Investment Portfolio Design, A Few Situations

A Few Situations

The following is presented from the perspective of the investment advisor. The same situations apply for the individual investor who manages his or her own investment capital.

After you have gone through the setup process.....

Create an Allocation Table Matrix to define the scope and boundaries of an investment universe made up of any number, selection, combination, and weighting of user defined and selected investment sectors for different investor investment profiles to set how capital will be initially allocated to up to 25 different Allocation Table Matrix intercepts.

Each matrix intercept is composed of user defined and and weighted investment sectors that reflect different investor investment profiles; risk tolerances and income capital growth objectives.

Create Advisor Databases as model portfolio templates that will be used to populate a linked Allocation Table Matrix with investments by investment sectors and comprised of any number, selection, combination, and weighting of user selected investments.

Click here to see other core reports; starting with an Allocation Table Matrix.

.....Investor's WorkStation will let you be creative while it does most of the work for you.

A few situations (each take just seconds to perform):

For the illustrations below:

Investment Sectors are categorized by investment types or classes; Bonds, Utilities, REITs, Large Cap. Equities, Small Cap Equities, etc.
- You can classify and title Investment Sectors and Investment Categories as you like.
Investment Sectors, Investment Categories and Investments selected @ random.

In general, it can be said that if you can think it, Investor's WorkStation can do it.

Investor has $500,000 to invest:

Choose an Asset Allocation Table Matrix and linked Advisor Database (Model Portfolio).
Enter the amount.
Set cash reserve, if any.
Choose the appropriate matrix intercept that defines the investor's investment profile.
Hit OK.
Your portfolio is created.

Investor already has some mutual funds, bonds, equities, and cash and you want to gradually shift capital to one of your model portfolios:

Enter or download the investor's current portfolio.
Click on Blend Portfolios.
Choose an Asset Allocation Table Matrix and linked Advisor Database.
Select the investor's existing portfolio to be blended.
Hit OK.
The two portfolios are initially blended by a single keystroke.
Enter each Investment Sector Window of the initial portfolio blend.
Delete the investor's current investments you want 100% sold.
Leave alone investor's current investments you want 100% held.
Weight to allocate; weight investor's current investments with your selected Advisor Database investments within each Investment Sector that you want to be included in the allocation process. The investments in each Investment Sector must add up to 100%.
Sell proceeds are included and calculated in the allocation process.
New average costs, if any, are calculated.
Hit OK.
Your portfolio is created.

Investor already has an investment that you already have included and weighted in your Advisor Database:

The program automatically replaces your weighted investment position with the investor's current position.
You can leave it alone, sell all of it, or simply weight it as you wish.
Investor's WorkStation will calculate the amount that has to be bought, held, or sold, if any.
Net sell proceeds with be applied with initial capital as part of the portfolio allocation.
Hit OK.
Your portfolio is created.

Investor has an investment(s) that is in a different investment sector than the ones you have chosen as being appropriate in an Allocation Table Matrix and linked Advisor Database:

Just before you allocate capital, the added Investment Sector will appear with a zero weighting along with all of the user selected and weighted Investment Sectors as defined by the selected Allocation Table Matrix..
The zero weighting for the added Investment Sector is telling you that you have an investor investment(s) in an Investment Sector that falls outside of your Asset Allocation Matrix and linked Advisor Database.
If you want to hold the investment(s) in the added Investment Sector, leave the Investment Sector and the Investment(s) alone.
If you want to sell all of an investment(s) in the added Investment Sector, simply enter the added Investment Sector window and delete the investment(s).
If you want the investment(s) to be part of the allocation process, enter the added Investment Sector Window and weight the investments in it in the same manner as Advisor Database investments by Investment Sectors and can change the weightings of all of the Investment Sectors (original and added) just so they add up to 100%.
Investor's WorkStation will make that adjustment for this allocation only.
Hit Apply.
All buys, sells, and holds are calculated.
A new blended, allocated portfolio is instantly created.

