Exclude cash in base currency from portfolio performance calculation

apps/api/src/app/portfolio/calculator/portfolio-calculator.ts

@@ -176,7 +176,7 @@ export abstract class PortfolioCalculator {
   }
 
   protected abstract calculateOverallPerformance(
-    positions: TimelinePosition[]
+    positions: (TimelinePosition & { includeInPerformance: boolean })[]
   ): PortfolioSnapshot;
 
   @LogPerformance
@@ -314,6 +314,7 @@ export abstract class PortfolioCalculator {
 
     const positions: (TimelinePosition & {
       includeInHoldings: boolean;
+      includeInPerformance: boolean;
     })[] = [];
 
     const accumulatedValuesByDate: {
@@ -356,6 +357,10 @@ export abstract class PortfolioCalculator {
 
       const valueInBaseCurrency = marketPriceInBaseCurrency.mul(item.quantity);
 
+      const isCashInBaseCurrency =
+        item.assetSubClass === AssetSubClass.CASH &&
+        item.currency === this.currency;
+
       const {
         currentValues,
         currentValuesWithCurrencyEffect,
@@ -396,17 +401,31 @@ export abstract class PortfolioCalculator {
 
       hasAnySymbolMetricsErrors = hasAnySymbolMetricsErrors || hasErrors;
 
-      valuesBySymbol[item.symbol] = {
+      // Cash in the base currency cannot generate a currency effect and thus
-        currentValues,
+      // contributes nothing but its balance to the performance calculation
-        currentValuesWithCurrencyEffect,
+      valuesBySymbol[item.symbol] = isCashInBaseCurrency
-        investmentValuesAccumulated,
+        ? {
-        investmentValuesAccumulatedWithCurrencyEffect,
+            currentValues,
-        investmentValuesWithCurrencyEffect,
+            currentValuesWithCurrencyEffect,
-        netPerformanceValues,
+            investmentValuesAccumulated: {},
-        netPerformanceValuesWithCurrencyEffect,
+            investmentValuesAccumulatedWithCurrencyEffect: {},
-        timeWeightedInvestmentValues,
+            investmentValuesWithCurrencyEffect: {},
-        timeWeightedInvestmentValuesWithCurrencyEffect
+            netPerformanceValues: {},
-      };
+            netPerformanceValuesWithCurrencyEffect: {},
+            timeWeightedInvestmentValues: {},
+            timeWeightedInvestmentValuesWithCurrencyEffect: {}
+          }
+        : {
+            currentValues,
+            currentValuesWithCurrencyEffect,
+            investmentValuesAccumulated,
+            investmentValuesAccumulatedWithCurrencyEffect,
+            investmentValuesWithCurrencyEffect,
+            netPerformanceValues,
+            netPerformanceValuesWithCurrencyEffect,
+            timeWeightedInvestmentValues,
+            timeWeightedInvestmentValuesWithCurrencyEffect
+          };
 
       positions.push({
         timeWeightedInvestment,
@@ -431,6 +450,7 @@ export abstract class PortfolioCalculator {
           ? (grossPerformanceWithCurrencyEffect ?? null)
           : null,
         includeInHoldings: item.includeInHoldings,
+        includeInPerformance: !isCashInBaseCurrency,
         investment: totalInvestment,
         investmentWithCurrencyEffect: totalInvestmentWithCurrencyEffect,
         marketPrice:
@@ -619,7 +639,7 @@ export abstract class PortfolioCalculator {
         return includeInHoldings;
       })
       // eslint-disable-next-line @typescript-eslint/no-unused-vars
-      .map(({ includeInHoldings, ...rest }) => {
+      .map(({ includeInHoldings, includeInPerformance, ...rest }) => {
         return rest;
       });
 

