This is where you will determine exactly what your final report will look like by specifying the kind of Hypothetical Report you'd like to generate, which supplemental reports to include, and setting other report options.
Report Type - Select the type of report to generate by clicking the corresponding radio button.
Portfolio - Combines all investments into a single Portfolio Summary report. It illustrates how the selected set of investments would have performed together as a portfolio.
Individual Holdings - Creates separate illustrations for each security. For example, if you included five investments in your illustrations, you will get five separate Individual Summary reports.
Holdings Comparison - Displays the selected investments and or indexes side by side, in on Comparison Summary report. This differs from the Portfolio Summary because it shows each individual investment. The Portfolio Summary aggregates the investments. Note: If you are generating a Comparison Hypothetical Illustration with more than five securities, the returns graph will be a column graph displaying the highest returning security, the median of the securities and the lowest returning security for each time period. If you have five or less securities, it will be a standard line graph.
Portfolio Comparison - Compares two hypothetical illustrations. If you choose this option, a Compare to: option appears where you can use the drop-down menu to select a previously saved hypothetical illustration with which to compare the current illustration.
Display Return on Report - Total returns can be displayed on the report Monthly, Quarterly, Semi-annually, or Annually, For example, if you select Monthly, the illustration breaks down investment performance month-by-month.
Include Net Amount Invested - Select the check box to include the net amount invested in the report. This will generate an additional line on the graph, reflecting the net cash flows of the investor over time. Clear the check box if you do not want the net investment graphed in your report. Note: This option is not available when you select to run a Portfolio Comparison report.
Include Benchmark in Illustration - Select the check box to include a benchmark in your hypothetical reports.
Select Benchmark - If you checked the option to Include Benchmark in Illustration, use the radio buttons to select to use a standard benchmark or custom benchmark. Then use the drop-down menus to select the benchmark.
The Standard benchmark option allows you to choose from a variety of securities, indexes, and other averages.
The Custom benchmark drop-down menu allows you to use the AutoBench feature which will automatically determine the benchmarks to include based on the asset allocation or categories of the securities. The names and weighting of the resulting benchmarks appear in your final report on the Custom Benchmark Disclosure page. Note: Even if you run an individual hypothetical illustration on a single fund, choosing AutoBench by Asset Allocation could result in a blended benchmark, depending on the fund's composition.
Create/Edit Custom Benchmark - Click this button to open the Custom Benchmark window. Here, you can edit an existing custom benchmark or create a new one to use on the hypothetical report. Note: This feature is not available in all solutions of Morningstar Office.
Graphic Display - Choose from Linear, Mountain Graphic, or Stacked Bar. Note: This option is not available when you select to run a Portfolio Comparison report.
Scale - This specifies the scale used for the graphs. Use the radio button to select Linear or Logarithmic.
Linear graphs are scaled so that equal vertical distances represent the same absolute dollar value change. A drop from $10,000 to $9,000 for example, is represented in the same way as a drop from $100,000 to $99,000.
The logarithmic scale reveals percentage changes. A change from 100 to 200 for example, is presented in the same way as a change from 1,000 to 2,000.
Page Included - You can include a variety of supplemental reports and materials with your Hypothetical report. Just select the check boxes next to each option to include it. Click the view sample report link next to each report to get an idea of the information displayed on each report. Use the Up and Down arrows associated with each supplemental report to reposition it in the final report generation.
Cover Page - By default, the cover page is selected. If you do not want to print the cover page with your report, clear the check box. Enter the information in each field that you want to appear on the cover page. Click the + next to Additional Information to expand on the information included on the cover page.
Correlation Matrix - The Correlation Matrix displays how closely related selected funds and stocks are to one another.
Distribution and Withdrawal Summary (one portfolio) - This report shows the withdrawal and distributions as they occurred in your hypothetical illustration. It includes the sum of all dividend distributions, both income and capital gains, that were not reinvested and the sum of all investment withdrawals by the investor. The figure includes liquidations and is net of fees and sales charges. This report displays two graphs.
The first graph will outline the portfolio value by source with regards to the principal, income, and capital gains. The second graph will display the paid out income by source with regards to withdrawal, dividends paid out, and capital gains paid out. If withdrawals are not specified within the hypothetical illustration, the second graph will be automatically suppressed
Investment Details - By default, investment detail reports for each investment in your portfolio are included with your report. If you do not want to print the detail reports with your report, clear this check box.
Portfolio Comparison - This report reveals the differences between any two portfolios. The report breaks down the comparison into eight categories: Asset Allocation Comparison, Morningstar Style Box Analysis, US Stock Sector Analysis, Regional Exposure, Historical Returns, Portfolio Statistics, Modern Portfolio Theory (MPT) Statistics, and Portfolio Holdings. Note: The Portfolio Comparison report is available only when you select the Portfolio Comparison as the Report Type.
Portfolio Snapshot - Contains three pages of in-depth portfolio analysis, such as portfolio composition, investment style, sector weightings, regional exposure, performance numbers, market maturity, stock type weightings, and MPT statistics, and includes four graphs: Investment Summary, Investment Activity, Risk/Reward Scatterplot, and Performance History. Note: The ending date for this report cannot be more than one year prior to the current date. In addition, the time period for your Hypothetical Illustration must be at least 3 years for the Risk/Reward Scatterplot to generate on this report.
Portfolio X-Ray - The Portfolio X-Ray is the most straightforward way to communicate a portfolio's overall investment strategy to your clients. It boils down vast amounts of investment information into a clear, concise summary that can be grasped at a glance.
Price and Distribution Report - This report shows you detailed information on a security's historical price change, as well as income/dividend distributions and capital gain payouts.
Rolling Returns - The Rolling Period Return graph offers a way to show the benefits of long-term investing. By highlighting the volatility of short-term movements in returns and contrasting them with the relative stability of longer-term movements, investors can see convincing results for riding out a fund's rougher periods.
The report is composed of “rolling periods” of length chosen by the user (3, 6, 12, 36, 60, or 120 month). Each subsequent rolling period starts one month after the previous. For example, 3-month rolling periods for an illustration starting in January would be comprised as follows:
Period 1: January, February, March
Period 2: February, March, April
Period 3: March, April, May
Each rolling period corresponds to one bar on the graph. The time period of the graph corresponds to the time period selected for the illustration.
Stock Intersection - This report shows the 50 largest individual stock holdings in the portfolio, clearly displaying overlap between the same holdings in multiple funds. Note: The ending date for this report cannot be more than one year prior to the current date.
Disclosure Materials - By default, the appropriate disclosure materials for each selected report are included with your final report.
Settings
Report Language, Release Date, Date Format, Font Size - Any changes made to these settings only affect the immediate report. To change the defaults for these, select the Update Preferences button from the top menu.
See Also
Hypothetical Illustration Report Definitions