A Portfolio Management Worksheet for Money Market Accounts, T- Bills, Bonds and Stocks
By Fred Shipley, Ph.D.
Computerized Investing
March/April 1989 - September/October 1989
In managing a portfolio, an investor must keep track of the current return, any current or anticipated changes in value, and the riskiness of the portfolio. In this article, we provide a template to perform these calculations for a diversified portfolio, which can include money market funds, T-bills, bonds and stocks. In addition, you can update these values over time and provide periodic reports to measure performance. This worksheet will track annualized returns for the portfolio, considering the irregular timing of cash inflows and outflows. It will monitor the riskiness of the individual portfolio components. Finally, it will allow you to make performance evaluation comparisons with other managed portfolios or with the market.
Issues in Performance Measurement
The evaluation of portfolio performance requires an understanding of both the returns and the risk in the portfolio. Each of these aspects of portfolio performance involves difficulties in measurement. For determining returns, a careful understanding of the timing of cash inflows and their disposition--either reinvested or spent--is critical.
Return on an investment is appropriately measured in terms of its realized annually compounded rate of return. This is the return that will make the initial portfolio value accumulate to the known final portfolio value over the elapsed number of years. It is also known as the internal rate of return. Implicit in the use of this concept is the presumption that any cash flows generated by the investment are reinvested at that internal rate of return. If you estimate an annually compounded rate of return for an investment and spend any part of the cash flows generated by dividends or interest income, your realized rate of return will be lowered. In effect, spending a cash dividend is the same as spending principal, which reduces the value of the portfolio. This reduction, however, must be treated in proportion to the current value of the portfolio; therefore, the timing of cash inflows and outflows is important. To properly evaluate the change in portfolio return over time, the value of the portfolio must be determined every time a transaction occurs.
The easiest way to deal with this problem is analogous to the way mutual funds use net asset value to determine the number of shares an investor buys or sells. At any time, the total value of the portfolio is determined and the amount of a purchase or redemption is divided by the net asset value per share to determine the number of shares in the fund that are bought or sold.
Similarly, we will determine the value of a share in our portfolio every time a transaction occurs. The transaction will then have the effect of either purchasing or redeeming a number of those shares. To keep the values easy to track, we will start with an assumed initial portfolio share unit value of $1. Tracking the value of these shares of the portfolio allows us to determine the annually compounded rate of return, while accounting for the cash inflows and outflows that have occurred over time. We can determine the performance over the period between the most recent transactions or compounded over a much longer period of time.
Evaluating the overall risk of the portfolio is conceptually difficult. There is no generally accepted indicator of overall portfolio risk when that portfolio includes both equities and bonds. Nevertheless, we do have risk measures for each of these components--beta for equities and duration for bonds. For a money market fund or account a zero beta is usually accepted. We can then examine performance in light of the risk measures for each component of the portfolio. A risk-return measure can be determined for the equity and money market component of the portfolio, which is compared to the market risk-return measure. The return and duration of the bond portion of the portfolio may be similarly compared. Both the duration and beta measures appear in the spreadsheet.
Setting Up the Input Data
In setting up the input data for your portfolio, we have designed the spreadsheet to accommodate any number of different securities and types of securities. The spreadsheet is divided into four major sections--money market investments, bonds (and bond mutual funds), stocks (and stock mutual funds), and overall performance evaluation.
In the example worksheet there are a few different securities in each of the first three sections. Each separate transaction, whether the receipt of interest or dividend payments or the purchase or sale of an asset, requires a new line of data. While this task can be daunting, we have made it easier by using a number of the features that 1-2-3 (and other spreadsheets) provide. Essentially, we add a row in the appropriate section of the spreadsheet and fill in the relevant information. By setting up our formulas carefully, we can maintain the appropriate category subtotals.
First, determine in what section you wish to add a security. Place your cursor at the row corresponding to the last entry in that section. As an example, we are going to add another stock. Doing so means placing the cursor in row 43. Use the / Worksheet Insert Row command to insert a row between the two stocks. Then, to keep the formatting that exists for the current section, use the Copy command to copy the data from the first company down to the inserted row. At this point, simply write over the existing data with data for the company you have added to your portfolio.
If you simply insert a row and enter data, you will have to format each range to correspond to the way you want the data displayed. That can take a long time. If you want to enter more than one company, simply insert as many rows as you need, and copy the first company down all the inserted rows.