You want to accumulate positions in a portfolio over a period of time.

Enter the total amount of capital to be invested over a period of time at the Allocation Wizard.
Set cash reserve.
Allocate the initial investment dollars.
The portfolio, with a buy/sell hold report, will be created.
Revisit the portfolio for subsequent allocations and reduce the amount of cash reserve and allocate the portfolio again to accumulate more investments.
Continue the process until the desired amount of capital is invested.
If you prefer, copy the existing portfolio with a single keystroke, make modifications to the new iteration, and create a Buy/Sell/Hold report.
If you change your mind, simply delete the copy and start over.
Quantities and average costs will be calculated as you proceed through the process.

You want to show a client/investor variations of a model portfolio reflecting different investor investment profiles (different combinations of income/capital growth and levels of investment risk) as part of a discussion to determine which portfolio would be most suitable.

Open and title an account
Select an Advisor Database.
Enter capital
Select one investment profile.
Click Apply
The portfolio is complete.
Select another investment profile and repeat the process and then compare portfolio contents and dividend schedules.

Time passes on and prices of the portfolio investments have changed. Some investments are now over and/or underweighted. You want the portfolio to have the original investment weightings:

Select the portfolio(s) to be Rebalanced; individual, selected, or global investment portfolios.
Or, unmark portfolios not to be included in a global Rebalance.
Hit Apply.
Investor’s WorkStation will automatically "copy" the portfolios to be Rebalanced and create new Rebalanced portfolios.
A consolidated Block Trade report will detail by investment the account name, account number, portfolio title, quantity, price, and total cost in a Buy/Sell/Hold format with total shares and total cost.
The total Buy/Sell/ Hold dollars ($) will show at the end of the Block Trade report to verify that total Buy and Sell dollars are equal.
Call in trades or create a modifiable trade export file with a single click of your mouse.
Exported trades may be imported and costs entered automatically.
Done in seconds.

You want to Rebalance portfolios, but you would prefer to continue to keep more capital with some of the better performing and now overweighted investment sectors and/or investments.

Go to the Advisor Database and linked Allocation Table and change the selections, combinations, and weightings of the investment sectors in the Allocation Table Matrix and/or investments in the Advisor Database as desired.
Then, proceed as indicated in the prior situation.

Time passes and you have decided that, due to a change in market conditions, individual, selected, or global investment portfolios should be reallocated by changing various selections, combinations, and weightings of Investment Sectors and underlying Investments; deleting, adding, and/or reweighting.

Modify the selected Allocation Table Matrix to change Investment Sectors.
Modify the linked Advisor Database to change the investments.
Select portfolios to be reallocated; individual, selected, or global investment portfolios.
Hit Apply.
Investor’s WorkStation will automatically "copy" the portfolios to be reallocated and create new reallocated portfolios.
A consolidated Block Trade report will detail by investment the account name, account number, portfolio title, quantity, price, and total cost in a Buy/Sell/Hold format with total shares and total cost.
The total Buy/Sell/ Hold dollars ($) will show at the end of the Block Trade report to verify that total Buy and Sell dollars are equal.
Call in trades or create a modifiable trade export file with a single click of your mouse.
Exported trades may be imported and costs entered automatically.
Done in seconds.

You want to modify a portfolio, but you are not sure of exactly what you want to do.

Select the portfolio.
Click on the Copy icon
A copy of the portfolio is created.
Modify it as you like.
Delete the copy if you want to start over.
When satisfied with your modification, create a Buy/Sell/Hold report and/or a trade export.
Execute the trades.
Replace the original portfolio with the new, modified one.

You want to replace an investment in selected portfolios with a new one:

Open the Block Trade Window.
Enter the buy and sell symbols.
A Window opens showing the current position by account, shares, cost, and gain/loss.
Uncheck any accounts not to be included.
Hit Replace.
The old position is replaced by the new position.
Hit OK.
Your new portfolios are done.
The Block Trade Summary and Detail reports can be created.

