Portfolio window

Basic info tab allows you to define the basic information of the portfolio, such as ID and name. A red star indicates that a field is mandatory.

The available fields are (fields marked with * are required):

Portfolio ID*. An individual ID defined for a portfolio. The portfolio ID separates a portfolio from other portfolios (the system does not allow more than one portfolio with a same portfolio ID). The portfolio ID is used to identify and search for a portfolio, and many of the Import functions utilize the portfolio ID. When creating a new portfolio, if the "Generate a running number for portfolio ID automatically" is enabled in Portfolios Preferences, the next available number is automatically set as the portfolio ID. Best practice is not to include special characters into the portfolio ID - only use numbers and letters (a-z).

External ID. A general ID for identifying a portfolio, for example insurance number.

Status*. Status of the portfolio: "Active", "Passive", or "Closed". The status allows you to categorize portfolios to, for example, differentiate between portfolios you actively manage and portfolios you closed. The recommended status to use for portfolios you actively work with is "Active", because portfolios with this status are shown everywhere in the system and can be worked with in the Overview. "Passive" and "Closed" portfolios are not selectable in the Overview (to avoid cluttering the list of portfolios you actively manage), but you can still access portfolios regardless of their status through the search views.

Close date. Select the close date of the portfolio if its status is "Closed". The system selects the current date when you set the portfolio status to "Closed", but you can change the date.

Valuation method*. Choose the valuation method of the portfolio:

Portfolio name*. Name of the portfolio.

Type*. Choose the portfolio type from the alternatives, which are defined in Preferences - Portfolio types. The portfolio type can be for example Investment portfolio or Insurance portfolio.

Aggregation of subportfolios. Choose the method to aggregate positions from subportfolios in reporting and analytics (this feature is only available for the new 3.0 reports and Analytics+):

Custody. Choose the custody of the portfolio from the alternatives, which are defined by creating a new contact of the type Custody.

Book entry. Define the book entry number for the portfolio.

Currency*. Choose the default currency for the portfolios from the alternatives, which are defined by creating a new security of the type currency. The default currency of a portfolio defines the currency used when creating reports for the portfolio, and the transactions are recorded in the portfolio default currency.

Locked. Allows you to Lock your portfolio to prevent anyone from manually adding, modifying or deleting transactions or trade orders within the portfolio. If you try to change the transaction or trade orders within a locked portfolio, you will be notified with a message: "Your portfolio is locked!". Locking a portfolio allows you to freeze your portfolio's contents from manual modifications, or for example collateralize assets by moving them to a locked sub-portfolio to prevent making modifications to the collateral.

Pledged. Allows you to pledge your portfolio to prevent positions in the portfolio or its sub-portfolios from being traded, moved or changed. If you try to trade with or edit the positions in a pledged portfolio or its sub-portfolios, the system shows an error message. You can unpledge the portfolio by unticking the checkbox.

Language. Choose the language to be used in portfolio reports from the alternatives, which are defined in Preferences - Language. The default language of a portfolio is the language of its primary contact. The language chosen for a portfolio determines, which language is used in the portfolio reports when creating a report: the reports are created in the language of the portfolio. The translations for the security and transaction types to different languages are defined in Preferences - Internationalization. If no language is selected, the reports are printed out in Finnish and the abbreviations defined for security and transaction types are used.

Juridical form*. Choose the juridical form from the alternatives, which are defined in Preferences - Juridical form. The default juridical form of a portfolio is the juridical form of its primary contact. The juridical form affects the taxation of certain transactions added to the portfolios: when creating corporate actions, the tax associated with these is defined as a combination of juridical forms and tax countries of the portfolio.

Tax country*. Choose the tax country from the alternatives, which are defined in Preferences - Countries. The default tax country of a portfolio is the tax country of its primary contact.

Creation date. Define the creation date of the portfolio.

Start-up date. Define the start-up date of the portfolio.

Update date. Define the update date of the portfolio.

Model portfolio. Choose a model portfolio for the portfolio, which is used in the portfolio rebalancing (an optional extra to FA Portfolio). When a model portfolio is linked to the portfolio, the portfolio can be rebalanced to match the model portfolio, and the system automatically creates trade orders to buy and sell securities.

Close type. Choose the close for the portfolio: No change, Depreciation, Depreciation and refund or Market value. The close type relates to Closing a portfolio: a close type can be set to a portfolio already in the portfolio information, and used for example to check the portfolio's closing values with the Book values (closing) report.

Accrued interest. Choose whether the accrued interest is calculated on the position level based on Transaction date (default) or based on Settlement date.

Posting date. Define a posting date.

