EV Interactive Asset Allocator (Q2 2021)
The EV Interactive Asset Allocator is a powerful tool for portfolio design that analyses the expected risk and return and efficiency of a specified mix of assets. It is based on the latest update of the EV asset model and calculates statistics for a portfolio of assets that is rebalanced annually over the investment term.
The analysis will display when the total asset allocation weight is 100%
The EV Interactive Asset Allocator provides you with direct access to the asset model, so you can test your asset allocations against the model’s CMAs
The tool is also a vital compliance resource with many applications, including checking that portfolios with tactical positions overlaid onto optimised SAAs are within designated risk limits.
The tool requires specification of asset weights and the term of the investment. Individual weights must lie in the range of 0 to 100%, and the total portfolio weight must equal 100%. Shorting is not permitted.
Risk and return are defined as the standard deviation and mean, respectively, of the expected growth rate of the specified portfolio on an annualised basis. Efficiency is defined as the ratio of the expected return of the specified portfolio to the expected return of the optimal portfolio with the same level of risk.