Portfolio Management System and Portfolio Accounting Software

Portfolio accounting turns trades and market events into positions, income and accounting entries. Before looking at screens or reports, check the foundations:

• Asset coverage. Equities, fixed income, derivatives, commodities and repos should sit in the same book, not in side spreadsheets.
• Transaction history. Every purchase, sale, coupon, dividend and fee must be recorded and traceable.
• Pricing and yield. Fixed income holdings need price and yield calculations, not only a market price feed.
• Accounting output. Entries should post to the general ledger under rules your accountants define.
• Connections. Payments and settlements travel through ACH, SWIFT and RTGS, and the system should exchange data with them directly.

When the portfolios belong to clients, the system must serve each account individually, with its own guidelines, fees, taxes and statements. MIMICS Customer Portfolio manages client holdings across equities, fixed income, equity and fixed income derivatives, commodities and repos, and counts settlement account cash as part of each portfolio's value. Allocation models, investment guidelines and portfolio limits are set per client. Taxes, fees and commissions are calculated as you configure them, and clients receive statements and confirmations carrying your logo. Projected cash flow reports show clients the income they can expect from their holdings.

A fund adds two demands: a Net Asset Value calculated from the portfolio, and an investor register that records who owns units and pays them. Mutual fund accounting software therefore spans two sides of the business.

Fund Portfolio handles the investment side. It calculates NAV, works out management and incentive fees, prepares compliance reporting and handles any number of portfolios of any size. Mutual Fund Admin handles the investor side as registrar, transfer agent and paying agent, takes NAV from Fund Portfolio and produces accounting entries from user-defined rules so the fund's financial reporting follows. For funds that trade on margin, MIMICS Hedge Fund combines margin accounts, an embedded general ledger and full transfer agent functions.

An institution's own investments call for a different view. Treasury staff care about liquidity, tax obligations and how the book is reported under the accounting standards the institution follows. Treasury Portfolio keeps all asset classes in one book, with price and yield calculations, automatic tax calculation, complete transaction history and compliance reports set to your standards, connected to your core system.

Central banks managing foreign currency reserves use Reserve Portfolio Management, which manages foreign exchange reserve portfolios, reports holdings in real time and interfaces with SWIFT, ACH, RTGS and Bloomberg.

Accounting tells you what you hold; analysis tells you how it may behave. Portfolio Analysis works on portfolios kept in Treasury Portfolio, Fund Portfolio or Customer Portfolio. It covers credit risk, market risk and sensitivity measures, performs risk calculations by interest and exchange rates, and runs what-if scenarios to your specifications, with audit trails on the underlying transactions and holdings. Keeping analysis on the same data as accounting avoids a familiar problem: a risk report that does not agree with the books.

Ask each vendor to walk through a full cycle with your own instruments: a trade, a coupon or dividend, a fee, a month-end valuation and the resulting ledger entries. Check whether client, fund and proprietary portfolios can run on related modules that share securities and prices, and how reports and statements are adapted to your format. MIMICS tailors each installation to the institution, so the walkthrough can use your real portfolio types. To arrange one, contact MIMICS.