The help for the "Portfolio" service.

Contents

  1. How investment portfolios work
  2. Creating a portfolio
    1. Portfolio investment strategy
    2. User Login/Registration
    3. Risk aversion ratio calculation
    4. Entering investment sum & portfolio title
  3. User portfolios list
  4. Managing portfolio
    1. Reviewing the set content of the portfolio
    2. Portfolio investment tools application
    3. Updating your portfolio
    4. Rebalancing your portfolio
    5. Charts
    6. Close portfolio
    7. View portfolio history
  5. My account

How investment portfolios work (back to contents)

Investment portfolio is a pool of different investments by which an investor is trying to achieve a certain goal. Any type of asset can be included starting with gold and real estate and ending up with shares and options.

«Portfolio manager» service offers a unique opportunity even for users who lack experience with investment tools, to create their own well-balanced portfolios and be accessible to its on-line tracking and rebalancing.

To form your personal balanced portfolio you will need to go through several stages. They are as follows:
  1. Thorough analysis of the factors that may influence your portfolio value.
  2. Choosing optimal investment strategy.
  3. Log in/Register in to the site.
  4. Picking up your personal aversion ratio.
  5. Estimating the amount you are going to invest.
  6. Calculating the efficient investment mix that will match the strategy you’ve chosen.
  7. Entering the draft figure of investment into the portfolio and filing it into the sight database.
Analyzing factors that may influence your portfolio value.
Creating the investment portfolio is a very subtle matter that deals with in-depth analysis of any info outsourced from mass media as well as research of data generated within the community of stock market professionals. The analysis in itself comes up to selecting the most crucial factors affecting the value of your portfolio out of the bulk of general information. The analysis is performed with the help of the so-called financial ecometric models that estimate risk factor sensitivity ratio future figures.
 
Choosing the investment strategy.
Next stage deals with implementing of appropriate investment strategy. The investment policy depends on your choice of investment goals like, say purchasing a country retreat, generating enough funds to settle your child’s education in 5 years time, buying a car within the next 3 years, or saving some monies for the regular summer vacation which is due in about 10 months’ time. Your personal traits and individual tastes as well as age, sex, your current occupation (etc) influence for good measure the investment policy, too. The way you envisage market tendencies also is of importance. For instance, investors expecting dollar growth convert their personal savings into dollars, those who have euro expectations tend to generate euro cash. Some people prefer to keep their savings in the national currency exclusively, relying upon the strength of domestic economy. As Ukrainian stock market takes pace we will keep offering you different sorts of investment policies which will take care of the above criteria as well as proper market segmentation and outlaying your individual investment horizon. See more about the strategy.
 
Testing your personal risk acceptance.
First, we suggest that you take some tests that will measure your personal risk acceptance. It is being measured with the help of a certain ratio and eventual test result will affect your portfolio mix. If the ratio results in a big figure that exceeds 10 points, you oughtn’t include substantial share value into the portfolio nor be over-sensitive about stock prices’ fluctuations. If your risk sensitivity proves to be quite steady, and your risk aversion ratio will keep near on 2, a risky portfolio mix is the option for you in view of its high risk/performance balance.
 
Estimating the investment amount.
Making a decision on the amount to be invested is quite important at this stage. Say, you may be looking for one-time-only investment of UAH100,000.00 or monthly installments of UAH5000.00 etc. If the annual sum paid in within the span of 1 year doesn’t exceed UAH200, 000.00 we would recommend you to stay away from the stocks & shares holdings and stick to the portfolio containing gold and currencies. If the sum you are putting in annually equals to more than 200 thousand we would suggest 2 options: 1/ combining your metal & currency portfolio with the units in a fund managed by a pro asset management company; 2/ gold and currency plus shares mix. If the money you’re about to invest amounts to UAH2 million or more your might also consider investing into real estate and Ukrainian Eurobonds.

 

“Portfolio manager” service is aimed at supplying investors and investment analysts with the following:

  • online tracking the value of portfolio,
  • comparative analysis of different market strategies with use (as an example) of financial products Ukrainian market can offer,
  • purchase of any asset on-line.

Portfolio interface uses special colors for the purpose of demonstrating the profitability of underlying investments like follows:

green – data reflecting shares purchased,

light blue – data reflecting investment into securities in the portfolio proposed.

Here’s an overall layout of “Portfolio manager” operations:


Click to enlarge the scheme

You can get to «My portfolio» service in the following way:

  • Home Page – Portfolio – New Portfolio
  • Home Page – Portfolio – My Portfolios
  • Home Page Banner
  • Titles “My portfolios” and “New” in the left column
  • Title “Portfolio” beside the “Managing portfolio” entry

Creating a portfolio (к оглавлению)

Registration/Authentication of User (back to contents)

To enable use of the service one has to register in so as to be able to save portfolios feature and have access to portfolio interface.