You might worry about getting companies in a random order with this process; but it is simple to rearrange the companies in any order you find convenient using the Data Sort command. If you are only entering one or two companies, you might find it easy to simply insert the needed row(s) at appropriate spots in the spreadsheet. When adding more than one or two, using the sort features will save time.
Suppose, for example, you have the spreadsheet with UAL entered between AT&T and Compaq. Sorting the companies into alphabetical order is straightforward. First, type / Data Sort, and 1-2-3 prompts you to indicate the Data-Range. Highlight the entire equity section, A40..R43, and hit Return. Then you can choose the Primary-Key. This will be the first key on which the sort will occur--the company names, in this case. Move the cursor to cell B40 and strike Return. Lotus then prompts you for the order in which the data should be sorted--ascending or descending. In this case, ascending order goes from A to Z. Type A, and you will be back to the menu. At this point simply typing G for Go (or highlighting Go and hitting Return), will sort these companies into alphabetical order. You can use the same technique to sort on ticker symbol or date of transaction, if you wish.
In addition, you can sort on more than one key. For example, you might want to have all securities in a section listed alphabetically, and have different transactions for the same security sorted by date. To do this, simply specify the Secondary-Key and highlight a cell with the transaction date in it.
There are some things to remember when doing this. A certain amount of care is necessary, since 1-2-3 overrides the existing data in the worksheet. It would be wise to save the file first. In that way, anything you have done up to the point of sorting will be preserved if you make a mistake. Second, remember to highlight every piece of information in the equity section. Lotus only rearranges information that is highlighted. Suppose, for example, you do not highlight all the way over to column R but stop at column G. Then the information on transactions cost, total cost, current market value, etc., will not be sorted and will not correspond to the data for the correct company. Unfortunately, there will be nothing in the spreadsheet that will alert you to this problem.
The Money Market Section
We put all money market type investments in this section. You can include cash, money market mutual funds, money market deposit accounts, Treasury bills and certificates of deposit--any investment with a maturity of one year or less. Normally you would put longer-term fixed-income investments, such as corporate or municipal bonds, into the fixed-income section. This section requires you to enter the name of the issuer, the beta (zero), the investment's original and current yield, its maturity as a date, the original maturity in days, the current balance, the date of the current transaction, and the amount of the current transaction. Using this information, the spreadsheet determines the number of days remaining to maturity and the percentage invested, both for each item and as a weighted average for all money market investments. In addition, there are several columns (M through R) which contain calculations necessary to make the section subtotals work.
For the Treasury bills, we must determine the appropriate value that we have invested. We simply take the bid yield as reported in the financial media and use that to determine the appropriate price. This is equivalent to the uncompounded yield reported for money market funds. These calculations appear in cells H16 and L16 and have been discussed in the January/February 1989 issue of CI. Otherwise, enter the initial price directly in cell H16 and use the discount yield calculation in cell D16.
The Bond and Bond Fund Section
The fixed-income section of the portfolio is patterned after the bond portfolio management worksheet presented in the January/February issue of Computerized Investing. You must enter the original purchase date, the issuer, the coupon, the maturity date, the initial cost, number of units, any transactions costs (commissions and transfer fees, for example), current price and the date of each transaction. The spreadsheet then determines the current yield and yield to maturity, the duration, the total cost and market value, the percentage invested in each, and the market gain or loss on each. Several columns of data calculations (P through U) needed to compute the section subtotals then follow.
The Stock and Stock Fund Section
The equity part of the portfolio is designed to be similar to the fixed-income section, but different issues are important here. For example, riskiness is measured by beta rather than by duration.
You must enter the initial purchase date, the company (or fund) name and ticker symbol, the beta, quarterly dividend, cost per share, transactions costs, number of shares, date of the current transaction and current market value. The program then determines the annual dividend and dividend yield, total market value, overall gain or loss and the percentage invested in each asset. Finally, there are several columns of data calculations.
The Overall Portfolio Section
This section of the spreadsheet summarizes the results of each of the previous sections. All of this information is calculated and requires no data entry. The summary information covers current return, risk measures, portfolio allocation, and overall gain and loss. It offers a quick glimpse into the current status of your portfolio. To evaluate longer-term performance, we must take data for each transaction and develop an ongoing record of performance. This performance record enables us to evaluate our success (and difficulties) over time. Our example illustrates each of these sections of the spreadsheet.
