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Portfolio Charts

📊 Portfolio charts

 

Your portfolio charts include the following values:

Total Value: The overall value of everything in your portfolio, including investments and cash.

Return: The total profit or loss from your current and past investments, including dividends.

Rate of return: is the percentage of growth or loss in your portfolio, adjusted for the impact of money you’ve added or withdrawn. For example, if you invested when the market was high, your return may look different than if you invested during a dip.
This gives you a more personalised look at how your money has performed based on your decisions, not just market ups and downs.
Rate of return uses the money-weighted rate of return to calculate performance.

Net deposit is the difference between the cash you've deposited and withdrawn. It shows your net contributions, helping you understand how much you’ve put in overall. To view this value, tap the “settings” icon below the chart and enable it from the menu.

💷 Return

Return differs between your pie chart and portfolio chart.

Pies

In your pie chart, return is the total profit or loss from your current and past investments, including dividends.

Portfolio

In your portfolio chart, return is the total profit or loss from your activity, including investment performance, dividends, interest, FX fee, government taxes, including:

  • Dividends
  • Interest on cash
  • Share lending interest
  • Free share bonuses
  • Cashback from card purchases

Plus, anything else that generates you income.

What is MWRR?

 

The Money-Weighted Rate of Return (MWRR) measures your investment performance by accounting for when and how much money you add or withdraw from your portfolio. It gives you a personalised return that reflects your unique investment journey.

Why use MWRR?

 
  • Personalised performance: MWRR adjusts for your specific deposits and withdrawals.
  • Accurate measurement: It shows how your actions impact overall returns, providing a true picture of your investment experience.

MWRR versus simple rate of return

 
  • Simple rate of return: Compares only the starting and ending values of your portfolio, ignoring any transactions in between.
  • MWRR: Considers every deposit and withdrawal, adjusting the return based on timing and amount.

Example 1: Adding money during the year

  • Start: £1,000
  • Mid-year deposit: Add £500
  • End of year value: £1,600
Simple rate of return (SRR) calculation MWRR calculation
  • Return = (ending value - starting value) ÷ starting value
  • Return = (£1,600 - £1,000) ÷ £1,000 = 60%
  • Simple rate of return implies a 60% return but ignores the £500 added midway.
  • Adjusts for the £500 added halfway through the year.
  • Reflects that the £500 was invested for only half the year.
  • Actual return: closer to 20%, providing a more accurate measure.

Example 2: Withdrawing Money During the Year

  • Start: £1,000
  • Mid-year withdrawal: take out £500
  • End of year value: £1,500
Simple rate of return calculation MWRR Calculation
  • Return = (£1,500 - £1,000) ÷ £1,000 = 50%
  • Simple rate of return implies a 50% return but doesn't account for the £500 withdrawal.
  • Adjusts for the £500 withdrawn halfway through the year.
  • Shows that less money was invested for part of the year.
  • Actual Return: lower than 50%, giving a fairer assessment.

 

Key benefits of MWRR

 
  • Reflects your actions: Accounts for the timing and size of your deposits and withdrawals.
  • Provides accurate performance: Offers a true picture of how your investments performed over time.

By using MWRR, you get a clearer understanding of your investment performance, taking into account all the factors that affect your returns. It's a more personalised and accurate way to measure how well your portfolio is doing.

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