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Lesson 7.6 - How Do I Create and Share Allocation Models?

inStream uses a model based approach to investments. You plug in the asset class weights of the model and inStream spits out the historical average return and standard deviation of that portfolio (which you can change if you want to). in In the Administrator role, you can create allocation models for your firm.

Once you have logged in;

1. Click Settings from the top navigation bar
2. Go to Allocation Models in the side bar
3. Click Add New Allocation

4. Name the Allocation model.

5. Enter the appropriate asset class weights. Remember to make sure that everything adds up to 100% inStream won't allow you to save a model that doesn't have 100% weight. Sorry, no margin accounts or shorting allowed.

6. If you would like to enter custom risk and return values for this model, simply click on the Use Custom Values checkbox. Remember, the return number is an average, as opposed to an annualized, return. If you would like a refresher on the difference between these two numbers, please see our The Difference Between Annualized and Average Returns article.

7. The last variable to set is the Portfolio Expense Ratio. All of our risk and return assumptions are based on index returns, so they do not incorporate the expenses from actual investment vehicles.

Finally, click Save. Now anyone within your firm will be able to use the model you created in their plans.

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