Asset Allocation options
Both NaviPlan Standard and NaviPlan Extended are available with two asset allocation options:
- User-defined asset allocation
- Ibbotson Associates asset allocation
In either option, the asset allocation module in NaviPlan is fully-integrated with the rest of the application, so results are reflected throughout the plan.
User-defined asset allocation
Create your own model portfolios and asset classes, and set the corresponding return rates for each. These default settings are used throughout the plan to produce asset class weightings and projected return rates for accounts.
Ibbotson Associates asset allocation
The following Ibbotson Associates components are imbedded in NaviPlan, and are used to produce portfolio recommendations.
- Risk tolerance questionnaire and scoring model - determine client's risk tolerance and recommend an appropriate asset mix
- Model portfolios - obtain an asset mix for each of five risk levels
- Security classifier - evaluate a current or proposed portfolio of investments by classifying individual securities and then rolling up into an overall asset mix
- Mean-variance optimizer - find an optimal asset mix, and then compare with a client's current mix by looking at risk and return, or forecasts
For information about Ibbotson Associates, visit the Ibbotson Associates Alliance company page .
