Enhanced features in the Portfolio Manager

Portfolio Asset Allocation Pie Charts based on cost and value

This page displays pie charts that show you how your account is allocated either by individual stocks or by industry groups. You can easily see how heavily weighted you are in a particular stock or industry group and you can easily make comparisons such as value vs. risk for the different securities in a portfolio. Pie charts can display the relative weights of up to 20 different stocks or industry groups.

The Asset Allocation page displays two pie charts. Each of these charts shows you how the account is allocated according to one of the following parameters:

  • Value – current value
  • Cost – original cost
  • Risk – amount of risk associated with each security or industry group (measured by standard deviation of price) In addition, you can choose what you want the different colored sections of the chart to represent. Your choices are:
  • Portfolio – Each section represents an individual security (cash can also be shown)
  • Group or Sector – Each section represents a group or sector

    To change pie chart settings:

    1. Display the Asset Allocation page by clicking on its tab. Right click on this page and a window titled Property Sheet will appear with the Pie Charts tab selected.
    2. In the Source section, select one of the three options: Portfolio, Group, or Sector. If you choose Group or Sector, you must also use the adjacent list box to select the group/sector list that you want to use. This list determines the industry group into which each stock in the account is placed.
    3. From the two lower sections (First and Second) choose an allocation parameter (explained above) for each of the two pie charts.
    4. Click OK to confirm your settings and close the Property Sheet.

    To change pie chart colors:

    1. Display the Pie Charts page by clicking on its tab.
    2. Right click anywhere on this page and the window titled Property Sheet will appear.
    3. Click on the tab labeled Pie Chart Colors.
    4. The page that appears displays 20 small colored boxes arranged in a circle. The color that will be used for the first section of the chart is the one at 12 o’clock. The colors for the sections that follow are shown in clockwise order. To change any color, click on the colored box. The Color dialog box will appear.
    5. Use the Color dialog box to find the color you want and click OK.
    6. When you have completed all of your changes, click OK to confirm changes and close the Property Sheet.

    New Performance Analysis, including up to 5 benchmarks.

    New Risk Analysis with Annualized IRR, Sigma, Sharpe Ratio, Treynor Ratio, Alpha, Beta and R-Squared on up to 5 benchmarks

    The internal rate of return (IRR) is a useful measure of the performance of an investment portfolio. For investments such as a stock portfolio that produce varying cash flows over time, the IRR is defined as the discount rate that when applied to all cash flows results in a net present value of zero.

    To change the IRR figures shown on the Risk Analysis page to annualized returns:

    1. Right click on the Risk Analysis page. A window titled Property Sheet will appear.
    2. The tab labeled Return/Statistics will be displayed.
    3. The option box located between the Time Period section and the Risk Free Rate section is titled Annualize Returns. Check this box to specify annualized returns.
    4. Click OK to confirm the change and close the Property Sheet.

    Two factors needed for the computation of IRR are the periodicity (time period) and the total time interval. Both of these can be changed. Time Period is selected from the Return Statistics tab of the Property Sheet. Time interval is taken from the value specified for the graph time interval which is entered on the Graph tab of the Property Sheet.

    To specify the time period used for computing IRR:

    1. Open the Return/Statistics tab of the Property Sheet.
    2. From Time Period section, select one of the four options:
  • Weekly
  • Monthly
  • Quarterly
  • Annually
    3. Click OK.

    To specify the time interval used for computing IRR:

    1. Right click on the Risk Analysis page to display the Property Sheet window.
    2. Select the Graph tab from the top of the window.
    3. At the top of the page, choose one of the following options:
  • Maximum days In the adjacent text box, enter the number of days you want plotted.
  • Date Range In the two adjacent text boxes, enter start and end dates for the data plotted.
    4. Click OK to close the Property Sheet.

    Test a short strategy, test a weekly strategy or test a real-time strategy in portfolio simulator

    When setting up a simulation under Account, New, Simulation. In the Edit strategy area and the Time Interval tab you can now specify if this is a short strategy or real-time strategy or on weekly data.

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