At Moneyfarm, our mission is to make finance more simple and accessible for everyone.
We believe that all investors, regardless of their experience or financial background, should have the tools and insights they need to make informed decisions about their investments.
That’s why we’re excited to announce a series of new features to our investment platform and app, designed to enhance your experience and provide you with greater visibility into your portfolio’s performance. These improvements are the result of months of hard work by our dedicated product and development teams, as well as invaluable feedback from you, our clients.
Dashboard Overview
To begin with, your dashboard now displays details of the overall value of your account, including the sum of all your contributions and the profit achieved so far.
- Investment Breakdown: This section shows how your assets are currently invested amongst the various different products offered, both in monetary and percentage terms.
- Explore other Products: The section provides a description of all the investment options available to you which could help complete your plan if new needs arise or are not adequately covered.
- Portfolio Analytics: This section breaks down all your invested assets in regard to the investment type, sector and geography.
Performance Overview
Another new feature we’ve added is the new performance overview section. Once you select the portfolio you want to see in more detail, the ‘Overview’ section provides you with a dynamic graph for a comprehensive view of its performance from the start of your investment, over the past year, or over a custom date range.
Having a clear and up-to-date overview of your investment portfolio’s performance is crucial in making informed decisions. This update provides insights into how potential short-term negative impacts can be managed or absorbed over time. It demonstrates the effectiveness of a long-term investment strategy, which is essential for achieving your financial goals.
Value Breakdown
The next new feature, ‘Value Breakdown,’ provides a detailed breakdown of the factors that have influenced the market value of your portfolio over a selected period. Understanding these factors is crucial for effective and informed financial management.
- Cash Flow: This section shows the details of your contributions and withdrawals over the selected period. Your choices and timing when adding or withdrawing funds can significantly impact your investment performance. By analysing your cash flow, you can gain insights into how your actions have affected your portfolio’s value.
- Market Value: This section illustrates the impact of market trends on your investments. While market fluctuations can affect your portfolio’s performance, your decisions to add or withdraw funds also play a significant role. To get a complete picture of your investment performance, it’s essential to evaluate your portfolio over a medium to long-term time horizon, considering both market trends and your own actions.
- Fees and Taxes: This section displays the impact of costs on your portfolio value. At Moneyfarm, we understand that costs are the only certain aspect of investing, which is why we strive to minimise them. While these costs are an inherent part of investing, understanding them can help you make informed decisions and plan your investment strategy to optimise your returns.
TW vs MW
Another new feature is the ‘TW vs MW’ (Time-weighted performance vs. Money-weighted performance) section on your portfolio details page.
- Time-weighted (TW) performance tracks the performance of your portfolio excluding the impact of cash inflows and outflows. It focuses solely on the return generated by the investments, providing an objective view of your portfolio’s performance, independent of the timing and size of your contributions or withdrawals.
- Money-weighted (MW) performance, on the other hand, shows how your investments have grown overall, taking into account the size and timing of your deposits and withdrawals. This shows the real effect on your returns.
As you will see, the TW and MW performances are overlaid to illustrate how market performance and your individual actions each play a role in your portfolio’s overall performance. Fully understanding the impact on performance will help you plan and optimise your investment strategy more wisely.
Past Performance
The next new performance analysis feature is ‘Past performance’, which provides you with a chart showing ‘annualised part returns’. This gives you a snapshot of your portfolio’s performance as if it had grown at a steady rate each year, helping you compare performance across different time periods. You can also see the smoothed-out effect of your returns minus the effect of short-term fluctuations. In simple terms, this is the average return of your portfolio each year since you started investing.
Although past performance does not guarantee future results, it can provide valuable insights into how your investments have performed under various market conditions. Ultimately, it can help you better understand the potential risks and rewards associated with certain investments, allowing you to make more informed investment decisions.
Performance Comparison
Finally, for those investing with ‘Classic’ portfolios and who have sufficient investment history, you can access a new ‘Compare’ section on your portfolio details page.
The chart allows you to compare your portfolio’s performance with a peer group of comparable funds provided by Asset Risk Consultants (ARC). Please note that we’ve included commissions to make the comparison easier; taxes, however, have not been included in this analysis as tax treatment depends on your individual circumstances.
We’re confident that these updates will support you in managing your investments. We’ll continue to work to provide you with even better tools and resources to help you achieve your goals. In the meantime, your feedback on the improvement work done so far is crucial to understand if we are on the right path to making the world of investments increasingly accessible and transparent.
*Capital at risk. Tax treatment depends on your individual circumstances and may be subject to change in the future.
* The performance information shown in the videos is for illustration purposes only and should not be considered an actual representation of past performance. Past performance is not a reliable indicator of future performance.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
