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Welcome
to Money Manager Review’s Quick Help Tour |
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Click for Money Manager Review's Quick Step-by-Step Video Tour |
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Introduction |
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Before beginning, keep in mind the following:
First, to ensure browser compatibility, use only Microsoft Internet Explorer.
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Second: If at any time you become lost after you have logged into the
MMR site, you can instantly return to the login start page by clicking on
“My Account” which is in highlighted in red on the upper right
hand corner of your screen. Doing this always takes you back to the Search
Option page. |
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And Last: After opening a pop-up window, always close the window before
opening another pop-up window. If you don’t do this, you next pop-up
window may not appear. |
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Return to Top |
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MMR Search
Options (Start Page) |
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After logging in to the MMR site, the first page is the MMR Search Options
page. You will know if you are logged in if you see your name appearing
in the upper right hand corner. The headings of the start page are Find
Managers, Rank Managers and Watch List (See Illustration #1). |
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(Illustration #1) |
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Under each of the main menu headings (Find Managers, Rank Managers, and
Watch List) are pull-downs shown below (See Illustration #2). Each of these
pull-downs is discussed below in this tutorial. Clicking the Watch List
heading takes you directly to the Watch List page. Here you can name and
create your Watch Lists. Watch Lists are discussed in the Watch List section
below. |
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(Illustration #2) |
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Rank Managers |
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To do a manager ranking, we begin by clicking on Rank Managers found in
the middle of the Search Options page. Click on Rank Managers and from the
pull-down click on Return, Risk and Efficiency (See Illustration #3). |
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(Illustration #3) |
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Next you will be directed to the Return, Risk & Efficiency page. (See
Illustration #4) |
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(Illustration #4) |
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For option #1 the selections is US, Global, International and Emerging-Markets
For option #2 the selections is Equity, Balanced and Fixed Income
For option #3 you can select from a combination of Cap Sizes on the left
side of the table and groups styles on the top. One or more combinations
can be selected. To select all combinations click on the Select/D
eselect all box in the upper right. Note that if you select fixed income
in option #2 the style section changes in option #3. (See Illustration #5)
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(Illustration #5) |
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For option #4 you can select from account minimums, total firm-wide assets
managed annual turnover and product assets managed. Product turnover is
helpful if you have a taxable account and you want to screen for managers
with lower turnover.
For option #5 you can select for wrap managers, socially responsible,
minority owned, AIMR/GIPS compliant, and geographically by state. Click
the Wrap manager box if you want to screen for managers with account minimums
between $100,000 and $250,000. Keep in mind that you will need to contact
the managers to learn which brokerages carry their Wrap programs, fees
and accounts minimums. If you are interested in finding managers within
specific states, you can use the state pull-down to further narrow your
search.
For option #6 you can choose annualized returns for time periods of 1,3,
5,7 and 10 year. You can also rank managers by returns risk or efficiency.
We use standard deviation as a measurement of risk. Efficiency is defined
as the ratio between the manager’s return and risk.
Now let’s do a ranking of US Equity Multi-cap Value managers ranked
by Ten Year annualized returns. (See Illustration #6)
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(Illustration #6) |
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After clicking the submit button our ranking appears on the next page.
(See Illustration #7) |
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(Illustration #7) |
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The first column shows the ranking number, the second column the company
and product name, the third column the account size minimum in thousands,
the fourth column whether Wrap programs are offered, the fifth column shows
the method of reporting, the sixth column whether performances reported
gross or net of fees, the seventh column the annualized return, the eight
column the risk or standard deviation, and the ninth column shows the return
divided by standard deviation, which we also call the efficiency.
Using our number 1 ranked manager, Private Capital Management, we can
learn more about the manager by clicking on “Report”, which
is located next to Private Capital’s products name. A pop-up report
appears. (See Illustration #8)
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(Illustration #8) |
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This Report shows the managers contact information, history, assets, professionals,
personnel, product information, strategy, reporting methods, holdings, fees,
and disclosure. Make sure you use the scroll bar on the right to view all
information in the report. You can also click on the top links of the report
to quickly access any part of the report. Before continuing remember to
close the pop-up by clicking the “X” on me upper right hand
corner of the pop-up window. This takes us back on the rankings page.
