Summary:
Timeline uses Morningstar and DMS as the main sources of data.
Morningstar data in Timeline is sourced from trusted, transparent, and robust global indices.
The DMS Database, compiled by top financial historians, is recognized for its comprehensive long-term investment data going back to 1900.
Ken French Data Library provides detailed data on equity portfolios, used to approximate historical fund performance.
Timeline's data is reviewed annually, ensuring its accuracy and relevance for financial advisors.
Description:
Advisors often have questions about the reliability of the data behind Timeline, especially when compliance teams ask for clarification. Rest assured, the data we use from Morningstar is world-class, drawing from extensive and trusted global indexes. These indexes are designed to cover a wide market range while maintaining a strict selection process that ensures their accuracy and reliability for both performance measurement and portfolio construction.
Furthermore, Timeline Planning incorporates the DMS Database, which was developed by three of the most respected financial historians: Elroy Dimson, Paul Marsh, and Mike Staunton. Their research, published in "Triumph of the Optimists," provides over 120 years of investment performance data, which is invaluable when building long-term financial strategies. This data covers a broad spectrum of markets and asset classes, helping advisors assess risks and returns over various economic cycles.
We also rely on the Ken French Data Library, which provides comprehensive data on equity returns and factors like market size and value. When actual fund data doesn’t exist going back to 1915, this library helps fill in the gaps, ensuring that we can simulate how portfolios might have performed during historical periods.
To keep everything as accurate as possible, we review our data annually, incorporating any updates and improvements from all sources. This ensures that the financial plans built in Timeline are based on the most current and reliable data available.
Conclusion:
With Morningstar’s rigorous data methodology and the historical depth of the DMS and Ken French datasets, Timeline provides financial advisors with reliable, thoroughly-vetted information. This helps advisors not only meet compliance standards but also confidently build solid, data-driven financial plans for their clients.
Resources:
Bank of England’s Millennium of Microeconomic Data:
Kenneth French Library: