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Risk
The main menu for the portfolio manage to set all kind of limits and targets.
Define the Mandate Types (Menu Risk) you want to offer e.g. discretionary or advisory. These are the combinations of the portfolio types and the Mandate Stati (Menu Settings). Not all combinations of the Risk Profile and Mandate Type might be needed, so create only those that are really needed.
Define the Risk Profiles (Menu Risk) you want to offer. Set the level of the risk profiles (e.g. Conservative, Balanced, Growth or Aggressive) for sorting and to allow the system to detect higher risks in low level risk profiles.
Each portfolio can be watched from several perspectives. E.g. by Asset Class, currencies, countries, sectors, ... and in this mask a new perspective can be defined.
For each portfolio perspective a unlimited number of groups can be defined. They are supposed to be organised in a tree structure. E.g. "Equities" can be part of the portfolio perspective "Asset Class" and below "Equities" can be the subtype "Equity Indirect", which contains "Equity Options" and "Equity Futures".
For an effective portfolio measurement the risk/return for each exposure item related to a reference security in a defined currency is calculated. The portfolio manager can overwrite the automatic calculated values to bring in his view into the portfolio management system.
For ... sorry screenshot missing at the moment.
To handle special client requests like: no oil companies, please. In this case select the client portfolio and the exposure "Oil" and set the limit up to zero.
To define benchmark exceptions e.g. if a client want for messure the performance with a special benchmark.
This can be used to set security related alerts e.g. internal stop loss signals.
To define the type of a contrete security. E.g. the equities ABB is porbably 100% of the Exposure Equities, but a mixed fond can by e.g. 40% equity and 60% bonds. And the exposure status can be also dynamic if the equity weight of the fond may change. Example 2: Assume Siemens makes 15% of it's expected profit with "Building Technologies" and this is 100% linked to the development of the "construction" market the steps to enter this into TREAM are
- Create the "Exposure item" "Construction" of the type "Sector"
- Create the "Exposure item" "Building Technologies" of the type "Sector" and say that it is 100% part of "Construction"
- In "Security exposures" add a 15% "Building Technologies" exposure for the Security "Siemens".
- In "Exposure targets" set the limits and targets for each mandate and reference currency needed
- After "Refresh" the exposure in ref. currrency is shown in the portfolio mask
To seperate fixed and changable security exposures. For example to define that the country exposure of a stock should be updated automatically based on zukunft.com.
Internal table to track and reset the limit watch for the securities. E.g. if the client or portfolio manager wants to be informed if a stock move more than 5% up and this limit has been reached once, but the security has fallen by 2% the starting price for the limit can be reseted here.