Overall performance measures.
An important aspect of portfolio management is determining return in order to evaluate performance. Once the information corresponding to each portfolio transaction is entered into the worksheet, that data can be carried down to create a summary report and performance figures. Benchmarks can then be established for evaluating the portfolio's short-term performance, while keeping in mind the importance of performance over the long run. The ability to generate short-run evaluations should not lead to making short-run decisions.
In this article, we explain the concepts necessary to determine portfolio performance measures. In the next issue, we will take you step by step through the updating process. The spreadsheet shows how the overall performance section will look. This part of the spreadsheet is for illustrative purposes only. It illustrates how the updating process affects overall evaluation. The data here is composed of sample numbers. As we go through the updating process in our next issue, we will create spreadsheet formulas to generate these numbers. Most of the information will be carried down from previously entered data. What remains to be added are the figures used in making performance comparisons.
An Indexed Measure of Portfolio Performance
As mentioned in Part I (March/April CI), one way to track portfolio performance over time, with periodic cash inflows and outflows, is analogous to the way a mutual fund uses net asset value to determine the number of shares an investor receives as the result of a transaction. Any time you make a portfolio transaction, you must determine the total value of the portfolio and the proportion of the portfolio affected by the transaction. You accomplish this by establishing a portfolio share unit value. Tracking changes in the value of these share units allows you to determine the periodic rate of return and other performance measures.
To set this up, we will assume that our first transaction occurs with a portfolio share unit value of $1.00. We could use any number, but it is much easier to understand the magnitude of changes by starting with a value of $1.00. In order to determine the value of transactions, we must know the market value of the portfolio when those transactions occur. By dividing the current portfolio market value by the initial value of our portfolio, we establish a portfolio index value.
For example, if the first transaction we make in our portfolio is
the purchase of 200 shares of Delta Air Lines at $40 per share plus transaction costs of $175 for a total of $8,175 on February 3, 1979. The beginning portfolio value would be $0.00 since this is our first transaction. With $1.00 fixed as our beginning transaction share unit value we have added 8,175 share units to the portfolio. We want to determine the value and the return of the portfolio on October 20, 1982, when we make another transaction--the purchase of Georgia Power. At this point, our Delta stock is worth $54.00 a share, for a total portfolio value of $10,800. Dividing that $10,800 beginning value by our beginning 8,175 shareunits gives us a beginning share unit value of $1.321.
Determining the rate of return is then a matter of tracking the change in the share unit value. We examine the change in this value, the time period over which the change occurred, and determine the equivalent annual rate of change. Because we must evaluate each part of our portfolio separately, the value for every component must be determined for transactions of any kind.
Determining the Annually Compounded Change in Portfolio Share Unit Values
In our example, our next transaction is buying Georgia Power bonds on October 20, 1982. Over the period from February 3, 1979 to October 20, 1982, a period of three years and eight months (1,355 days), our portfolio share unit value has increased from $1.000 (cell E66) to $1.321 (cell E67). Using the date functions of your spreadsheet, this is equivalent to a rate of 7.80% per year. We get this annual percentage rate of return (APR) with the formula:
APR = [(1 + R) ^ (365.25/# of days)] - 1
where: (1 + R) = Ending Unit Value/Beginning Unit Value
For our example, the beginning unit value is $1.000 and the ending unit value is $1.321. This gives us the effective annual realized rate of return of:
APR = [(1.321/1.000) ^ (365.25/1355)] - 1
= 1.321 ^ (0.2696) - 1
= 1.078 - 1
= .078 or 7.8%
We will set up a column (K) for the most recent periodic change, as well as a column (L) that will cumulate those period changes over time. These changes will be compared to market changes.
Obtaining Market Data for Comparative Purposes
Market data for comparing and evaluating portfolio performance can be obtained from a variety of sources. For most investors the Wall Street Journal is the most readily available. The Wall Street Journal publishes performance information for various types of investments on a quarterly basis. While these reports appear every quarter, there is no fixed date at which to expect them; you will simply have to watch carefully. These data includes total returns for various stock market indexes and averages, bond market indexes, and different managed investment portfolios--some private funds, some mutual funds. Similar information can be found in Barron's. Ibbotson and Associates in Chicago offers a quarterly data service with detailed information on unmanaged portfolios. This service is expensive for an individual investor, but public libraries in major metropolitan areas and larger university libraries may have subscriptions. In addition, this information is available on-line and can be downloaded, for investors who need the utmost timeliness.
