Moving to the Optimizer

The Optimizer is the central application of the Asset Allocation System. The inputs prepared in the Estimator are intended for use in the Optimizer. There are several ways to move information from the Estimator into the Optimizer. The necessary inputs for the Optimizer include the Means (Expected Returns), Standard Deviations (Risks), and Full Correlations.

• Launching the Optimizer from the Estimator by using the Launch Menu, opens an Optimizer instance with the current Estimator data already loaded. The Estimator remains open. Further changes to the open Estimator case will not change the Optimizer case.
• Saving the Estimator case and loading it into the Optimizer has the advantage that you can bring the Estimator data into an already set up Optimizer case. Saving and loading brings the asset universe, groups, expected returns, standard deviations, and correlations into the Optimizer, overwriting any previously entered Optimizer inputs. If there was no benchmark portfolio entered in the Optimizer case, the market portfolio from the Estimator also loads, but it will not overwrite previously entered benchmark portfolios. As long as you haven't deleted relevant assets or added assets that need to be included, your constraints, reference portfolios, and settings may already be usable.
• Copying the Estimator results and pasting them into the Optimizer (using the New Frontier ribbon copy and paste, not Excel copy and paste) acts similarly to saving and loading, as it brings all of the means, standard deviations, and correlations, plus the market portfolio if there's no benchmark portfolio, into the Optimizer quickly. Note that the Optimizer must be in the same instance of Excel for this option to function properly. This is particularly useful if you modify the Estimator case after already starting to work with the Optimizer case.

Related Topics:

• Introduction to the Asset Allocation System

• NFA ribbon (location of Launch Menu)

• Saving Files

• Copying and Pasting