Benchmarking 
Use
Benchmarks are used to analyze how the value of financial assets develops. Benchmarks are based on market data, or are constructed so that they give the most useful information possible about the portfolio in question.
In Portfolio Analyzer, you can define your own benchmarks, and display them in the nodes in the portfolio hierarchy. Benchmarks are analyzed in the framework of the Results Database (RDB). This enables you to compare yields in the Analyzer Information System (AIS). You can define benchmarks by referencing them to market data, such as a security or a reference interest rate. You can also define composite benchmarks, which contain multiple benchmarks, each of which has a weighting that you can define. This enables you to define benchmarks so that they reflect your portfolio as closely as possible, and can hence be used for the purposes of comparison.
The system does not use the evaluation procedures already contained in the RDB in order to calculate benchmark values. Instead, it uses a separate benchmark run, which you start independently of the evaluations in the Results Database. In a separate step, you must also assign your benchmarks to the relevant portfolio hierarchy nodes.
Procedure
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1. Define the master data for the benchmarks
In the Customizing for Financial Supply Chain Management choose Treasury and Risk Management ® Portfolio Analyzer ® Benchmarks ® Edit Master Data for Benchmarks. For more information, see Editing Master Data for Benchmarks.
2. Assign the benchmarks to the nodes of your portfolio hierarchy
In the Customizing for Financial Supply Chain Management choose Treasury and Risk Management ® Portfolio Analyzer ® Benchmarks ® Assign Benchmarks to Nodes in the Portfolio Hierarchy. For more information, see Assignment of Benchmarks to Portfolio Hierarchy Nodes.
3. Define benchmark key figures
In the Customizing for Financial Supply Chain Management choose Treasury and Risk Management ® Portfolio Analyzer ® Results Database ® Monitor: Key Figures and Evaluation Procedures.
Note the following:
¡ You do not assign evaluation procedures to benchmark key figures, as the system calculates benchmark key figures in a separate job.
¡ The system stores the market data for benchmarks in the following position key figures:
§ PAPOS (position in position currency)
§ PAPOSCC (position in evaluation currency)
¡ The system calculates the benchmark rates of return in the followings key figures:
§ PAYLDCC (rate of return on investment from evaluation currency)
§ PAYLDSNCCC (rate of return from start of period to date from the evaluation currency)
¡ You link the benchmark master data to the benchmark key figures when you start the benchmark run. For more information, see Calculation of Benchmark Key Figures in the Benchmark Run.
4. Define an initial layout for the Analyzer Information System (AIS)
In Customizing choose Financial Supply Chain Management Treasury and Risk Management ® Portfolio Analyzer ® Results Database ® Define Initial Layout, and assign your benchmark key figures to the portfolio hierarchy area.
5. If required, define formula-based key figures
In the Customizing for Financial Supply Chain Management choose Treasury and Risk Management ® Portfolio Analyzer ® Results Database ® Define Formulas for Analyzer Information System. For more information, see Formula Editor.
Note that you have to create formulas for each assignment variant you created for benchmark key figures. Therefore, in the formula editor the system displays the key figures for all assignment variants.
Result
You have defined the properties of the benchmarks, assigned them to the portfolio hierarchy, defined the benchmark key figures that the system is to calculate, and set up the layout for the display of results.
You can now start a benchmark run and display the results in the Analyzer Information System (AIS). In the selection screen in the Analyzer Information System, specify the assignment variant you require. In reporting, the system displays the names of the master data of the assignment variant selected, and the key figures, as per the definition of the layout.
See also:
Calculation of Benchmark Key Figures in the Benchmark Run