Differences in Canopy's Net Asset Value

The following factors attribute to differences seen in terms of net worth:

FX rates

For non-USD securities, Canopy would be using daily FX rates taken from Bloomberg, and not custodian rates

Backdated trades

This would retroactively impact the net worth of the account, deviating from a previous month's statement value. For example, a trade coming in the June statement dated for March would thus impact the March - May account values as well as June's.

Pending trades

In general, in cases where closing cash balance from Account Statement differ from Asset Statement, we would follow the closing cash balance from the Account Statement. Thus difference in closing cash balances are due to pending trades. Canopy do not book pending trades, as they would come in the Account Statement in the following month and would result in duplicate transactions being booked. In addition, trade details like trade quantity and trade price might not be provided by the custodian. Thus, the current month's net worth would be off by the trade amount that has not yet settled.

Non-booking of Accrued Interests (for Cash and non-mtm contracts)

Canopy books only the principal amounts and not the Accrued Interest for Cash, Loan and Deposit Contracts, etc

Note: for Bonds - we capture Accrued Interest in the form of Dirty Price

Data feed prices vs PDF

Custodian prices differ, depending on the time of generation of the report and the feed

Differences in Canopy's Performance

The following factors attribute to differences seen in terms of performance:

Methodology

Canopy's Performance is calculated using Time-weighted Return

Average prices

Average prices might be different depending on the Custodian's calculation method. Canopy's average price is calculated based on the trade price given by the Custodian. In the event that no trade price is given, Canopy would then be deriving a trade price from Settlement Amount/Quantity traded.

Differences in Canopy's Presentation of Security-level Data

The following factors attribute to differences seen in terms of presentation:

Classification

Asset classifications of listed securities are taken from Bloomberg. For manually created securities, the classification of the assets would depend on how it was set up with the available information received and would be one of the 7 Canopy asset classes: Bond, Equity, Fund, Derivative, Non-mtm, Insurance, Others.

Geography

Geographical classifications of listed securities are taken from Bloomberg. For manually created securities, the geographical classification of the assets would depend on how it was set up with the available information received and would usually depend on the currency. 

Users would be able to reclassify securities manually at the site (click on User > Classifications) or in bulk via UL file upload. 

More details on reclassification can be found on this link: Classification Hierarchy