The ending values on a Performance report and a Portfolio Holdings report for the same client don't match. Now what? 1) Check the obvious. Are you running the reports on the same ending date? Are you using the same portfolio or … [Read more...]
Why have the numbers changed on PortfolioCenter performance report?
[dropcap style="light"]Q[/dropcap] "I re-ran a client's second quarter performance report and the numbers have changed. We use the Comparative Performance Review. This has happened before. How could the numbers be different when we re-run a … [Read more...]
What’s the difference between Time Weighted Return and Internal Rate of Return?
PortfolioCenter provides two main performance calculations: Internal Rate of Return (IRR) and Time-Weighted Rate of Return (TWR). What's the difference? IRR measures the overall growth of the portfolio. If your goal is to reach a $1 million by … [Read more...]
Why is there a positive Dollar Gain and a negative Time Weighted Return? Or vice versa?
How can there be a positive Dollar Gain (DG) and a negative Time Weighted Return (TWR)? Or vice versa? These "strange but true" returns occur more frequently than you might expect. First, remember that TWR measures the growth of the average … [Read more...]
3 ways to handle the Performance Inception date in PortfolioCenter
The Performance Inception date is the date from which PortfolioCenter begins measuring performance for a particular account. If you want accurate performance returns, this date must be correct. Fortunately, you can let PortfolioCenter set this date … [Read more...]