In case you have gone through registration please enter Login and Password you used while getting registered.

For getting registered please enter the info into the fields below:

  • “Login” – field contains a unique identification capacity tagging your portfolios
  • “e-mail” - your current e-mail address
  • “Password - your current password
  • “confirm your password – password confirmation field

“Name” field is handy for exhibiting your stuff (comments, blog posts etc). In case the field is left empty, “Login” gets activated.

Calculating Risk Aversion Ratio (back to contents)

To enable ‘creating portfolio’ option you have to get through risk acceptance test (answering a relevant questionnaire).

In order to wind up the questionnaire you will have to supply a risk estimation figure (sample project Y), resulting out of defining the circumstances whereby two separate investment options will look same attractive to you as compared.

As it is shown in the illustration:

- first project shows a 10% -risk acceptability level and average profitability of 30% provided the initial investment equals to UAH 1000.00 and will result in the average yield of UAH 1300 in 12 months;

- second project shows a Y% risk level and 40% of average profitability.

Based on your experience and personal tastes you will have to adjust Y project risk level so that both projects will look same investment attractive to you.

(2) We can facilitate determinations of risk aversion ratio making use of the surveys done which were in Ukraine under Yevhen Pentsak’s guidance. All in all you need give answers to 5 questions:

  • Are you a manager?
  • What’s your gender?
  • What is your age?
  • Do you live in a city or in a village?
  • What area do you reside permanently in?

After you successfully accomplished the above assignments please click «Calculate» and your risk aversion ratio will be calculated.

Push «Create portfolio» button to create a recommended portfolio according to your preferences.

Entering the investment amount and giving title to portfolio (back to contents)

The chart is demonstrating the way your optimal investment portfolio is calculated. Calculation is performed on the grounds of principles developed by Nobel Prize winner Harry Markowitz.

To learn more about Harry Markowitz theory go to. show

Enter the amount to be balanced within the optimal portfolio mix into “Amount Invested” field and give title to the portfolio. Click «Create».

After you have created an investment portfolio you can fill holdings in or investigate your customized portfolio.

Congratulations, your new portfolio has been successfully created!

View portfolios list (back to contents)

After the portfolio has been created by way of hitting “My portfolios” page you will “Choose a portfolio” page. Click the desired portfolio name or hit “Managing portfolio».

Managing portfolio (back to contents)

View the recommended portfolio mix (back to contents)

After you have created a portfolio it still does not contain any securities, hence by way of option you you may look through the recommended portfolio which has been calculated due to the sum you’ve invested.

We figure out an optimal investment portfolio on the principles developed by Nobel Prize winner Harry Markowitz. Harry Markowitz’ theory is known in detail to all investors around the world, though each instance of its practical implementation (particularly in circumstances of Ukrainian stock market) is unique - and needs to be aligned with the trends in fast changing modern markets. The process of such adaptation requires a firm theoretical background, appropriate algorithms application; continuous updating the stock market -related information as well as significant time resources. This bulk of work so invaluably helpful for any investor is performed by the leading financial analysts of KMBS - Investment adviser’s team-members - who are also associated with our web service.

Implementation of risk aversion ratio calculation is expedient while doing calculations related to the recommended portfolio holdings. It’s a unique figure in itself and depend on peculiarities of different countries and social groups concerned. For the purpose of attaining correct results, the sociological survey is used primarily conducted under Yevhen Pentsak's guidance in Ukraine.

The recommended investment portfolio provides you with the information on the right assets and acceptable sums you can put in, with regards to your preferences and appetite for risk.

Use of investment tools offered in the portfolio (back to contents)

The «Change» tab is used for changing the composition of current portfolio after the necessary assets rotation has been performed:

shares (back to contents)

When starting transactions with shares you have to:

  • enter the name (ticker) of the share (start entering the name in the «Share’s name» (7) and choose company from the drop-down list),
  • enter the number of shares (1),
    • positive - for shares be purchased
    • negative - for shares be sold
  • specify the current price of shares (2),
  • specify the date of the transaction (4).

Additionally, you can:

  • specify the «commission» in hryvnias or as a percentage of the sum (3),
  • identify «№ of document» (5) for personal use.

On the selected share’s ticker there will be the starting date specified that the position on the share can be opened/closed (6).

MIF unit (back to contents)

When processing operations with MIF units you have to:

  • enter the name of the fund (start typing the name in the «Fund name» (7), and select the fund you want from the drop-down list) afterwords,
  • enter the number of units/shares (1),
    • positive - for shares to be purchased
    • negative - for shares to be sold
  • specify the current unit/share price (2),
  • specify the date of the operation (3).

