Next step of the Portfolio Definition is stipulating conditions for the transaction selection. Conditions may be assigned to any node in the Portfolio structure including the Main (Portfolio) node. Conditions assigned to a node will determine which transactions will be available for processing by the conditions assigned to its children nodes. Records isolated by the conditions of one node will not be available for consideration by the remaining nodes. 

Note: Before you continue with this part of the manual, please read the Logical Conditions section of this manual where we describe in detail how to select and define conditions for data selection. 

To reiterate, here we are defining a Portfolio capable of performing following data selection operations: 

1. Portfolio (0) level – will have no conditions for data selection, which means that the entire source will be processed during the execution. The Main node will bear the name of the Portfolio.
Note: Where you to create a data subset, you would insert a condition to the Root Node. 

2. Segments (1) level – each segment node (3) bears the name of a profit center and a condition to extract data relevant to the former. The following profit centers will be selected in our example:

a. Income Operations
b. Purchasing
c. Collateral Operations 

3. Subsegments (2) level – each subsegment node (3 per segment) bears a name of an asset type and a condition to extract data relevant to the former. The following asset types will be selected in our example: 

a. Cash Deals
b. Money Market
c. Forex Deals

4. Entries (3) level – each entry node (3 per subsegment) will house deals identified by date interval from “today” to maturity: 

a. One year or less to maturity
b. More than one year to maturity
c. More than two years to maturity

Inserting Conditions on the Segments Level 

Let us assume that on the second (segments) of the portfolio we want to isolate a profit center for each segment node. They are respectively: 

1. Income Operations
2. Lending Operations
3. Purchasing 

Therefore for each segment of the Sample portfolio, we have to identify the column name (profit_center) and specific value in that column that corresponds to the purpose of the segment. 

To insert conditions to the segments level nodes of the Sample Portfolio: 

1. Click on the Segment_1 node (income_ops) to select it. 

2. Press  button of the Conditions Tab’s toolbar. This will open submenu listing available Condition Types (Fig.). 

        

3. Select the Single Value condition. Selected Condition pane appears in the Portfolio Definition panel of the Portfolio Manager screen. 

4. Select a column for the condition. Following the example above for the first level node, it would be profit_center. 

5. Use Condition pane’s lookup button to select a value from the profit_center column. Following the example above it would be an entry from the profit_center column designated to the first node of the first level, which is income_operations. 

6. Select the Logical Operator. In our example, it would be “=”. This step will conclude setting up a condition for segment 1 (income_ops) of the Sample Portfolio (Fig. ).

 

7. Repeat the above steps for each segment node of the first level entering names of the profit centers following the outline of the Sample Portfolio structure.

Inserting Conditions on the Subsegment Level  

The conditions stipulated for the segment level of the Sample portfolio will ensure that each node of that level receives data relevant to a specific profit center only. The following steps will separate each profit center’s data into specified asset types: 

1. Click on the + sign next to the segment 1 node to open its thread. 

2. Click on the first subsegments level node for the income_ops segment (cash_deals). Note that the condition assigned to the first level node is in the Inherited Conditions tab of the lower panel. 

3. Press  button and select the Single Value condition in our example. Selected Condition pane appears in the Portfolio Definition panel. 

4. Select a column for the condition. Following the example above for the first level node, it would be asset_type. 

5. Use  button to enter the asset type name into the Condition pane’s input field. Following our example, it would be an asset type cash_deals designated to the first subsegments node of the Income_ops segment. 

6. Select the Logical Operator. In our example, it would be “=” (Fig.). 

7. Repeat the above steps to insert conditions with appropriate values for each subsegments level node of the Income_ops node following the specifications for the Sample Portfolio. 

 

Inserting Conditions into the Entries Level 

The conditions stipulated for the subsegments level of the Sample Portfolio will ensure that each node of that level receives data relevant to the specific asset type only. The following steps will break down each asset type’s data by the interval between the current and maturity date. 

The outline of the Sample Portfolio divides deals within each asset type into three categories: 

1. From the current date to up to a year. 

2. From the current date to between 1 and 2 years. 

3. From the current date to over 2 years. 

To set up the date interval for the entry-level nodes: 

1. Click on the cash_deals node + icon to open the thread. 

2. Select the first (Entry_1) node 

3. Press  button and select Date Interval condition from the menu. Selected Condition pane appears in the Portfolio Definition pane. 

4. Set up the “From” margin by selecting the “TODAY” option from the arrow button menu (Fig.). 

5. Set up the “To” margin by using  the button and selecting deal_date. 

6. Enter 1 into the Year’s input field (either manually or using the arrow button menu). 

7. Select <= logical operator. 

The above setup (Fig.) will ensure that Entry_1 will receive records of the deals with a maturity date a year or less from the current date. 

To continue setting up the date intervals for Entries: 

1. Select Entry_2 and repeat steps 3 through 5 to set up the date interval parameters. 

2. Enter 2 into the Year’s input field (either manually or using the arrow button menu). 

3. Select <= as a logical operator. 

This setup (Fig.) will ensure that Entry_2 will receive records of the deals with a maturity date between 1 and 2 years from the current date (remember that Entry 1’s condition will pull all records for up to one-year interval and these deals will not be considered by the condition of Entry 2). 

   

To continue setting up the date intervals for Entries: 

1. Select Entry 3 and repeat procedure to set up the date interval parameters. 

2. Enter 2 into the Year’s input field (either manually or using the arrow button menu). 

3. Select > as a logical operator. 

Following this setup (Fig.) the Entry_3 will receive records of the deals with a maturity date more than 2 years from the current date. 

To complete the Sample portfolio’s Income_ops segment setup copy Entries level nodes into other subsegments of the Income_ops segment. At the end, the complete structure of the Income_ops segment will look as shown on the illustration below (Fig.). 

At this point, you can complete the setup by copying the subsegments of the Income_ops segment into the rest of the segments of the Sample Portfolio. 

Of course, your portfolio definitions may be more complex but the principle is going to be the same. Two very important facts to remember are that: 

1. The system automatically alphabetizes and puts all numbers into numeric order after the SAVE button is pressed. 

2. The system executes and aggregates through the transactional data from the first node’s criteria to the last node’s criteria in sequential order. 

Based on these two points our ultimate recommendation for building a portfolio with large amounts of nodes and conditions in them is to have a predefined naming and numbering system prior to the definition process. This will provide organization and clarity to the logic of your portfolio and potentially save you inconveniences down the road.