This guide provides information on how performance returns are calculated for Macquarie Wrap reports and statements. Some of the locations that include performance data are:
Adviser Online provides performance reporting at three levels:
By using Report Builder via Wrap Groups in Adviser Online, group performance reporting is available to provide information for a group of accounts. This allows the user to generate a reporting pack of performance, asset allocation and balance history for a group of accounts over a selected period.
You can generate group reports for Wrap groups with a maximum of 8 accounts. See how to create a Wrap group.
For more information on how to use Report Builder, see Using Report Builder.
You can locate a comprehensive view of your client’s account-level performance on the ‘Performance - Summary’ page in Adviser Online or via Report Builder.
The purpose of this report is to provide a clear, consolidated view of total portfolio performance. The report shows capital flows, income and growth. It's designed to present the bottom line, quickly and clearly.
You can locate a comprehensive view of your client’s security-level performance on the ‘Performance - Security detail’ page in Adviser Online or via Report Builder.
This report allows for a deep-dive analysis of the portfolio's overall result by examining the individual securities and asset classes at the asset and holding level.
It is purpose-built for investigating, sorting and filtering to identify top movers and understand the performance of each holding.
There are two performance reporting calculation methodologies available:
It's important to understand how a choice of reporting method could impact the performance figures provided.
MWR calculates the internal rate of return (IRR) that accounts for the timing and magnitude of all cash flows. It reflects the actual return earned by the investor based on when they invested or withdrew money.
(Closing portfolio value – Opening portfolio value – Net capital flows) / (Opening portfolio value + Sum of the weighted capital flows)
(Closing portfolio value – Opening portfolio value – Net capital flows) + Income accrued] / (Opening portfolio value + Sum of the weighted capital flows)
TWR measures the compound rate of growth of an investment by eliminating the impact of cash flows (deposits and withdrawals). It focuses purely on the investment manager’s ability to grow the portfolio. TWR calculations are specifically designed for account-level performance.
TWR calculations for all investments are calculated daily to obtain the most accurate results. The daily figures are then compounded to obtain returns for any required period.
TWR is calculated using the formula below:
(Closing portfolio value – Opening portfolio value – Net capital flows) / (Opening portfolio + Net capital flows)/2)
Please note:
The following rules apply to TWR and MWR performance calculations:
In Adviser Online, transactions that take place before an account's opening date or after its closure date will not be presented.
For income and expenses, only those transactions occurring during the active period will be presented.
Adviser Online group reports provide a flexible filter, allowing you to choose between a group-only view or a combined group and individual account view for the following reports:
Our platform uses cumulative pricing for all managed fund valuations, which mean income amounts remain included in the unit price until the ex-date, at which point they’re removed from the price and treated as a separate cash distribution.
Performance figures can vary due to differences in calculation methods, factors considered and timing. Fund managers focus on individual fund returns, typically including only income received and excluding account-level factors like fees or taxes. In contrast, Macquarie Wrap calculates performance at the account level, incorporating all holdings, cash flows, fees, taxes and accrued income. Timing differences, such as when transactions or distributions occur, may also create discrepancies between fund manager and Macquarie Wrap performance figures.
Income return = Total income received for the period selected / Closing portfolio x 100
Note: For Macquarie Wrap, the income return will be calculated using the closing value excluding other assets.
Market movement represents any unrealised growth. It also acts as a balancing figure and is calculated as follows:
Market movement = Closing portfolio balance – Opening portfolio balance – Capital inflows – Capital outflows – Income – Expense – Realised gains
Net capital flows = Additions – Capital outflows
Sum of the weighted capital flows = Sum of [Capital flows x (Days in period – Days of cashflow in period)] / Days in period
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