How to Customize Capital Market Assumptions?

The default Capital Market Assumptions (CMAs) in Advizr are used to calculate the weighted average return of an account, and used in the monte carlo simulation. The default set of CMAs can be found in settings > CMAs.

  • How do I customize the CMAs?

    • To edit the CMAs go to Settings > CMAs > click "Edit CMAs."

 

  • Select Your Asset Classes

    • Highlight the asset classes that you would like to include/exclude, and click the arrow icon.
    • Please note there are 10 asset classes that are required to be included. These asset classes are used to map accounts linked through Quovo.
    • The Required Asset Classes:

      Cash

      Government Bonds

      US Fixed Income

      High Yield Bonds

      Intl Fixed Income

      US Large Cap

      US Mid Cap

      US Small Cap

      Intl Equities

      Alternatives / REIT

  • To Create Custom Asset Classes

    • Select as many "Custom Asset Class x" as you would like to create.
    • For example, if I would like to create 3 custom Asset Classes, I would select "Custom Asset Class 1, Custom Asset Class 2, Custom Asset Class 3" and add them to the "Included Asset Classes list on the left.
    • You will be able to edit the name in the next step.

  • Name Custom Asset Classes

    • Name the Custom Asset Classes.

  • Set Returns and Volatilities

    • The custom asset classes will be blank.
    • Scroll down to the custom asset classes, and enter an average return and volatility. 

*Please note leaving the setup page will result in any progress being lost.

  • Import Correlation Matrix

    • Download the CSV template for Correlation Matrix.
    • Follow the instructions carefully, the CSV will be rejected if any changes to the structure of the document have been made.

  • Error Message:

    • Correlation matrix validation error: The supplied matrix is not a correlation matrix: it is not positive definite.
  • Success:

    • After successfully importing your Correlation Matrix, click "Next." 

  • Review Your Custom CMAs

    • Take this time to review your new custom capital market assumptions. 

*Please note the ability to customize CMAs is only available to users that have access to firm level settings.