Next click on “Chart” which you will find located next to
the report link. (See Illustration #9)
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(Illustration #9) |
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This will open the manager’s performance graphs and tables. There
are four graphs and tables: Annualized returns, Calendar returns, Growth
of a Dollar, and the Return versus Risk graph. Below these graphs are the
manager’s rankings summary table, and quarterly returns. We will learn
about the manager’s Summary Rankings table in separate section of
our help tour.
To compare a manager’s performance against a benchmark, scroll
to the top of the chart page and next to Dow Jones indexes click on the
down arrow next to select a product. Clicking on any of these indexes
will allow a benchmark index to be added to the manager’s graphs
and tables below. In addition, you can add a second index by clicking
on the select product under the market indexes. This will give you an
additional benchmark against which to measure performance. When you have
finished viewing the graphs, click on the “X” on the upper
right hand corner of the pop-up window. This will bring you back to the
rankings page.
To see all the manager’s products, click on the manager’s
name from the ranking table and all the manager’s products will
be shown. The product highlighted in red is the product you just clicked
on in the rankings table. (See Illustration #10)
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(Illustration #10) |
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Risk Adjusted
Rankings |
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Another useful performance measure is risk-adjusted rankings. This ranking
helps to identify managers with above average returns and below average
risk.
From the search options page, click on rank managers, and from the pull-down
click on risk-adjusted. (See Illustration #11)
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(Illustration #11) |
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This will take you to the risk-adjusted rankings page. This page is similar
to the return risk and efficiency page. The only difference is that at the
bottom of page, option #6, we have pull-down for a 1,3,5,7 and 10 year risk
adjusted ranking.
Let’s do a risk adjusted ranking for all US Equity Multi-Cap managers
for ten years. Next we click submit. (See Illustration #12)
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(Illustration #12) |
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A rankings page appears that gives us a 10-year risk-adjusted ranking
using the relative values of return risk and efficiency. (See Illustration
#13) |
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(Illustration #13) |
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The four columns to the right are Annualized percentile return, risk,
and return over risk and overall percentile. The first three of these Return,
risk and return/risk show the managers percentile relative to the universe
of all managers we are tracking. The higher the return and return over risk,
the higher the percentile with 100 being the highest and zero being the
lowest. For risk, we invert the percentiles because we are looking for lower
risk mangers. In the risk column, the lower the manager’s risk the
higher the percentile. The overall percentile is the average of the three.
We sort the overall percentile column to find which managers have the best
combination of high return with low risk and greatest performance consistency.
For more information on how to use the risk adjusted features of the MMR
site, please see the Rankings Summary explanation found near the end of
this help tour.
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Watch Lists |
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Another useful feature of the MMR site is the ability to compare multiple
managers and indexes.
You can set up Watch Lists starting at the MMR Search Options page at the
following locations: |
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1) From the Find Managers
Search by Name Search
by State/Zip Search
by Keyword
2) From Rank Managers Return,
Risk & Efficiency (add from ranking list) Risk
Adjusted (add from ranking list)
3) From the Watch List
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To set up and view a Watch List from a Return, Risk & Efficiency and
Risk Adjusted rankings is a 4 step process (See Illustration #14): |
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1) Create a Watch List by giving it a name and clicking
“Submit”
2) In the Select Watch List window make sure the Watch List name
is visible in the box below.
3) Next click on “List” next to the manager’s
products name. Every time a new product is added a Composite Successfully
Added to Watch List” notice appears. Click “Ok”
to close the pop-up notice. You can add as many products as you
want.
4) Once you have finished added your composites, click on “View”
to go to your Watch list page.
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(From the Search by Name, State/Zip and Keyword pull-downs, products are
added to the Watch List by checking the Watch List box. Watch list’s
can not also be viewed from these sections. To view a watch list, click
on the Watch List menu on the upper right hand corner of the page and then
select your watch list for viewing. |
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(Illustration #14) |
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After clicking “View” your Watch List page appears. Now choose
which manager composites you want in your report by clicking on or off the
Display in Report boxes. (See Illustration #15) |
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(Illustration #15) |
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Click “Submit” and your Watch List Report which includes graphs
and tables will appear. (See Illustration #16) |
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(Illustration #16) |
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Find Managers |
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The Find Manager’s pull-down from the MMR Search Options page enables
searches for managers by: |
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1) Name
2) State or Zip Code location,
3) Manager Websites,
4) Keyword Search,
5) Manager Personnel
6) Manager Interview.
