New Performance Tracking Features
Performance tracking is finally here to turbo charge your portfolio management. BearNBull helps self-direct investors on three key steps of the investing process:
- Choosing The Right Assets
- Optimizing Portfolio Allocation
- Tracking Portfolio Performance
Our newest feature update focuses on step number 3: Tracking Portfolio Performance. It is now easier than ever to assess your portfolio’s actual versus planned performance. The best way to learn about the update is creating a portfolio, adding transactions and exploring all the analyzes. To help with that process, I wanted to give you a quick description of what’s new on the Portfolio Page, so here it goes:
Portfolio Tables
Accounts and Transactions
Add multiple accounts and respective transactions to your portfolio, in order to track its performance. You can set an initial date, from when you want to start tracking (Ex: 01-Jan- 2021) performance. Add the balances on that specific date as your initial investment. Then add your buy, sell and dividend transactions up to present. The active option on the Accounts table enables or disables analysis on the specific account. Very useful for making independent assessments of each account.
Holdings
With all your transactions inserted, the holdings table will show all the assets in your portfolio, as well as the following data: current allocation, latest price, one day change, number of shares, value and one day value change.
We also added a convenient show option, which toggles the respective assets on the graph tables. It’s great when you need to analyze the performance of specific assets in your portfolio.
Price Stats
An easy way to compare quick price stats for each asset in your portfolio. More information is also available on the asset page, which you can access by clicking on the asset name on the table.
Targets
This is where you optimize the allocation of your portfolio. It remained roughly the same, aside from some minor changes. The portfolio amount field is updated with the actual value of your portfolio, in case you added your transactions.
The optimize button will not update the weights to the tangency allocation on the efficient frontier anymore. Instead, it will simply generate the efficient frontier on the Risk/Return graph. You can then click on any point on the efficient frontier (green line) to set the target weights for that specific point. All metrics will be calculate and new target weights will be saved.
Snapshots
An amazing feature to save multiple portfolio target ideas. The show toggle makes it easy to compare your saved targets on the Risk/Return graph. The rollback button updates all your target metrics with your previously saved values. It’s important to note that no changes are applied to your current holdings, accounts and transaction, as your current portfolio is not affected by changes to your targets.
Rebalance
This new table automates the cumbersome process of calculating buy and sell orders to rebalance a portfolio. All input fields are synced with the Targets table, making the back-and-forth process of optimizing allocation, comparing current and target values, and calculating orders a breeze.
The target total value of the portfolio can also be edited, the buy/sell shares column will be calculated accordingly. Any cash flow movements on the portfolio will also be displayed at the bottom of the table.
Portfolio Graphs
Value
This graph tracks the historical actual value of your portfolio and its assets. Hovering over the graph will display both asset and portfolio values on any specific date, as well as the allocation percentage on that date. The values should match any reports from your bank or brokerage accounts.
You can filter the time span by editing the date fields above the graph. To filter the assets which are displayed, use the show field selection on the Holdings table.
Allocation
Compare current and target allocations, by asset, category, sector or industry. Both bar and pie charts are available.
Gain/Loss
Track historical gain and loss of the portfolio and its assets. This graph can help pinpoint which assets are contributing most to your portfolio performance, both currently and is the past. Hovering over the timeline automatically updates the graph with data from the corresponding dates.
Cash Flow
Measure the historical total value of your portfolio or asset against the cumulative cash flow during any time period. This is an extremely helpful graph to analyze gain or loss of the portfolio and its assets.
Performance
The historical returns for your portfolio and all its assets during any time period. Use the Show field on the Holdings table to select which assets to display on the graph. The portfolio line will always be displayed.
The portfolio line represents its Time Weighted Rate of Return (TWRR), which is great for comparing performance with other assets. The Money Weighted Rate of Return (MWRR) is also displayed as a message under the graph. As well as a comparison of MWRR and TWRR, giving you an assessment of the impact of cash flows in your portfolio during the period.
Prices
Easily track and compare historical prices for all the assets in your portfolio. Use the Show field on the Holdings table to select which assets to display on the graph.
Risk/Return
Based on the historical period set on the Targets table, this graph compares expected return and risk of all assets in the portfolio. Hover the mouse over each asset to get information on the data point. As all other graphs, use the Show field on the Holdings table to select which assets to display on the graph.
The optimize button on the Targets table generates the efficient frontier of portfolios. You can set your targets on any point of the efficient frontier by clicking on the green line.
CAPM
This graph displays a Capital Asset Pricing Model (CAPM) analyzes of all assets and of your portfolio. Hover the mouse over each asset to get information on the data point. The overall diversification of your portfolio can be evaluated by the R-Squared value, the closer to 1.0, the more diversified the portfolio is in relation to the overall market. This value is very useful to assess diversification and it’s also displayed on the top right corner of your portfolio page.
Correlation
A correlation graph of all the assets. Hover the mouse the graph to get information on each data point. And use the Show field on the Holdings table to select which assets to display.
Forecast
A Monte Carlo analyzes, projecting probability scenarios for the value of your portfolio over a time period specified. The result is based on the target portfolio allocation, which can be modified on the Targets table. Hover the mouse over the percentages to get more information on each curve.
Share Your Thoughts
We are very excited with these new features. And we are confident the upgrade will help self-directed investors have a stronger understanding of their portfolio, to make better investment decisions. As always, we appreciate any comments, ideas and feedback you may have. Just send us a note with your thoughts to feedback@bearnbull.com.
