Configuring performance components

You have the option of configuring the inclusion of taxes and fees in the performance calculation using the MM-Talk formula.

In Performance chart you can use the "Before taxes" and "Before fees" parameters to see the effects of the changes.

You can also use MM-Talk to include or exclude individual tax and cost types from the calculation.

To do this, use the MM-Talk object PerformanceComponentConfig, which contains the configuration of the components to be regarded as exogenous and is transferred to the depot evaluation. If no such configuration object is transferred, the securities account valuation is calculated before tax and after fees by default. This is also the initial configuration of a PerformanceComponentConfig object, i.e. the configuration that the object contains when it is created and no explicit configuration is made.

Please read the section Functions on PerformanceComponentConfig.

Please note that performance calculations manipulated in this way deviate from the standard calculation methods.

In general:

• The configuration only affects performance, not profits and losses or income. Consequently, the figures from individual statements such as the performance report do not necessarily match the performance calculated in this way (example: When calculating after tax, the performance report shows the change in value before tax, but the percentage performance is shown after tax).
• The calculation only takes into account booked taxes and fees. There is no estimation of pending taxes or fees due upon sale.
• The product costs from the cost service are ignored here by default.
• Performance "before fees" means that fees are regarded as exogenous movements. Accordingly, they are taken into account in the DVK and generate support points for the time-weighted performance. The procedure here is analogous to the usual procedure for taxes.
  

  Similarly, when calculating "after taxes", the exogenous movements in tax flows are neutralized. This means that fewer grid points may be used when calculating the time-weighted performance and the DVK changes.

  The absolute performance as displayed in Performance development is influenced by the configuration.

• In performance attribution and distribution, the configuration also only affects the performance figures (performance contribution and unweighted performance or security performance) and possibly - slightly - the weights.

Note that performance "before fees" is not the same as "performance of a custody account on which no fees are paid". The assets of a model custody account on which no fees are paid only change as a result of price changes. The assets of a genuine custody account with fees do change as a result of fee payments. When calculating performance "before fees", however, these are modeled as exogenous movements. They are no longer available as share capital in the period after the fee payment, which naturally has an impact on performance.