At Six Park, we believe that all investors should be able to fully understand their portfolio performance.
The ability to identify where gains are coming from, review risk metrics, and track long-term performance metrics is vital to making future decisions and trusting that your investments align with your situation and tolerance for risk.
An understanding of portfolio performance can also help you to develop a better understanding of your investment goals, and in turn, your financial future.
Through this blog post, we will provide an overview of how to understand your Six Park portfolio performance.
Receiving income as dividends
Dividends are payments made by an ETF (e.g. its underlying index holdings/companies) to its investors, usually from profits or excess cash. Dividends can be either a one-time payout or a regular stream of income.
Dividend payments are a great way to generate a steady source of passive income and are thus an important part of any investor’s portfolio.
Any dividends received from your Six Park portfolio can be paid into your Cash Management Account or reinvested into your portfolio.
Receiving income as capital gains
Capital gains are generated when an asset is sold for a price higher than the original cost of the asset.
When you decide to sell some or all of the investments in your Six Park portfolio, the sale proceeds will be paid into your Cash Management Account.
Note that before you sell your portfolio it is important to consider the capital gains implications, possibly by consulting with a tax advisor. Depending on the size of the gain, capital gains tax may be applicable when the asset or portfolio is sold.
Use Sharesight for detailed reporting
At Six Park, we strive to provide our clients with the necessary tools and resources to make informed decisions.
In our client dashboard we offer detailed reporting that helps you to keep track of your portfolio via the Sharesight tool. It is simple to use and provides investors with insights into their portfolio performance over time.
To access Sharesight, just click on the ‘Reporting’ tab which will take you to your Sharesight dashboard for your portfolio.
In Sharesight, you can run a number of different reports and change the dates to capture the information you are looking for.
For instance, to see performance over a specific date range, you can run a performance report and change the dates for the timeframe you are interested in.
This article may contain general financial product information but should not be relied upon or construed as a recommendation of any financial product. This information has been prepared without taking into account your objectives, financial situation or needs.
For further details on our service please see our Financial Services Guide at http://www.sixpark.com.au. Past performance is not a reliable indicator of future performance.