apps/api/src/app/portfolio/calculator/roai/portfolio-calculator-cash.spec.ts

@@ -314,5 +314,139 @@ describe('PortfolioCalculator', () => {
         valueWithCurrencyEffect: 1820
       });
     });
+
+    it('should exclude cash in the base currency from the performance calculation', async () => {
+      jest.useFakeTimers().setSystemTime(parseDate('2025-01-01').getTime());
+
+      const accountId = randomUUID();
+
+      jest
+        .spyOn(accountBalanceService, 'getAccountBalances')
+        .mockResolvedValue({
+          balances: [
+            {
+              accountId,
+              date: parseDate('2023-12-31'),
+              id: randomUUID(),
+              value: 1000,
+              valueInBaseCurrency: 1000
+            },
+            {
+              accountId,
+              date: parseDate('2024-12-31'),
+              id: randomUUID(),
+              value: 2000,
+              valueInBaseCurrency: 2000
+            }
+          ]
+        });
+
+      jest.spyOn(accountService, 'getCashDetails').mockResolvedValue({
+        accounts: [
+          {
+            balance: 2000,
+            comment: null,
+            createdAt: parseDate('2023-12-31'),
+            currency: 'CHF',
+            id: accountId,
+            isExcluded: false,
+            name: 'CHF',
+            platformId: null,
+            updatedAt: parseDate('2023-12-31'),
+            userId: userDummyData.id
+          }
+        ],
+        balanceInBaseCurrency: 2000
+      });
+
+      jest
+        .spyOn(dataProviderService, 'getDataSourceForExchangeRates')
+        .mockReturnValue(DataSource.YAHOO);
+
+      jest.spyOn(activitiesService, 'getActivities').mockResolvedValue({
+        activities: [],
+        count: 0
+      });
+
+      const { activities } =
+        await activitiesService.getActivitiesForPortfolioCalculator({
+          userCurrency: 'CHF',
+          userId: userDummyData.id,
+          withCash: true
+        });
+
+      jest.spyOn(currentRateService, 'getValues').mockResolvedValue({
+        dataProviderInfos: [],
+        errors: [],
+        values: []
+      });
+
+      const accountBalanceItems =
+        await accountBalanceService.getAccountBalanceItems({
+          userCurrency: 'CHF',
+          userId: userDummyData.id
+        });
+
+      const portfolioCalculator = portfolioCalculatorFactory.createCalculator({
+        accountBalanceItems,
+        activities,
+        calculationType: PerformanceCalculationType.ROAI,
+        currency: 'CHF',
+        userId: userDummyData.id
+      });
+
+      const portfolioSnapshot = await portfolioCalculator.computeSnapshot();
+
+      const position = portfolioSnapshot.positions.find(({ symbol }) => {
+        return symbol === 'CHF';
+      });
+
+      /**
+       * The holding itself keeps its investment and value so that it remains
+       * visible in the holdings table
+       */
+      expect(position).toMatchObject({
+        currency: 'CHF',
+        grossPerformance: new Big(0),
+        grossPerformanceWithCurrencyEffect: new Big(0),
+        investment: new Big(2000),
+        investmentWithCurrencyEffect: new Big(2000),
+        netPerformance: new Big(0),
+        quantity: new Big(2000),
+        symbol: 'CHF',
+        valueInBaseCurrency: new Big(2000)
+      });
+
+      /**
+       * Total investment: 0 CHF (cash in the base currency cannot generate a
+       * currency effect and would only dilute the performance)
+       * Current value in base currency: 2000 CHF (the cash still counts
+       * towards the net worth)
+       */
+      expect(portfolioSnapshot).toMatchObject({
+        currentValueInBaseCurrency: new Big(2000),
+        hasErrors: false,
+        totalCashInBaseCurrency: new Big(2000),
+        totalFeesWithCurrencyEffect: new Big(0),
+        totalInterestWithCurrencyEffect: new Big(0),
+        totalInvestment: new Big(0),
+        totalLiabilitiesWithCurrencyEffect: new Big(0)
+      });
+
+      expect(portfolioSnapshot.historicalData.at(-1)).toEqual({
+        date: '2025-01-01',
+        investmentValueWithCurrencyEffect: 0,
+        netPerformance: 0,
+        netPerformanceInPercentage: 0,
+        netPerformanceInPercentageWithCurrencyEffect: 0,
+        netPerformanceWithCurrencyEffect: 0,
+        netWorth: 2000,
+        totalCashInBaseCurrency: 2000,
+        totalInvestment: 0,
+        totalInvestmentValueWithCurrencyEffect: 0,
+        value: 2000,
+        valueWithCurrencyEffect: 2000
+      });
+    });
   });
 });

apps/api/src/app/portfolio/calculator/roai/portfolio-calculator.ts

@@ -26,7 +26,7 @@ export class RoaiPortfolioCalculator extends PortfolioCalculator {
   private chartDates: string[];
 
   protected calculateOverallPerformance(
-    positions: TimelinePosition[]
+    positions: (TimelinePosition & { includeInPerformance: boolean })[]
   ): PortfolioSnapshot {
     let currentValueInBaseCurrency = new Big(0);
     let grossPerformance = new Big(0);
@@ -55,6 +55,10 @@ export class RoaiPortfolioCalculator extends PortfolioCalculator {
         hasErrors = true;
       }
 
