount to change this number.
For Bonds, note the following when entering by Shares or Value:
Shares = Par Value (i.e. Face Value and Principal) the amount the bondholder will get back once a bond reaches maturity, e.g. $1,000.
Amount = Bond Market Value calculated as Par Value * (Bond Price/100).
In the hypothetical calculation, it is assumed that all bonds with a fixed coupon type have a semi-annual coupon payment. For bonds with coupon type of FRN or Var/Adj, the coupon data will continue to be pulled from the research database.
Grid Columns
Note: To remove an item from the grid view, right-click on the line item and select Delete. If you delete an investment by mistake, or if you change your mind after deleting it, you can always re-add it from the Investments tab.
Using Apply to All - This feature allows you to apply the same input for an entire column of securities. Type or select the value you would like to apply to an entire column in the row marked Apply to All (located at the top of the list of securities).
List Order - To reorder items in the list, click in the List Order column and enter a new number, then press Enter.
Initial Investment - Based on your choice in the Allocate by field, enter the following information:
Currency amount - Amounts are automatically allocated evenly between the number of investments chosen. A different amount can be assigned by simply typing the amount for each holding.
Percentages - Percentages are automatically allocated evenly between the number of investments chosen. New percentages can be assigned by typing them in. The total must equal 100%.
Shares - type an initial investment amount in shares.
Time Period - The default for this field is Apply to All, which automatically assigns the same time period to all investments. You can use the drop-down menu for individual holdings to select different time periods for each investment or create a customized time period.
Earliest Available - Defaults to the earliest price date we have available for each holding. This date will be listed in the Earliest Price Available column.
Earliest Common - Defaults to the first month that all the holdings have been in existence. For example, if Holding A began in 01/01/1995 and Holding B began in 4/1/2000, the earliest common date is 4/1/2000. This date will be listed in the Earliest Price Available column.
Customized - Enter the Start and End Dates in their respective fields. Note: Holdings with end dates prior to the latest end date listed are liquidated at the end of the investment period. To avoid liquidation of these holdings, set all holdings to the same end date. This default is applied because a holding must either be invested or liquidated.
Start Date/End Date - This is the start and end date for the transfer. These are automatically calculated based on the Time Period selected unless you selected Customized. The end date defaults to the most recent month end. Note: The start date cannot precede the inception date of the holding or the earliest price Morningstar has on record.
See Also