Returns are Calculated Using Dividend Yields and Daily Price Changes
SmartRisk runs a heavy-tailed statistical assessment with data dating back to 2006 to provide clients with a risk analysis and a true measurement of the diversification of their portfolio. The correlation between equities and bonds has increased considerably since the financial crisis that began in 2008. SmartRisk can help your clients achieve the diversification they need compared to their desired risk level. It will also provide a fee comparison to similar assets.
SmartRisk is an analytic model based on historic pricing. It is indictive, but it is not a predictive model, or “expected return” model. That said, pricing information is updated after the close of market each day, and it will update the client portfolio analysis accordingly when a new download occurs. The trading history will also provide a good indication of investment activity and value.
Returns will be calculated based on current information such as dividend yields and daily price changes. Potential capital gains or losses on stocks, bonds, and mutual funds cannot be predicted, thus an “expected return” can only be based on historic data and one’s market expectations.