Multi-Model Comparison
TIFIN Wealth offers a unique Multi-Model Comparison Report that provides a comparative analysis of multiple investment models, allowing users to evaluate different portfolio options side by side. The primary goal is to offer flexibility in portfolio selection by presenting up to two alternative models—one potentially more aggressive and one more conservative—alongside the original portfolio and the optimizer’s recommended model.
Clients can compare their current portfolio with the recommended model and up to two alternative models to determine the best fit based on their risk tolerance, return expectations, and investment objectives. Each model is evaluated across key portfolio characteristics, providing a comprehensive view of potential outcomes.
Navigate to the Recommendations page > Compare tab. Note that the client must have a current portfolio uploaded for the Compare report to surface.
Click the Add Model to Compare button on the right hand side:
The pop-up gives the user the ability to add two additional models for comparison. Select from models in the marketplace, custom uploads, or active models. Click Add Model to Compare to select a model.
You can compare up to two additional models beyond the recommended model. Once you've made your selection > Click Proceed.
To change a selected model, click the downward facing arrow next to any of the Selected Models > Click Change Selected Model. If the client would like to swap the model with the original recommended model, click Generate Recommendation, which will replace the model originally selected.
Holdings Analysis & Risk Scores
Each model’s holdings are analyzed in terms of individual security weights, dollar values, and risk scores. This section helps clients assess diversification and risk exposure differences across selected models.
Risk Scores
The Risk Score comparison report provides a helpful visual to see how the 4 portfolio compare to the client's risk band. You can see that the client's portfolio score of a 60 is far too aggressive and is way outside (above) the Risk Preference score. Despite the client having a high willingness to take on risk, their portfolio is even more aggressive than their appetite.
The advisor can have a conversation with the client and review each of the different options across the risk spectrum, with manually selected models coming in at 22 and 35 versus the optimized recommendation of a 31.
Additionally, TIFIN Wealth provides insight into the 12-month forward projection estimates of potential gains and losses for each model based upon their respective risk scores and market assumptions. Clients can easily visualize and compare how different allocations may affect their portfolio’s value over time.
Asset Allocation Comparison
The asset allocation breakdown compares how each portfolio distributes assets across equities, fixed income, currencies, derivatives, and cash. This comparison highlights differences in risk levels, growth potential, and defensive positioning.
Region Allocation
Clients can evaluate the geographic exposure of each model, identifying variations in domestic and international investment allocations. This helps in assessing global diversification and potential geopolitical risks.
Historical Performance
A side-by-side comparison of historical returns shows how each portfolio has performed relative to one another and a given benchmark.
Projected Growth & Performance Bands
Each portfolio’s expected growth trajectory is modeled, showing mean expected returns along with an upper and lower performance band. These projections help clients visualize best-case, worst-case, and expected scenarios for each investment model.
Fee Comparison
This section provides a breakdown of total investment fees for each model as determined by a cumulative total of the expense rations. Comparing fees across models allows clients to weigh the cost-effectiveness of each option relative to expected returns.
