Wealth Management Services
  • Equities Report
Performance Methodology

The following criteria has been applied when calculating the period performance rate:

All investment purchases and short sales are deemed to be of equal amounts, (e.g. $1000 for a purchase - the 'theoretical value'). The theoretical value should be applied to determine the notional number of shares acquired (to 2 decimal places);

Include all open and closed recommendations. The notional number of shares held at period end should be marked to market on a consistent basis. The notional number of shares recommended to be sold (or bought back in the case of prior short sale recommendations) during the period should be valued at the market price prevailing at the date of the recommendation on a consistent basis. Market valuations should be obtained from independent sources;

Where a stock has been recommended on multiple occasions it will not be included as having been recommended on multiple occasions for any performance calculation unless the recommendation specifically states it is to all members, including those that have previously purchased the stock;

Where part sales are recommended the remaining notional number of shares will continue to be carried at the market value and their performance included in the portfolio.

Investment recommendations should take into account time-weightings of the theoretical value invested, or provided from, the sale of an investment; and

Where a company which is an open recommendation pays a dividend, the dividend rate should be applied to the notional number of shares held and treated as a cash payment.

Definitions

Open recommendations - these relate to those stocks that have been recommended as 'buys' or as 'short sells' but have not subsequently had equivalent sell or buyback recommendations.

Closed recommendations - these relate to those stocks that have been recommended as 'buys' or as 'short sells' and have subsequently had equivalent sell or buyback recommendations.