Portfolio Scorecard › Investments Portlet

Investments Portlet

The Investments portlet on the portfolio scorecard displays all included investments having the status as selected from the toolbar.
You have access rights to these investments and they match the view and filter settings you select from the toolbar. For example, if you chose to view unapproved investments, the list displays only the investments with a status other than "Approved".

Use this portlet to do the following:

• View the list of portfolio investments.
• Link to the investment properties page by clicking the investment name.
• Add an investment to a scenario by clicking the Grid with Plus (Add to Scenario) icon that displays next to the investment.
• View the investment ID, goal, alignment, risk, stage, planned cost, and start date, that is included in the portfolio.
• View remaining cost and remaining role allocation for an investment by comparing the values in the following cost and role columns:
  • Actual Cost and Remaining Cost
  • Role Demand, Remaining Role Allocation, and Role Actuals

  Visibility into remaining cost and remaining role allocation is important when planning a portfolio. You can determine how much of the budget remains and how much additional capacity is required. Planning a portfolio becomes easier when you can compare your portfolio budget and role capacity with the correct budget values and the correct role demand.

• Configure the Investments portlet to display financial metrics such as Planned IRR, Planned MIRR, Planned Payback Period, and so on. The investment boundaries and not the portfolio boundaries drive the values for these metrics.

  See the Financial Management User Guide for more information.

Follow these steps:

1. With the portfolio open, click Scorecard.

   If this page is minimized to display all portlets, the Investments portlet is the first section on the page.

2. If the page is maximized to display only one portlet at a time, select Investments from the portlet drop-down.

The portfolio values are displayed in the rows at the bottom of the portlet:

• The Aggregation row shows the total for the investments contained in the portfolio
• The Comparison row shows the portfolio data.
• The Variance row shows the difference between the aggregation and the comparison values. A negative variance value indicates the portfolio is over budget. What you select on the portfolio properties page affects the values in the comparison as follows:
  • If you select Total Planned Cost and Total Capacity, then the Planned Cost is compared with portfolio cost.
  • If you select Remaining Cost and Remaining Capacity, then the Remaining Cost is compared with portfolio cost.

Role Filtering and Investments Data

The following explains how data in the Role Demand, Remaining Role Allocation, and Role Actuals columns vary on the Investments portlet. The values vary based on what you have selected from the Portfolio Roles filter:

When you filter on a particular role, then all columns show the numbers related to that role:

• Role Demand shows the aggregated total allocation value of all the resources and roles whose investment role matches the filtered role for each investment.
• Remaining Role Allocation shows the aggregated total remaining allocation value of all the resources and roles. The investment role matches the filtered role for each investment calculated by subtracting Role Actuals from Role Demand.
• Role Actuals show the aggregated total actuals of all the resources and roles whose investment role matches the filtered role for each investment.

When No Role Assigned is selected in the filter:

• Role Demand shows aggregated total allocation value of all the resources and roles irrespective of their investment role for each investment.
• Remaining Role Allocation shows the aggregated total remaining allocation value of all the resources and roles irrespective of their investment role for each investment.
• Role Actuals shows the aggregated total actuals of all the resources and roles irrespective of their investment role for each investment.
• The Comparison and Variance aggregation rows under all these three columns are left blank.

No Role Assigned is a special entry that represents demand for resources that do not have a role assigned to them. The values for this entry are included in the aggregated total even when no role option is selected. You can always select No Role Assigned when filtering on a specific role.

Planned Cost Calculations

The following describes what the planned cost values indicate for department and generic portfolios:

• For a generic portfolio, the planned cost value represents the total cost for that investment.
• For a provider department portfolio, the planned cost value represents the total cost for that investment.
• For a customer department portfolio, the planned cost value represents the actual funding amount for that investment. This amount is the full budget amount multiplied by the applicable allocation percentage (that this department bears) expressed in the chargeback rule for that investment. Only the allocation rate in effect on the first date of the portfolio planning horizon is applied. Any time-based variation in chargeback allocation during the portfolio planning horizon is ignored.

Example

Forward Inc created and approved the Fast Track Xchange project. The internal customers, Global Securities and Cash Management divisions have agreed to pay for all costs associated with this project. The following chargeback rules were set up for the project from 1/ 1/ 07 to 12/31/ 08 as follows:

• Year 2007: Global Securities=50percent and Cash Management= 50percent
• Year 2008: Global Securities= 60percent and Cash Management= 40percent

The budget properties for the year 2007 for the project is set up as follows:

• Planned Cost: $300,000
• Planned Cost Start Date: 1/1/2007
• Planned Cost End Date: 12/31/2007

The budget properties for the year 2008 for the project is set up as follows:

• Planned Cost: $400,000
• Planned Cost Start Date: 1/1/2008
• Planned Cost End Date: 12/31/2008

The portfolio manager creates the following customer department portfolios:

• Cash Management 2007 for the period 1/1/2007 to 12/31/2007
• Cash Management 2008 for the period 1/1/2008 to 12/31/2008

Both portfolios belong to the Forward Inc/Cash Management department and include the Fast Track Xchange investment. The portfolio manager navigates to the portfolio scorecard. The planned cost value for the same investment appears as follows in the two portfolios:

• The Cash Management 2007 portfolio displays the planned cost value for the investment Fast Track Xchange as $150,000 (50 percent of 300,000)
• The Cash Management 2008 portfolio displays the planned cost value for the investment Fast Track Xchange as $160,000 (40 percent of 400,000)

Investments with Hierarchy

If a chargeback rule is set up for an investment to charge a particular department, then that investment is included in that department customer portfolio.

If both the parent and the child investments have been set to charge a department, charges get aggregated to the top-level parent. Charges get aggregated based on the investment allocation. If only the child investment is included in the portfolio, only the cost associated with it is displayed.

Consider the following example: The budget for investments P1, P2, and A1 is $100,000 each for the year 2007. As P1 and A1 are charged to department D1, both these investments are available in the customer department portfolio for D1. A1 is a child of P1 and P2 and is allocated at 50percent to each parent.

• Scenario 1. If you include only investment P1 in a portfolio, the portfolio scorecard displays the investment P1 with a planned cost value of $150,000 ($100,000 for P1 + (50 percent of $100,000 for A1))
• Scenario 2. If you include P1 and A1 in the portfolio, the portfolio scorecard displays the investment P1 with a planned cost value of $100,000. Investment A1 displays with a planned cost value of $100,000.
• Scenarios 3. If you include only A1 in the portfolio, the portfolio scorecard displays the investment A1 with a planned cost value of $100,000.

Follow these steps:

1. With the portfolio open, click Scorecard.

   The portfolio scorecard appears.

2. Do one of the following:
   • If this page is minimized to display all portlets, this portlet is the first portlet.
   • If the page is maximized to display only one portlet at a time, select Investments from the portlet drop-down.