Understanding Performance Report

[KCarlander]

I am looking at a one year performance report that is subtotaled by region ("investment goal" field = region) and I want to be able to clearly present it to my boss. Specifically, I want to understand whether the performance % (Gain-I, and ROI) at the subtotal level and total portfolio level are meaningful, accurate representations of overall performance for the respective region and total portfolio.

Several of the investments did not have beginning balances, but many did. Will the ROI calculation at the subtotal and total level be a meaningful measure of region and total portfolio performance?

If not, what is the best way to derive these performance values?

[Mark]

Hi KCarlander,

The answer is "yes", they will be accurate for the region and overall sub-portfolio totals. The ROI calculation is a better metric to look at when you had transactions within the period, as this is a time and value weighted performance calculation. Any of the %Gain calculations are not time weighted, so they can sometimes be misleading when you had transactions within the time period under consideration.

[KCarlander]

Thank you.

Could you please explain in regard to investments having $0 beginning value, interim investment and positive ending value - why some of these investments have an ROI % and others N/A?

[Mark]

Hi KCarlander,

Please take a look at "Options / Yield Interpolation Range...". Press the "Help" button here for a detailed explanation. Let me know if you have any unanswered questions.