The stock and bond indexes that are published daily are based on price changes only, and do not indicate total return. While these may be used for comparison with price changes in your portfolio, performance must be judged on a risk-adjusted, total return basis. It is not necessary to make these total return performance evaluations on a daily basis--quarterly, or even annual, updating is sufficient. Your purpose here is to track the long-run performance of your portfolio against some benchmarks. Frequent performance evaluations can generate a short-run trading mentality that can lead to poor long-run performance.
You will need to find the return for Treasury bills and the return for a market index to perform the risk-return evaluation for the money market and equity portions of your portfolio. The most commonly used index of general market activity is the S&P 500. If you find an index that better represents your portfolio, feel free to use it.
The bond portion of your portfolio should be compared with the return on a portfolio of bonds similar to your own bond portfolio. Ideally, the comparison should be made by matching duration, but information on duration is difficult to obtain. You can make a useful comparison by tracking a bond index with a maturity matching that of your bond portfolio. Another way of judging performance is to track the total return of a bond fund with approximately the same maturity as your bond portfolio. Morningstar publishes the average maturity for bond mutual funds in Mutual Fund Values, a financial reporting service for mutual funds that is similar to the Value Line Investment Survey for common stocks.
Finally, to determine performance that is adjusted for inflation, you should also track changes in the Consumer Price Index (CPI). This is reported regularly in the media.
Evaluating performance should be done using long-run historical results, as well as current data. Table 2 gives long-run returns based on historical data from the beginning of 1926. This table gives the historical values for the equity (or market) risk premium, the return on the market less the Treasury bill return, as well as the real risk-free rate of return, which is simply the realized return on Treasury bills less the rate of inflation, measured by the CPI.
Table 2
Annually Compounded Returns
1926 -1988 1971 -1988
Common Stocks 10.0% 11.0%
(S&P 500)
Treasury Bills 3.5% 7.6%
Inflation 3.1% 6.4%
(CPI)
Long-Term Corporate Bonds 5.0% 8.8%
(20-Year Maturity)
Long-Term Government Bonds 4.4% 8.4%
(20-Year Maturity)
Intermediate-Term Governments 4.8% 8.8%
(5-Year Maturity)
Equity Risk Premium 6.2%* 3.1%*
Real Risk-free Return 0.5%* 1.2%*
* NOTE: These figures are calculated as geometric averages. For example, to determine the equity risk premium for the years 1926 through 1988, 1 plus the common stock return is divided by 1 plus the Treasury bill return and 1 is subtracted from that result. The formula is:
Similar calculations are done to determine the real risk-free return.
End of Table 2
More detailed information can be found in "Stocks, Bonds, Bills and Inflation, 1989 Yearbook," published by Ibbotson Associates, Chicago. The longer period figures are usually the benchmarks against which institutional portfolio managers are judged. The data for the period since 1971 suggests significant changes in the way the economy has operated and risk has been rewarded. Higher rates of inflation have led to a lower risk premium and higher returns on fixed-income investments. If inflation stabilizes, even at the current 4% to 5% rate, the risk premium may well rturn to the level that prevailed over the past 63 years.
Comparing Risk and Return
Comparing risk and return means judging how much return you received for the risk taken. This is done by comparing your return with the return that could be generated without taking any risk. The return on three-month Treasury bills is an appropriate measure of the risk-free return. Since we will be using an annually compounded portfolio return, it is important to use an annually compounded return on Treasury bills, also. For comparison purposes, however, the return should be measured over the period you are evaluating.
One way to determine this return if you are making quarterly performance evaluations is to use the effective annual return for the T-bills that mature closest to your evaluation date. A similar process can be used for annual comparisons. The coupon-equivalent yield on outstanding Treasury bills is published daily in the Wall Street Journal. Since this rate is compounded semiannually, you can easily convert it to an effective annual return. Simply take the yield, divide by two and compound the result for two periods. For example, suppose the quoted yield is 8.9%. Then the effective annual yield is determined by:
APR = [(1 + Y/2) ^ 2] - 1
where: Y is the quoted yield
APR = [(1 + 0.089/2) ^ 2] - 1
= [(1.0445) ^ 2] - 1
= 1.09098 - 1
= 0.09098 or 9.098%
In addition, the Treasury bill return calculator from the March/April issue of CI will provide a current value of that return. This approach assumes that you purchased a T-bill in the beginning of the period and held it until its maturity. The effective annual return assumes that you reinvested the proceeds at maturity at that return. This is the same assumption applicable to the portfolio rate of return.
