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PORTFOLIO & RISK ANALYTICS A Bloomberg Professional Service Offering

PORT <GO>

BETTER
PORTFOLIO
DECISIONS
 Bloomberg’s Portfolio & Risk Analytics
solution helps portfolio managers achieve
their objectives by providing unmatched
transparency into their portfolio’s
performance, characteristics, risk
and more.
CONTENTS From one location, a series of powerful,
integrated equity and fixed income tools
02 INTRODUCING BLOOMBERG PORTFOLIO & RISK ANALYTICS
03 ANALYZE YOUR PORTFOLIO’S HISTORICAL PERFORMANCE deliver consistent insight, enabling you
06 MONITOR TODAY’S PERFORMANCE & NEWS IN REAL-TIME to create and execute differentiating
08 EVALUATE YOUR PORTFOLIO’S CURRENT STRUCTURE investment strategies.
10 UNDERSTAND YOUR PORTFOLIO’S RISK STRUCTURE
12 SIMULATE TRADES & OPTIMIZE YOUR PORTFOLIO
15 SEAMLESSLY INTEGRATE YOUR POSITIONS FOR ANALYSIS
INTRODUCING ANALYZE YOUR

PAST
BLOOMBERG PORTFOLIO’S
PORTFOLIO & HISTORICAL
RISK ANALYTICS PERFORMANCE
PORT <GO> — POWERING YOUR PORTFOLIO MANAGEMENT & RISK STRATEGIES Bloomberg’s Portfolio & Risk Analytics solution gives you sources of your portfolio’s absolute or excess return
As a portfolio manager, your performance depends on At Bloomberg, we are committed to continuously adding the ability to analyze the historical performance of your by asset class, sector, geographic region, a custom
various factors. You must manage and anticipate changes greater clarity to your investment decision making and to equity, fixed income or multi-asset portfolio on an absolute classification, and even based on Bloomberg’s
in complex markets every day, plan for every possibility ensuring that you feel completely confident in these critical basis or relative to a benchmark. You can identify the multi-factor risk model.
and execute accordingly. You also need a flexible plan for decisions. Our Portfolio & Risk Analytics solution is fully
responding to economic, financial and political changes. integrated with the Bloomberg Professional® service—at
The challenges have never been greater. no additional fee—providing unparalleled access to the
broad range of sophisticated tools required by today’s
Bloomberg’s Portfolio & Risk Analytics solution for
asset managers.
investment professionals empowers you with the tools
required to successfully implement your portfolio investment
and risk management strategies. Our platform will help you
make quicker, more informed decisions and enable you to
measure market-related and security-specific risk exposures
for your portfolios.

ACTIVE PORTFOLIO MANAGEMENT SOLUTION

PAST PRESENT FUTURE

» Backtesting » Real Time P&L » Tracking Error PORT <GO> — Performance

» Performance Attribution » Portfolio Driven News » Value-at-Risk See how your portfolio has
performed over time on an
» Historical Performance and Alerts » Scenario Analysis absolute basis or relative to
» Characteristics » Portfolio Characteristics » Trade Simulation your benchmark

» Historical Risk » Excel and PDF » Forward Looking Risk

Reporting HISTORICAL PERFORMANCE ANALYSIS
» Mobile Access » Use the Performance Tab to examine the historical » Examine standard deviation, beta, realized tracking
cumulative performance of your portfolio relative to error and dozens of other commonly used risk/
its benchmark return measures
» Easily change the analysis time frame to hone in » Gain insight into the drivers of historical risk
on a specific sub-period or visualize long term and performance
performance patterns

PORTFOLIO & RISK ANALYTICS 02 // 03

 PAST
PORT <GO> —
Performance Attribution PORT <GO> —
Understand the sources of your Transactions-Based Attribution
portfolio’s historical performance Understand how your transactions
based on sector and security bets and transacted price levels impacted
the portfolio’s total return over a
historical time period
PERFORMANCE ATTRIBUTION
»A
 nalyze your active portfolio performance results by » Calculate the impact of yield curve movements and
examining allocation effect, security selection effect spread effect on your fixed income portfolio’s historical TRANSACTIONS-BASED ATTRIBUTION
and currency effect performance relative to its benchmark » Quickly identify which trades contributed/detracted » Analyze Transaction Effect, which quantifies the
»B
 reak down your portfolio by asset class, sector, » Drill down for full transparency into the data used to from total return contribution to return due to historical trades
geographic region, duration, credit quality or any calculate the returns, such as capital events, accrued » Isolate transaction returns at the instrument level
other custom classification interest and cash flows

PORT <GO> —
Factor-Based Attribution
Analyze the sources of your
portfolio’s historical performance
based on Bloomberg’s multi-factor
risk models

FACTOR-BASED PERFORMANCE ATTRIBUTION

» Explain portfolio performance in terms consistent with » Security returns are decomposed into the portion
your ex-ante risk management approach by leveraging coming from exposure to risk model factors, such as
Bloomberg’s multi-factor risk models fully integrated industry, country, style, currency, curve and spread, and
with historical performance attribution the portion coming from selection effect
PORTFOLIO & RISK ANALYTICS 04 // 05
MONITOR TODAY’S

PRESENT
PERFORMANCE
& NEWS IN
REAL-TIME
With PORT <GO> you can monitor the intraday identify today’s top and bottom return contributors. Keep PORT <GO> — News Pop-up
Instantly view the stories relating
performance of your equity, fixed income or multi-asset track of your portfolio’s performance even when you are to and impacting your portfolio
portfolio in real-time as well as quickly access the news out of the office by running Bloomberg Anywhere on your with Bloomberg News®
which is most impacting your portfolio today. Immediately mobile device.
PORTFOLIO NEWS & ALERTS
» Bloomberg's ever-expanding news content is fed by more »S
 ort your portfolio news with up to 11 different filters,
than 60,000 sources, including global press releases, including “User Activity,” which uniquely shows the stories
broker research and blogs of most interest to other users in the Bloomberg community
» Alerts and unlimited keyword criteria can be applied to
your portfolios, ensuring that every piece of news and
research critical to you is captured

BLOOMBERG BRIEF RISK NEWSLETTER

Portfolio managers, treasurers and risk professionals Brief Risk also contains interviews with risk officers and
with Bloomberg terminals have a resource in the form of portfolio managers at fund companies, corporations and
a weekly risk e-newsletter launched in June 2011. Titled other institutions. Bloomberg terminal customers enjoy
Bloomberg Brief Risk, this publication combines original complimentary access to the newsletter. Non-terminal
news, data and commentary on topics such as hedging, customers may access via paid subscription.
portfolio allocation and funding strategies. Bloomberg
PORT <GO> —
Intraday Performance
Monitor your portfolio’s intraday
performance relative to the prior
day’s close prices

REAL-TIME MONITORING
» Track how your portfolio is performing today on an » Display the intraday cumulative return chart or heat map
absolute basis or relative to a benchmark for a visual representation of today’s activity
» Quickly identify the top and bottom return contributors » For fixed income securities, PORT <GO> leverages
for your portfolio by security, by industry, or by any the numerous intraday pricing feeds available via the
other classification Bloomberg terminal, including MSG1 pricing ////////////////////////////////////////////////////////

Monitor your portfolio’s intraday performance anytime and

anywhere on your Blackberry,® iPhone,® iPad®, Android or
other mobile device with Bloomberg Anywhere.
///////////////////////////////////////////////////////

PORTFOLIO & RISK ANALYTICS 06 // 07

EVALUATE YOUR

PRESENT
PORTFOLIO’S
CURRENT
STRUCTURE
Bloomberg’s Portfolio & Risk Analytics solution centralizes yield for equity portfolios or effective duration for
PORT <GO> — Cash Flows
the critical data and analytics you need to understand fixed-income portfolios. Create your own growth Understand the projected
the structure of your portfolios. Display the fundamental or trend metric leveraging Bloomberg’s vast cash flows of your portfolio®
metrics you care about most, such as P/E and dividend fundamentals database.
PORTFOLIO CASH FLOWS
» Display the projected income generated by your » Cash flows are based on Bloomberg Dividend
portfolio over a time specified horizon in both chart Forecast (BDVD) for equity instruments, coupon
and table form and principal payments for fixed income instruments

PORT <GO> —
Characteristics tab
Analyze the fundamental
characteristics of your portfolio
that matters most

PORT <GO> —
AGGREGATE PORTFOLIO CHARACTERISTICS Liquidity Risk
»A  nalyze key equity or fixed income characteristics of your » Upload your own custom data and display alongside Analyze your equity portfolio’s
structure in terms of the overall
portfolio and see how they compare to a benchmark on Bloomberg data liquidity of your positions
a specific date or as a time series trend » Chart characteristics to see your relative exposures
» Aggregate these measures by any classification, versus the benchmark LIQUIDITY RISK
such as a sector, country, or any custom scheme » Understand your equity portfolio’s liquidity based on » Customize your liquidity risk analysis based on a
that you define the average or total days to liquidate all or a portion specified participation rate and average trading
of your positions volume history
» Quickly identify the most illiquid stocks in your portfolio »A  nalyze your portfolio’s liquidity horizon based on
as well as the concentration of your portfolio’s market the length of time it would take to liquidate a preset
value in more vs. less liquid securities percentage of the portfolio’s total market value

PORTFOLIO & RISK ANALYTICS 08 // 09

UNDERSTAND

FUTURE
YOUR PORTFOLIO’S
FUTURE RISK
EXPOSURES
Bloomberg has developed fundamental risk factor models to help you measure and analyze portfolio PORT <GO> — Scenarios tab
Stress test your portfolio and
risk through multiple lenses, including tracking error, stress testing, and VaR. identify sensitivities to selected
market risk factors

SCENARIO ANALYSIS
» Evaluate your portfolio using a variety of historical stress » Create your own custom stress tests to gain greater
scenarios—such as the global financial meltdown in insight into your portfolio’s risk and validate
2008 or the Libyan oil crisis in 2011 current portfolio exposures

PORT <GO> —
Tracking Error tab
Analyze your portfolio’s ex-ante
(predicted) risk by using one
of Bloomberg’s multi-factor
risk models

TRACKING ERROR
» Fully transparent fundamental risk factor models » Calculate
 risk in absolute terms or relative to your
PORT <GO> — VaR tab
provide global , multi-asset class coverage across benchmark, another portfolio, fund or index Analyze the tail risk of your
all of your positions »O nly Bloomberg provides the ability to click through portfolio using the latest risk
modeling techniques
» More informative risk decomposition using market to the underlying fundamental data for full risk
standard as well as custom classifications data transparency
VALUE-AT-RISK
» Global multi-asset class security coverage, with » Support for Monte Carlo, Historical, and Parametric VaR
Stress Matrix Pricing on derivatives for more Methods across multiple confidence levels to calculate
accurate VaR forecasts the maximum expected loss
» Ability to measure the VaR impact on proposed trades » Robust proxy capability to assist in exception handling
using Trade Simulation mode and optimization

PORTFOLIO & RISK ANALYTICS 10 // 11

SIMULATE TRADES

FUTURE
& OPTIMIZE YOUR
PORTFOLIO
Bloomberg’s flagship application for portfolio analysis includes fully integrated portfolio construction tools.
Trade Simulation and Portfolio Optimization allow you to easily and rapidly identify trades that will ensure you
make the best investment decisions.
PORT <GO> — Optimization
Leverage PORT’s built-in Portfolio
Optimization capabilities to
construct your optimal portfolio

DISCOVER YOUR PORTFOLIO’S

OPTIMAL CONSTRUCTION
» Iterate through multiple versions of hypothetical trades » Leverage Bloomberg’s Transaction Cost Analysis model
to build an efficient frontier of optimal portfolios to incorporate market impact into your test
» Upload your custom security-level expected returns »B  acktest your strategy to create a model portfolio and
or any other data as inputs to the Optimizer analyze its historical performance in PORT <GO>

