Investment Strategy

Wealth tier

Refreshed weekly · AI-generated

The Investment Strategy page is Luum's most powerful feature, a comprehensive, AI-generated analysis of your entire portfolio with quantitative diagnostics, forward projections, and peer benchmarking. It's designed to answer one question: am I on track, and where should I focus?

Educational use only. The Strategy page is an analytical and educational tool. The AI narrative, projections, and observations are informational only. They do not constitute personalised investment advice, a suitability assessment, or a trade directive.

What's on the Strategy page

AI Investment Summary

Claude AI reads your real portfolio data, allocations, risk metrics, performance, fees, and income, and writes a plain-English strategy narrative. The AI is grounded in your actual numbers; it cannot invent figures. The summary updates weekly and can be refreshed on demand (uses up to 7 AI answers, one per section it generates).

Risk & Concentration Diagnostics

The page quantifies your blended risk using a composite of beta, volatility, and max drawdown across all your portfolios. Concentration is measured using the Herfindahl-Hirschman Index (HHI) across four dimensions: asset class, sector, geography, and individual holding. Each dimension gets a 0–100 concentration score (higher = more concentrated = higher risk).

Fees & MER Drag

For each ETF you hold, Luum retrieves the real management expense ratio (MER) and calculates the compounded fee drag over 10, 20, and 30 years. Blended portfolio MER is shown alongside peer cohort averages.

ETF Look-Through

For ETFs with known holdings, Luum “looks through” to the underlying securities. This powers:

• A two-ring sunburst chart showing ETF → underlying sector allocation
• Pairwise overlap detection between ETFs you hold (Rüschendorf coefficient)
• Home-country bias vs. the MSCI ACWI 3.5% Canada weight benchmark

Monte Carlo Projections

Luum runs 10,000 simulated portfolio paths using Geometric Brownian Motion (GBM). Your allocation's asset classes are combined into a single expected return and volatility first, using the correlations between them, and every path then simulates that blended portfolio. The result is a fan chart showing your p10, p50, and p90 outcomes over your investment horizon.

Capital market assumptions are sourced from the Projection Assumption Guidelines published annually by FP Canada and the Institute of Financial Planning, the assumptions Canadian financial planners are expected to use for projections of ten years or more. We refresh them each year when the new edition is published.

Projections are shown in nominal dollars and are not adjusted for inflation. A balance thirty years out will buy less than the same number of dollars buys today. The Guidelines assume 2.1% annual inflation, and the returns above are before any investment management or advice fees you pay, which must be subtracted to reach what you actually keep.

Peer Cohort Benchmarking

Your portfolio metrics are compared against anonymised aggregates of Luum users with similar risk profiles, investment goals, and time horizons. Metrics include: daily-chained YTD return, blended MER, concentration score, and allocation breakdown.

Performance vs. Market

Your blended cross-portfolio holding-period return is compared to the S&P 500 over 1M, 3M, YTD, and 1Y periods.

On-Track / At-Risk gauge

Based on your goal (retirement date, target amount) and current trajectory (median Monte Carlo outcome), the page shows whether you are On Track, At Risk, or Off Track, with an estimated gap in today's dollars.

How often does it update?

The AI narrative generates once per week (Sunday night). Monte Carlo simulations run on the same schedule. You can trigger a manual refresh at any time using the Refresh AI button (costs up to 7 answers, one per section).

Questions?

Email us at support@luumwealth.com or use the in-app Help Centre.

← Ticker Scores methodology