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Portfolio Overlay

Questions on using, creating, or understanding data in Fund Manager graphs.

Postby stevetone » Mon Jun 28, 2010 9:33 am

OK, I may be dense here, but if I am reading this help text correctly for the Portfolio/Investment Overlay graph:

"Value:
This graph plots the actual portfolio value and an equivalent hypothetical value for each selected investment. The hypothetical investment value starts off at the same value as your portfolio on the beginning graph date. This hypothetical investment value is displayed as if you had invested all your money in just this investment. When you take money out of (or put money into) the portfolio, the same amount is also taken out of (or put into) the investment. When overlaying investments and multiple portfolios, the "Reference Portfolio" will be used for the hypothetical investment value calculations. (See the Overlaid Portfolios Dialog)"


I thought I should be seeing an roughly equivalent increase in both portfolios when I invested $10,000 in the reference portfolio, but I am not seeing it reflected in the overlaid portfolio.

Second question is: What are the two numbers in parenthesis in the legend? I can't seem to find any definitions for these, and they are not modifiable in the legend text. The overlaid portfolio has a negative number in there, even though it increased in value.

I would have provided a screen shot, but I have no place to store it on the web. I can email one if it would help.
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Postby stevetone » Mon Jun 28, 2010 10:06 am

Here's a lnk to the screen shot: https://docs.google.com/leaf?id=0B1lVPe4IJpgUNWY1ZjIwNmEtMjNhNy00NjM4LThlM2MtMmIxODY5OWUzZTFk&hl=en&authkey=CMa1wrYG

The overlaid portfolio ("Composite 20-20-20-40") is a composite of 4 ETFs.

The $10,000 investment in the reference portfolio occurs in March 2010, as shown on the upper graph.
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Postby Mark » Mon Jun 28, 2010 1:16 pm

Hi stevetone,

There are 2 types of graphs for overlaying portfolios and investments. The documentation you quoted is for the "Value" version, where it says the actual portfolio value is overlayed with a hypothetical "investment" you've selected for overlay. When using the value based graph you really only want to have a single portfolio selected for overlay because portfolios are always plotted with their actual value. Only investments are adjusted to the reference sub-portfolio.

If you'd like to compare 2 different sub-portfolios use the "Price + Distributions" version of this graph. In this case the graph works like this:

"Price + Distributions:

This graph plots the hypothetical portfolio price plus distributions and the normalized price plus distributions for your selected overlaid investments."


Yes, the numbers part of the graph legend for these graph types is not customizable. The values are the ending amounts, and the change from the prior date (ending graph date to day before ending) is shown in parenthesis.
Thanks,
Mark
Fund Manager - Portfolio Management Software
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