An investment portfolio has control over a large proportion of assets, often for a lengthy period of time. It is a significant financial commitment, yet many investors are unaware that the funds in which they entrust their money are often of low-quality, and as a consequence, their portfolios lack efficiency and deliver diluted returns.
For many investors, the reality is they could achieve substantially greater portfolio growth by placing their money within proven, high-quality funds that have consistently outperformed their peers.
The only way to determine how efficient a portfolio is performing is by comparing the performance and ranking of each fund within a portfolio to all other funds within their specified sector. This process traditionally took investors hours working through fund tables and building a spreadsheet, but with our portfolio analysis service, it now takes minutes!
Why You Should Analyse Your Portfolio
There are approximately 3,000 unit trust funds available to UK investors of which only 1 in 10 has a history of top quartile (top 25%) sector performance. The investment market is littered with poor funds, and the limited information available relating to performance has made it difficult to identify good and poor funds. This has resulted in billions invested in funds that have persistently underperformed causing many investors to miss out on potential growth.
As an investor, you have the choice to invest in funds that consistently deliver top performance OR funds that underperform within their given investment sector.
Although past performance is not an indicator of future success, it is a very important metric. Past performance exposes the effectiveness of funds and their fund managers. The funds that consistently rank highly in their sectors reflect a level of expertise/competency from the manager within that investment sector. Whereas, the fund managers whose funds continually rank poorly within their sector have demonstrated a lack of competency and an inability to deliver competitive returns for investors. Past performance is not an indicator of future returns, but it is important information that holds fund managers accountable for their performance. We regard poor performing funds as funds that rank in the worst 25%/50% of their sector.
For those that have maintained a high level of comparative performance, it is reasonable to assume they can do so in the future.
With the Yodelar portfolio analysis service, investors are able to clearly identify the exact performance and sector ranking of each fund they are invested in. This helps investors assess the quality of investment advice they have received or the fund choices they personally made.
What Level of Growth Has Your Portfolio Returned?
Whether or not you believe your portfolio has delivered competitive returns, it’s true performance can only be established by comparing its growth to that of a similar risk portfolio that consists of consistently top-performing funds.
The unfortunate reality is that the vast majority of investors could achieve greater growth from their investments, without increasing risk, by making more informed fund decisions and investing in funds that have proven their quality consistently over different time periods. Our portfolio analysis feature will clearly identify how efficient your portfolio has performed.
How It Works
Upload Your Portfolio
Our portfolio analysis service is free to all investors for their first analysis. To receive an analysis visit https://www.yodelar.com/portfolio-analysis where you can upload your portfolio for our research team to analyse which is typically completed within 1 working day. Investors can provide information on their portfolios by attaching a recent portfolio statement or alternatively by uploading a spreadsheet or a document that includes the funds and the amount held in these funds.
The above example portfolio was uploaded as a spreadsheet for analysis. It contains all the basic information required for an analysis to be completed, however, additional information can be included but it is not a requirement.
Identify what proportion of your portfolio is held in top, mediocre or poor performing funds
Through our portfolio analysis feature, investors can select their portfolio's desired risk allocation and add their portfolios' underlying funds along with the amounts they have invested in these funds. Once uploaded, the analysis will provide a performance grade for the portfolio and a summary of what proportion of assets invested in the portfolio are held in good or poor performing funds.
How Yodelar rate fund performance
Underlying fund performance & sector ranking
The portfolio analysis table displays the recent 1, 3 & 5-year performance of each fund along with where their performance ranked in comparison to all other funds within the same sector.
Based on this performance, each fund receives a performance rating between a poor 1-star performance rating up to a consistently top-performing 5-stars. This table also displays the average growth returned by the sector each fund sits within.
This analysis easily identifies if an investment portfolio contains underperforming and inefficient funds that are diluting a portfolio’s overall performance.
Compare your portfolio to similar risk portfolios
The performance of the overall portfolio is then compared alongside two similar risk-rated portfolios. One is a model portfolio built using consistently top-quartile performing funds and follows an asset allocation model as recommended by the consumer watchdog Which? - The 2nd is the performance of the portfolios used by Yodelar Investments. This unique feature allows investors to gain an insight into how competitive their overall portfolio has performed.
The monetary difference in the value of your portfolio if invested in the comparative model portfolios
Based on how your portfolio performs the analysis will also identify the difference in monetary terms what your portfolio returns would have been had you invested in the comparative portfolios. This will put your portfolio's returns under the spotlight and either reaffirm your portfolio's quality or highlight the financial implications of any potential underperformance.
What our portfolio analysis will identify:
- The performance of each fund you are invested in.
- How a fund ranks within their sectors for performance over 1, 3 & 5 years.
- Yodelar performance rating for each fund you are invested in (1 and 5 stars).
- What proportion of your portfolio is invested in 1 to 5 star rated funds.
- Portfolio growth comparison with a similar risk portfolio of top-performing funds.
- Receive an overall Portfolio Grade (between A and F).
Our portfolio analysis service provides a clear insight into how each of your individual funds is performing while grading your entire portfolio based on its overall performance - making it easy to identify areas to improve. It is a unique service that provides investors with a panoramic view of their portfolio that helps to encourage more informed investment decisions, making it an essential resource for efficient investors.
