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Add-On Module Overview

Performance Measurement

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INTRODUCTION:


  The Performance Measurement Module calculates a time-weighted rate of return for your accounts. Two report styles are available:
   
 
  • The Performance Summary is a single-page report showing the current portfolio composition and a summary of activity during the reporting period.
     
  • The Performance Report provides more in-depth analysis than the Performance Summary. It shows an activity line for each asset held by the account during the period. At the end of each asset category, activity subtotals, average capital balance, total gain and rate of return are shown. The program evaluates each asset category separately, and produces a summary of the activity and rate of return for the entire account.

FUNCTION:

  When configuring the system for performance reporting, you start by defining the asset categories. Then each asset type is assigned to an asset category. Any asset category can be designated as unsupervised. Using this feature, you could omit real estate and other nonmarketable securities from the total return for the account.

You can assign a benchmark to each asset category. When benchmarks are assigned, the summary section determines an average allocation among the categories based on the actual account holdings. This average allocation is used to prepare a blended benchmark for printing. This self-adjusting benchmark is important because in some accounts, the objectives (and therefore the holdings) change over time.
   
  Both report styles …
 
  • are based on beginning and ending market value of the report dates.
     
  • include IRR (Internal Rate of Return) calculations that are time-weighted. Deposits received early in the period are weighted more heavily than those received later. Likewise, withdrawals late in the period are weighted more heavily than those made earlier.
     
  • automatically link the performance for the current month with stored IRRs from historical periods. Up to 20 years of history can be shown.
     
  • automatically create spreadsheets for review, research and analysis.
  Performance Measurement includes an export program for easy review of the IRR for each account for a range of months. You can export either entire accounts or single asset categories.

Both exports include the geometrically linked return for the period. When you export the asset category, the benchmark for each month is also shown. These spreadsheets make it easy to sort and find values that are significantly higher or lower than the benchmark for further research.

Stored Performance Review for Performance Asset Group 05 (Stocks)
             
  S&P 500 Total Return Benchmark -3.33 1.59 -4.18 -0.69
             
Acct_# Name Investment Objective Linked 10/31/07 11/30/07 12/31/07
1120000 Samuel S. Dalton Moderate Aggressive  -1.1 3.23 -3.41 -0.81
1120750 TFG Dalton Trust Special Holdings -1.41 2.91 -3.33 -0.9
1140000 Edgar W Stanford Aggressive  -1.31 3.04 -3.46 -0.79
1210300 Henry C Jones Trust Moderate Aggressive -0.96 2.7 -3.02 -0.56
1212200 Sally M Price Trust Moderate Aggressive -1.49 2.84 -3.33 -0.91
1230300 Robert James Children Trust Aggressive  -1.2 2.86 -3.12 -0.85
1230510 JRW Revocable Trust Moderate Aggressive -0.99 2.83 -2.94 -0.8
1400000 R Ralph Rodgers Stable Fixed Dollar 1.09 2.1 -0.78 -0.21
3120000 Wm Packard III Moderate 0.12 2.82 -2.57 -0.06

BENEFITS:


   The Performance Reports Module adds value to the core system by …

 
  • giving you an additional selling tool to demonstrate a value that clients receive.
  • communicating to your clients how their investment performance compares with appropriate benchmarks.
  • calculating performance returns for single accounts, master accounts or account groups.

COMPLEMENTARY MODULES:

 
 
  • Interactive Data Pricing is an easy way to import the values for individual securities before calculating the performance.
  • Premium Landscape Statements show performance summary information if selected.
  • Interface with Investment Scorecard is available if some of your accounts need more sophisticated analysis.