Visualizing Financial Data

Foreword xv Introduction xvii PART 1: INFORMATION GAINS THROUGH DATA VISUALIZATIONS CHAPTER 1: Paving a Path Toward Visual Communications 3 Information Delivery Needs 5 Industry Demands 6 Enabling Factors 8 Summary 11 CHAPTER 2: Benefits of Using Visual Methods 15 The Purpose of Charts 16 Making Comparisons 17 Establishing Connections 19 Drawing Conclusions 22 How to Leverage Charts 25 Summary 31 PART 2: TRANSFORMING DATA FOR ACTIVE INVESTMENT DECISIONS CHAPTER 3: Security Assessment 35 Tile Framework 36 Stocks 39 Bonds 42 Mutual Funds 44 ETFs 50 Tile Collection 55 Summary 58 CHAPTER 4: Portfolio Construction 61 Asset Allocation 62 Sector Analysis 67 Sector Leadership 67 Sectors and Alpha Factors 78 Risk Management 85 Overlap of Holdings 87 Stress Tests 99 Summary 106 CHAPTER 5: Trading 109 Ticker 110 Quote 117 Watchlist 127 Visual System: Ticker, Quote, and Watchlist 138 Summary 140 CHAPTER 6: Performance Measurement 143 Market Performance 144 Investment Firm Composite 151 Portfolio Gain/Loss 157 Attribution 161 Return Attribution 161 Risk Attribution 171 Summary 177 PART 3: SHOWCASING DATA FOR EFFECTIVE COMMUNICATIONS CHAPTER 7: Financial Statements 183 Statement of Cash Flows 184 Nonprofit Organizations 184 For-Profit Organizations 191 Statement of Financial Activity 202 Operating Budget 206 Summary 212 CHAPTER 8: Pension Funds 217 Plan Members 218 Members in Valuation 219 Post Retirement 227 Retirement Programs 232 Contributions versus Benefits 241 Additions by Source 241 Changes in Retirees & Beneficiaries 250 History of Member Salary 253 Funding Ratio 257 Summary 264 CHAPTER 9: Mutual Funds 267 Core Components 268 Allocation Profile 269 Fees 277 Performance 285 Risk 293 Fund Fact Sheets 312 Mutual Fund Comparison 318 Total Returns 319 Ranking Against Benchmarks 324 Summary 332 CHAPTER 10: Hedge Funds 335 Long/Short Positions 336 Long Positions and Benchmarking 344 Fund Characteristics 349 Strategy Rank 356 Strategy Rank and Ranges 361 Strategy Analysis 363 All Strategy Averages 364 Single Strategy Averages 367 Fund Level Returns 373 Summary 378 PART 4: NEXT STEPS CHAPTER 11: Data Visualization Principles 383 Cater to Your Audience 384 Provide Clarity 394 Be Efficient 403 Summary 414 CHAPTER 12: Implementing the Visuals 417 Business Value Assessment 418 Implementation Effort 422 Available Methods 427 Solution Score 428 Summary 432 Index 435