You have decided that you want your clients to sell 60% of their IBM and use the proceeds to buy MSFT, to sell 100% of their EK and allocate the proceeds to other investments as weighted in your selected and linked Advisor Database (modifiable Model Portfolio Template by user defined Investment Sectors and underlying Investment Categories composed of any number and combination of underlying weighted investments), to reduce cash in all portfolios by 25% and to allocate that cash to the linked Advisor Database (Model Portfolio), to increase the weighting of Large Cap. Equities in all portfolios that use that investment sector, to eliminate Utilities altogether in all portfolios that hold them (as you feel they are overpriced in general and that the sector will underperform others in the future) to add, weight, and apply the appropriate amount of capital to two added user defined Investment Sectors -Mid. Cap. and Small Cap. Equities- and selected, underlying investments as weighted, to sell all stocks in Large Cap. Equities that are in the Investment Category titled Computer Peripherals, to change the selections and weightings of some underlying investments In REITs and Large Cap. Equities, and, finally, to Rebalance original investments not affected by this operation back to their initial investment weightings; done in a matter of a few minutes.

You also want all affected portfolios to reflect these changes, to have updated portfolios, to have a report showing buys, sells, and holds by portfolio and a total, to retrieve a report summarizing and accounting for the % changes by investment sectors for each portfolio, to create a trade export to execute trades, and to import executed trades to update all portfolio positions and costs.

To make the changes:

Modify the associated Allocation Table Matrix; this will take about five minutes, max.
Modify linked Advisor Database (Model Portfolio Template) used to create the portfolios in question; a minute or two at most.
Click on Reallocate; an instant.
Export the Trade Export; a millisecond.
Print reports.
Import executed trades to update portfolios; in seconds.
Print reports.

You have occasions when investors want to have trading/speculative accounts:

Create a Trading Allocation Table Matrix that will usually have only one matrix intercept populated* with a selected investment sector(s).
Create a Trading Advisor Database (model portfolio) with one or several weighted trading investments that will populate the investment sector(s) in the Trading Allocation table Matrix.
Create a new account.
Select the Trading Advisor Database.
Enter capital, cash reserve if any, click Apply, and the portfolio is done.
Create other trading portfolios for other clients.
Set Price Alerts.
When you want to trade an investment or investments for your trading accounts, go to Block Trade, select the accounts, the percentage to be sold, click OK, and the investments are replaced in their respective trading accounts.
A consolidated Block Trade report will detail by investment the account name, account number, portfolio title, quantity, price, and total cost in a Buy/Sell/Hold format with total shares and total cost.
The total Buy/Sell/ Hold dollars ($) will show at the end of the Block Trade report to verify that total Buy and Sell dollars are equal.
Call in trades or create a modifiable trade export file with a single click of your mouse.
Exported trades may be imported and costs entered automatically.
Done in seconds.
Repeat the process as needed.

*You do not need to allocate capital for different investor investment profiles; they are all doing the same thing, trading, and the only issue is the amount of trading capital for each investor.

More cash, less cash, or change cash level:

Hit Apply.
A new allocated portfolio is complete.

Investor brings in more stock:

Add it to the portfolio.

You also want to allocate the portfolio with the added investor stock per an Asset Allocation Table Matrix and linked Advisor Database:

Enter each Investment Sector.
Weight investments as desired.
Hit Apply.
The new portfolio is done!

Investor changes investment objectives.

Select the portfolio.
Go to Allocate.
Select the new, appropriate Matrix Intercept.
Add cash, if any.
Set new cash reserve, if desired.
Click Apply.
The new portfolio is created with new Dividend Schedule and Buy/Sell/Hold reports.

You want to convert a mutual fund only portfolio to an individual bonds/equities portfolio:

Select the desired Advisor Database with an linked Allocation Table Matrix.
Simply enter the cash value of the mutual fund portfolio or go through the Blend process by deleting all mutual fund investments and the allocate the portfolio.
Hit OK.
Done!