The risk-adjusted return is simply the difference between the return on your equity investments and the risk-free return, divided by the beta, or riskiness, of your equity portfolio.
Return/Risk = (RP - RF)/Beta
where: RP is the realized return on your portfolio,
RF is the return on the risk-free T-bills, and
Beta is the beta of your portfolio
The equity portfolio beta is the weighted average of the betas of the equities and stock mutual funds in your portfolio. The percentage each investment represents of the total portfolio is calculated and multiplied by the investment's beta. These figures are then added together to determine the portfolio beta. This can be found in column I, row 54 in the spreadsheet (see Figure 1).
Making a similar risk-adjusted calculation for the market will indicate how you have done relative to the market. Suppose, for example, that during the most recent three months, your portfolio has a total annualized return of 13%, Treasury bills have a return of 8%, the S&P 500 index has a return of 11%, and the beta of your portfolio is 0.90. Then your risk-adjusted return is:
Return/Risk = (RP - RF)/Beta
= (0.13 - 0.08)/0.90
= 5.56%
Performing a similar calculation for the market gives a market risk-adjusted return of 3%, since the beta of the market is 1.00. By this standard, you earned more for the risk you took than the market, so you outperformed the market. If the risk-adjusted return for your equity portfolio were less than 3%, you would have underperformed the market.
You could perform a similar analysis for each investment in your portfolio. This analysis can be used for mutual funds, since they are well-diversified and should only have market-related risk. (Beta is a market-related risk measure.) You should not, however, use such a performance measure for individual stocks. The betas for individual stocks can vary over time, and so beta is not an appropriate way to judge their performance. Also, only about half of a security's total risk is market-related and, therefore, only half of the risk is captured by beta.
By tracking your portfolio over a period of time and making regular comparison of its performance with market indicators, you will be able to judge your investment record. The spreadsheet will track the numbers for you; you must judge their significance. Overall, performance should be commensurate with the level of portfolio risk.
If your portfolio performance is considerably better than the market's on a risk-adjusted basis, consider yourself an outstanding investment manager. If not, evaluate whether or not frequent trading is generating excessive transactions costs and high taxes. The spreadsheet tracks transaction costs for you, but it does not track taxes. Decreasing the rate of portfolio turnover and focusing on long-term performance may improve your results. For most investors, increasing turnover is not the solution to poor performance.
Updating Portfolio Values
In this article we conclude our series setting up a worksheet to track, update and evaluate portfolio performance. The focus of this article is on the mechanics of portfolio updating and performance evaluation. The previous two articles set up the worksheet and discussed the issues relevant to performance evaluation. There are a few additions to be made to the spreadsheet at this point--primarily in setting up the performance comparisons.
How Often Must You Update?
Computerized investors have the advantage of access to very current securities prices and the ability to integrate that information into their personal financial databases quickly. The abundance of current information may tempt you to track portfolio values on a daily basis. This is not necessary, though you may find it useful. In order to determine appropriate portfolio performance measures, though, you must update all securities' values every time a portfolio transaction occurs. Failure to do so will result in errors in your rate of return calculations. These errors may be small, but they can accumulate over time and seriously misstate performance. If performance is misstated, you may make unfortunate decisions when revising your portfolio holdings.
In addition to updating whenever a transaction occurs, most investors will want to make quarterly and annual performance evaluations. These numbers should be used to judge performance and make reallocation decisions. Again, do not feel that revisions must be made quarterly simply because you are evaluating performance quarterly. Excessive portfolio turnover generally leads to lower realized returns.
