Managing Asset Management

Overview - Features - Benefits - Components - Technology - FAQ

Middle / Back Office - Front Office - Quant - EDM - Issue Manager - Requestor

Portfolios - Products - Quotations - Operations - Compliance - Fees - Contacts - Comments - Reporting - Workflow - Synchronisation - Security

A portfolio in Webfolio is primarily a collection of cash and security accounts, and internal accounts to handle accounting requirements like fees. Additional accounts can be created for informational purposes (like external funding accounts) Accounts can be included or excluded from the valuation process so as to correctly affect the portfolio performance calculation.

The portfolio can have cash contributions and withdrawals, fund subscriptions and redemptions, equity purchases and sales (among others) processed through its accounts. A portfolio has a number of properties, the primary ones being the type of portfolio, the details of the mandate, a management type, a set of constraints, a fees contract, to name but a few. It may have a target return, and be measured against benchmarks.

A portfolio can be managed on behalf of a third party (a managed account), it can be provided with investment advice (an advisory portfolio), or the portfolio can itself be issued as an investable vehicle (a fund of funds). Other choices include master/feeder, agency, transfer, simulation, and consolidation types. These portfolio types also are associated with a user-definable list of default account types that are automatically generated when a new portfolio of that type is created.

When a new portfolio is created, Webfolio generates a shell with the default accounts according to the portfolio type. Once the accounts for a portfolio have been defined and created, the selection of default accounts and currencies can be set for the various operations in the Accounting Plan.

Each portfolio consists of a set of accounts. These accounts are either real ones (they mirror the accounts at the bank or with a custodian) or internal ones (i.e., they are used to track fees, liabilities and so on). The Accounts Tab provides an overview and summary of only the accounts associated with the selected portfolio.

The portfolio accounts with their balances of cash or securities make up the assets under management of the portfolio. Other accounts can be added, if needed, to provide information to a portfolio manager or an administrator, However, some of the accounts might not be used (included) in the valuation of the portfolio’s net worth (e.g., an external account).

Each account is denominated in one and only one currency (the local currency). The portfolio has a base currency that is used to report all totals. If the local currency of the account is different from the base currency of the portfolio, the account balances are converted to the base currency using the current spot rate. The overall portfolio value is the sum of all the included accounts in base currency amounts

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