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Core Value and Benchmark Report Explained
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Gain/Loss By Investor Report Explained
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Core Value and Benchmark Report Explained

The Core Value and Benchmark Report allows you to graph the total portfolio value over any selected time period. On top of this graph, you can overlay up to two benchmarks from a choice of over 40 (e.g., the S&P500, Dow Jones Industrial Average and the Lehman Corporate Bond Index) or you can even use your own custom Composites. With this crisp, color-coded line graph, your clients will be able to see a visual display of their holdings against the index, and have a better understanding of relative performance.

How To Use This Report
There are three ways to assign benchmarks, each with a slightly different approach. Use whichever suits your specific needs:

1. Global/Default
The simplest way to use this report is set a universal benchmark against which all of your clients' reports will run. Most advisors who elect this option typically choose a well-known benchmark like the S&P 500 or Dow Jones Industrial Average.

To set Global/Default go to the Administration link in your Control Center. Click on the "Benchmark" tab at the top of the screen. The first line is the Global Default. You can keep it as "None" or use the drop-down menu to select one or two benchmarks against which all of your clients' reports will be compared. Click "Submit" to lock-in your choice. Then, you will be able to run the report for any client from within the "Reports" area.

2. Portfolio-Specific
If you want to establish benchmarks for a specific portfolio you can do so using "New Portfolio" or, for existing portfolios, using the "Edit Portfolio" link. In either, Step 3 allows you to select up to two benchmarks. Any selections made here will override your global index setting, for this portfolio only.

For those of you who have already created several client portfolios and would prefer to edit them all at once, a central editing screen has been created to help make this a realitively simple process. Click on the "Administration" link, then select the "Benchmark" tab. At the bottom of the page, you will find a link called "Portfolios Without Assigned Benchmarks." This will bring you to a list of all the portfolios you have already created. Click the "Edit" link next to each portfolio to make your benchmark assignment.

3. Composite Benchmarks
For your more sophisticated clients you can blend up to 20 benchmarks together into one custom Composite Benchmark. To create a Composite, click on the "Administration" link, then select the "Benchmark" tab and then click the "Create Composite Benchmark" link. Select your benchmarks and the weight of each. All your selections weightings must add up to 100% for creation to work. Once created, use the "New Portfolio" or "Edit Portfolio" links (discussed in Step 2 above) to assign the composites to the appropriate portfolios. You will only have to do this once.

The Graph Is Plotted Against Your Actual Portfolio Value
Rather than just being pegged to some arbitrary number, like $10,000 or $1, it provides you with a much more personalized and portfolio-specific graph, and one that actually mirrors the client's investment, complete with parallel inflows and outflows.

You Can Benchmark Your Consolidated Portfolio Over Any Time Period
This provides you with the utmost in flexibility, and lets you establish Benchmarks that best match your clients' specific needs.

Daily Time-Weighted Performance Measurements Appear Below The Chart
These measurements follow specific AIMR reporting guidelines.

Some Questions You Or Your Clients Might Ask

1. The S&P 500 was down 2% over the period, yet I see on the report that the S&P 500 graph line goes up over that same period, why is that?
Remember that, in order to make a Portfolio Holdings Value Report, the benchmarks must be bought into (buys) or sold out of (sells) with the same cash flows that went in or out of the actual portfolio. This is the only way to make a fair apples-to-apples comparison. So, even if the S&P 500 went down 2%, if you actually put money into your Portfolio over that same time period, the line will, in fact, go up. Of course, your 2% still came out of the total movement within the portfolio over that period.

2. The S&P 500 Rate of Return on the legend of the report appears different from the one in the newspaper, how can that be?
Your actual Benchmark Report is cash-flow adjusted by your specific buy and sell decisions into your portfolio. By virtue of the daily time-weighted performance reporting utilized in these Benchmark Reports (vs. the newspapers' "straight line" method), there will be a difference between the two. You should explain to your client that, in order to make an apples to apples comparison between your portfolio and the Benchmark indices, the timing and dollar values of your specific buy and sell decisions has been applied to both.

3. Can I show this report without any benchmarks?
Yes, if you select your Global/Default as "None" and you have not yet taken the time to specifically assign a benchmark to a portfolio, then the report will only display the portfolio change. Hint: If you're not comfortable with the Benchmark aspect of this report, using the "None" option is a great way to still make use of this powerful report.

4. Can I suppress the legend which displays the interval data?
Yes, In the "Administration" section, under the "Benchmark" tab, select the "Yes" answer to the question "Show Only Summary Line in Report Legend?" question. Click on "Submit," and you will display only the graph (no Legend detail data) in your Benchmark reports.

5. I ran the report for a client and there appears to be a big "dip" for a single period that doesn't seem to correspond to the actual value for a particular point in time, why did this happen?
On a rare occasion, the buy and sell transfer of funds between assets or accounts does not occur simultaneously. This can cause an apparent reduction if one of those days happens to fall on a reporting interval. This is, of course, a reflection of when and how data is received from certain custodians. Although this is a very rare occurrence, be aware of the possibility so that you can answer any questions which might arise as a result of it.