Loan Account

[KCarlander]

Among our investment portfolios are two with associated loan accounts used to leverage investments or for other business purposes. How would I best enter and maintain the loan balances. If I create an investment with a ($1) value I run into trouble when I enter transactions to pay down the loan because I have to change the price to $1.

Also I am interested in being able to report on the investment portfolios gross and net of the loans so please offer any suggestions as to the best hierarchy for setting up the portfolios.

[Mark]

Hi KCarlander,

For your loan account, treat this like a cash account. Keep the share price fixed at $1. Record the shares at the value you want. If you have a negative balance, record a negative number of shares. Keep all prices at $1.

You can use sub-portfolios to organize your holdings however you want. You may want to do something like this:

Code: Select all

Master
  Loans
  Investments

This way you can report at the "Master" level to see both, or just at the lower levels to see either your loads or investments by themselves.

[KCarlander]

Thank you very much.

If I set up the hierarchy as below, can I run a combined report for the two Investment Portfolios, excluding loans?

>Master
-Investment Portfolio 1
-Loan Portfolio 1
-Investment Portfolio 2
-Loan Portfolio 2

If I want to do 'geographical attribution' reporting would I need a set up something like:

>Master
- Investment Portfolio 1
- IP1 Asia
- IP1 Europe
- IP1 US
- IP1 Global
- IP1 Emerging
- Loan Portfolio 1
- Investment Portfolio 2
-IP2 Asia
-IP2 Europe
-IP2 US
-IP2 Global
-IP2 Emerging

And one other question: Is it possible/easy for occassional reporting purposes to temporarily aggregate two master portfolios and then disaggregate them back to their original state?

Thanks again.

[Mark]

Hi KCarlander,

If I set up the hierarchy as below, can I run a combined report for the two Investment Portfolios, excluding loans?

>Master
-Investment Portfolio 1
-Loan Portfolio 1
-Investment Portfolio 2
-Loan Portfolio 2

No, you can't report on only the 2 Investment Portfolios in this case. You'd need to put them in their own sub-portfolio if you want to report on only these 2.

If I want to do 'geographical attribution' reporting would I need a set up something like:

>Master
- Investment Portfolio 1
- IP1 Asia
- IP1 Europe
- IP1 US
- IP1 Global
- IP1 Emerging
- Loan Portfolio 1
- Investment Portfolio 2
-IP2 Asia
-IP2 Europe
-IP2 US
-IP2 Global
-IP2 Emerging

You could do this, or your can utilize the Asset Type and Investment Goal categories. Each investment can be assigned in percentages to any number of these categories. You can then report by subtotaling or listing by these categories. You can also edit the categories to be anything you want. See "Options / Category Labels". To assign a percentage, see the "Investment Properties..." dialog.

And one other question: Is it possible/easy for occassional reporting purposes to temporarily aggregate two master portfolios and then disaggregate them back to their original state?

Yes, it is. Just use the Portfolio Editor and drag/drop the sub-portfolios wherever you need them.