Additionally, you can:

  • specify the «commission» in hryvnia value or calculated as a percentage of the sum (4),
  • identify «№ of document» (5) for personal use.

On the selected share’s ticker there will be the starting date specified since which the position on the unit/share can be opened/closed (6).

hryvnia deposits (back to contents)

open

In order to add hryvnia deposit, on the «change» tab you must enter:

  • deposit amount (1),
  • rate of interest on deposit (2),
  • specify the date of the operation (3).

Additionally, you can:

  • specify the «commission» in hryvnias or as a percentage of the sum (4),
  • identify «№ of document» (5) for personal use.

close

In order to close hryvnia deposit, on the «change» tab you have to do the following:

  • specify the actual amount of withdrawal from the deposit (1),
  • specify the date of the operation (3).

Additionally, you can:

  • specify the «commission» in hryvnias or as a percentage of the sum (4),
  • identify «№ of document» (5) for personal use.

Currency deposits (back to contents)

Opening procedure

In order to add a currency deposit, tab you have to do the following on the «change»:

  • select the currency of the deposit (7),
  • specify the deposit interest rate (8),
  • specify the deposit amount (1),
  • specify the exchange rate at a moment of opening (2),
  • specify the date of the operation (3).

Additionally you can:

  • specify the «commission» in hryvnias or calculated as a percentage of the deposit (4),
  • identify «№ of document» (5) for personal use.

On the tab there is a date specified from which you can perform the operation of opening /closing of foreign currency deposits (6).

close

In order to close foreign currency deposit, on «change» tab you have to do the following:

или

  • specify the actual amount in hryvnias, which has been withdrawn from deposit (1), or the amount in currency (1) and the exchange rate at the moment of operation (2),
  • specify the date of the operation (3).

Additionally you can:

  • specify the «commission» in hryvnias or as a percentage of the sum (4),
  • identify «№ of document» (5) for personal use.

metal deposits (back to contents)

opening

In order to add a metal deposit, on the «change» tab you have to do as follows:

  • select deposit metal (7),
  • specify the deposit interest rate (8),
  • specify the initial weight of the metal deposit (1),
  • specify the amount for 1 gr at the moment of the deposit was openined (2),
  • specify the date of the operation (3).

Additionally you can:

  • specify the «commission» in hryvnias or calculated as a percentage of the value of the deposit (5),
  • identify «№ of document» (6) for personal use.

On the tab there will be the starting date specified that the deposit can be opened/closed (6).

closing

In order to close a metal deposit, on the «change» tab you have to:

  • specify the deposit amount in hryvnia (1),
  • specify the date of the operation (3).

Additionally, you can:

  • specify the «commission» in hryvnias or as a percentage of the sum (4),
  • identify «№ of document» (5) for personal use.

View the current portfolio status (back to contents)

You can see all assets that are included into portfolio,

You can view the current composition of your portfolio hitting «current composition» tab, where

«units» - shows the deposited amount in relevant currency or the number of MIF shares /units in the portfolio;

«price, UAH» - number of deposits or current value of MIF units/shares;

«cost, UAH» - the value of the position in UAH;

«total cost» - total hryvnia value of all assets in the portfolio.

Rebalancing (back to contents)

The rebalancing tab shows suggestions on the ways you can get your current portfolio in line with the current recommended portfolio.

In the «unit» column the current number of securities is reflected, and in the column «± units» - the type of operation that needs to be done with a given security to update the portfolio status to the level of a recommended portfolio.

With this feature you can rebalance portfolio by clicking on the «Rebalance» button.

To rebalance your portfolio you have to:

  1. Click «Rebalance» button.
  2. Enter the amount of the recommended portfolio you are planning to have created.
  3. Click «Save» button.

Charts (back to contents)

You can review the chart that reflects your portfolio profitability on the «Charts» tab. Portfolio profitability data on charts are been updated automatically every night.

First, you see the chart which shows daily profitability fluctuations. By hitting «Portfolio life span» you can see the chart reflecting the whole period of portfolio existence.

To close the portfolio (back to contents)

You can close your portfolio at will. To do so, you have to click «Close» when you are in the interface of portfolio management.

If the portfolio beholds at least one active transaction, the latter will be filed to the archive.

If the portfolio contains recommended securities only, they will be deleted.

View history of working with a portfolio (back to contents)

As long as portfolio is activated the history of all transactions is reflected at the foot of the main interface. The history accounts for all operations ever performed with the portfolio (shares bought and sold, deposits opened as well as portfolio rebalancing done).

My account (back to contents)

You can change your login, password, name, e-mail address and personal data on «My account» page.

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