Graph Vs Report (portfolio performance)

[alessandro]

Hello Mark,

I'm using FM from several months, and there is a thing I really don't understand.
In the "portfolio/investments price+dist" graph, I see that the value at today's date is 110. The graph refers to one of my portfolios.
I guess that it means my portfolio gained 10%, in the period I choose (YTD).

Now, in the "portfolio performance" report, the performance of the same portfolio (in the same period YTD) shows:
%gain=3,36
%gain-I=2,55
%gain-V=43,19

What I'm asking is why I don't see the same performance (10%) I see in the graph.
I'm sure I'm wrong... May you explain to me how it works?

I hope you can understand my problem: I know my english is poor.

Thanks a lot. Alessandro.

[Mark]

Hi alessandro,

The difference is most likely due to time weighting. All of the %Gain fields are not time weighted. They simply sum and divide, based on their equations, giving no importance to when the buys/sells occurred. Yields are a better performance metric for this reason. Fund Manager calculates both Return On Investment (ROI) and Time Weighted Returns (TWR) yields. ROI yields are both time and money weighted. TWR yields are only time weighted.

The Portfolio/Investment(s) Overlay graphs on the other hand do attempt to do time weighting. Weighting is done on a daily basis, at the closing prices/values each day. If you compare this graph to a TWR value, it should be much closer than the %Gain numbers. Keep in mind that TWR figures are annualized if the period is longer than a year, and not annualized if less than a year. This is an option, but this is the default behavior.