Performance Calculations

Albridge provides financial professionals with an unmatched level of choice in selecting calculations for measuring and reporting on performance at the individual holding, asset class, account, investor and consolidated portfolio levels. Performance results are calculated and generated on-demand, in addition to regularly scheduled batch distribution, placing Albridge Wealth Reporting among the most flexible and responsive portfolio accounting and performance reporting solutions available.

Financial institutions and their advisors have the ability to select dollar-weighted rates of return, including Modified Dietz and Internal Rate of Return (IRR) and time-weighted rates of return, including Daily Time-Weighted Return (DTWR).

Dollar-Weighted Rates of Return

Dollar-weighted rates of return such as Modified Dietz and IRR are commonly used to determine how well an investor's portfolio performed over a specified period of time. Unlike time-weighted rates of return, dollar-weighted rates of return take into account all cash flows moving in and out of an investor's portfolio. Dollar-weighted methodologies used for the calculation of personal rates of return provide insight into how the timing of contributions or withdrawals by an investor could impact the investor's performance over

Time-Weighted Rates of Return

Time-weighted rates of return such as Daily Time-Weighted Return take into account the amount of time an investor has been invested in a particular portfolio and eliminates the effect of individual cash flows. Unlike dollar-weighted rates of return such as IRR, cash flows moving in and out of the portfolio do not affect time-weighted rates of return. Time-weighted methodologies used for the calculation of personal rate of return provide a truer measurement of how well an advisor or a money manager has invested his or her client's assets in comparison to industry standard benchmarks such as the S&P 500.