Performance & Return

Portfolio Performance

Definition

The overall return of the portfolio over a defined period accounting for all holdings cash and distributions.

Portfolio performance is the interpreted outcome of the portfolio over a period, read through the return method, cash flows, income, valuation scope, and the structure of the full portfolio.

Why it matters

It is the primary measure of whether the portfolio is doing what it should. But it is only meaningful when calculated across the full portfolio not account by account.

What most investors miss

The gap between what the term means and how it is usually applied.

They compare account-level performance numbers across brokers. Each broker calculates return differently. The numbers cannot be added or averaged.

How to read it

Read performance at the consolidated portfolio level using a consistent return methodology. Account-level numbers are inputs not conclusions.

Multi-account lens

How this term reads differently across brokers and accounts.

Performance calculated separately across multiple accounts is not portfolio performance. It is a collection of account returns that may use different methodologies and time periods.

Diagnosis first, then workflow, then fit.

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