Dividends in backtest

An option was added to Portfolio Lab backtest to select how dividends should be treated:

  • reinvested in the corresponding asset (the previous default setting)
  • to cash: the dividends are accrued to the cash position of the portfolio

By default, the dividends are reinvested.

 


Advisor fee simulation

Portfolio Lab has been improved to take into account advisory fees during backtest, so that you can present truthful performance figures to your client or prospect.

Simply specify the fee as an annual percentage of assets (by default, no fees are applied).

During backtest, Portfolio Lab will subtract the fee from the portfolio at the end of each quarter, based on the end of quarter balance. If the quarter is incomplete, the fee will be prorated to the number of days. You may inspect the details of the fees in the Log view as shown below:

If specified, the advisory fees will also appear in other reports created by Portfolio Lab, including the PDF report and the Excel export.


Viewing multiple backtest charts

It is sometimes useful to show several charts on one screen to a client. We have added a small icon on the top right of the Backtest charts as shown below:

Clicking on this icon will open another view on the right of the original chart. This allows you to shown a combination of charts, for example cumulative returns with periodic returns:

The added chart may be removed later by clicking on the thrash icon shown on its upper right.


Changing font size

You can adjust font size in Portfolio Lab. This control appears on the upper right of the Portfolio Lab window as “A-/A+” buttons:

kwanti Portfolio Lab

Portfolio Lab will remember your font size preference, so that you don’t have to set it again the next time you log in.


The problem with many performance charts

Performance information conveyed on return charts from many financial sources is misleading. Investors reading these charts will be unfairly biased against income-producing assets.

Learn how total return better represents an asset performance and enables meaningful comparisons. [PDF version]