Performance drift

When you invest in a portfolio, be aware that there may be differences between the Portfolio Manager’s performance and the performance realized in your account.

What causes drift?

  • The Portfolio Manager’s compliance with the trading rules
    For the protection of clients, trades that a Portfolio Manager makes that are outside the IBKR Asset Management trading rules are not replicated in client accounts.
  • Your risk score and exclusions
    Your risk score and any securities you choose to exclude from being traded in your account could result in certain trades executed by the Portfolio Manager not being replicated in your account.
  • Additional investments and redemptions
    Performance drift will result if you frequently invest additional cash or partially redeem your investment.
  • Inability to mirror in exact proportion
    Depending on the size of your investment relative to the Portfolio Manager’s, translating each trade the Portfolio Manager makes into whole shares in your account can lead to small rounding differences, and therefore slightly different allocations.
  • The broker’s availability of stock to lend
    When shorting, the stock must first be borrowed. The broker may not have the exact amount of stock available to fulfill all that is requested.

Performance drift can be to your disadvantage or to your benefit.