1. Kwanti Support
  2. User guide
  3. Combining portfolios

Blended models

<<
>>

A blend combines two or more models into a single composite, with a weight assigned to each model. Blends are marked with the blend icon . 

New dialog in Kwanti's Portfolio Analytics, with the Blend of models option highlighted for combining model portfolios.

 

Creating a blend

  • Select New -> Blend. An empty blend is created

    A newly created blend in Kwanti, with the Components link highlighted for adding model portfolios to the blend.

  • Click Add to select the models for the blend, then click the weight beside each model to set its allocation.

    Components dialog for a blend in Kwanti, with the Add link for adding model portfolios and the Weight column for setting each model's share of the blend, saved with the Save changes button.

For example, a blend might hold two component models at a 60/40 allocation.

 

Rebalancing

Choose a rebalancing strategy from the Simulation menu) to control how the blend's components are reallocated over time; see Rebalancing mode for the available strategies.

Note: This strategy also applies to the component models, overruling the strategy defined inside each model. The exception is component models with custom history (see Models with custom history below).

 

Advisor fees

By default, Kwanti uses the weighted average of the component models' fees. You can override this value; when you do, the fees set in each component model are ignored.

 

Models with custom history

You can include models with custom history in a blend. Note that:

  • The model keeps its own rebalancing strategy regardless of the blend's rebalancing setting.
  • The model limits the maximum time span available for the blend's performance. For example, if a model has three years of history, the blend is limited to three years.

 

Models from partners

  • You can build a blend using models imported from a partner.
  • Blends cannot be exported to partners.

 

Limitations

  • A blend can contain up to 35 component models.
  • You cannot nest a blend inside another blend.

 

Video tutorial: