How Are Bonds Calculated in Portfolios? 

Bond Performance Methodology

Bond performance is calculated using standard market conventions:

• Total Return: Based on the dirty mid price (includes accrued interest).

• Price Return: Based on the mid price only (excludes accrued interest).

• Distribution Yield: Calculated as coupon rate ÷ mid price.

Note on Risk Metrics:

We do not support equity-style risk calculations (e.g., Standard Deviation, Alpha, Beta) for bonds. The bond market evaluates risk differently, using measures such as credit quality and duration, which better reflect volatility and creditworthiness.

Portfolio Weights

Individual bonds are set to not rebalance, even if there is a rebalance frequency set. This is to mirror real world behavior where bonds are typically held to maturity. All other securities in the portfolio will be rebalanced according to the frequency selected.