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New digital portal is designed to aid portfolio managers

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Independent financial risk adviser, JCRA, has recently launched Ada, a portfolio valuation and hedge accounting SaaS portal, designed to provide real-time portfolio information, treasury and accounting reports.

Ada is named after Ada Lovelace, the 19th-century visionary British mathematician and computer pioneer whose former home at 12 St James’s Square in London is the European headquarters of JCRA.

Jackie Bowie, CEO of JCRA, the independent financial risk advisor, explains that the new portal is designed to enable clients to access an overview of debt and derivative instruments in their portfolio to the mark-to-market (‘MtM’) value. Risks become easier to understand and mitigate when presented as part of a complete picture, the firm says. As such, Ada can be used as a consolidated hub to view and report on risk management strategies across a broad spectrum of projects and asset classes. There are also plans to add components to the portal in the next stage of its development.
 
As Jackie Bowie (pictured) explains: “If the portfolio has currency exposure, which is most likely, and those exposures are being actively managed then you will want to know what the outstanding contracts are at any point in time, what their value is, whether they are in or out of the money.
 
Ada essentially offers portfolio managers a window into contract positions so that you can predict when you are likely to get a cash call if the market goes a certain way,” she adds.
 
Currency exposure can have a significant impact on fund performance, and not just in periods of high volatility. There are a number of ways to hedge currency, but each has its own cost; whether transaction costs, the opportunity cost or costs resulting from interest rate differentials. Therefore, being able to consistently monitor a hedging strategy in real-time can dramatically reduce currency risk, the firm says.
 
The portal enables managers to get a complete portfolio overview; to see a snapshot of all debt and derivative instruments; quickly drill down and analyse individual entities and instruments; view Mark-to-Market (MtM) value as well as specific instrument cashflows and LIBOR fixings, both past and predicted. And in order to simplify reporting, export details as either a PDF or Excel spreadsheet. The technology is constantly updated to take into account market data and pricing systems.
 
The portal is ideal for mainly medium to large fund managers covering all asset classes and sectors. Where in general, portfolio managers are able to get pretty accurate valuations of underlying assets and holdings, they do not always get that same transparency in terms of derivatives positions. Consequently, the only place to go is the counterparty. As an independent adviser, JCRA can provide independent audit of those valuations and their MtM. Ultimately how they need to be reported and accounted for in the portfolio.
 
“It’s not just about historical reporting of a position on a retrospective basis. Our technology can actively monitor and determine a hedging strategy on a forward basis and under particular market conditions,” says Bowie.
 

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