Short Description: This widget plots the historical, pro-forma performance of the portfolio.
When to use: The visualization should be used to review the total return that would have resulted from holding current positions from a point in the past (normally 3 years in our templates) to today. If the security didn’t exist at the start date of the backtest, its equivalent dollar allocation is considered to be in cash. The value of foreign securities are converted to the portfolio's base currency each day by the then prevailing FX. The backtest uses the split-adjusted closing prices for each security.
Widget Components: The visualization above contains the portfolio’s total return in blue and an index in yellow (the default index is SP500) when benchmark is selected.
Mouse tip-over: Moving your mouse over the graph, enables a popup menu with the following information:
- Date: the date in the past we are hovering the mouse over.
- The total return for the portfolio.
- Index: The total return for the relevant index, or asset proxying an index.
Options: the delta equivalent is used in the pro-forma backtest. For bonds, the duration is used and historical key rates surrounding the duration are interpolated and used to re-price the bond.
When an user supplies a portfolio Net Liquidating Value (NLV), Everysk uses that as the initial invested value in the pro-forma backtest. When NLV is not supplied, a historical NLV is used as the initial value. The historical NLV is based on current securities and prices prevailing at the start of the backtest. Because the historical NLV takes into account only cash securities, it might distort results for leveraged portfolios. In those cases, an explicit NLV is recommended.