Adding a New Asset Class

The list of existing asset classes and their details can be edited through the Asset Classes screen. To open this via the menu at the top of the screen, please go to: System Setup -> Asset Classes in the menu at the top of the screen. Alternatively, select ‘Asset Classes’ from the drop down box in system setup section on the right hand side of the dashboard on the main window then click on the ‘View and edit asset classes’ link underneath.

To add a new asset class, please follow these steps:

1. Click on the ‘Add New’ button in the bottom right hand corner of the screen Asset Classes screen.

2. You will see a new, smaller screen pop up, asking you to select the type of asset class you wish to add. The type selected depends on what types of assets you wish to add into this asset class.

   There are three types to choose from.

   • Standard Financial: select this class if you wish to add stocks, managed funds, CFDs and similar assets into this asset class. Standard financial assets do not have a set expiry date and cannot be depreciated.
   • Derivative Financial: use this type if you wish to add options, futures and similar assets into this asset class.
   • Physical: select this if you wish to add property, art, motor vehicles or any other tangible assets into this class.

   Select the type of asset class that you wish to add and click ‘Continue’. Manage Invest will go back to the previous screen and input fields will be enabled.

3. Please start by entering the name for this asset class. This information is compulsory. Additional details, described in steps 4-6 below are optional.

   

4. You can assign a default exchange and default asset allocation table for each asset class.

   If you intend to add listed financial assets into this class, selecting a default exchange reduces data entry time by pre-selecting the chosen exchange on Add / Manage Financial Asset screen.

   If you know that the funds in assets within this asset class are always allocated to one or more categories then entering that information for the default asset allocation table will also help to increase the speed of data entry.

   Note: Asset classes and asset allocation categories are not the same thing. Asset classes allow you to categorise your assets into logical groupings (e.g.: residential property, commercial property, stocks, mutual funds, etc). Asset allocation categories give you picture of the exposure of the fund to different categories of investments. This distinction is best explained with an example: assume that Peter owns $ 50 000 worth of domestic stocks and has $ 75 000 in a managed fund. All of Peter’s stocks are in domestic companies (100% equities). In this case, “stocks”, “managed fund” are the asset classes. The managed fund in turn invests in 50% in equities and 50% in property. 50% Equities and 50% property are the weighting of the asset allocation categories employed by the mutual fund (this is what you would type into the asset allocation table when adding this asset). This means that Peter’s actual exposure is as follows: Equities: $50 000 + ($75 000 x 0.5) = $87 500 which is 70% of total funds Property: ($75 000 x 0.5) = $37 500 which is 30% of total funds.

5. You can also modify the list of user defined values for each asset class. User defined values are used to allow the entry of data that is not normally part of Manage Invest.

   For example, you may wish to store the rating for assets in an asset class. To add this field to the interface do the following:

   • Tick one of the boxes under ‘Display?’ in the ‘User defined values’ section of the asset classes screen.

   • Enter ‘Rating’ (or any other text) in the Label Text field. The text you type here will appear next to the field when adding an asset into this asset class.

   • After you finish adding this asset class, go to Manage -> Add / Manage Assets and select the asset class just modified. You will find that the new field ‘Rating’ appears under the user defined values section for each asset within this class.

6. You should not need to modify any of the settings under the ‘Accounts’ section of this screen. These are allocated automatically by the software.

7. Click on the ‘Add’ button in the bottom right hand corner to add this asset class. You will now find that it appears in every part of Manage Invest, including the menu system and reports.

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