Voyant Market Assumptions
PeterM
Member
Morning
Does anyone have any advice for updating the Market Assumptions on Voyant in terms of what they use for the assumptions and how often you do so?
We are fairly new to Voyant so are a bit unsure as to how this bit of the system works.
I was thinking of using FE Analytics to produce the data for the various sectors (UK Fixed Interest, OS Fixed Interest, Property, etc), and then running over 20 years but it would be good to hear what other people do.
Would it be better contacting some of the DFMs/fund managers we use to get their predictions of the future returns from the sectors rather than use past returns given that Voyant is forward looking instead of looking at historic data?
Thanks
Peter
Does anyone have any advice for updating the Market Assumptions on Voyant in terms of what they use for the assumptions and how often you do so?
We are fairly new to Voyant so are a bit unsure as to how this bit of the system works.
I was thinking of using FE Analytics to produce the data for the various sectors (UK Fixed Interest, OS Fixed Interest, Property, etc), and then running over 20 years but it would be good to hear what other people do.
Would it be better contacting some of the DFMs/fund managers we use to get their predictions of the future returns from the sectors rather than use past returns given that Voyant is forward looking instead of looking at historic data?
Thanks
Peter
Comments
That said, we don't like things that only look backwards to its something that is likely to change soon.
Andy
Good to know I'm on the right lines.
On the topic of changing to a more forward looking view, my boss was at an Investec event recently and sent round the slides from it.
Their Head of Research has produced a 'Blackbook' giving their thoughts on future asset class returns:
https://www.investec.co.uk/content/dam/investec/investec.co.uk/Files/scottish-advisers-conference-presentations/INVS-John-Haynes-The-Blackbook.pdf
I think using these might be worthwhile although I would prefer to get similar figures from a few different sources and take an average.
Is your asset allocation methodology forward looking? You could ask your provider for the assumptions that they use too. That would provide a continuity of data, the like of which I am very keen on.