Australia: Gallery

This page contains sections that deal with aspects, or applications of-, the I-Maps System that aren't covered elsewhere.


Showing Company Fundamental Ratios on I-Maps


Map showing PE ratios

Tilt size and fundamental ratios such as PE (price to earnings), dividend yields, ROAE (return on average equity) or even forecast returns can be shown on I-Maps.  The system can show virtually any ratios.    The ratios are normally specified by, and provided by, the client.  Up to 12 different ratios can be catered for.

(The "ratios" need not be actual ratios.  A ratio could be, for example, 3 month change in price.)

The ratios are shown using the colour of the marker for each point.  On the map above the high PE shares are dark red.  The low PE ratios are dark green.

In addition, the shape of the markers can be used to show the size of the tilts (for a selected fund and its benchmark).

 

Showing Tilt Size on I-Maps


Map showing Tilts

For a given portfolio and benchmark, the tilt of a holding is the extent to which the weight of the holding in the portfolio differs from the weight the holding has in the benchmark.  The tilt is also known as the size of the bet, or the active weight or the active bet.  Tilt sizes can be shown on I-Maps with the shape of the point's marker:  stars are used for holdings that are over-weight relative to the benchmark, crosses are used for under-weight holdings.  The size of the the star or cross shows the size of the tilt.

On the above map, holdings that are in the portfolio are shown in black.  This means the securities shown in blue are in the benchmark but are not held by the portfolio.

 

Showing Ratios and Tilt Size on I-Maps


Map showing Tilts and Ratios

Tilt size and ratios can be shown simultaneously.

Consider Rio Tinto on the map.  It has a medium size star, indicating that it is "medium overweight" relative to the benchmark.  The star is dark green indicating a good ratio,  in this case excellent returns over the last 3 months.

Consider Newscorp:  It has a big red cross, which shows that it is heavily under-weighted and that it performed badly. 

In very simple language, big green stars and big red crosses are "good", while big red stars and big green crosses are "bad".

 

Sector hierarchies or trees or classification schemes

The securities within I-Maps can be arranged into any number of sector hierarchies, such as GICS.  Holdings within portfolios are then shown using a chosen hierarchy. 

Picture of portfolio holdings with a hierarchy

Clients can have their own customised hierarchies.

 

Sub-Portfolios or Unit Portfolios

A particular strength of the I-Maps System is its ability to deal with portfolio holdings that are themselves portfolios.  These are variously called sub-portfolios or unit holdings.  The I-Maps System even caters for sub-portfolios that hold sub-portfolios that hold sub-portfolios, ....

Within the I-Maps System sub-portfolio holdings can be:

  • Packed
    • the sub-portfolio shown as one security
  • Unpacked within the parent
    • the holdings of the sub-portfolios distributed within the parent portfolio
  • Unpacked in their own window
    • the holdings of the sub-portfolios shown in their own separate window

Sub-portfolios can be unpacked or packed "live" within the system.

Sub-portfolio in its own window 

Sub-portfolio unpacked within the parent 

 

Applications

A strength of the I-Maps System is its ability to have portfolios whose holdings are themselves portfolios. This allows it to deal with the following applications:

  • Multi-Managers  Dealing with multi-manager products that consist of holdings that are themselves portfolios is a particular strength.
  • Long-Short Hedge Funds Long-Short Hedge funds are dealt with by showing all the long holdings as one sub-portfolio and all the short holdings as another sub-portfolio. The top fund has a positive weight in the long sub-portfolio and a negative weight in the short sub-portfolio. The map then shows where the long and short sub-portfolios are positioned (from which can be seen how much they offset each other) and the position of the overall portfolio that arises from combining the two sub-portfolios.
  • 130 Long, 30 Short Funds These portfolios are normally shown as a portfolio with holdings in three sub-portfolios: the 100% part, the extra long 30% part and the short 30% part.