Investor, whose capital you want to manage, wants to know what you would recommend he/she invest in and how much in just one Investment Sector (Large Capitalization Equities), one Investment Category (Biotechnology), and/or one investment strategy (Dow Theory):

Input the amount of capital.
Select the appropriate single investment sector Advisor Database; such as large cap. Dow Dividend Theory.
Hit OK.
Done!
Positions, quantities, costs, and commissions (if desired).

After creating, blending, allocating, rebalancing, or reallocating individual, selected, or global investment portfolios, or after replacing (Block Trade) an investment(s) with other(s), you want to execute trades.

You can create a Buy/Sell/Hold report and manually or verbally enter trades or you can go to Export Trades, modify the trades as desired, and then export the trades to the selected custodian for execution.

You want to update/reconcile custodian portfolios.

Go to Import Portfolios.
Select the Custodian.
Select the files and import individual, selected, or global investment portfolios.
You will be prompted to cost added investments and/or added number of shares for existing investments to the extent Custodian positions are different from Investor's Workstation positions.
This would typically occur for minor reconciliation differences such as investor adds cash, dividends paid, and interest paid.
Portfolios are updated.

A stock splits:

Go to the Master Database.
Select the investment.
Enter the split ratio.
The split is recorded throughout the program.

Investor wants to know how you build portfolios and select investments for your portfolios:

Open Investor's WorkStation and walk the investor through Investor's WorkStation step by step.
Investor's WorkStation will tell your story and tell it very well.

Investor wants to compare performance of old portfolios with changed portfolios. You want to know how prior portfolios would have done if you or the investor had done nothing:

Select the desired new or modified iteration of a portfolio
Select the report.
Hit OK, and you have your information.

You have set Price Alerts for all of your positions:

A Window will automatically pop up showing the accounts, the positions, and the price percentage changes when the price alert percent has been hit or exceeded.

You have set Investment Sector Alerts for all of your positions:

A Window will automatically pop up showing the accounts, investment sector weightings variances when the an investment sector(s) alert percent has been hit or exceeded.

You want to know which accounts have IBM, cost, current value, and gain/loss:

Click on Positions.
Enter the symbol.
Hit OK.
The schedule appears.

You want Relative Strength of Market Indexes and/or Investment Categories for a chosen time period:

Click on Relative Strength.
Enter the time period.
Hit OK.
The schedule appears.

You want to know how an individual portfolio has been doing on a day to day basis; total current market value, Investment Sector total values and weightings since the last price download and individual investment performance since the last price download:

Select the report.
You have your answers.

You want to see how your Advisor Databases have done over a selected time period:

Select the report.
Hit OK.
The report appears.

You want to know how all of a client's portfolios, present and past, have performed from their start dates:

Select the desired new or modified iterations of a portfolio
Select the report.
Hit OK.
The report appears.

You want to give an Advisor Database new starting prices:

Hit "New Start."
Done!

You want to know how investments within a chosen Advisor Database have performed over a selected time period; ascending or descending by price or %, or variance above or below a 30-Day moving average, or by volume, or by the number of price up days, down days, and unchanged days:

Select the report.
Select the time period.
Hit OK.
The report appears.

You want to know how the investments within a chosen investor's portfolio have performed over a selected time period; ascending or descending by price or %, or variance above or below a 10-Day moving average, or by volume, or by the number of price up days, down days, and unchanged days:

Select the report.
Select the time period.
Hit OK.
The report appears.

You want to know how an Advisor Database or an Investment Portfolio has performed by Investment Sector for a selected time period:

Select the report.
Hit OK.
The report appears.

You want the history of a portfolio, date opened, date allocated, buys/sells, etc.:

Go to the portfolio.
Click on History.
The information appears.

Investor wants a report(s).

Select and e-mail report(s)

All of the above are fast, simple, complete, and actually fun and Investor's WorkStation can do much more.

More importantly, you will have and will be in control.

Most importantly, you will be able to advise and invest effectively.

Your clients will be very happy they found you.