Smart Symbols can be created by an advisor for holdings unrecognized by the software.
SmartRisk uses information from the ticker symbol or individual holding to run a the 99.5% expected tail loss (ETL) of a proprietary heavy-tail model or distribution. Loosely speaking, it's the average of the worst 0.5% returns of the portfolio. If you import holdings with un-recognized symbols (e.g., non-traded assets or individual bonds), SmartRisk and Income InSight allows the use of “Smart Symbols.” If you have SmartRisk and/or Income InSight, you are able to make a substitution on your clients’ portfolios from an unrecognized symbol to a Smart Symbol, giving you and your clients a better view of their investment risk. The software will remember this Smart Symbol the next time you input the unrecognized holding.
In the great majority of the cases, this allows for a more precise estimation of portfolio risk. There may be cases where an advisor is justified to feel that this would not be the best method, for example, for a mutual fund with a very short trading history. In these cases, we recommend that the user uses his/her own discretion. We’ve made it easy to replace a holding with another holding with similar risk characteristics. For example, if you have a brand-new ETF that tracks the SP500, you could consider replacing that holding with SPY. Using Smart Symbols should get you a close approximation, without having to produce an incomplete analysis.
To access Smart Symbols, log into the Covisum portal: https://portal.covisum.com/. Scroll down to Portfolio Assumptions and click on Smart Symbols.
If you have not created any Smart Symbols, you’ll see this screen.
To add a new Smart Symbol, click the add new button. From here, you can enter in your Smart Symbol and map it to a holding or select a default holding. Click save mapping and your Smart Symbol is saved.
You can add or delete Smart Symbols at any time from this page.