(See Illustration #17) |
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(Illustration #17)
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Search
by Name |
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From the MMR Search Options Page, click on Find Managers, and then click
on Search by Name and then follow the instructions in Illustration #18. |
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(Illustration #18)
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Search
by State/Zip |
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From the MMR Search Options Page, click on Find Managers, and then click
on Search by State/Zip and then follow the instructions in Illustration
#19. |
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(Illustration #19)
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Search
by Manager Website |
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From the MMR Search Options Page, click on Find Managers, and then click
on Search for Managers Websites and then follow the instructions in Illustration
#20. |
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(Illustration #20)
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Search
by Keyword |
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From the MMR Search Options Page, click on Find Managers, and then click
on Search by Keyword and then follow the instructions in Illustration #21. |
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(Illustration #21) |
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Search
by Manager Personnel |
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From the MMR Search Options Page, click on Find Managers, and then click
on Search by Manager Personnel and then follow the instructions in Illustration
#22. |
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(Illustration #22) |
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Search
by Manager Interview |
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From the MMR Search Options Page, click on Find Managers, and then click
on Search by Manager Personnel and then follow the instructions in Illustration
#23. |
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Illustration #23 |
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Rankings
Summary |
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The Rankings Summary (Illustration #24) provides an easy way to compare
a manager’s risk adjusted performance over time. The Rankings Summary
table is found in the manager’s product Chart section (See Illustration
#9) below the Return/Risk graph and above the Quarterly Performance numbers.
The Rankings Summary table is divided into four sections identified as
Annualized Return, Annualized Risk, Return/Return and Overall. Each section
is further divided into Percentages and Percentiles. On the left side
of the table years 1, 3, 5, 7 & 10 year annualized periods are further
identified.
In Illustration 24, the red arrows show
the annualized returns, risk (standard deviation, and return/risk. These
are “absolute” returns which we most often use to access managers’
performance but do not help us in identifying how each manager is doing
relative to other managers or their style groups.
The green arrows show the relative percentiles
for annualized returns, risk (standard deviation, and return/risk. The
relative percentiles are a valuable tool to access how managers’
are doing relative to each other, their style groups and style indexes.
These percentiles are calculated by using performance measures of each
manager relative to all managers in the MMR universe. For example, for
10 years, our manager’s 24.70% return put them in the 78.57 percentile
of all managers in the MMR universe. With a 78.57 percentile, this manager
had a 10 year annualized return which was better than all but 24.43% of
MMR managers (100-78.57=24.43).
For risk (standard deviation) we should favor low risk managers. We invert
the percentiles so that the lower the manager’s risk the higher
their percentile. In our example, the 10 year risk was 19.11% which put
this manager in the 64.75 percentile when compared to all MMR managers.
This means that 64.75% of the managers in the MMR universe have a risk
factor higher than this manager.
For Return/Risk we are again looking for a higher ratio or higher percentile.
In our example our manager has a 73.02 percentile which means that his
is return to risk ratio is better than all but 26.98 of our mangers (100-73.02=26.98).
The Overall percentile, shown in the last column to the right, is the
average of the three percentiles, Return, Risk and Return/Risk. Our example
shows us that this manager has a 72.11% overall percentile average for
10 years.
In evaluating this table we should be looking for an overall higher than
average percentile for all time periods. We are also looking for consistency
in these numbers over time. For example, if we look at the percentile
return numbers for 1,3,5,7, & 10 years, we see that the manager is
generally between a range of 59 and 78 percentile. However, in the risk
category the numbers place the manager between 46 and 64 percentile with
the lower percentile numbers coming in more recent time periods of 1 &
3 years. This indicates that the manager may have shifted his investment
strategy and is now taking on higher levels of risk with his portfolios.
It is always helpful to compare the mangers relative performance to either
their index style or other mangers with similar investment styles. For
example, a large cap value manager is best compared to other large cap
value managers or to a similar index like the Dow Jones large cap value
index.
The Rankings Summary table can serve as a valuable tool in identifying
above average manager performance. It can also help in judging the manager
performance consistency over time.
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Illustration #24 |
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Contact |
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For further assistance call 1-415-386-7111
Or email us at mmraminvest@yahoo.com
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