An efficient, effective tool to better connect portfolios to client objectives

Portfolio Compass enables you to easily and confidently identify robust asset allocations that can deliver on required investment objectives. Developed in association with Evergreen Consultants, Portfolio Compass is efficient, highly intuitive, visual, and cost effective.

You can rapidly analyse the risk and return characteristics of a portfolio’s existing asset allocation to test whether is likely to efficiently meet its investment objectives (and, if not, analyse options to adjust the asset allocation); create and monitor customised asset allocations for individual clients; and, set practice-wide asset allocations based on your firm’s investment philosophy and client risk profiles. The highly visual interface enhances transparency and clarity of communication with clients about their portfolios.

Portfolio Compass will deepen your understanding and control of the most important part of the investment process – the asset allocation of a portfolio.

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Portfolio Compass is a joint initiative of Evergreen Consultants and Portfolio Construction Forum.

Evergreen Consultants is a leading independent boutique investment consulting firm. Founded in 2016, and 100% independently owned, Evergreen Consultants collaborates with financial advisory firms, families, foundations and not-for-profits to deliver an exceptional investment experience for investors, while enhancing business efficiency and flexibility.

Portfolio Construction Forum is the specialist, independent, investment continuing education, accreditation and certification service for Australian and NZ investment and wealth professionals. We provide a curriculum of live and on-demand content – at the heart of which is our multi-media library – curated for the community of professionals involved in constructing or giving advice on multi-asset, multi-manager portfolios. The Forum enables better quality portfolio construction knowledge and competence for practitioners, to help them improve the financial wellbeing of individuals.

Portfolio Compass is relevant for investment and wealth management practitioners (institutional or wholesale) who are engaged in designing, building and/or advising on multi-asset, multi-manager portfolios including:

• investment advisers giving investment advice on multi-manager, multi-asset funds to individual investors;
• fund researchers;
• investment consultants consulting on multi-asset, multi-manager portfolios;
• portfolio managers designing, building and managing multi-manager investment portfolios; and/or,
• members of investment committees that oversee multi-asset, multi-manager portfolios and/or funds.

And it is an invaluable tool for managed fund providers who wish to better demonstrate how specific asset classes can benefit portfolio design.

Portfolio Compass is available by subscription, exclusively through Portfolio Construction Forum. The tool’s highly visual interface enhances transparency and clarity in client communications, fostering trust and alignment with client expectations.

With the click of a button, you can nominate the portfolio’s:

• growth/defensive asset split;
• specific asset classes and indices, and weights for each
• forecast data - historical index performance, Evergreen 10-year asset class forecasts, or your own forecasts;
• parameters to optimise - return, volatility, Sharpe Ratio, objective, return for risk, risk for return; and,
• objective - CPI+, Cash+, or a return percentage.

Portfolio Compass then provides three simple, powerful tools to help you better understand and control of the asset allocation of a portfolio:

• Portfolio Optimiser – this simple, powerful tool helps you to generate optimal portfolios based on investor’s return objectives and risk tolerance, and/or test and improve the asset allocation efficiency of existing portfolios, to provide tailored solutions that spread and mitigate risk. The client-friendly report highlights: the chance that the portfolio will meet its objectives; the estimated number of negative returns over any 20-year period; the risk level of the portfolio; its expected return, volatility and Sharpe Ratio; and compares the portfolios current asset allocation with the optimal asset allocation to achieve the portfolio’s desired objectives.

• Monte Carlo Simulation – this probabilistic tool offers you and your client a window into the future performance of a portfolio to provide an understanding of its expected return and volatility and therefore, financial outcomes. The simple, visual report shows: the chance that the portfolio will meet its objectives; the estimated number of negative returns over any 20-year period; the risk level of the portfolio; its expected return, volatility; and the distribution of portfolio values over the chosen time period.

• Equity Equivalent Exposure – this provides an alternative view of the risk of a portfolio, measuring the risk across all the asset classes in the portfolio in terms of an equivalent equity beta or market risk. While EEE echoes the growth defensive split of a portfolio, EEE stands out as a risk measure rather than merely an exposure metric.

Portfolio Compass is available to AFS licensees, representatives of licensees, and Sophisticated Investors by annual subscription, payable by credit card. Once payment has been processed, you will automatically receive an invoice for your records.

By using the link below to subscribe to Portfolio Compass, you agree you have read, understood and agree to be bound by the Portfolio Compass Terms and Conditions.

• Individual subscription:  $295+GST per annum  Subscribe now