Drifting

The drift function calculates how portfolio allocations have changed between the date that the portfolio was last updated and a specified date.  For instance, if you entered an initial portfolio a year ago, this tool can calculate how the allocations of that portfolio have changed within that year based on return streams from an Estimator file or from online sources.  This works for the benchmark, initial, and reference portfolios, which simplifies case preparation and allows for more accurate rebalancing.

The Drift Button in the Assets Section of the NFA ribbon opens the Drift Portfolios Window.

1. If your case includes tickers, you can chose to update from online sources (Yahoo!, Google, and BLS).  If you have set up Bloomberg, enter the BBGID Composite as the ticker.  
   • New Frontier is not responsible for the imported data.  You should review the terms of use of each site. Be aware that sometimes the public sites can lag reality significantly. Google also prefers tickers that identify the exchange, which can lead to significant errors. New Frontier recommends using online sources for quick reviews or for exploring possibilities, not for actual investing.
   • To view/enter tickers, adjust the display using the Display Menu to enable the Ticker and Ticker Source Columns on the Inputs Worksheet.  Enter tickers and select the source. For more information about tickers, access the Estimator Help Manual.
2. To avoid online sources, enter an Estimator file that contains return streams for the appropriate assets over the desired time frame in the File Field.  Make sure that the asset names match.
3. Enter the Drift To date.  Remember that it may not be possible to drift to the default current date depending on how performance is reported for your specific assets.
4. Pick the portfolios that you wish to drift. Checkmarked portfolios will be drifted.  (Note that portfolios only appear in the drift dialog if they are enabled.  Both the benchmark and initial portfolios can be disabled and enabled through the Options Menu. Reference portfolios will only appear if they have a date assigned on the Portfolios Worksheet past the default date of March 1, 1900.)
5. Review the dates given for the last update of the portfolio.  These mirror the dates that appear beneath the portfolio name on the Portfolios Worksheet.  Ensure that the dates are as expected, clearing up any discrepancies before continuing.  You can enter/update the dates for your portfolios either on the Drift Window or on the Portfolios Worksheet.
6. When everything is set, click the Drift Button. 
   • If you selected the initial and benchmark portfolios, the drifted portfolios replace the previous portfolios and the date is updated.
   • If you selected reference portfolios, the drifted portfolios appear to the right as additional reference portfolios labeled "Drifted [Portfolio Name]" and the new date. The original reference portfolios remain. You may need to scroll to the right to see the drifted portfolios.
   • If you have enabled Portfolio Total Value, the values entered in that row of the Portfolios Worksheet will also update.
7. To undo a drift, removing all drifted portfolios, click the Undo Button on the New Frontier ribbon.

The Robot, which automatically runs estimations and optimizations, makes use of the drift tool to update cases.  Instructions for the Robot appear in the Start Menu--All Programs--NFA Asset Allocation System 8.0--Documentation folder.