Performance reporting
Daily TWR Precision / End-of-Day vs. Beginning-of-Day Flow Assumptions
In many portfolio accounting systems, all flows are considered to occur at beginning-of-day which can result in performance errors, especially with mutual funds. For example, if an Advisor receives a $10 dividend on a $100 mutual fund holding but happens to purchase an additional $100 that day, many portfolio accounting systems would calculate the return as 5% when clearly it should be 10%. This scenario will distort the TWR return stream from that point forward. Since mutual funds are purchased and redeemed at end-of-day NAV, purchases and sales should always be treated as end-of-day events and not part of the beginning-of-day capital base. WealthSite uses both beginning-of-day and end-of-day flow assumptions depending on transaction type and instrument, and these rules can change per Advisor preferences or be overridden transaction by transaction.
Latest and Multi-Tranche Performance
Latest tranche performance allows for reporting on a continuous holding period. For example, if XYZ mutual fund was held years ago and repurchased recently, we allow the ability to report line-item performance for the latest continuous holding period while including the entire return history in higher-level performance measures. Multi-tranche performance correctly calculates the return when there are gaps in the holding period and applies a consistent approach to any benchmark comparisons. Both of these approaches allow for an apples-to-apples benchmark comparison and proper annualizing of returns.
After-Tax Performance
WealthSite offers after-tax daily TWR and estimated tax liability reporting based on entity-specific federal, state, and local tax rates, legal entity state of residence, instrument type, and issuer state.
Buffered Structured Notes
Wealthsite provides seamless, complex buffered note reporting. Data maintenance is minimal as our reporting engine handles the benchmark tracking calculations, including user-defined blended benchmarks. Reporting is available at the position, account, and household level and easily integrated into client statements and meeting booklets. Management level reports allow for reviewing structure note holdings across the firm or at the Advisor level.