Account level performance reporting

Follow the steps below to see a comprehensive view of your client’s account level performance in their Wrap account on the ‘Performance’ page in Adviser Online

1. Log in to Adviser Online
2. Search for your client’s account in the ‘Account field’ of the global search bar
3. Search for your client’s account

Select the ‘Performance’ tab within the account.

To benefit from our latest account level performance reporting capabilities, refer to the Performance page in Adviser Online.

Please note, you can still use Portfolio Review Report in Wrap Online to view performance for a group of client accounts.

Performance return can be calculated in two different ways, using a money weighted return methodology or a time weighted return methodology. These methodologies are explained below:

• A money weighted return reflects the investor's return on a portfolio. It considers cash flow decisions and assumes a consistent rate of return over the period, and any cash flow transactions by the client will impact the calculation.
• A money weighted return calculation is offered on the ‘Summary’ tabs of the Performance page, within your client’s Adviser Online wrap account. The return is calculated over the period selected for the report. Where the period is greater than one year the return is annualised.

We’ve included some definitions below to help you understand how these methodologies are calculated.

• Net Capital Flows = Additions – Capital outflows.
  The capital flows use the price for the day they occurred in as this reflects their market value. This may vary from the Opening portfolio value.
• Sum of the weighted Capital Flows

• Money Weighted Return

If the account was funded after the start date selected, the returns will be calculated from the funding date.

Please note, your client’s portfolio performance may differ from the fund managers for a number of reasons including the methodology, time frame and cash flow assumptions. The Wrap account performance takes into account the individual holding and any actual cash flow.

Performance return can be calculated in two different ways, using a money weighted return methodology or a time weighted return methodology.

The time weighted return reflects the asset return of a portfolio. It removes any cash flow transactions in the performance return. Time weighted return is calculated daily and compounded over time. Time weighted return provides a better representation of the performance over longer periods of time. As such, time weighted performance is only available for periods greater than 12 months.

• Net Capital Flows = Additions – Capital outflows.

The net capital flows is captured on the Performance Summary of your client’s Wrap account. The capital flows use the price for the day they occurred in as this reflects the market value. This means that the price may vary from the opening portfolio value price.

• Daily Time Weighted Return Calculation

Daily returns are calculated with the above methodology, and then compounded over time, according to the report period selected.

Please note, your client’s portfolio performance may differ from the fund managers for a number of reasons including methodology, time frame and cash flow assumptions. The Wrap account performance takes into account the individual holding and any actual cash flow.

The Adviser Online Performance Summary page provides a comprehensive view of key figures relating to your client’s account level performance, for any period you select.

To benefit from our latest account level performance reporting capabilities, refer to the Performance page in Adviser Online. Please note, you can still use Portfolio Review Report in Wrap Online to view performance for a group of client accounts.[link to Group level performance reporting).

Performance

Performance can be calculated using a money weighted or time weighted methodology. This article [link to: How is money weighted performance calculated?] explains how money weighted is calculated. And this article [link to: How is time weighted performance calculated?] explains how time weighted is calculated.

Income return

Income return is calculated using this formula

Total income is made up of cash interest, investment income and product issuer rebates. The income return figure will adjust according to the date range you select in the filter section. Income return is annualised for periods greater than one year.

Net capital flows

Net flows are calculated using this formula: Net capital flows = Additions – Capital outflows.

Net capital flows represent the difference between inflows and outflows on your client’s account, for the period selected.

The following are classified as capital flows:

• money that’s transferred in to or out of the client's portfolio
• assets that are transferred in to or out of the portfolio
• tax related transactions
• insurance premiums.

Capital flows don’t include:

• buys and sells that relate to transactions on the client’s portfolio (for example purchases or sales of shares or managed funds etc.)
• any income received on assets within the client’s portfolio
• fees and charges on the portfolio.

Opening and closing portfolio

The opening portfolio value is the closing market value one date prior to the period start date. The closing portfolio value is the closing market value of the portfolio at the period end date.

Additions

• Additions includes contributions for superannuation/pension products and deposits for investment products. Contributions and deposits include cash transactions and transfers into accounts.
• Additions don’t include DRP or investment income (dividends/ distributions) as these are included under income. The value of buys is also not included here but in the additions at the security level in the ‘Security detail’ tab of the Performance page.

