Keeping
periodic and running investing performances for individual portfolios and for
combined portfolios under one's control — not just selected investment performance
exceptions — is the single best measure of one's ability to convert rhetoric
into investing results and can only lead to better investment decision making
and to much better investing performance results; if it is measured, it will
get done. In
performance comparison situations, it is imperative to know competitors' performance
calculation methodologies applied to assure accurate performance comparisons. Many
performance calculators apply incorrect performance calculation methodologies
and/or incomplete variable input options; calculation accuracy ranged from never,
to some of the time, and to most of the time; but, never all of the time. Excel's
XIRR function might
calculate the same return as a Modified Dietz Calculation only if inputs are dated
analysis range starting and ending market values and if dated investor contributions
and/or dated investor withdrawals within an analysis range happen to be in a certain
order.- However,
if and when performance calculations need to be 2010 GIPS compliant, if and when
advisor fees are paid through the account or paid directly to an advisor, and/or
if and when accrued interest, dividends, income, and/or advisor fees occur during
an analysis range, Excel's XIRR function will not calculate correct and compliant
returns; not even close.
It
is for these reasons I sought programming input from many competent and respected
sources, we spent many hours in discussions to achieve performance calculation
excellence, and I, along with math experts and end users, beta tested extensively,
tweaked, updated, upgraded, and continue to upgrade PerfCalc to
generate easy, quick, complete, correct, complaint, and transparent investment
portfolio performance calculations for all situations; whether importing data
for one, a few, or many accounts from Excel or whether inputting data directly
into PerfCalc for a single account. |