FAQ

How does StockLight calculate annualised time-weighted returns?

Return on Investment

Case study: How the time period of your stock holding affects your true return

If you purchased BHP shares at $15.51 and the stock is now trading at $23.34, the share price has increased 50.5%.

If you purchased those shares exactly one year ago, that means your annualised gain not factoring dividends is 50.5%, a wonderful result.

However, if you purchased those shares thirty years ago, your annualised gain would only be 1.7%, a much worse result.

When you configure your holdings in StockLight, if you enter holding lots with Price Paid and Date Purchased, StockLight will automatically show your capital return gain or loss, dividend return and return on investment (ROI) as both a total amount and on an annualised time-weighted basis.

The opportunity cost associated with your personalised holding period is a very important concept when investing and that is why you need to know how your investments are doing on an annualised basis.

Unlike your broker who is typically incentivised to make you trade more often and has no reason to show you an annualised return, StockLight acts in your best interest and won't hide this crucial benchmark from you.

Step 1: The way our Total calculations are performed is as follows:
Capital return (Gain or Loss) $ = Number of shares still held × Current share price + Total sales - Total price paid for these shares * this is your gain or loss on the share price plus your realised returns from sales
Dividend return $ = Dividend amounts issued during holding period × total number of shares held on the ex-date of each dividend (ignoring tax credits as they are dependant on individual circumstances)
ROI $ = Capital return $ + Dividend return $ - Brokerage


Step 2: StockLight then goes one step further and shows these as percentage totals:
Capital return % = Capital return $ ÷ Total paid
Dividends % = Dividend return $ ÷ Total paid
ROI % = ROI ÷ Total paid


StockLight then goes the extra mile and will break down your returns on an annualised basis. This is an extremely important concept because it will expose your true return respective of time.

Step 3: Annualised returns are then calculated in StockLight as follows:
Capital return annualised % = Cumulative sum of each share purchase lot's gain or loss divided by the number of years it was held (or divided by 1 if held for less than one year) in relation to the total price paid
Dividends annualised % = Cumulative sum of each dividend paid divided by the associated holdings number of years held (or divided by 1 if held for less than one year) in relation to the total price paid
ROI annualised % = (Capital return annualised + Total dividends annualised - brokerage) divided by the Total price paid


Note:
- These annualised calculations all use arithmetic averages and not geometric averages ie. they are not compounded
- If a share has been held for less than one year, the annualised calculation is the same as the calculations from Step 2
- Where shares have been sold, the capital return calculation is based on the earliest purchased shares that can cover the transaction
- The dividend returns do not factor tax or franking credits
- Past performance is not a reliable indicator of future performance
- StockLight's factual return calculations are not and should not be interpreted as general or personal advice

What is StockLight?

StockLight helps investors comb the market to find investment opportunities using a series of fundamental value investing ratios. StockLight is not a 'stock picking' tool, it flags companies that look attractive and provides links to deeper analysis to help you evaluate whether or not these stocks are worth buying (or selling).

How do I synchronise my paid StockLight Premium subscription across iOS devices?

On each device for which you have installed StockLight, follow these instructions:

  1. Open the StockLight app
  2. Tap the 'Settings' tab
  3. Tap 'Subscriptions'
  4. Tap 'Restore Previous Purchases'
* Note: If you have a paid StockLight premium account on an iPhone or iPad, you can use that premium subscription for free on multiple devices using these instructions so long as each device is logged into the same iTunes account.

How do I synchronise my portfolio and watchlist across devices?

On each device for which you have installed StockLight, follow these instructions:

  1. Open the StockLight app
  2. Tap the 'Settings' tab
  3. Tap 'Anonymous Account'
  4. Enter your email address
  5. When a confirmation email arrives, open it on your device's email client
  6. Tap the green confirmation link in the email
* If you are unable to open the confirmation email on you device, you can instead use the 'confirmation code' from the email on the apps sign-in screen.
** In order for StockLight to synchronise your devices, you must use the same email address in step 3 for each of your devices

After you have followed these instructions, when you first open StockLight on a device, it will check for updates from the server and 'synchronise' your portfolio across from other devices

eg.

How is movement percentage on the home screen calculated for my portfolio?

Daily performance
On your home screen, The Total P/L (Total Profit & Loss) number and percentage figure is calculated as follows:

Total P/L = Number of shares still held × Current share price - Total price paid for the shares you still hold
* this is your gain or loss on the share price. Note that unlike in the StockLight portfolio screen, this does not take into account your realised returns from sales. The 'Today' movement percentage shows the impact of today's movement in stock prices on your currently held shares.


How is currency handled for my portfolio?

By default, StockLight does not perform any currency conversion on your behalf and you are showed portfolio values and performance in the local currency for the stock
eg. USD for NASDAQ listed stocks, AUD for ASX listed stocks

The easiest way to track holdings from multiple currencies is to set up separate watchlists for each currency
eg. one watchlist for 'Australian holdings' and a separate watchlist for 'American USD stocks'

Alternatively, when you sign into StockLight with an email address, you can select a default currency in your account settings screen. This can be accessed from the top menu item in your StockLight settings screen after signing in with your email address. If a default currency is selected, the calculations in your portfolio performance screens are adjusted to handle the neccessary conversions if you have holdings from multiple currencies.

Currency configuration

If you are entering trades into your portfolio that were transacted in different currencies, it is your responsibility to convert the transaction price into your default currency when you enter the trade into StockLight.
eg.

