BRW Finance AG is an asset management company, which offers a multi-faceted portfolio. The company is based in Braunschweig and Hannover (Germany). The company’s central idea is to be open minded, transparent and independent. Their passion is to provide content to their clients and fill their demands.
To present exclusively designed and individualized factsheets to their investors they use the Anevis Solutions Marketing Suite©️

Factsheets with a twist: Derivatives reported at market exposure value

These factsheets include the investment strategy, historical performance, top ten equity positions and the equity industry structure. Moreover there is a chart which shows the asset allocation and distribution over time. This chart offers the opportunity to see the detailed asset allocation at particular dates.

Special about this asset allocation is that derivatives are included. Derivatives are securities where the price depends on a reference value. They in general derive their value from the performance of their underlyings, e.g. shares, bonds, indexes or other baskets. In addition, due to their structure they offer the opportunity to invest in the respective underlying disproportionately, thus with a higher or lower leverage compared to investing in the underlying directly. Derivatives like other assets can get negative weighting values in an allocation analysis. To explain how an asset allocation can show negative numbers you can read our blog article: Besides shorting – what can cause the weighting of assets in an allocation statistic to get negative

To report derivatives most standardized reportings use the booking value. However, especially when derivatives like futures or options are used to hedge the existing portfolio against upcoming risks, fund managers want to see the exposure value of their derivatives in the reporting. By this, an actual net investment quota can be calculated reflecting the current real risk of your investment. With the Anevis Solutions Marketing Suite©️  BRW Finance AG can report their derivatives either way – e.g. futures for equity hedging at exposure value and other derivatives at booking value.

Market capitalisation: What it means and why it is important

On the individualized factsheets for BRW Finance AG currency allocation after hedging and the market cap allocation are shown in two additional pie charts.  The market capitalization is one of the important figures to reach an investment decision because it indicates the value of a stock market company.

The meaning and the calculation of the market cap, is best explained with an example:
Let’s assume a company distributes 1.000.000 shares and each share is worth 50 Euro. So you multiply 1.000.000 shares with 50 Euro and get the market capitalization of the company. In this example the market cap amounts to 50.000.000 Euro.
Depending on the value of the market capitalization, you can divide companies into categories. Micro Cap, Small Cap, Mid Cap, Large Cap and Mega Cap.
Even though there is no official rule to categorize the market cap, there is a guideline to which most companies adhere to.

Large Cap > 2 billion USD
Mid Cap 500 million – 2 billion USD
Small Cap < 500 million USD

In our example the company is categorized as small cap. This means, you can expect a higher return with higher risk, whereas large caps have a lower risk but also a lower return.

On the factsheets, the market capitalisation allocation of the fund in percent is displayed. The data for that allocation chart is sent by BRW Finanz AG directly to Anevis Solutions using an easy to use excel interface. The Anevis Solutions document engine automatically processes the excel file and adapts the data onto the factsheet.
We at Anevis Solutions are not only fascinated by the complex mechanisms of the financial industry, we are also proud that our individual solutions help companies like BRW Finance AG to provide the best possible reporting content to their customers.

If that topic and our service increases your interest in Anevis Solutions, we would be happy if you get in contact with us.

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