PORT <GO> —
Trade Simulation
Analyze how your portfolio’s
characteristics and risk structure
would change based on your
potential trades

TEST THE IMPACT OF YOUR TRADE IDEAS

» Evaluate potential trades or edit existing positions by » Analyze in real time the impact of hypothetical trades
using the Trade Simulation functionality across the entire analytical suite of portfolio tools
available within PORT <GO>
PORT <GO> —
Optimizer Results
The Optimizer delivers suggested
trades for analysis with resulting
active total risk or any other
optimization goal

IDENTIFY THE TRADES TO MEET YOUR

INVESTMENT OBJECTIVES
» Easily identify the best set of trades that will give your » Analyze your hypothetical portfolio which incorporates
portfolio the exposures that you want it to have these trades seamlessly in PORT <GO>

PORTFOLIO & RISK ANALYTICS 12 // 13

SEAMLESSLY
INTEGRATE YOUR
POSITIONS FOR
ANALYSIS
SECURELY UPLOAD YOUR PORTFOLIO PAVE THE WAY FOR FIRM-WIDE
HOLDINGS FOR ANALYSIS IN PORT <GO> TRANSPARENCY & CONTROL
Integration & Implementation As an extension to the core portfolio analytics features
Upload your portfolio data in three ways to integrate your offered on the Bloomberg Professional service,
portfolio holdings on the Bloomberg Professional service PORT <GO> analytics can be utilized across your
to use for PORT <GO>. entire firm for a holistic view of your organization’s global
» Manually enter or drag and drop your portfolio from a investment activities. Your senior management team—
file to the Portfolio Administration tool, PRTU <GO> from Risk Managers to the Chief Investment Officer—
» Performance a manual one-time upload or schedule an can obtain unparalleled insight and transparency into
upload using the Bloomberg Upload tool, BBU <GO> the firm’s investments, resulting in a new and complete
level of confidence and protection for your organization.
» Your portfolio data can be pre-integrated with the
Bloomberg Professional® service> providing turnkey
access to the portfolio analytics, news and alerts that
are crucial to managing your business smoothly and
efficiently through BBU <GO> via SFTP protocol.
Our team of portfolio integration specialists can help
you get started.

PORTFOLIO & RISK ANALYTICS 14 // 15

ABOUT THE
BLOOMBERG
PROFESSIONAL
SERVICE
The founding vision in 1982 was to create an information
services, news and media company that provides
business and financial professionals with the tools and
data they need on a single all-inclusive platform. The
success of Bloomberg is due to the constant innovation
of our products, unrivaled dedication to customer service
and the unique way in which we constantly adapt to an
ever-changing marketplace. The Bloomberg Professional
service is a powerful and flexible tool for financial
professionals–whatever their needs–in cash and
derivatives markets as diverse as equities, currencies,
commodities, money markets, government and
municipal securities, mortgages, indices, insurance,
and legal information. The Bloomberg Professional
service seamlessly integrates the very best in real-time
data, news and analytics.

In addition, Bloomberg users benefit from on-demand

multimedia content, extensive electronic trading
capabilities and a superior communications platform.
Bloomberg customers include influential decision
makers in finance, business and government. Business
and financial professionals recognize the Bloomberg
Professional service as the definitive tool for achieving
their goals because it offers unparalleled assistance
and functionality on a single platform for a single price.

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Real Service from Real People When You Need It.

Our 24/7 industry-leading customer service teams in
160 countries around the world will help you fully leverage
the analytics and data on the Bloomberg Professional service.
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PORTFOLIO & RISK ANALYTICS 16 // 17
> > > > > > > >> > > > > > > > > > > > > > > > > > > > > > > > > > > > >

To learn more about what Bloomberg’s Portfolio & Risk

Analytics solution can do for you, visit BPRA <GO>
on the terminal or send an email to our team at:
[email protected].
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