Growth

• Growth is made up of realised growth and unrealised growth (market movement) during the period selected. Please note that this is not gains since inception for tax purposes.
• Realised growth is calculated by summing the growth for each security sold in the period. This is the difference between the sale proceeds and the opening market value (may be a loss).
• Realised growth for the portfolio may include securities that have undergone one or more corporate action events. For these securities, we’ve included the realised growth following the last corporate action event only.
• Unrealised growth is a representation of market movement. You can read more below on how market movement is calculated.

Income

Income comprises DRP, dividends, distributions, cash account interest on a cash basis (not accruals) and product issuer rebates. This includes income received from SMAs.

Withdrawals

Includes expenses and capital outflows (cash transactions and transfers out, net earnings tax, net insurance premiums and pension payments). The value of sells is not included here but in Withdrawals at the security level in the ‘Security detail’ tab of the Performance page.

Other assets

This section represents the total value of ‘other assets’ held off platform, and manually added to the portfolio (such as property or a term deposit). See more on how to maintain other assets.

The Adviser Online Performance ‘Security detail’ tab provides a comprehensive view of key figures and performance relating to your client’s wrap portfolio, for any period you select. This is calculated using the money weighted methodology.

 To benefit from our latest account level performance reporting capabilities, refer to the Performance page in Adviser Online. Please note, you can still use Portfolio Review Report in Wrap Online to view performance for a group of client accounts.[link to Group level performance reporting).

If the account is invested in one or more SMAs, you will be able to view a breakdown of the SMA performance from this tab [link to SMA performance reporting].

Interest, dividends and distributions

The interest highlight figure captures the income received for the period, from direct cash.

The dividends highlight figure captures the income received for the period, from Australian Listed Securities, International Listed Securities and Instalment Warrants.

The distribution highlight figure captures the income received for the period, from Managed Funds (including SMAs) and Fixed Interest.

Investments

The opening portfolio value is the closing market value one date prior to the period start date. The closing portfolio value is the closing market value of the portfolio at the period end date.

The additions and withdrawals at the security level represent buys and sells, switches, transfers in and out and any dividend reinvestment plan (DRP). For additions, the cost value is used for buys. For withdrawals, the proceeds are used for sells. Where no cost/proceeds value is available (some transfers in/out and corporate actions), market value is used.

Growth at the security level represents the change in capital value from sales or market movement during the period. It calculated as Growth = closing value – opening value + withdrawals – additions.

Income at the security level represents any DRP, dividends, distributions or cash account interest received (Income received) or accrued (Income accrued) during the period. Dividend and distribution income, where received as cash, is included as an addition under direct cash. Where the Income is used in a DRP then it is represented in the additions column for the relevant security.

All values are displayed in Australian Dollars (AUD). The exchange rates and security prices are updated daily where applicable and provided by Morningstar and Ausmaq. Where the displayed amount relates to a specific transaction including transfer ins, the exchange rate used will be as at the date of the transaction.

Direct cash

Additions represent all credits to the account, including sales proceeds, dividends and distributions, as seen on the cash transactions report.

Withdrawals represent all debits to the account as seen in the cash transactions report, including cash settlements for ‘buys’. Income received represents interest earned on the cash balance.

Pending settlements

The pending settlements section represents any pending buys or sells at the beginning of the period selected (captured in the opening value) and the end of the period selected (captured in the closing value).

Other assets

This section represents the total value of ‘other assets’ held off platform, and manually added to the portfolio (such as Property or a Term deposit). See more on how to maintain other assets.

Performance returns are calculated after all fees are deducted excluding the adviser establishment fee for investment accounts. This includes the ongoing adviser fee, stamp duty charges, and the wrap administration fee.

Insurance premiums are included in the performance calculation as a capital flow and therefore do not impact the performance figure.

Performance returns are calculated on a before tax basis. However, for superannuation and pension accounts the capital flows calculation includes any tax related cash transactions such as contributions tax, tax on income, tax credits on fees, and PAYG tax.