Posting rule. Choose the posting rules used for the portfolio from the alternatives that are defined in Preferences > Bookkeeping > Posting rule. You can add several posting rule sets to produce different kinds of postings for a portfolio (for example, postings that follow different accounting standards). For more information, see Posting-based bookkeeping in FA User guide.

Import TWR date. The date until which Analytics+ should use pre-calculated TWR values (instead of calculating values on the fly). For more details, see File format for importing TWR.

Price source. Choose the method to determine the close market price for the securities in the portfolio. You can use the security's close price or define a portfolio-specific priority of price sources:

Generate postings on parent level. For a subportfolio, choose if you want to generate postings for subportfolios on the parent portfolio level. This option works only for simple two-level structures when there is only one parent for several subportfolios. This option can be useful, for example, if:

When selling, position valuation takes into account positions in all subportfolios. If you choose to generate postings on the parent portfolio level, make sure that transactions in all subportfolios have unique IDs: choose “Contact level” in the Contact window, Transaction no. level field.

Tags. Choose tags from the alternatives defined in Preferences - General - Tags. Tags can be defined in three different ways:

In the Portfolio groups tab, you can manage the static portfolio groups the portfolio is part of and see which dynamic groups the portfolio is currently in.

To add the portfolio to a security group, select a group from the left-side list and transfer it to the right-side list using the arrows. To remove the portfolio from a group, transfer the group from right to left. You can also add the portfolio to a security group in the Groups view. You cannot add or remove dynamic groups in the Portfolio window. You can modify dynamic group criteria in the Groups view to make changes to the dynamic groups the portfolio is part of. For more information, see Groups view.

The Accounts tab allows you to add different kinds of accounts to your portfolio. Accounts allow you to follow your portfolio's cash balance and calculate interest for your accounts. When you link transactions to an account, the system automatically keeps track of your account balance. Accounts are not required when creating a portfolio, but if you want to follow the cash balance of your portfolio or to set up portfolio credit, you need to add at least one cash account to your portfolio.

The account at the top of the list is considered the default account of the portfolio, and all transactions are by default created against this account. If you want to create transactions against another account, you need to select it. You can modify the order of the accounts by dragging an account to the desired place in the account listing. The order of the accounts determines the order in which the accounts are shown in Overview and in reports.

A portfolio can have one or more accounts: existing accounts are listed on the left side of the window. Add a new account with the Add account button and fill in the fields in the Basic info and Interest details tabs.

Basic info

The Basic info tab contains account information, sharing and visibility options, and calculation settings. Fields marked with * are required.

Account no.*. The account number. This can be, for example, the bank account number.

Currency*. The account currency. Currency options are defined in the system as securities of the type Currency.

Name*. The name of the account.

BIC code. The BIC code of the account.

Issuer. The issuer of your account from contacts that are defined in the system as the Issuer type. Linking an issuer to your account allows you to keep track of who has issued the account. This is especially useful when analyzing your portfolio’s investments by the issuer when accounts and other investments are grouped similarly.

Secondary account no. A secondary account number for the account.

Category. The account category. When you start to type, the system automatically suggests categories you have used previously.

Mandate reference. The mandate reference of the account.

Decimals for transactions. The number of decimal places used for amounts in transactions created against the account. This setting applies to all transaction fields except Unit price, Coefficient, Yield, FX rates , and Amount (in non-cash transactions). If you leave this setting empty, the number of decimal places is taken from Preference → Content and translations → Date and decimal formats. The "Default" value in the drop-down means:

• For cash transactions – The number of decimal places specified in the Block size field for the currency security (for details, see Security window).

• For other transactions – The number of decimal places specified in the Block size field for the security (for details, see Security window). If the Block size field is not defined, “Default” means the number of decimal places defined in the security type settings (for details, see Security types).

Account type. The type of the account. The different types of accounts are grouped separately within the FA Platform, for example in Overview. The available account types are:

• Cash account

• Credit account

• Other account

Hide if balance is zero. Hides the account in Overview and Positions reports when the account balance is zero. The account is shown only when there is a non-zero balance. By default, accounts are not hidden.

Account sharing options:

• Shared to primary contact's portfolios indicates the account is shared to all portfolios with the same primary contact. This option allows you to choose the account for transactions in other portfolios of the same contact. If portfolio A owns a shared account X and you analyze portfolio B which has transactions against account X, you do not see account X in the Overview. If you analyze both A and B or just portfolio A, you can see the shared account's information.

• Shared to all parent portfolios' subportfolios indicates the account is shared only to the parent portfolio and its sub portfolios. If subportfolio B has transactions against a shared account X that is owned by parent portfolio A, you can see account X in the Overview when analyzing A or B. If A has other subportfolios, you cannot see account X when analyzing them unless they have transactions against it.

