Overriding Risk and Return FinMason Assumptions

Overriding Risk and Return FinMason Assumptions

AdvisorEngine has partnered with FinMason to provide firms with factor-based analysis to produce risk and return numbers for the individual securities held in investor accounts and client-recommended models. One of the advantages of factor analysis is that securities can be broken down into their individual drivers of return to get a more accurate picture of the overall risk and return of the securities.

FinMason keeps the risk and return projections associated with the set of factors up to date based on their capital market assumption set. You can learn more about this process in the FinMason Field Guide. However, if a firm would like to use their own risk and return projections for the factors, they may do so.

Overriding FinMason Risk/Return

  1. Navigate to Grow Practice > Customization > Factor Overrides.
  2. Locate the Factor you want to change and click Projections under the Action column.
  3. To change the FinMason provided default, uncheck Confirm Use of Default and enter the desired percentage.
    • Annual return displays on the Client Portal as Return.
    • Standard deviation displays on the Client Portal as Risk.
  4. Click Save Changes to commit any changes made.

Models will display the new calculated Risk and Return numbers both in the Portfolio Manager and Client Portal in their respective areas.

NOTE: The Factors themselves and their correlation to Instruments cannot be edited or overwritten.

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