StyleADVISOR

Creating and Updating an analysis

How do I get my workbooks to update automatically?

Select Edit/Edit Analysis Parameters and go to the Parameters tab. If you select "Latest Date" under "Ends:", the workbook will update to match your available returns. Please note that if you have defined different dates or window sizes for specific charts, you may need to also set the ending date for those charts.

Why won't my workbook allow me to choose the most recent date?

StyleADVISOR looks at the date range for the managers, the benchmark, the cash equivalent, and the components of the style benchmark (Indices) to calculate available starting and ending dates. If you are sure that the manager's returns are current, running an index update will generally fix the problem. If not, be sure to check for any custom indices or benchmarks.

How do I create blends of managers or indexes?

Blends (or composites or funds) are built by clicking on "File" then "Series/Fund/Style Basis". Select the Funds/Fund Definitions in Home Directory Database. Click on "New" to see the Edit Fund dialog. Give the fund a short name (up to eight characters using the 36 alphanumeric characters) and a detailed description. Next select "Assets" and choose the components of your blend. Click on "OK" to return to the Edit Fund dialog. Next, select a begin date and a rebalance method and give the assets their appropriate weights. Please note that you may have to click on "Assets" again if the file names are too cryptic to see what column is what asset.

Click here for more information about Funds. This is Section 8.1 of the StyleADVISOR manual. To download the entire manual, go to the link at the bottom of this page.

How do I create custom peer groups?

Peer groups, or universes, can be created using the Manager Search task or by selecting Custom Universe/Select Universe in the Universe area of the Analysis Information dialog and then querying databases. More detail is available in the article, "Master of the Universe" on the Research page of www.styleadvisor.com. Click here to go to the article.

Why don't some of my graphs change when I change the analysis parameters?

There are two levels of parameters (managers, benchmarks, dates, etc.). When you first create a workbook, the initial parameters you select are the Workbook Parameters. These parameters are used for all of the graphs and tables in the workbook. You can also select unique parameters for an individual chart or graph. If you right click on a chart and select Analysis Parameters, whatever changes you make will override the corresponding workbook parameters. These new parameters are called Chart Parameters.

You can revert individual charts to workbook parameters from the right click dialog, or you can revert all charts to the workbook parameters from the Edit drop-down. However, be aware that you may lose elements that you want to keep (such as different managers for different charts).

How do I create a custom page?

Start with a blank page by inserting a page into a workbook, or start with a blank workbook. Bring up the gallery by selecting View/Gallery. When you move the cursor to the edge of the workspace (the white area) it will turn into an arrow. Left click and drag to the opposite side to create a pane in the window. To place graphs or tables into the panes, just drag and drop from the gallery. For step-by step instructions, click here to see Section 4.1 of the StyleADVISOR manual. To download the entire manual, go to the link at the bottom of this page.

Why doesn't your Alpha number match my excess return?

Mathematically, Alpha and Beta are obtained by fitting a straight line to the points in a scatter plot of the manager's returns and the benchmark's return. Beta is the slope of the line and Alpha is the y-intercept. There are several things to consider when comparing Alpha to excess returns.

First, Alpha is a Beta adjusted excess return - the slope of the line affects the point of the y-intercept. When Beta strays from 1.00, the excess returns are adjusted to obtain Alpha. Second, the r-squared to the benchmark is important. If you have a Beta close to 1.00 but a poor r-squared, your returns are widely scattered and a more appropriate benchmark should be selected.

Finally, even with a Beta of 1.00 and an r-squared of 100.00, Alpha and excess return will vary somewhat. The excess return number has the effects of compounding while the Alpha number does not. Click here for more information about how alpha is calculated in StyleADVISOR.

Why doesn't your Alpha number match another source?

StyleADVISOR's Alpha is an annualized. Some sources call this "Jensen's Alpha." Also, except for the Style Table, the returns of the risk free rate (the cash equivalent) are subtracted from both the manager's returns and the benchmark's returns before Beta or Alpha are calculated. Click here for more information about how alpha is calculated in StyleADVISOR.