Investment Performance Report Annual % (ROI) not right
I have been generating annual performance reports for one account, and I've found some cases where the annual % (ROI) calculation is clearly wrong. I tried changing the period for which I generated the report to see if I could narrow it down to a specific transaction. I found that if I run the report from 7/23/2023 to 7/22/2024, the results pass the eye test. If I run the report from 7/24/2023 to 7/23/2024, they don't. I go from about +10% return for the year (reasonable) to -8.65% (not right, the report itself says I had a positive return for the period). On the date 7/23/24 I rebalanced my account, recording some sales and purchases. I was hoping I could see some way the transactions were entered incorrectly, but they look fine to me. There are just a few BUY and SELL transactions. Are there any issues with these calculations?
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1 Posted by Stuart Beesley ... on 18 Mar, 2025 07:39 AM
Yup. The IRR calculation has issues. It’s very complex, but I have proven scenarios that don’t work. It’s on my todo list to provide IK with some solutions, but I haven’t managed to get to it.
(Not support, just a fellow user)
2 Posted by he on 18 Mar, 2025 09:51 AM
I'm a little confused. OP mentions ROI being incorrect, but Stuart responds about IRR? As these are different metrics, are both incorrect? Further, as this information is used to make important financial decisions, is there a list somewhere of which fields are unreliable and should not be used?
3 Posted by Stuart Beesley ... on 18 Mar, 2025 10:26 AM
The ROI mentioned on the report is actually an IRR calculation internally