• Shared to all linked contact's portfolios indicates the account is shared to the portfolio to which the primary contact is linked. If you add the owner of account X in the Contacts to a portfolio owned by another contact, account X is shared to that portfolio.

By default, the sharing options are disabled. Accounts are only shared to sub portfolios of the current portfolio. You can use shared accounts when you create transactions manually or by importing. Shared accounts are used by the system when it creates transactions through corporate actions or trade order execution, and when it creates trade orders through rebalancing. The FA Platform first checks if the portfolio has its own accounts that can be used, and if not, it checks if the portfolio has shared accounts that can be used.

Visibility (include account in reports). Indicates the account is visible in Overview and in other views, taken into account in all portfolio reports, and is available as a criterion when defining dynamic groups. Visibility is enabled as a default for all accounts. If an account is defined as not visible (i.e. hidden), the account is ignored in all calculations.

Exclude balance from portfolio total. Indicates the account is shown in your positions but its balance is not included in the total market value (or other total values) of your portfolio. By default, accounts are not excluded from the portfolio's total. This option is useful in tracking the total capital added to an insurance contract and the profits taken out.

Status. The account status: "Open" or "Closed". The status allows you to differentiate between active and closed accounts. You can keep track of closed accounts, for example, to remove their information after a certain time for regulatory compliance.

Open date. The account opening date.

Close date. The account close date. You can only set a close date after selecting "Closed" as the account status.

Account tags. Account tags from the options defined in Preferences → General → Tags. Tags can be defined in the following ways:

• Grouped tags (select one). You can select one tag from each tag group, grouped in separate drop-downs. Only one tag in each tag group can be chosen. To group tags in a drop-down, define them with a hyphen as follows: "group - tag".

• Grouped tags (select multiple). You can select multiple tags from each tag group, grouped as separate sets of checkboxes. You can check multiple tags within each tag group. To group tags as a set of checkboxes, define them with a colon as follows: "group : tag".

• Individual tags. Search for individual tags by typing the tag in the field and choosing the correct tag from the list below the field. Use the downward keyboard arrow to view all available tags. You can select multiple individual tags.

Interest details

The Interest details tab contains account interest calculation settings.

Base instrument. Mandatory base security for calculating accrued interest on the account. If you want to set a flat interest on the whole amount, create a new security with one price and add it as the base instrument.

Offset days. Indicates the date for checking the price of the base instrument. You can't add a negative offset day value. Offset days are always calculated back in time.

Calendar (day count convention). The day count used to convert dates into a numeric representation for financial maths. You need to define a calendar day convention in order to run account interest calculations.

Transaction type. The transaction type of the interest.

Thresholds. A feature for setting the interest rate at different levels based on the account balance. Thresholds are optional. If no thresholds are defined, the interest rate is the same regardless of the account balance. The interest rate specified for a given threshold only applies to the amount of funds in that range instead of the full account balance. For example: The account balance is 120 000€. Thresholds are set at 2% for 0-50 000€, 3% for 50 000-110 000€, and 3.5% for 110 000-200 000€. Interest is paid as follows: 2% on 0-49,999€, 3% on 50 000-109,999€, and 3,5% on 100 000-120 000€.

To add or edit thresholds, click Edit. Remember to specify the spread for each threshold. If you have multiple thresholds and want to apply a specific spread to all values below or above a certain balance, you can leave the first Balance from and the last Balance to values empty.

• Balance from. The lower limit for the account balance at which the interest rate applies.

• Balance to. The upper limit for the account balance at which the interest rate applies.

• Spread. The spread added to the values from the base instrument as a percentage. Enter the value as a number without the percent sign.

The last two fields are from older versions of FA Back. Don't use them for account interest calculation.

• Fixing. The annual fixing as a percentage %. Fixing can be used to calculate the account's accrued interest with a custom formula.

• Spread. The spread added to the values from the base instrument as a percentage %. Spread can be used to calculate the account's accrued interest with a custom formula.

The Portfolio credit tab is where you can manage the amount of credit you want to give to the portfolio. The tab allows you to see the collateral value of portfolio positions, the amount of credit already used for the portfolio, and the amount of credit still available. You can also choose the total credit amount for the portfolio and check the portfolio credit calculation details. The following list describes the fields in this tab. For more details, see Provide credit to your clients.

Calculation details

Clicking on the Calculation details button opens a window that gives you more details of the collateral calculation process. This includes the formula used which is as follows: Position amount * collateral ratio = collateral value.

The table below the formula shows each position contributes to the summed-up collateral value of the portfolio. The Market value is multiplied by the Collateral ratio %, resulting in the collateral value of the position.

The collateral ratio of a position in the table is determined by the value you assign for the security as its Collateral ratio in the Key figures tab. Enter the ratio as a percentage without the percent sign. For more information, see Provide credit to your clients in FA User guide.