Help Understanding Performance and Yield Figures

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Simon_Jay
Simon_Jay Posts: 22 Forumite
in Pensions, annuities & retirement planning
Please excuse what is probably a very basic question. I am looking at the fact sheets for various funds to try and work out past performance. I am struggling to interpret the information and would be really grateful for some help with this. I think it is the Performance and Yield values I should be looking at.

Performance: past 3 months=1.19%, past 6 months=2,63%, past 1 year=6.6%
Historical Yield: 1.2%

Does this mean that the value of the fund has increased by 6,6% over the past year and that, on average, the fund has been returning growth of 1.2% year on year. So the amount invested would have been increasing by 1.2% each year (before fees)?

Thanks for your help.

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  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    Simon_Jay wrote: »
    Please excuse what is probably a very basic question. I am looking at the fact sheets for various funds to try and work out past performance. I am struggling to interpret the information and would be really grateful for some help with this. I think it is the Performance and Yield values I should be looking at.

    Performance: past 3 months=1.19%, past 6 months=2,63%, past 1 year=6.6%
    Historical Yield: 1.2%

    Does this mean that the value of the fund has increased by 6,6% over the past year and that, on average, the fund has been returning growth of 1.2% year on year. So the amount invested would have been increasing by 1.2% each year (before fees)?

    Thanks for your help.
    First bit, correct. Second bit, incorrect.

    References to 'yield' usually refer to the income generated by the investment, Yield is a calculation based on the income generated against the unit/share price.

    If something was priced at £1 (12 months ago) and you obtained 5p per share/unit in income the yield would be 5%. If the share/unit price is £1.50 and you still receive 5p income then the yield would be shown as 3.33%.

    I've noticed that Trustnet refer to the growth (in unit/share) price for the year as 'YTD'. So something to be aware of and hence the use of the term 'usually' above.
    Personal Responsibility - Sad but True :D

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  • Audaxer
    Audaxer Posts: 3,508 Forumite
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    The 6.6% over the past year will be total return, i.e. the amount the fund has increased from growth and including dividends reinvested. The total return shown is after payment of fees. The 1.2% historic yield is how much income the fund has paid (based on the past year I think), i.e. a £10k investment at the start of the year would have paid £120 in dividends over the year.
  • Simon_Jay
    Simon_Jay Posts: 22 Forumite
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    Thanks very much indeed for coming back - so that means that a £1000 pot would now be worth £1066 at the end of the year.
  • Linton
    Linton Posts: 17,170 Forumite
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    Simon_Jay wrote: »
    Thanks very much indeed for coming back - so that means that a £1000 pot would now be worth £1066 at the end of the year.

    Yes. if you had reinvested the dividends.
  • Simon_Jay
    Simon_Jay Posts: 22 Forumite
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    Thanks to everyone for the help - that now all makes sense
  • peterg1965
    peterg1965 Posts: 2,153 Forumite
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    Just to continue this question...


    So for the same fund which offers an accumulation and an income option, would the performance figures for the accumulation fund show dividends reinvested and without dividend reinvested for the income fund? so, would the income fund assume you take the income?
  • Linton
    Linton Posts: 17,170 Forumite
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    peterg1965 wrote: »
    Just to continue this question...


    So for the same fund which offers an accumulation and an income option, would the performance figures for the accumulation fund show dividends reinvested and without dividend reinvested for the income fund? so, would the income fund assume you take the income?

    The normally quoted figures would show dividend or interest reinvested for both - you will find that INC funds have very much the same performance as the equivalent ACC funds.

    If you want to see the performance without dividends re-invested look at trustnet/tools/charting which gives you the option.
  • peterg1965
    peterg1965 Posts: 2,153 Forumite
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    Linton wrote: »
    The normally quoted figures would show dividend or interest reinvested for both - you will find that INC funds have very much the same performance as the equivalent ACC funds.

    If you want to see the performance without dividends re-invested look at trustnet/tools/charting which gives you the option.



    That's a really useful tool. Thanks for pointing it out.
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