Understanding the portfolio valuation report

Adviser Online portfolio valuation reporting uses real-time data and will change based on standard market processes like asset pricing and trade settlements. This article explains how these processes work and answers common questions about why a valuation might look different from day to day.

The total value displayed in portfolio valuation reports may differ depending on where the report is generated. 

• For reports accessed from Digital Banking and Adviser Online, each report will display real time data based off the latest information available for the relevant reporting period.
• For legacy reports, you can still access (Wrap Online), this will display data as at the end of the previous business day.

The value of your client’s investments is determined by the latest available price for each holding. Macquarie sources this pricing data from specialised third-party providers and the relevant stock exchanges.

You may notice a difference in the cost base figure in Adviser Online depending on the date for which you generate a report. This is due to different calculation methods being used for past and present-day portfolio valuations.

• Reports for today's date use the 'adjusted cost base'. Since these reports use real-time data from Digital Banking and Adviser Online, they reflect the most up-to-date valuation.
• Reports for a previous date will use the 'original cost base'.

This is different to legacy reports (from Wrap Online), which use end-of-day data from the previous business day.

The settlement process and timing can be explained based on the liquidity of the asset class.

1.    Listed equities (most liquid)

The standard settlement period is T+2 (Trade Date + 2 business days). However, for a sale on an IDPS account, the cash proceeds often become available in the CMA on T+1. This creates a one-day window where the client can see both the cash and the asset in their portfolio before the asset is removed on T+2. For Superannuation and Investment Accumulator accounts, this T+1 cash arrival is not displayed, and the entire transaction is updated together after the T+2 settlement.

2.    Term deposits (predictable settlements)

This asset has a key settlement difference based on the product structure:

• IDPS accounts – Proceeds from a maturing term deposit settle in one business day (T+1)
• Super, Pension and Investment Accumulator accounts – Proceeds settle in two business days (T+2).

3.    Managed funds and SMAs (least liquid, variable settlements)

It is important to note that these do not follow a simple ‘T+X’ settlement cycle. They operate on a processing cycle determined by the fund manager that is typically disclosed in the relevant funds disclosure. The transaction is only finalised after the fund manager next calculates their official unit price, otherwise known as the ‘Net Asset Value’ (NAV). For non-daily priced funds (NDPFs), this can be weekly or even monthly. The settlement time is therefore dependent on this pricing frequency, not on the trade date itself.

Unlike a share trade, an NDPF order doesn’t always appear as a 'pending' transaction immediately after cash has been debited.

Our platform is only updated to reflect trades executed by an external broker once we are notified through a contract note by the external broker. This process typically takes 1-2 business days from the execution date. The transaction will appear in the client's account only after this note has been received and processed.