Q - My firm uses the Elevate release of Voyant. When I click Performance on the Let's See charts, the performance slider appears to the right side of the chart but nothing shows how much investment returns are increasing or decreasing. Is this intentional?
A - The incremental label was intentionally omitted from the Elevate release, as per request from AXA.
You may view these adjusted return rates while using the Performance slider by clicking any bar of the Let's See chart. The chart legend will appear. Click the Detailed Info link at the bottom of the legend. The chart details panel will display. Click the Investments or Pensions tab. These tabs will show the adjusted growth rates for savings and investments (the Investments tab) and for unsecured pensions and money purchases (the Pensions tab). The growth rates shown will be net of any fees set for the given account.
Note: Fees are set on the software's Growth (or Growth & Yield) panels.
For accounts grown using a fixed growth rate, the bar adjusts upwards or downwards in .5% increments from their starting position. For example, if you have an account that is set to grow at a growth rate of 2% (net of any account fees) and you move the performance slider up a notch from midpoint, the growth rate would be 2.5%. Move the slider a notch down from midpoint and the growth rate would be 1.5%.
This assumes the Growth settings for the investment or savings account does not have the Growth is Fixed option ticked. When ticked, the account growth rate will not be altered by the Performance slider.
Accounts grown using asset allocation, which is the preset default growth method in the Elevate software, are handled differently. When you view the Growth (or Growth & Yield) panel for an Investment, Money Purchase or Unsecured Pension, you will see the option to Use Asset Allocation. A similar option is on the Growth panel of the Savings screen, only it is Use 100% Cash Allocation.
When this option is ticked, rather than using a fixed growth rate, the account's growth will be derived from market assumptions the account's asset allocation or, in the case of cash accounts, the market assumptions for a 100% cash allocation.
To view what these growth assumptions are for an investment, money purchase or unsecured pension, expand the Asset Allocation panel. This panel will show Central, High and Low returns, which are derived from the asset allocation chosen and the market assumptions for these asset classes. The Central growth rate is assumed initially for accounts set to be grown using asset allocations.
When you move the slider upwards or downwards, the growth rate for the account will move closer to the High or Low return rate, depending on the direction you move the slider.