Investment Scorecard

The investment scorecard is used to assign weights to different performance factors in order to calculate a custom score.  Any data points added from the performance dialog and any numeric data points added from the supplementary dialog can be included in the scorecard.

In order to use the investment scorecard, check the �Enable scorecard� checkbox.  The scorecard can be renamed by editing the text in the Scorecard name text box.  

Select performance factors to include in the investment scorecard and assign weights by either selecting �Equal weight selected� or entering a number in the �% Weight� column.  Weights must be between 0 and 100, and must sum to 100%.  Configuring the �Scoring method� will determine if a higher value for a performance factor increases or decreases the final score.  

There are two scorecard types which can be used to create the scorecard, Standardized Values and Custom Grades.  This option applies to the entire score card and can be set using the Method drop down.

Standardized Values Based Scorecard Methodology

In order to combine different performance factors, the raw values first need to be standardized.  The sample used to standardize the variables is configurable and is set based on the user selection in the �Standardize based on� drop down on the Advanced Settings dialog.

There are two methods to standardize the raw values.

Percentile Rank (default)

Percentile ranks for the raw values are calculated against the associated sample (display, list, or peer group).  After the percentile ranks have been calculated, they are multiplied by the assigned weights for each performance factor.  The scoring option "Higher is better" translates into calculating the percentile rank in descending order, conversely �Lower is better� translates into calculating the percentile rank in ascending order.  Finally, these values are added together to calculate the raw score.

Z-Score

A Z-score is calculated for each factor for each investment.

Z-Score is calculated as follows:   Z = (x-u)/s

Where x = raw value for investment

          u = sample mean

          s = sample standard deviation

After the Z-scores have been calculated, they are multiplied by the assigned weights for each performance factor.  If the scoring option is set to �Lower is better�, the weighted Z-score value is multiplied by -1; if set to "Higher is better" the weighted Z-score is not modified.  Finally, these values are added together to calculate the raw score.

Custom Grade Based Scorecard Methodology

A Custom Grade based scorecard is a fully customizable scoring option which can be used to create a rules based scoring method.  In order to create a custom grade based score, rules must be defined based on the data which is selected on the report.  To add a rule, click the Add Grade button which will provide the interface to setup rules and grades for each data point.  Rules can be defined for all like data points across all time periods, or rules can be defined for data points in individual time periods.  

Advanced Settings

Standardize based on:  this setting configures how the performance factors are standardized before computing the raw score.  By default, the investments are standardized by calculating percentile rank based on the peer group.  Peer groups are set on the Group Settings dialog.

Handle missing values by: this setting determines how to handle scenarios where any of the scorecard inputs is missing for an investment.  If �Not scoring� is selected, investments that are missing any of the scorecard inputs will not receive a score.  If �Reweighting� is selected, when a missing value is encountered for an investment the weights of the other performance factors will be rescaled to 100% and a score will be calculated.

Decimal places (Raw score): configure the number of decimal places to display for the calculated raw score

Display Settings

The investment scorecard is displayed on the report to the right of the performance columns.  The raw score can be displayed, as well as the descending rank of the raw score for both the entire list and the display group.   The �Weights� checkbox will display the performance factor weighting in the report column headings.

Custom Grade Display Settings

Custom grades which have been assigned to individual data points will be next to the data point which the grade applies.  Grades for investments can be aggregated and displayed for each time period, and also aggregated and displayed for the entire investments across all time periods and data points.