+      if (!currentPosition.includeInPerformance) {
+        continue;
+      }
+
       if (currentPosition.investment) {
         totalInvestment = totalInvestment.plus(currentPosition.investment);
 

apps/api/src/app/portfolio/portfolio.controller.ts

@@ -209,6 +209,7 @@ export class PortfolioController {
         'netPerformance',
         'netPerformanceWithCurrencyEffect',
         'totalBuy',
+        'totalCashInBaseCurrency',
         'totalInvestment',
         'totalInvestmentValueWithCurrencyEffect',
         'totalSell',

apps/api/src/app/portfolio/portfolio.service.ts

@@ -2040,6 +2040,7 @@ export class PortfolioService {
         .toNumber(),
       interestInBaseCurrency: interest.toNumber(),
       liabilitiesInBaseCurrency: liabilities.toNumber(),
+      totalCashInBaseCurrency: totalCashInBaseCurrency?.toNumber() ?? 0,
       totalInvestment: totalInvestment.toNumber(),
       totalInvestmentValueWithCurrencyEffect:
         totalInvestmentWithCurrencyEffect.toNumber(),

apps/client/src/app/components/portfolio-summary/portfolio-summary.component.html

@@ -164,7 +164,47 @@
     </div>
   </div>
   <div class="flex-nowrap px-3 py-1 row">
-    <div class="align-items-center d-flex flex-grow-1">
+    <div class="flex-grow-1 ml-3 text-truncate" i18n>Cash</div>
+    <div class="flex-column flex-wrap justify-content-end">
+      <gf-value
+        class="justify-content-end"
+        position="end"
+        [isCurrency]="true"
+        [locale]="locale"
+        [precision]="precision"
+        [unit]="baseCurrency"
+        [value]="isLoading ? undefined : summary?.totalCashInBaseCurrency"
+      />
+    </div>
+  </div>
+  <div class="flex-nowrap px-3 py-1 row">
+    <div class="align-items-center d-flex flex-grow-1 ml-4">
+      <ng-container i18n>Buying Power</ng-container>
+      @if (
+        !hasImpersonationId &&
+        summary?.totalValueInBaseCurrency > 0 &&
+        user?.settings?.isExperimentalFeatures
+      ) {
+        <gf-value
+          class="d-lg-inline-block d-none ml-2 small text-muted"
+          [isPercent]="true"
+          [locale]="locale"
+          [value]="isLoading ? undefined : buyingPowerPercentage"
+        />
+      }
+    </div>
+    <div class="align-items-center d-flex justify-content-end">
+      <gf-value
+        [isCurrency]="true"
+        [locale]="locale"
+        [precision]="precision"
+        [unit]="baseCurrency"
+        [value]="isLoading ? undefined : summary?.cash"
+      />
+    </div>
+  </div>
+  <div class="flex-nowrap px-3 py-1 row">
+    <div class="align-items-center d-flex flex-grow-1 ml-3">
       <ng-container i18n>Emergency Fund</ng-container>
       @if (
         !hasImpersonationId &&
@@ -215,7 +255,7 @@
     </div>
   </div>
   <div class="flex-nowrap px-3 py-1 row">
-    <div class="flex-grow-1 ml-3 text-truncate" i18n>Cash</div>
+    <div class="flex-grow-1 ml-4 text-truncate" i18n>in Cash</div>
     <div class="flex-column flex-wrap justify-content-end">
       <gf-value
         class="justify-content-end"
@@ -229,7 +269,7 @@
     </div>
   </div>
   <div class="flex-nowrap px-3 py-1 row">
-    <div class="flex-grow-1 ml-3 text-truncate" i18n>Assets</div>
+    <div class="flex-grow-1 ml-4 text-truncate" i18n>in Holdings</div>
     <div class="flex-column flex-wrap justify-content-end">
       <gf-value
         class="justify-content-end"
@@ -242,32 +282,6 @@
       />
     </div>
   </div>
-  <div class="flex-nowrap px-3 py-1 row">
-    <div class="align-items-center d-flex flex-grow-1">
-      <ng-container i18n>Buying Power</ng-container>
-      @if (
-        !hasImpersonationId &&
-        summary?.totalValueInBaseCurrency > 0 &&
-        user?.settings?.isExperimentalFeatures
-      ) {
-        <gf-value
-          class="d-lg-inline-block d-none ml-2 small text-muted"
-          [isPercent]="true"
-          [locale]="locale"
-          [value]="isLoading ? undefined : buyingPowerPercentage"
-        />
-      }
-    </div>
-    <div class="align-items-center d-flex justify-content-end">
-      <gf-value
-        [isCurrency]="true"
-        [locale]="locale"
-        [precision]="precision"
-        [unit]="baseCurrency"
-        [value]="isLoading ? undefined : summary?.cash"
-      />
-    </div>
-  </div>
   <div class="flex-nowrap px-3 py-1 row">
     <div class="align-items-center d-flex flex-grow-1">
       <ng-container i18n>Excluded from Analysis</ng-container>

libs/common/src/lib/interfaces/portfolio-summary.interface.ts

@@ -23,6 +23,7 @@ export interface PortfolioSummary extends PortfolioPerformance {
   interestInBaseCurrency: number;
   liabilitiesInBaseCurrency: number;
   totalBuy: number;
+  totalCashInBaseCurrency: number;
   totalSell: number;
   totalValueInBaseCurrency?: number;
 }