Performance Benchmarks: Setup and Configuration

Performance Benchmarks: Setup and Configuration

AdvisorEngine partners with S&P©, Morgan Stanley Capital International© and Bloomberg© to provide widely-used industry standard comparative benchmarks.

Authorized persons can administer their comparative performance benchmarks by navigating to Grow Practice > Customization > Performance.

All firms are assigned three starter benchmarks as their first Total Performance benchmarks. These are the S&P 500©, the MSCI Eafe Index©, and the Bloomberg U.S. Aggregate Bond Index©.

Advisors can define any number of benchmarks.

NOTE: By default all accounts report performance based on net of fees. This can be changed to gross of fees on any account, client, or household.
  • Up to three can be designated as default Total Performance benchmarks. These appear in all locations that Performance data is is displayed, including the client profile Performance tab, the Client Portal, and Report Package PDFs if configured.
  • Advisors can also assign one benchmark to each Model. The benchmark will appear for any Account, Client, or Household where the Household is using the Model.
  • Advisors can also assign one additional benchmark directly to any Household.

Any overlap in the above configuration will be discarded in the final dispaly; a benchmark will not appear twice in any reporting.

Note: Performance reporting only applies to Managed Assets (see Managed and Non-Managed Asset Functionality). If an asset is set to non-managed, it is treated as if it was always non-managed (no performance data will display). If an asset is set to managed, it is treated as if it was always managed (all the performance is calculated back to account inception).

Enabling Benchmarks

Benchmarks are managed from Grow Practice > Customization > Performance. At the top right of the landing screen is the Enabled control. If set to the Disabled position, benchmark displays on are fully suppressed on the client profile Performance tab, the Client Portal, and Report Package PDFs.

Example of enabled vs disabled on the Performance History sub-tab:

Performance Settings

Click Performance Settings in the upper right to access the following controls:

Start performance on date of first purchase

The system won’t start to calculate performance history for new accounts until the first day it encounters a Buy transaction. If disabled, performance starts on account open date.

Display Benchmarks on Client Portal and Report Packages

If Benchmarking is enabled and this control is also enabled, benchmarking performance data will show on the client portal and also on report packages. This can be repressed in individual report packages if desired.

Viewing Existing Benchmarks

Benchmarks are managed from Grow Practice > Customization > Performance. All defined benchmarks are displayed, starting with the designated Total Performance benchmarks.

Other benchmarks that have been created are displayed beneath. These can be assigned to Models, assigned to Households, or reserved for future use. They can also be swapped in to replace existing Total Performance benchmarks.

Adding New Benchmarks

New benchmarks can be defined by clicking + Add New in the upper left. A new dialog opens to lead you through the process.

1. Assign to Slot

Use the Assign to Slot drop-down to indicate if this new benchmark will occupy one of the three available Total Performance slots or be left unassigned. Benchmarks can be rearranged at any time. If you select a Total Performance slot, any existing benchmark in that slot will be set to unassigned.

2. Name the Benchmark

Enter an appropriately descriptive title in the Give this Benchmark a Name field.

Note: At present special symbols such as “(” and “/” are not accepted in new benchmarks. This will be expanded in a coming upgrade to accept special symbols.

3. Add Building Blocks

A benchmark is a fixed-blend basket of components. There can be just one component (for instance, the default S&P 500 index consists of 100% Standard & Poors 500 Price Return), or any number of components you choose. Most benchmarks consist of one or more classic industry indexes such as the S&P 500, but you also have the option to use any extant security as a benchmark component.

Use the Search for an Index or Security box to locate specific desired components. To incorporate a classic index into your benchmark, use the View Available Indices drop-down. This shows a list of all classic indices already available for your use. Select the desired component to add it to the Search box.

Once the Index or Security is located, click to add it to the benchmark. If you wish to create a blended benchmark with more than one component, repeat this process.

Caution: Using Securities as benchmark components is released in beta mode only. Effects of splits and dividend declarations are not reflected on the performance of index components that are securities. Price history for index components that are securities may not be complete for all periods.

4. Set the Weighting

The selected component(s) appear above the selection area with the percentage weighting of each. If you have only one component, this will be set to 100% and you can move on to the next section.

For benchmarks with multiple components, enter the percent weighting desired for each component. The end total must be 100%.

5. Save Benchmark

When all settings are complete, click Save Benchmark to continue. You are asked to review your changes. If they are correct, click Save Changes. You are returned to the Grow Practice > Customization > Performance tab with all changes implemented.

Modifying or Deleting Benchmarks

Use the control at the end of a benchmark line to reassign, edit, or delete a benchmark.

Assigning Benchmarks

To move an unassigned benchmark to a Total Performance slot, click > Assign and select the Total Performance slot to put the Unassigned benchmark.

Editing Benchmarks

To change any settings of a benchmark, click > Edit on the benchmark line. The Edit Benchmark dialog opens. All the settings are identical to adding a benchmark the first time. See above if needed for editing options.

Deleting Benchmarks

Any benchmark can be deleted by clicking > Delete on the right side of the benchmark line. You will be asked to confirm the deletion. This cannot be undone.

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