Portfolio Analytics Success Story

Portfolio Analytics










The Client

One of the oldest and largest broking firms in the Indian Security Industry.

The Problem

The current process of Portfolio Analytics, by gathering data and performing tasks like calculation and Analysis of different schemes available with each division, is carried out manually. Comparative analysis among different benchmarks was done manually in separate excel sheets. This process was very slow and consumed more effort and there was no in-depth analysis done.

Other limitations of the process were ?

  • No standard process for Performance and Attribution Analysis
  • No real time data was available for users.

The Solution

The system provides performance and attribution analysis for mutual fund schemes along with tracking of their financial ratios and valuation parameters.
The system provides performance and attribution analysis for mutual fund schemes across the Kotak Group, along with tracking of their financial ratios and valuation parameters. The aim is to have a consolidated and universal view across the entire spectrum, and to track and attribute the performance characteristics. It also helps fund managers to track and present the performance of portfolios and impact of their investment decisions on fund's performance. They can compare their portfolio with a model benchmark portfolio and with compliance criteria.

Key Features

  • Group Snapshot which shows the overview of portfolios of selected schemes, at group level, for the selected duration. It includes information like AUM, Returns, P/E, EV/EBIDTA, ROE, Beta, Sharp Ratio Medium Holding, the Average Holding, Time to Liquidate, No. of stock in the Scheme, Style, Break up like Large, Mid, Small cap, Cash etc.
  • Performance Tracking - Sector/Stock wise Performance tracking with the benchmark, with their allocation effect and return. Under weighted and over weighted sectors.
  • Peer Group Comparison with AUM return of 1 month to 1Year with their P/E ratio and P/B Ratio.
  • Liquidity report calculates and displays the stock wise liquidity i.e. how long it may take to liquidate the entire portfolio. And calculates the overall portfolio liquidation, which needs to be calculated for each stock and get the average number of days to liquidate the total portfolio.

Developed a separate reconciliation module with support for different file formats and configurable data format in order to achieve flexibility for future-modifications to the data formats.

Major Challenges & Solutions

  • In import file module, Harrier needed to import the data from different systems of research team, Bloomberg, offshore team and fund analyzer team, which required to be given special attention while designing the database. It was required that complete data from research team should be imported in Excel format in some hidden columns that required special emphasis while coding.
  • Since GUI is developed in .Net while business logic is in Java and XML is used for communication between tiers, the exception and error handling became more important and required to be given appropriate treatment. Passing the collection to the XML reader from the middle tier was particularly challenging.
  • Information in the Group snapshot report was calculated by consolidating individual values from other reports for individual schemes, particularly from 7-8 different reports that display single values for a portfolio.
  • Single controller Servlet serves multiple client requests by calling particular store procedure making the process complex and hence required special mapping in data base.

Technology Environment :

Core Java, Servlet, MS .NET, MS SQL server 2005, Sun One Application Server.