Total return and rate of return following portfolio transfer

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1

Hi,

Im hoping someone can shed some light on a query I’ve got open with support as I’m sure it’s not correct.

I had an original portfolio with T212 and completed a partial transfer of some US stocks from FT. This was completed really quickly and great communication throughout.

However when I now check the total return value and raten of return % it is much lower than the amount shown in the unrealised result. From what I can ascertain the unrealised result section includes all my assets including those I transferred, but the main page rate of return and total return doesn’t appear to be including the transferred assets.

For anyone who has gone through this process does this update itself at some point or will it always show a much lower return figure versus my actual return?

Thank you.

2

When I transferred my portfolio into T212 from another broker, I was prompted to provide the entry price for each asset. This was optional but it meant that my transferred assets show the correct PnL in T212. Did you specify the entry price for your transferred assets? If not, that would affect your total return calculation.

3

Thanks for the reply. Yes I did specify my average price and this reflects in the individual share price gain I can see in the unrealised section of the app. It’s just the main page that isn’t showing the total return. Maybe it just takes sometime to reflect.

1 Like
4

To help anyone else facing a similar situation below is the explanation from support:

In your account however there is a portfolio transfer, The chart treats the portfolio transfers in a different way. It treats them as a net deposit with value equal of the stock price of the last day close * quantity of the transfer. We don’t take into account the values the client has inputed as cost basis for the new chart. The way we treat it now, allows us to display the gain of his transferred instruments that happened only in our platform.

The MWRR does not solely reflect the performance of the underlying investments themselves, it includes the impact of your deposits and withdrawals. This is why it often appears inflated compared to other metrics like the simple return, which excludes the impact of cash flows and focuses solely on investment performance. The rate of return percentage will be different against the average current profit/loss of open positions since they are different metrics.