Monty Portfolio Assess is an asset allocation risk module. Academic research has shown that asset allocation is the largest driver of investment returns over time and the foundation of an investment strategy. Monty Portfolio Assess provides:
- Asset allocation and portfolio assessment
- Risk profile assessment
- Return profile assessment
Monty Portfolio Assess enables the adviser to assess “where the client is at”. The advisor must simply select from Monty’s fund database, the current funds the client is in, along with the percentage allocation to each fund and Monty will identify the clients’ current asset allocation and compare it to the risk profile. It enables the adviser to make adjustments to the asset allocation to “where the client should be” (for asset allocation, return objective and risk profile) by mapping to the appropriate DFM model portfolio. The client asset allocation is then more aligned to the risk profile and return outcome.
Monty Portfolio Assess helps the adviser to select more appropriate investment portfolios by seeing how different asset class blends impact returns and outcomes. Other useful metrics that Monty Portfolio Assess provides include:
- Identifies the ASISA category of unit trust the client portfolio falls into
- Tells you if blended asset allocation is Regulation 28 compliant
- Applies a risk profile to ASISA unit trust categories using a scale of 1-5.
1. Income (money market, income and bond funds)
2. Conservative (low equity multi asset funds)
3. Moderate (medium equity multi asset)
4. Moderate Aggressive (high equity multi asset)
5. Aggressive (equity only and high growth flexible funds)
- Summary of growth vs non-growth asset classes – this split is the long run driver of return
Ultimately, Monty Portfolio Assess enables the advisor to create and or select a portfolio that better fits the clients’ risk-profile and return target.