Investment platform Stockopedia has released a new folio tool to give its growing investor community an accurate and professional-grade view of their portfolio’s time-weighted return.
To address the longstanding complexities investors face in calculating their portfolio performance, the investment platform Stockopedia has developed an innovative new time-weighted return performance view for subscribers which automatically adjusts returns for the impact of cash flows and outflows over time.
The new system uses a professional-grade time-weighted return methodology, giving individual investors a true reflection of their underlying portfolio performance and the ability to rate this against a benchmark or the returns of other investors.
To take advantage of this new feature, subscribers simply click the “Performance” button on their folio return chart to see the new time-weighted return view. The only requirement is to ensure that cash movements are recorded in portfolio transactions for the calculations to be accurate.
Alternatively, investors without a precise record of cash inflows and outflows can opt for the “starting cash deposit” function and an algorithm will do the calculations and instantly provide a more accurate view of underlying portfolio performance.
In addition to the new time-weighted return charts, Stockopedia has also made improvements to the way dividends are shown in portfolios.
Specifically, it has introduced a new table column to show the total dividends received for each stock in a portfolio. This gives investors a clearer picture of which holdings are contributing to their overall dividend income in a portfolio and shows total return for each position.
Stockopedia CEO, Edward Croft commented on the launch:
“Calculating a genuine time-weighted return can be time-consuming for the investor and very computationally demanding. That’s why many investing platforms use sub-optimal approaches to try and achieve it.
“By contrast, we constructed the Stockopedia portfolio system knowing that time-weighted return charts would eventually be part of the functionality. And we’re pleased to now be able to offer this innovative and hugely useful tool to our investor community.”
