Our Assumptions and Methodology
The primary objective of the FSM MAPS Planner (the "tool") is to help you establish an investment goal for your FSM MAPS account and visualise the potential results. The tool helps provide an illustration on how current savings and planned future contributions may help you reach your goal. Using inputs provided, we estimate how your portfolio could perform over time using historical performance data of financial markets. While historical performance is not indicative of future performance, history does not repeat itself but it often rhymes.
The tool's projections are generated from hypothetical returns derived from Monte Carlo simulations based on historical financial market data and takes into account the asset allocation of the portfolio chosen. The tool does not take into account any fees for services provided, or the underlying products fees. If considered, such fees would reduce performance.
The generated results are not to be construed as investment advice or an investment recommendation, and should not be the foundation for your investment decision.
IMPORTANT: The results generated by this tool regarding the probability of various investment outcomes are founded on financial theory and financial statistical modelling, and are not the historical results of FSM MAPS or projections of future results of FSM MAPS. Generated results may differ with each simulation.
Limitations of the Planner
All calculations and results produced by the tool are generated through Monte Carlo simulations based on analysis of historical financial market data. The analysis takes into account the volatility of financial markets and assets, with historical returns assessed on a total return basis which includes the reinvestment of dividends. All calculations are hypothetical in nature.
What Goes On In The Planner?
The tool uses historical financial market data which is then modelled to estimate the likelihood of a particular outcome. The data is run through 10,000 random simulations before the generated results in nominal terms are released. Generated results are estimated at a 95% confidence level and are displayed in nominal terms.
The generated results are dependent on four data inputs provided by you: