Registered
My partner invested around £1000 using Investengine over the course of about 6 months, and made back around £115. He took out £1115 to pay off a credit card bill with the intention of going back and starting over. He put £100 in last month, but now his account says -£50. When he queried this he got the following response but I can't make heads or tails of it. Can anyone advise in layman's terms? It mentions negative earnings but it was +£115 when he took the money out?
"As your performance percentage is presented as a Time-Weighted Return (TWR), it is possible to see a positive percentage return and negative earnings on your portfolio. This is caused by the timing of your contributions relative to market movements. The time-weighted rate of return (TWR) is a measure of the compound rate of growth in a portfolio and will factor in your performance over time and not just for the present moment.
Your % return is positive because your portfolio performance has been positive since you first started investing. However, your payments were made when your pot’s performance was at its best, and performance has declined since. As a result, you have had less money exposed to the market when performance has been good, and (significantly) more money exposed to the market when performance wasn’t as good and this is why you're seeing a positive performance %.
I hope this helps and if you have any questions, please do not hesitate to contact us."
submitted by /u/Sarahkins6
[link] [comments]
Continue reading...
"As your performance percentage is presented as a Time-Weighted Return (TWR), it is possible to see a positive percentage return and negative earnings on your portfolio. This is caused by the timing of your contributions relative to market movements. The time-weighted rate of return (TWR) is a measure of the compound rate of growth in a portfolio and will factor in your performance over time and not just for the present moment.
Your % return is positive because your portfolio performance has been positive since you first started investing. However, your payments were made when your pot’s performance was at its best, and performance has declined since. As a result, you have had less money exposed to the market when performance has been good, and (significantly) more money exposed to the market when performance wasn’t as good and this is why you're seeing a positive performance %.
I hope this helps and if you have any questions, please do not hesitate to contact us."
submitted by /u/Sarahkins6
[link] [comments]
Continue reading...
