Assumptions for future projections

What are the assumptions that Wealthsolver use for projecting future income and growth in Projection Analysis? 

Answer: WealthSolver future projections are not based on past performance data. The calculation method used for the projections is based on the weighted asset class returns against the underlying asset allocations of the selected plan, net of fees - including Investment Fees and Costs.

These assumptions are available under Admin > Site > Assumptions > Asset classes > Returns. From here if your user has the capability 'Edit Assumptions', you will be able to select the applicable assumption set and edit the returns. Please refer to your Xplan administrators if you do not have access to change this.

What index rate is used for future values?

Answer: All future values are indexed at CPI (define in Site > Admin > Assumptions > Economic Assumptions, from here if your user has the capability 'Edit Assumptions', you will be able to select the applicable assumption set and edit the returns (please refer to your Xplan administrators if you do not have access to change this) except for the contributions which can be specified in the scenario chart assumptions popup.

Past performance

How is the past performance calculated?

Answer: Our Fund Data team use the pricing and distribution history that is provided by the Fund Manager to calculate any past performance figures. The team must have this history in order to make the calculations.

No portfolio past performance?

Answer: Prior to Xplan version 20.11.145 portfolio past performance was calculated as a weighted average of the underlying investments, and where no data existed, 0.00% was assumed.

Post version 20.11.145 alterations when made so that where there is missing past performance, the option will be excluded from the calculation for that particular period of the portfolio past performance. This allows users to be more confident that the figures are more reflective of the options that are being modelled. Where there is no data in a period for any option the total performance percentage will not appear.
There will be a footnote at the bottom of the section that states “Some or all performance data is not available”. You can click the expand button to see which investment does not have the data.

Are past performance figures net or gross of fees?

Answer: The returns given are usually after fees as the figures are based on the fund's underlying pricing which is typically after fees. However, this is not always the case as it would depend on the methodology of the Fund Manager.