e-Portfolio
e-Portfolio: A tool for the management of investment portfolios
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Providing different alternatives for a client investment portfolio is a complex matter that a manager
has to face daily. Doing it right in an ever more competitive environment is a must.
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e-Portfolio is designed to help in this task by:
- Suggesting optimal portfolios according to the client's profile.
- Incorporating flexible restrictions on the composition of the portfolio to account for the required diversification.
- Incorporating manager's views.
- Performing analysis of portfolios.
- Generating reports on those portfolios.
Optimal portfolios
After introducing all the restrictions on the candidate assets, e-portfolio can:
- Maximize the expected return for a given risk level.
- Minimize the risk for a given expected return.
Here risk is codified by the volatility of the portfolio's return and the different levels are represented
by, configurable, volatility strips.
Restrictions
A way to control the diversification of the portfolio is by imposing limits to the percentages of the total investment assigned to
different assets and that can be done at various levels:
- limitations for percentages assigned to different assets classes (where those are groups of assets with common characteristics).
- limitations for percentages assigned to different assets subclasses (that is to certain subgroups of the classes above).
- limitation for percentages assigned to the assets themselves.
Views
e-portfolio allows managers to include their views on the expected return for the assets as well as for the asset classes and subclases.
Analysis
For a given portfolio it is possible to:
- visualize what would have been its historical evolution.
- compare that with a (configurable) benchmark with the same profile as the analyzed portfolio.
- look at several risk indicators: Sharpe's, Sterling's and Treynor's ratios, etc...
Reports
All the analyses performed on a given portfolio can be exported to pdf or printed.
Technology
- Web application developed in Java using a client-server 3-tier arquitecture, consistent with the J2EE (Java Enterprise Edition) standard.
- Use of efficient c/c++ optimization libraries for optimal numerical performance.