  1. You sign into StockLight and set your default currency to AUD
  2. You enter your first transaction of ASX:CBA as 100 shares at $72 per share
  3. You also purchased 25 shares of NASDAQ:AAPL at $164 USD per share
    When entering these shares into StockLight, because they were transacted in a different currency (USD), you should convert and enter the transaction price into StockLight as AUD (your default)
    ie.
    On the day of the AAPL transaction, you look up the historical USD to AUD exchange rate and see that it was 1.4039 and so you enter this transaction into StockLight as:
    25 shares of NASDAQ:AAPL at $230.24 per share (1.4039 × 164 USD = 230.24 AUD)

This will allow the StockLight system to calculate cumulative performance factoring multiple currencies. When showing the current market value for your current holdings, StockLight will be convert them as required into your default currency based on today's exchange rate and the number of shares you hold.

How do I handle dividend reinvestments schemes in my portfolio?

For the time being, you can record reinvested dividends in your StockLight portfolio as separate transactions. Because our ROI calculation factors all dividends as part of your cash return, you can enter each reinvested dividend parcel of shares as a separate transaction.

Say for instance, that you received 2 shares of Woodside Petroleum on September 20th as part of your dividend reinvestment scheme, you would enter those 2 shares as a new 'buy' transaction for that date in your StockLight portfolio with $0 brokerage and a purchase price (eg. $36.70).

When entering DRP share parcels, you can use the closing price for the day the shares were issued as the 'price' paid for the stocks. Even though you haven't technically paid cash for the shares, you have decided to forego a cash dividend in lieu of the DRP and therefore for reporting purposes, you should enter a price paid for the transaction.

I forgot my password?

StockLight doesn't actually use any passwords. All of our member functionality is linked to your email address so that when you provide your email to StockLight, we can send you a verification link. Refer to the above heading for syncing your portfolio.

That said, if you have a paid StockLight subscription, the account that logs in to apply the paid subscription is provided by either Apple's iTunes app or by Google's Play app.
* Note: If you have a paid StockLight premium account, you should be able to determine the email address associated with your iTunes or Google Play by finding an emailed receipt for your StockLight subscription in one of your email inboxes and then using the following instructions for that email address.

If you have forgotten the password for iTunes, try:
iTunes Password reset instructions

If you have forgotten the password for Google Play, try:
Google reset instructions

How do I cancel my subscription?

If you are looking to pause or cancel your subscription, we are really sorry to hear that our app didn't live up to your expectations. We'd love to learn more about what made you use it in the first place and also why it wasn't quite what you were looking for as that feedback will help a lot with guiding our future product development. You can email us your feedback at:

Apple iTunes and Google Play won't allow us to cancel a subscription on your behalf however you can easily do so yourself following these instructions:
Cancelling an Apple iTunes recurring subscription
Cancelling a Google Play recurring subscription

How quickly does StockLight send Alerts?

StockLight will send you an Alert if you haven't exhausted your quota for the month and you are signed into the app with your email address and push notification permission turned on. You receive 5 free alerts per month, 100 per month if you subscribe to StockLight Premium and more are available if you contact our support team. A maximum of 20 custom alerts can be configured.

Price alerts are triggered on an hourly basis due to the computational complexity and load required to calculate these for our entire audience. All other alerts are fired every ten minutes.

How do I synchronise my paid StockLight Premium subscription across iOS devices?

On each device for which you have installed StockLight, follow these instructions:

  1. Open the StockLight app
  2. Tap the 'Settings' tab
  3. Tap 'Subscriptions'
  4. Tap 'Restore Previous Purchases'
* Note: If you have a paid StockLight premium account on an iPhone or iPad, you can use that premium subscription for free on multiple devices using these instructions so long as each device is logged into the same iTunes account.

Does StockLight provide access to company dividend information?

Yes, you can access this information by tapping a company in your watchlist, you can then swipe scroll down to find the company's dividend history. You can then tap on that dividend panel for more detail. You can also access this information for all companies paying dividends in the weeks and months ahead using the dividends feature located in the market filter screen. This feature allows you to sort by payment date, ex-dividend date, dividend yield and company name.

How does the StockLight indicator work?

The StockLight tachometer provides an instant summary of a company's financial health and prospects as a potential investment

Tapping the StockLight tachometer will drill down to the ratios for a company. These are given a green tick if they look attractive, a red tick if they look unattractive and a yellow marker if there is not enough data available to calculate the indicator.

How do I use the Market Filter?

The Market Filter give investors a picture of the 22 industries that make up the ASX market (based on global GICS codes) from best to worst. For example someone interested in the banking sector can see which companies pass the most green flags at the top of the list down to those that attracted the most red flags. The ratio thresholds are customised and unique for each market sector.

Does StockLight provide detailed company data?

By tapping a company in your watchlist or in the Market Filter, you can drill down to find our latest research on that company, price charts, dividend history and a company overview.

Where can I get support?

If you need help using the application, please email our friendly team at

How much does it cost?

StockLight's basic features are free and it is available to download exclusively through the App Store and Google Play in the Finance category. Users can also unlock additional content or remove advertisements by taking up a StockLight subscription.

Pricing information is available on our pricing page.

What are the current device requirements?

iOS users:
  • iPhone, iPod touch, and iPad
  • iOS 8.0 or later
Android users:
  • Android v4.1 or later
All users:
  • WiFi/Edge/3G/4G required for the app to function.