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Performance Calculation Methodology - Queries Edit Subject

Hi.

I have read through the calculation of the dollar-weighted methodology that Sharesight uses:
- There are 2 methods of calculation which you use to treat return where AYI is less than a year and where AYI is more than a year.
(all fine and good here)
- However, I would like to know, that when I select the time period of a particular year (say FY 2015-2016), is that actually reflecting the annualised return since inception? – in example 1 of the article labelled “performance calculation methodology-sharesight help) – the example seemed to be referring to annualised return since inception. Are you able to provide some formulas of how you measure individual stocks’ performance for just a year. (for instance I have shares paying out dividends since 2014 and I would like to know the performance of my stock from FY 15-16)
If I were to measure only the year’s performance, I would actually treat my securities as though I bought them on the 1st of July 2015.
- How does this data actually differs when I select the time period of performance since inception?
- Also, with the treatment of dividends. When you measure performance, do you use gross dividends (includes any franked credits) or just dividend paid out in cash. (I would assume, the dividends in the calculation includes franked credits- as that will be the financial benefit of holding the stocks).
- Also with the overall measure of the portfolio returns, how to you work out the weighted average of the stocks. Do you use the market value of the stocks at a particular date?
- With dividend performance, when do you include the dividends in the performance calculation for that year? Is that only when dividend is paid or when it goes ex-dividend? I would assume ex-dividend.

I hope you are able to clarify my queries on the above.
2 people have
this question
• Hi Jean,

Thanks for your post. Our account manager Josh will be in contact with you soon.

Have a lovely day.

Cheers,

Emma
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