Information about Quantext's Portfolio Planners

Quantext Portfolio Planner provides:

  • the ability to see how much risk is in your portfolio
  • the ability to see whether your saving, investment, and retirement income plans are reasonable
  • the ability to determine whether you have a well-diversified portfolio
  • the ability to shape your portfolio to get the best risk/return balance for specific needs

Forward Looking Portfolio Planning Tools

Quantext Portfolio Planner (QPP) is a portfolio planning tool for individual investors and for professional advisors. This tool assists in creating and managing portfolio allocations and planning for the future income draws that can be supported. QPP combines Monte Carlo simulation with sophisticated analytics that generate forward-looking projections for individual assets and for the portfolio as a whole. For more information on the proprietary Monte Carlo engine that drives QPP please see our FAQ on Monte Carlo Analysis.

Many portfolio management software tools are based entirely on the historical behavior of portfolios. The standard of practice in institutional finance, however, is forward-looking portfolio analysis. QPP is a forward-looking portfolio analysis tool. The difference is crucial. Choosing a portfolio based on historical performance alone is like trying to drive by looking in the rear-view mirror. Forward-looking portfolio analysis is not perfect—far from it—but there is an enormous body of research that demonstrates that robust forward-looking analytics lead to portfolios that are more likely to out-perform in the future. We discuss forward-looking models used by institutional investors and the consistency of a number of benchmark results to QPP in this article.

We believe that QPP is the very best portfolio planning and asset allocation tool available--and we have performed an enormous battery of analyses and tests in demonstrating that this is the case. Our articles using QPP-based analysis have been published in a range of publications, including Advisor Perspectives, Financial Planning, and others. We have a series of these articles available for review in our library. While human analysts can develop excellent portfolios even without a tool like QPP, QPP’s quantitative analysis can suggest improvements to even very well-designed portfolios. For a real-world case study, see this paper.


NOTE: Quantext is not a registered investment advisor. No information on this website should be taken as advice to buy or sell any asset. Any and all information obtained from Quantext is on an "AS IS" basis.

What Make Quantext's Tools Special?

Quantext uses a unique proprietary engine for simulating the future performance of portfolios. Other well-known portfolio analysis tools employ shortcuts that assign investments to broad classes (style analysis), but ignore specific details of a position. Quantext’s tools account for and model the specific features of investments, including individual stocks.
  • Quantext's tools account for employee stock options and their impact on portfolio planning
  • Quantext's two versions are simple enough for the knowledgeable individual investor but sophisticated enough for professional advisors
  • Our tools allow users to see how much income a portfolio can be expected to support at a specific confidence level
  • Quantext's basic Monte Carlo portfolio tool, Quantext Portfolio Planner, can be set up and run very easily
  • Quantext's Monte Carlo tools generate clear and intuitive reports that can be easily printed or emailed
  • Our tools allow users to see what QPP would have projected at a given time in the past—such as right before the market crash of 2008, or right after. This capability is helpful in validation studies as well as allowing users to see how their choices might have been different in the past on the basis of QPP’s output
  • The user can easily see the projected risk and return for each portfolio holding as well as for the portfolio as a whole
  • Our reports show you short-term risk measures such as potential loss on a user-defined time horizon (days to months), as well as the long-term projections

Table of Features QPP QPP40
Accepted number of tickers 20 40
Source of statistical projection Quantext's forward looking simulator Quantext's forward looking simulator
Retirement planning capabilities Yes Yes
Correlations Table Yes Yes
Employee Stock Options Tool Yes Yes
Ability to include stock options Yes Yes
Custom Savings Draw Tool Yes Yes
Savings and Income Draw are customizable over time? Yes Yes
Accounts for fund fees Yes Yes
Loads can be input manually Yes Yes
Accounts for splits Yes Yes
Accounts for dividend yield Yes Yes
Shows forward-looking , expected dividend yield Yes Yes
Adjustable view on expected market returns Yes Yes
Adjustable view on annual standard deviation on market returns Yes Yes
Adjustable expected return on individual tickers Yes Yes
Adjustable Beta on individual tickers No No
Adjustable volatility on individual tickers No No

Which version should I license?

Based on the experience of our users, we suggest QPP for users who have twenty or fewer holdings in their portfolios. We recommend QPP40 for those users with larger numbers of positions.

A license of QPP40 includes a copy of QPP(20) so that the user can study smaller portfolios (or a portion of a larger portfolio) with the faster QPP(20), though on today's machines, the time required to run calculations is small to negligible.

QPP40 may prove useful to those investors comparing large numbers of indiviual securities.