How does Trustnet Portfolio calculate yearly profit?

RomfordNavy

According to Trustnet my portfolio is returning 10.8% over one year, however according to my own calculations it is only returning 3.68% annualised. Any idea why the big difference and which is more likely to be correct?

Audaxer

RomfordNavy wrote: »

According too Trustnet my portfolio is returning 10.8% over one year, however according to my own calculations it is only returning 3.68% annualised. Any idea why the big difference and which is more likely to be correct?

You portfolio could have returned 10.8% over one year, but could still average 3.68% annualised over a longer term, so both figures could be correct. If you have input the correct funds and dates to Trustnet it should give accurate return figures.

Notepad_Phil

Or if you are a relatively newcomer to investing and have been drip feeding your cash into your portfolio then that drip feeding could be the cause of the differences you are seeing.

Linton

Trustnet portfolio is more likely to under-report performance since it ignores dividends. To assume dividend re-investment you need to look at its performance through the charting display and ensure that the Chart Basis is set appropriately.

SonOf

RomfordNavy wrote: »

According too Trustnet my portfolio is returning 10.8% over one year, however according to my own calculations it is only returning 3.68% annualised. Any idea why the big difference and which is more likely to be correct?

Annualised suggests that its multi-year average.
1 year is just 1 year.

RomfordNavy

Audaxer wrote: »

You portfolio could have returned 10.8% over one year, but could still average 3.68% annualised over a longer term, so both figures could be correct. If you have input the correct funds and dates to Trustnet it should give accurate return figures.

Portfolio has returned 1.7% over one year because purchases were made at different times, all holdings are recoorded in Trust net with the correct purchase dates. However taking account of that using "£ days" invested gives a return of 3.68%. I am baffled where Trustnet can get their 10.8% from.

RomfordNavy

Notepad_Phil wrote: »

Or if you are a relatively newcomer to investing and have been drip feeding your cash into your portfolio then that drip feeding could be the cause of the differences you are seeing.

Yes it has been drip fed in as funds have become available but surely Trustnet take account of the different purchase dates for each holding don't they?

RomfordNavy

Linton wrote: »

Trustnet portfolio is more likely to under-report performance since it ignores dividends. To assume dividend re-investment you need to look at its performance through the charting display and ensure that the Chart Basis is set appropriately.

Thanks for confirming that, that is exactly what I would have assumed but doesn't seem to be the case with this particular portfolio.

RomfordNavy

I am beginning to think that perhaps Trustnet does not actually take account of different purchase dates and just assumes that the whole portfolio has been held for all time.

SonOf

RomfordNavy wrote: »

Portfolio has returned 1.7% over one year because purchases were made at different times, all holdings are recoorded in Trust net with the correct purchase dates. However taking account of that using "£ days" invested gives a return of 3.68%. I am baffled where Trustnet can get their 10.8% from.

The 10.8% will be if you invested a single amount on the date in question a year ago.

I am beginning to think that perhaps Trustnet does not actually take account of different purchase dates and just assumes that the whole portfolio has been held for all time.

Trustnet states the timescale for the investment period. It will be correct for that period. It has no way to know if you have used different dates although you could enter each one manually if you are really bothered (and you shouldnt be).

Linton

The trustnet portfolio does not seem to do the investment tracking you want. For example I dont think you can sell units. Its purpose is more to analyse a particular allocation of funds.


FT Portfolio allows you to buy and sell and tracks the portfolio value but it doesnt produce % returns. I use MsMoney which does most things one needs and can download to a spreadsheet for the rest..