The Down Market stress test is modeled on the assumptions made within the Asset Classes tab, under the Portfolio Assumptions section, on the Income InSight home page.
The Asset Classes are the following:
- US Stock SPDR S&P 500 ETF
- Bonds Vanguard Total Bond Market Index Fund
- Real Estate Vanguard Real Estate Index Fund ETF
- Metals SPDR Gold Shares
- Foreign Stock iShares MSCI EAFE ETF
In the highlighted instance below, assets mapped to US Stock in the Stress Test would be based on the Down Market performance as outlined.
With SmartRisk in addition to Income InSight, the down-market will be based on "heavy tailed" methodology used in the SmartRisk analysis and be based on the actual portfolios entered for the client. Ultimately, the value added by adding client specific investment and portfolio data is worth the effort to obtain it, and again, RedTail importation of data is available.