Portfolio Monitoring System
Our client was having difficulty ensuring their funds were staying within the limits defined within their respective fund prospectus. The effort spent evaluating the various exposures of individual portfolios were consuming valuable time and their administrators were only providing breach information retrospectively.
We implemented the Portfolio Monitoring System that enables asset managers to create specific metrics by which to measure their portfolio and warn if the portfolios are reaching a given warning level or limit. Some examples of the metrics initially implemented were:
• Single Stock Exposure
• Sector Exposure
The metrics and limits are evaluated on a scheduled basis and alerts generated automatically if necessary. Authorised users can view the results in graphical charts, basic data sets or download them to excel. Additional customisation allowed for traders to check the affect of a trade against the configured metrics prior to placing the order.
Results and Benefits
Our client was able to ensure that all of their portfolios remained within their required limits with very little effort. Should a fund move towards one of the limits imposed upon it the Portfolio Monitoring System generates a warning and a manager has the opportunity to take appropriate action before a breach can occur.