Portfolio Management Functions

FinanceGear offers a number of features for professional portfolio and fund managers.

Performance Measures

FinanceGear calculates performance measures for portfolios, including PnL, PnL for any period, yield, as well as risk-adjusted performance figures. PnL can be calculated using FIFO or WAP.

Any performance measure - in fact, any FinanceGear variable at all - can be computed over any grouping of positions that share a specific property - such as geographical region, currency, market, or industry sector.

Historical Valuation

FinanceGear supports historical valuation at any point in the past for which historical prices are available. This allows the evolution of a portfolio to be charted over a period of time, as well as extract reports of a certain date.

Benchmarking

FinanceGear allows fund managers to associate portfolios with tracker portfolios or benchmarks - and compare each portfolio to its benchmark. Tracking error can be computed - and minimized automatically.

Block Operation and Allocation Tools

FinanceGear includes tools to rebalance portfolios automatically. Using a tracker portfolio or manually, block orders and allocation instructions can be generated. Asset allocation limits can be imposed and controlled automatically.

Hedging and Portfolio Optimization

FinanceGear also includes tools to compute hedges - in order to bring either beta or VaR to a certain level. In addition, Markowitz-style portfolio optimization is supported both in order to find optimal portfolio weights and to minimize tracking error.