How are investments ranked in a portfolio, if there are no ranking rules defined?

Document ID : KB000028440
Last Modified Date : 14/02/2018
Show Technical Document Details

Scenario 1 : No Ranking Rules defined

Many times there are no ranking rules defined for a portfolio and when see the ranking on the portfolio, we sometimes wonder, why is an investment placed (ranked) above the other?

How does Clarity determine the ranking of investments?

The simple answer is that Clarity takes into account Investment Status then Finish date and then the Investment code of an investment as the ordering criteria.

If there are no rules defined by the Portfolio Manager, then investments are ranked using an order by on the list of investments in the portfolio. 

The order by happens in the sequence defined below:

  1. Investment Status (P.PORT_INV_STATUS desc)  
  2. Investment Scheduled Finish Date (P.SCHEDULE_FINISH)  
  3. Investment Code (P.CODE)

P = PFM_INVESTMENTS table

 

Scenario 2 : Multiple investments scoring the same on the ranking rules

On very few occasions, we see that two or more investments are having exact scores based on the ranking rules defined. How does clarity place (rank) one above the other?

How does Clarity decide which investment should be placed (ranked) higher in the list?  

With new ranking rules, the ultimate tie breaker is the primary key of the portfolio investment as the default sorting is not used. 

The PFM_INVESTMENTS.ID column value for the investment is the ultimate tie breaker.

ID field here is defined as a table primary unique key and is naturally used in default sorting for the items that have a matching ranking score.

However, it is always a best practice to define a tie breaker attribute(s) so that the above condition does not occur.