Discrepancy in Performance Rate

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Shaun
Shaun Member Posts: 10 ✭
edited April 2020 in Personal Plus and Home & Business

Discrepancy in performance rate

I am using Reckon Personal Plus to track my investment performance. I have a managed fund which I have been holding for 9 ? years.

Today, I use the software to create a performance report of the fund and do a comparison as below:

Reckon                                            Fund’s website ( post fee)

1 year: 10.62%                               7.83%                               

2 year: 9.75%                                 7.42%

3 year: 13.02%                               11.66%

5 year:  6.9%                                  6.06%

The Reckon Personal Plus reported a higher return. What did I do wrong? Anyone experienced this?

Comments

  • John Campbell
    John Campbell Member Posts: 193 ✭✭
    edited June 2019
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    Could the performance being quoted by RPP be modified by:
    # including fees for a lower net return.
    # first year return could be reduced for not considering part year performance or regular contributions (if you are doing regular contributions)
    # is there a quoted change in value from 30/6 to 1/7, ie what is the reference date each year.

    It is interesting that RPP estimates a lower return, which could be correct.

    You could do a calculation based on fund value at 30/6 each year and see what you think it is.

    John
  • Shaun
    Shaun Member Posts: 10 ✭
    edited June 2019
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    John,

    Thanks for your comment.

    Further details on the above calculation:

    The above report was done by 
    1) Finding out the published rates on the fund's website as at 30/04/2019
    2) In Reckon, I produced the report by customer date, e.g
        1  year: 1/05/2018 - 30/04/2019
        2 year:  1/05/2017 - 30/04/2019      etc.......
    3) For the daily unit price, I do not input the full daily price history. Because I have been updating the price history mostly on monthly basis with 1 or 2 months missing in between, I did make sure the daily price for the corresponding period was entered. ( By the way, is there a easier & quicker way of updating the daily price of managed funds like stock prices?)

    Because the Fund's published rate was post fee, I think a discrepancy of half a percentage or less is acceptable. But the difference of the above report is rather big and unacceptable.
  • John Campbell
    John Campbell Member Posts: 193 ✭✭
    edited June 2019
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    " is there a easier & quicker way of updating the daily price of managed funds like stock prices?" you can download prices from most funds as a .csv and/or import the text into Excel. With the data in Excel, you can re-format then save as a .csv file which is compatible with RPP import prices format. This should be easier than typing in all the values. ( In RPP you may first need to select an investment view for File > Import > Prices to be available from the menu bar )

    Re variation; depending on the fund, a 1% to 2% variation in a fund over a month can be expected; even 5% based on the last 12 months performance, so if the comparison dates are out by 1-2 weeks variations you quote may not be excessive.  Do the calculations in Excel and see what you get. You can even test using % change/time period vs a compound annualized estimate. With monthly or weekly prices, trying different dates for reporting periods (in Excel or RPP) should demonstrate the estimated variations that are possible.

    ( If you are familiar with =vlookup(...) in Excel, then finding appropriate prices given a list of dates is an easy calculation approach to test performance. You should then be able to calculate your estimate of performance to see who is closer to what you think is the correct answer. Sometimes funds will use prices from the day before, especially when estimating your fund value. )

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