Using the Portfolio Data
A list of benchmark performance figures is shown in Table 1. As the list of sources suggests, gathering the necessary information requires some vigilance and a fair amount of work. There is no single source for all the necessary information. Probably the most difficult type of information to gather is that for fixed-income securities. There is some hope, however, as most of the major financial papers are recognizing the importance of fixed-income securities in investors' portfolio holdings. Finding the return is easy; it is finding the duration of these bond indexes that is difficult. Nevertheless, it is possible to obtain current performance figures on a regular basis. With a weighted-average coupon and a weighted-average time to maturity, you can impute a duration based on the current market yield-to-maturity as we have done with the Morningstar figures. The bond portfolio management article from the January/February 1989 issue of CI discusses duration and gives the necessary formula.
Table 1
Realized and Current Return
Performance Benchmarks
Realized
Return Current
1st Half Yield
Investment Type 1989 8/89
3-month T-bills 4.32% 8.27%
Taxable Money Market Funds 5.19% 8.12%
Non-Taxable Money Market Funds 3.50%
Shearson Lehman Hutton
Gov't./Corp. Bond Index 9.23%
High Quality Corporate Bond Funds 7.89% 9.83%
10.4 years to maturity; duration 6.9
Merrill Lynch 10-Yr. + Corps. 11.34%
21.5 years to maturity; duration 8.9
Merrill Lynch 10-Yr. + Gov'ts. 13.62%
S&P 500 Index 16.53% 3.24%
Dow Jones 30 Industrials 14.95% 3.39%
Growth Stock Funds 15.64%
Small Co. Funds 15.30%
Sources: Merrill Lynch Bond indexes appear in the Wall Street Journal on a regular basis. Mutual fund data from Morningstar's Mutual Fund Values. Figures for the S&P 500 and Dow Jones appear in Barron's with the mutual fund data. Current yields appear each week in the Market Laboratory section.
End of Table 1
In addition to the performance data in Table 1, we have also given some current return data for some of the investments used as benchmarks. This current return data allows you to evaluate the income status of your portfolio. This information will be useful when considering changes in portfolio composition. You must determine your own portfolio objectives to determine the importance of current return in total return comparisons. Comparison of the current return figures with the historical averages and the figures of the past quarter and year will provide an indication of whether performance is reasonable or not.
Computing Performance Figures
We showed in the May/June issue how to compute a portfolio share unit value to determine the overall portfolio total rate of return. To make similar total return calculations for each part of the portfolio, we must add a few columns of formulas to the right of the section on Overall Portfolio Performance Measures. Starting in cell J52, enter the beginning portfolio value, date of update (K52), beginning number of units (L52), the beginning unit value (M52), change in portfolio market value (N52), cash withdrawals or additions (O52), change in units (P52), ending number of share units (Q52), and total portfolio value (R52).
The final step is to set up the overall risk-adjusted performance measures immediately below the total portfolio return calculations. Insert 20 rows starting at row 59, using the / Worksheet Row Insert command. The first four columns are the same as those above them- -the current date, portfolio component, and name and value of risk measure. Next is the realized return over the quarter (column E). Then in column F, enter the name of the benchmark portfolio. In column G, enter the return from that comparison portfolio. In column H, we calculate the risk-adjusted performance for the equity section of the portfolio. For the fixed-income securities, reference the duration of the corresponding index in column H. In column I, calculate the risk-adjusted performance for the benchmark portfolios. In column J, enter the current yield of the market benchmarks, and in column K do the same for each portfolio component (from column E, rows 52 through 54). Copying down the dollars and percentage invested from cells F52 through G56 to cell L64 will allow you to determine overall portfolio total realized return and current yields, which can be compared with the current market indexes. Finally, enter the appropriate summary market benchmark data in cells A75 through H78. This completes the performance evaluation section.
The Updating Process
To make this template work, simply enter the market values of each security whenever a transaction occurs, such as a portfolio change, the receipt of a dividend or interest payment, or cash withdrawal or addition. Remember that a dividend whose income is spent represents a withdrawal from the portfolio since it is not reinvested. At the same time, enter the appropriate market performance figures.
Once the current market values are entered, the portfolio performance figures and market benchmarks are calculated. Then you can evaluate the realized performance and plan for the future.
At this point, you will find it useful to save the appropriate quarterly performance figures. Use the File Extract command to do so; the sequence is / File Extract. Then specify the range from A47 to O68. Finally, 1-2-3 requests a file name, 2ndqtr89, forexample. Do not enter an extension (.wks), as 1-2-3 automatically does so. Each year you can combine the quarterly files to obtain an annual performance evaluation. Tracking this data for your portfolio should enable you to make better portfolio decisions.
