Portfolio Plus
Portfolio Plus allows you to combine and modify transactions, analyze various "what-if" scenarios, and print reports on aggregated transactions.
The Concept
A portfolio has a 3-layer structure: individual transaction, group and portfolio. Individual transactions are the lowest level. A group contains any number of transactions, and a portfolio contains any number of groups.
Each component can be manipulated and reported on separately. Further, each component, whether an individual transaction or a group, has a status that indicates whether it is to be added, subtracted, or ignored in the consolidation process to the next higher level. This last selection is useful when the user wishes to consider various sensitivities or combinations without actually having to remove (and perhaps later re-add) components of the portfolio.
Source transactions are typically SuperTRUMP files, which may be in lessor mode, lender mode, or lessor & lender mode. Different SuperTRUMP transaction modes can be mixed within a portfolio. In addition to SuperTRUMP source files, member files can be imported from a spreadsheet. Each row in the spreadsheet is converted into an individual transaction in Portfolio Plus. That process takes place under the direction of the user with respect to the interpretation of the titles in the spreadsheet.
The Capabilities
Portfolio Plus has the flexibility to add, remove, replace or multiply various components of the individual transactions as part of the analysis.
Adding
Fees, borrowing loans, periodic expenses, and periodic income can be added at the transaction level. At the portfolio level, fees and dependent fees can be added. Regular fees can be income or expense, expressed in dollars or percentages of equipment cost. Dependent fees are always expressed in percentages of a specific array or quantity from the transaction, as selected by the user.
Removing
Features that can be removed (at the individual level only) are fees, borrowing loans, periodic expenses, and periodic income.
Replacing
Treatment of accounting, calculations, IRS/FASB, specified termination, ROE/ROA internal loan, tax calculations, TV/SLV, and taxes can be replaced in the member files.
Multiplying
Asset cost, residual value, fee expense, fee income, periodic expense, periodic income, and specified termination can be multiplied by separate user-specified factors. Alternatively, a factor can be solved for while targeting a yield.
Two capabilities are particularly useful: Purchase of a Portfolio and Sale of a Portfolio.
Purchase of a Portfolio
In a purchase, each member file must be "chopped" on the proposed acquisition date. This means that events that took place prior to that date are removed, loan balances are restarted using the current balance, the delivery date is set to the acquisition date, and the depreciation of the new transaction starts over using the new asset cost. Straddle values are computed if applicable. Portfolio Plus can solve for the asset cost to achieve a target yield, or the yield can be determined using a specified amount.
Sale of a Portfolio
In a sale, each file must be "terminated" on the proposed sale date. All events that would have occurred after that date are removed, all loans are paid off, and the remaining asset basis is written off on that date. Straddle values are computed if applicable. The sale amount (residual value) can be solved for to achieve a target yield, or the yield can be determined using a specified amount.
