A blend is a combination of models, with a weight assigned to each model. Blends are recognized by the icon . To create a blend:
- In the application start screen, select New -> Blend
- An empty blend is created. Click Components:
- Click Add to select the models to be added to the blend (1), then click the weights (2) to enter each component allocation. In the example below, the blend is a 50/50 allocation of two component models:
When you choose a rebalancing strategy (using the Simulation menu), this strategy applies to all component models, i.e. the strategy defined inside these models will be ignored when building the hypothetical performance of the blend. One exception to this rule is component models with custom history (please see below).
By default, Kwanti calculates and uses the weighted average of fees for the component models. However you can overwrite this value. When you overwrite the values, the fees specified in each component model are ignored.
Models with custom history
You can include models with custom history in a blend. However note that:
- the model retains its rebalancing schedule regardless of the rebalancing setting of the blend
- the model limits the maximum span available for the blend performance. For example if the model has 3 years history, the blend will be limited to 3 years.
Models from partners
- You can build a blend using models imported from partners
- Blends can not be exported to partners