Accessing an account's point to point returns

You can define the time parameters of an account's total return by creating point-to-point returns.

  1. In the left navigation pane, click Portfolio Management. The Portfolio Management area opens.

  2. In the left-hand column, click Accounts. The Accounts spreadsheet opens.

  3. Double-click on the transactional account for which you want to compute point to point returns. The account opens to the Holdings Summary.

  4. From the Tools menu, click Point to Point Returns. The Point to Point Returns screen opens.

  5. Click the Start and End arrows to define your return time period.

  6. Click the Frequency button to define the type of returns you want to compute (Monthly or Daily).  

Note: A risk-free rate is required when computing the Sharpe Ratio. Morningstar uses the 3 month T-bill as the risk-free investment. However, there are not daily returns for the 3 month T-bill. If you select Daily as your return frequency, you will need to find a substitution in the T-Bill Equivalent box. To do so, click the magnifying glass icon and find the equivalent.

  1. The default setting is Account Level, but you may change this to Holding Level. If you select Holding Level, you will see beginning and end market values for the holdings.

  2. Click after you have set your parameters. The point to point returns are calculated.