This guide provides information on how performance returns are calculated for Macquarie Wrap reports and statements. The reports and statements that include performance data are:
Online reporting
Statements
Macquarie Wrap provide performance reporting at three levels:
Note: We’ve kept the PRR in Wrap Online available while we work towards building group level performance reporting and income projections in Adviser Online. Due to several enhancements and changes to certain assumptions, you may notice some differences between the Wrap and Adviser Online versions of the performance reports.
The Portfolio Review Report can be used to provide information for a group of accounts. This will help you produce an online overview of account activity for a group of clients over a period of time.
You may notice some differences between the figures on the Portfolio Review Report and the Performance page in Adviser Online. Adviser Online only should be referenced for account level performance, and Portfolio Review Report should be used to calculate performance on a group of client accounts.
You can locate a comprehensive view of your client’s account level performance on the ‘Performance’ page in Adviser Online:
MWRR is a percentage that measures the performance of an investment or a portfolio by considering the timing and amount of cash inflows and outflows.
MWRR calculations are generated as at the date of the report, for the time period requested.
TWRR is a percentage that measures the performance of an investment irrespective of the amount invested, effectively measuring the performance an investment would have obtained had the personal cash flows not occurred. The weight of the personal cash flows invested at any point in time does not impact the final return calculation. As such, TWRR is generally comparable to benchmark indices.
TWRR calculations for all investments are calculated daily to obtain the most accurate results. The daily figures are then compounded to obtain returns for any required period.
The PRR report allows the report to be generated using a start date before the date that the account was funded. This can impact the performance calculation. Adviser Online performance reporting will use a start date from the date the account has been funded.
When selecting 'since inception’ in Adviser Online, the reporting period will commence on the account opening date, however performance is only calculated from the date the account was funded.
The PRR currently includes non-custodial assets in the performance calculation. Adviser Online excludes these assets in the performance calculation for Macquarie Wrap products and includes these assets for Macquarie Vision products.
The income projection is currently only available in the PRR. We’re working towards building the income projection tool in Adviser Online.
Unlike Adviser Online and periodic statement performance reporting, the PRR does not contain a market movement figure.
The PRR system logic calculates performance on residual parcels after a client has sold out of an SMA. The Adviser Online performance is based on the actual SMA holdings for the period (it does not calculate performance on residual parcels).
This is because product issuer rebates (which are reflected as rebate adjustments in our online and statement reporting) are excluded on the PRR.
In certain scenarios following a particular corporate action event (e.g., a reconstruction), the performance of the impacted security will be calculated on the most recent parcel only.
In certain cases, the TWRR for a superannuation or pension account may be temporarily impacted if a managed fund switch occurred in the account late in the month. This does not impact IDPS accounts.
The current system logic for both Wrap and Adviser Online reporting includes non-cash AMIT transactions in the security level performance figures.
Yes, the performance calculation does include income. Income can be comprised of interest, distributions, and dividends and is dependent on the investments held within an account.
Yes, the performance calculation does include expenses (for example adviser or administration fees). Currently there is no functionality to exclude certain fees from the performance reports.
Franking credits are not factored in our performance reports. However, for superannuation and pension accounts the capital flows calculation includes any tax related cash transactions such as contributions tax, tax on income, tax credits on fees, and PAYG tax.
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