It has been assumed that you are already a OneOnOne user, or have completed the evaluation procedure for OneOnOne and preferably also the Split Loan Module.

When any of the optional modules is installed the Mode command will appear on the main menu bar. Select Mode and if you see the option Portfolio, then you have the module installed.

A portfolio of loans consists of up to four loan products. The total interest for a portfolio is the sum of the interest for each of the 4 loans. The duration of the portfolio is that corresponding to the longest duration loan in the portfolio.

You can access two Portfolios (A & B), each containing up to four loans. You can compute the sum of the loans, and the duration of the portfolio. You can also compare the two portfolios.

You can get a very quick appreciation of the capabilities of the Portfolio Module by viewing the example file provided and following the instructions below :-

This file compares loan portfoliios, both which have two loan components. One component is a Loan Transaction Account which is used to borrow for a home and initially provide the interest payments for an interest only investment loan. The second loan (the investment loan) starts out interest only and once the home loan is payed off the principal is reduced using payments which originally were directed at the home loan.

There are only two loans in each portfolio for simplicity in this example. A more complex scenario could include up to four loan components.

3) On opening the file you will see a screen with 2 Portfolio Buttons (A & B) Select Portfolio A.

4) Open loan 1 (the home loan) and note the events which characterise the loan. There are regular deposits including the rent obtained from the investment property. There are also regular withdrawals including running costs of the property and a regular withdrawal to service the interest on the investment loan. This goes on until the loan is complete after 10 years.

5) Open loan 2 (the investment loan) and note the events which characterise the loan. Intially there is a regular deposit (from the home loan account) which pays the interest only on this loan. After 10 years or so the home loan is payed off. This frees the borrowers other funds sources to reduce the principal of the investment loan, eventually paying it off aswell. Press the Chart button to see the Interest Only period convert to Principal & Interest. Close the chart.

6) The Back button returns you to the main screen. Now select Portfolio B. Portfolio B is similar to A, except the interest rates are lower. Note the loans are numbered 5 to 8.

7) Back at main screen. Press the compare button. Notice the comparison is between :-

i) Portfolio A - the sum of loans 1 to 4

& ii) Portfolio B - the sum of loans 5 to 8