As
part of the site upgrade we have updated three important performance measures, to
make it easier to understand what the managers are doing, and how Investments
are performing for their subscribers. They should help you to better interpret
what is happening in your account:
Average
Subscriber Performance (Avg. Sub): As you will see on a model profile we
now chart and report the performance of the average subscriber to the model,
alongside what the manager themselves achieves.Given
performance drift
there is a divergence between a manager’s returns and those mirroring them. The
Avg. Sub is a daily time weighted measure, including cash and Covestor fees, of
the average returns actually achieved by subscribers to the model. The figures
only appear on a model page where data is available (i.e. only if there were
subscribers to the model in the period), and an orange line traces the movement
of the average subscriber on the chart.
Average
Leverage:
We have added a new metric, under a model manager’s holdings, so viewers
can see when a model manager is using leverage (i.e. borrowing money from their
broker). Subscribers follow the manager into leverage and so this is useful
guide to the level of exposure the manager is taking. This figure only appears
when it is greater than 1, and a leverage of 1.6, for example, means they are
160% exposed (i.e. currently 60 of the 160 is borrowed)
Leverage:
Simple
Return: On the portfolio page of your mirroring account we have always
had a measure of the return you have made per subscription, but this has been
updated.You can now see all of subscriptions and redemptions you have ever
made in a model, and how much you are up or down overall in it.
If
you have any questions about these metrics please check out our new page about how
performance is measured, or get in touch.
We
will keep updating the metrics over the coming weeks to help you to understand
both what the manager themselves is doing, and the implications for those
mirroring them. Covestor has always been about complete transparency and we
will keep working on tools to help you to make better investment decisions.
