How do I define portfolio holdings and settings?

You define the settings for a portfolio using the Portfolio link in the menu bar of your manual fund list.

This lets you enter three pieces of information: the holding in each fund; how to value the holdings; and the benchmark to compare the overall portfolio against.

The holding in each fund

You simply enter the holding in each fund, either as a percentage or as a cash value. (Therefore, the figures do not need to add up to100. If they don’t, the system assumes that they are cash values rather than percentages.)

How to value the holdings

The next section lets you choose how the specified holdings are treated. There are three options:

  • Treat the holdings as the current values. The holdings you enter are assumed to be the current values, and the performance of the portfolio is tracked backwards depending on the performance of each individual fund.
  • Treat the holdings as the values n years ago. The system values the portfolio as though you invested the specified amounts n years ago, and then tracks performance forwards from that date.
  • Treat the holdings as a “synthetic benchmark”. The portfolio is valued as though it were re-weighted monthly, buying and selling units in the funds so that the percentage split between them remains constant.

In other words, if you choose the synthetic-benchmark option then the split between each fund in the portfolio remains constant. If you choose either of the other two options then the amount invested in each fund will change over time because each fund will probably have grown at a different rate.

The benchmark for the portfolio

Finally, you can choose a benchmark to compare the fund against: either a stock market index, or a sector average (IMA sectors only).

Once you have entered the settings for the portfolio, you can then use the Report or Graph buttons to view information about the combined portfolio, or simply save the settings.