Methodology
How we calculate your numbers
We are transparent about our methods. These are the exact calculations behind every figure you see — performance, risk, capital gains, franking, and foreign income.
01 — Market data
Market data & prices
Prices come from market data feeds, either real-time or delayed depending on the source. End-of-day (EOD) prices drive your daily valuations and the performance time series, so a given day's figures settle once the market has closed.
02 — Performance
Time-weighted return (TWR)
We compute a Modified Dietz return for each period and chain-link those periods together geometrically into a cumulative TWR. This strips out the timing and size of your deposits and withdrawals, so the result reflects how your investments performed — not when you happened to add money. That makes TWR the fair way to compare your portfolio against a benchmark.
03 — Performance
Money-weighted return (MWR)
MWR is computed with the Modified Dietz method (cost-basis form), not an internal rate of return (IRR). It reflects the return you actually experienced given when and how much you contributed. We annualise it over a cost-weighted average holding period; holdings owned for less than a year show a total, un-annualised return instead. The capital, income, and FX components reconcile to the total.
04 — Risk
Risk metrics
Sharpe ratio is annualised return divided by annualised volatility — the sample standard deviation of daily returns scaled by the square root of 252 (trading days per year). Max drawdown is the largest peak-to-trough decline over the period. Both need at least roughly 20 daily data points.
05 — Tax
Capital gains (CGT)
Capital gains are calculated at the parcel (lot) level. The 50% CGT discount is applied automatically to assets held for more than 12 months (365 days) and is entity-aware: 50% for individuals and trusts, 33⅓% for SMSFs, and 0% for companies. You can choose how lots are matched on disposal — FIFO (the default), LIFO, minimise gain, maximise gain, minimise CGT (lowest post-discount assessable gain first), or specific-lot selection.
06 — Tax
Franking credits
Franked income is grossed up at the relevant corporate tax rate, with the franked and unfranked split taken from an explicit franked percentage where available. The 45-day holding-period rule (90 days for preference shares) determines whether credits qualify, and the Small Shareholder Exemption applies for individuals with A$5,000 or less of franking credits in a year.
07 — Tax
Foreign income & FX
Foreign-currency holdings are converted using end-of-day market exchange rates for valuation. For individual trades, we prefer the broker-reported rate when it is within 10% of the market rate, and fall back to the market rate otherwise. FX gain is reported separately from market (price) gain so you can see how much of a result came from currency movement. A foreign income tax offset (FITO) is supported; note that v1 applies a simplified FITO cap that treats foreign tax paid as claimable, so verify your offset with a tax agent.
08 — Tax
Managed funds (AMIT) & distributions
For attribution managed investment trusts (AMITs), cost-base adjustments — both increases and decreases — are applied to your open parcels at financial-year end. In v1, the consumption of attributed income is limited, so treat AMIT cost-base figures as a starting point and confirm them against your annual tax statement.
09 — Income
Dividends & DRP
Cash dividends are recorded as income and converted to your reporting currency on the payment date. Dividend reinvestment (DRP) creates a new parcel at the reinvested value and is also counted as income, so your cost base and income both reflect the reinvestment.
This is general information about how Metrifly computes its figures, not financial, tax, or investment advice. Tax outcomes depend on your circumstances — verify every figure with a registered tax agent before lodging with the ATO.