Sunday, February 26, 2012

Managing Your UITFs and Mutual Funds, Part 2: Dissecting Bloomberg's Portfolio Tracker and Fund Snapshot

This post is a response to the request of one of our readers, Anonymous.

Continuing from where we left off in Part 1, we now take a closer look at the contents of the Performance tab of Portfolio Tracker.

SYMBOL NAME - List of Bloomberg ticker symbols of the contents of your portfolio. Please note that these are different from the symbols used by fund providers and the PSE (in the case of stocks).

The following four quantities fall under the TODAY header of the display and thus pertain to the current or latest trading period.

PRICE - The last reported price of the components of your portfolio. The NAVPU and NAVPS of UITFs and mutual funds are quoted only once per day, unlike stock prices which are quoted in real time (delayed by 15 minutes).

CHANGE -  The change in the per unit or per share value of the fund or stock in the current or latest trading period.

LAST TRADE - Dates (and times for stocks) of the last quoted prices.

GAIN/LOSS - The monetary gain or loss for each portfolio component in the current or latest trading day, excluding transaction costs for stocks.

The succeeding quantities fall under the SINCE PURCHASED header and pertain to the period from when you bought a portfolio component up to the current or latest trading date.

SHARES - The number of units or shares of each component that you own. You specify this when you construct and edit your portfolio.

PRICE PAID - The price you paid for each unit or share of your portfolio components.

PURCHASE DATE - I'm sure you'll be offended if I even try to explain what this means.

GAIN/LOSS  - The monetary gain or loss for each portfolio component from the Purchase Date up to the current or latest trading day, excluding transaction costs for stocks.

% CHANGE - The percent change in the value of each portfolio component from the Purchase Date up to the current or latest trading day, not reflecting transaction costs for stocks.

% PORT - The weight of each component of your portfolio based on the last quoted price.

VALUE - The total value of each component and the entire portfolio based on the last quoted price. 

Clicking the link of a fund will take you to its "snapshot" page which contains information that we may or may not be familiar with. As per Anonymous' request, I will identify and describe some of the more important features of this page.

A. BLOOMBERG TICKER SYMBOL of the fund, as described above

B. PRICE, same as above

C. CHANGE and % CHANGE, same as above. A "down" arrow and the color red indicates a decrease in the per unit/share price from the previous trading day, while an "up" arrow and the color green means an increase.

D. PRICE CHANGES for the indicated periods. Year To Date means from January 1 of the current year up to the current/latest trading day; 1-Month, 3-Month, and 1-Year for the total price change in the past month, three months, and 12 months, respectively; 3-Year and 5-Year for the annualized change (geometric change per year) in price in the past three and five years, respectively.

E. 52-WEEK RANGE - the lowest and highest prices in the past 12 months

F. BETA - a measure of the volatility (in financial theory, also systematic or market risk) of the fund relative to a relevant benchmark (e.g., the PSEi for equity funds and stocks). A beta that is greater than one means that the fund is more volatile than the benchmark; a beta that is less than one (but greater than zero) means that the fund is less volatile than the benchmark.

And for this section:

NAV - same as PRICE above

FRONT LOAD - Percentage of the investment amount that you must first pay to buy the fund

BACK LOAD - Percentage of the total value of your investment that you must pay upon redeeming/selling units/shares

CURRENT MANAGEMENT FEE - Also know as TRUST FEE, the percentage of the fund value that you pay every year for the professional management of your capital

REDEMPTION FEE - specifically early redemption fee, it's the percentage of the fund value that you pay if you redeem/sell units/shares within the minimum holding period (differs per fund/fund type; please see this post for examples)

12B1 FEE - This. Usually not quoted for Philippine funds anyway.

EXPENSE RATIO - The fund's annual operating costs (including the management fee) relative to the fund's total value

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