Investment Portfolio Management Questions

This can occur when an investment had no value at the start of the selected reporting period.  For example, if an investment was purchased part way through the period, it may have generated positive returns but still display a ‘Contribution to Return’ of 0.00% due to the way the calculation is performed.

‘Contribution to Return’ is not available for all reporting periods.  In particular, it is not displayed when viewing performance from inception, as an opening balance is required in order to calculate the contribution made by each investment.

‘Contribution to Return’ shows how much each investment or asset classification contributed to your overall portfolio return during the selected period.  While ‘Portfolio Weight’ tells you how much you have invested in a particular investment, ‘Contribution to Return’ shows how much that investment contributed to your overall result.  This can help identify which investments had…

‘Portfolio Weight’ shows how much of your portfolio is invested in a particular investment or asset classification.  For example, if 20% of your portfolio is invested in an international shares fund, that investment has a ‘Portfolio Weight’ of 20%.  ‘Portfolio Weight’ helps you understand the relative importance of each holding within your overall portfolio.

Performance by Asset currently displays returns using the ‘My Returns’ or Extended Internal Rate of Return (XIRR) calculation methodology only. Support for the ‘Investment Returns’ or Time Weighted Returns (TWR) calculation methodology at the individual investment or asset classification level is expected to become available in the coming months. In the meantime, investors can view…

The individual investment performance shown within Performance by Asset currently uses the ‘My Returns’ or Extended Internal Rate of Return (XIRR) calculation methodology. This means it takes into account the size and timing of your contributions, withdrawals and other transactions into that fund, and reflects your personal ‘real-world’ performance experience as an investor. By comparison,…

Asset Performance shows the performance of a specific investment that you hold, such as an individual managed fund or ETF. Asset Classification Performance groups investments into broader categories and shows the combined performance of those categories. Examples include International Shares, Australasian Shares and International Fixed Interest. Asset Classification Performance can be useful for understanding which…

‘Performance by Asset’ uses the same ‘My Returns’ or Extended Internal Rate of Return (XIRR) methodology featured in portfolio-level performance calculations. This means the calculation takes into account the timing and size of contributions, withdrawals and other transactions relating to each investment. The return shown therefore reflects your own experience as an investor in that…

Yes. InvestNow’s ‘Performance by Asset’ feature allows you to drill down beyond your overall portfolio performance and view performance at the individual investment level – once logged in, go to the Performance page. You can view performance by individual assets or investments, or by broader asset classifications such as International Shares, Australasian Shares, Property and…

For reporting periods longer than one year, performance is shown as an annualised return. An annualised return represents the average return achieved each year over the selected period, taking into account the effect of compounding. For example, a 5-year annualised return of 8% means the investment delivered the equivalent of an 8% return per year…

The two figures can differ because they measure different things. ‘Investment Returns’ uses a Time Weighted Return (TWR) methodology, which assumes money was invested throughout the entire period and excludes the impact of deposits and withdrawals. ‘My Returns’, on the other hand, utilises the Extended Internal Rate of Return (XIRR) methodology, which reflects the size…

Both measures are useful, but they serve different purposes. ‘My Returns’ is generally the best measure if you want to understand how your wealth has grown over time. Because it takes into account the timing and size of your contributions, withdrawals and transactions, it reflects the ‘real world’ return that you personally experienced as an…