How does LUSID calculate PV?

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LUSID’s calculation of present value (PV) differs per instrument type and pricing model. See the table below.

To report the PV of a holding, include appropriate Valuation/* metrics when you generate a valuation report, for example:

  • Valuation/PV

  • Valuation/CleanPV (this is always PV minus accrued interest for applicable instrument types)

  • Valuation/PvInPortfolioCcy and Valuation/TotalPortfolioPvInPortfolioCcy

  • Valuation/TotalGroupPvInPortfolioCcy (providing all portfolios share a base currency)

  • Valuation/PvInReportCcy and Valuation/TotalPortfolioPvInReportCcy (if you set report currency ≠ portfolio currency in the valuation request)

  • Valuation/TotalGroupPvInReportCcy (providing all portfolios share a base currency)

  • Valuation/Leg1/PV and Valuation/Leg2/PV (for instruments with legs)

Note the following:

Instrument type

Pricing model

Valuation/PV calculation

Equity

SimpleStatic

units * price

Bond, ComplexBond, InflationLinkedBond

BondLookupPricer

((clean price / scale factor) * principal * units) + accrual

If a dirty price is supplied, LUSID does not add accrued interest.

For an InflationLinkedBond, the result additionally depends on the calculation type and whether prices supplied are clean, dirty or ‘half dirty’ (include the inflation ratio but not the accrued interest).

Bond, ComplexBond

Discounting, HullWhite1F

Sum of projected cashflows multiplied by the discount factor.

FxForward

ConstantTimeValueOfMoney

Sum of the two legs with the FGN leg converted to DOM at the market spot rate. More information.

Future

ConstantTimeValueOfMoney

The unrealised gain/loss. More information.

ExchangeTradedOption

SimpleStatic

((market price / scale factor) * contract size * units)

EquityOption, FxOption

Depends on kind of option

BlackScholes:
Bachelier:
BjerksundStensland1993:

CreditDefaultSwap

CDSLookupPricer

More types coming soon…