Performance measurement
Current portfolio value
The current portfolio value represents the aggregate fair market value of all assets held in the portfolio, shown in a single base currency.
Portfolio value is calculated daily using end-of-day prices. Valuation occurs after major European and U.S. markets have closed.
Total return
Total return is the absolute gain or loss of the portfolio in the base currency over a given period, broken down into three components:
- Capital gains – the change in market value of held securities, based on the difference between the average purchase price and the current price
- Currency gains – the gain or loss attributable to movements in exchange rates between the securities’ local currencies and the portfolio’s base currency
- Dividend gains – income received from dividend/coupon/interest payments on held securities
Total return equals the sum of capital, currency, and dividend gains, minus trading fees.
For the since-first-purchase view, gains are derived from the current open positions using FIFO cost accounting. For a selected date range, gains are scoped to the period by rebasing opening positions to their value at the start of the range.
Time-weighted return (TWR)
Time-Weighted Return (TWR) measures the compounded growth rate of a portfolio, independent of external cash flows.
It neutralizes the impact of external cash flows (deposits and withdrawals) on performance measurements, isolating the investment strategy’s performance.
This makes TWR suitable for comparing portfolio performance through time, between investors, or against benchmarks or indices.
Money-weighted return (MWR)
Money-weighted return calculates a portfolio’s average growth rate. External cash flows are included in the calculation.
Best for evaluating the portfolio’s actual dollar-weighted performance.
Money-weighted return is not suitable for benchmark comparisons.
Internal rate of return (IRR)
Internal rate of return (IRR) is the annualized discount rate at which the net present value of all portfolio cash flows equals zero.
It accounts for the timing and size of every deposit and withdrawal, making it the most accurate measure of investor-level return when cash flows are irregular.
IRR is calculated using the Extended Internal Rate of Return (XIRR) method, which handles unequally spaced cash flows. XIRR treats deposits and withdrawals as negative and positive cash flows, and uses the current portfolio value as the terminal value.
Compound average growth rate (CAGR)
Compound average growth rate (CAGR) measures the average growth rate of an investment over a period longer than one year.
CAGR ignores volatility and considers only a portfolio’s start and end values.
Unlike IRR, CAGR does not account for multiple cash flows (regular or irregular), making it unsuitable for many real-world investment scenarios.
Return on investment (ROI)
Return on investment (ROI) measures the total gain or loss relative to the amount invested, expressed as a percentage.
ROI is calculated as total return divided by the invested base. The invested base is defined as the opening portfolio value plus any net deposits made during the period.
Unlike IRR and TWR, ROI is not annualized and does not account for cash-flow timing.
Equity curve
The equity curve shows the portfolio’s daily net asset value (NAV) over a selected time period.
NAV is calculated as the sum of the mark-to-market value of all held securities and the current cash balance, expressed in the portfolio’s base currency. Securities are valued using end-of-day prices; cash positions are converted using the latest available exchange rates.
Days on which one or more positions cannot be valued – due to a missing price or exchange rate – are marked as incomplete and excluded from return calculations.