Cash Flow Rules

The Windham Portfolio Advisor currently allows for eight types of cash flow rule specification. There is no limit to the number of rules within an analysis.

Fixed Nominal Dollar

Allows the anlayst to implement a fixed nominal dollar contribution (or disbursement) over a time horizon at a specified periodicity.

Fixed Real Dollar

Allows the analyst to implement a fixed inflation-adjusted dollar contribution (or disbursement) over a time horizon at a specified periodicity.

Constant Growth Nominal Dollar

Allows the analyst to implement a contribution (or disbursement) over a time horizon that would be a function of a specified growth rate.

Constant Growth Real Dollar

Allows the analyst to implement an inflation-adjusted contribution (or disbursement) over a time horizon that would be a function of a specified growth rate.

Constant Index Surplus

Allows the analyst to implement a nominal dollar contribution (or disbursement) indexed against a selected time series instrument over a time horizon at a given cash flow periodicity.

Constant Index Surplus Percentage

Allows the analyst to implement a nominal dollar contribution (or disbursement) indexed against a selected time series instrument with an offset surprlus parameter over a time horizon at a given cash flow periodicity.

Percent of Portfolio

Allows the analyst to implement dollar contribution (or disbursement) indexed as a percentage of the simulated portfolio value at a given cash flow periodicity. This cash flow rule is typically used by endowments and plans.

Smoothed Percent of Portfolio Value

Allows the analyst to implement dollar contribution (or disbursement) indexed as a percentage of the simulated portfolio value over a specified trailing moving average window, with given a cash flow periodicity. This cash flow rule is typically used by endowments and plans.

The Windham Labs team can help you generalize and add bespoke cash flow rules that are not defined above for the software platform. Please contact us for this additional service.