Composite Return: Beginning value does not match ending value

by | Jun 8, 2012 | Reporting

Questions-750
Q. I have a question about the Global Composite Return report in PortfolioCenter.  When I run the report, sometimes the beginning value for a time period does not equal the ending value for previous time period.  For example the 3/31 quarter ending value does not equal the 3/31 quarter beginning value.  Yet they are the same date.  Am I doing something wrong?

A.  Good question and one which I hear frequently.  You’re not necessarily doing something wrong, though it never hurts to re-run and/or check your intervals.

On the Global Composite Return, an account is only included in a composite period if existed for the whole time period.

So in your example, assume an account is opened on March 15.  If you are running the report with quarterly time periods,  the new account will NOT be in the quarter ending 3/31 value (1st Quarter) but it will be included in the quarter beginning 3/31 (2nd Quarter) value.  H

Need a quick answer?  Ask a question and I’ll try to answer with a blog post.

Related posts:

  1. 4 times to question the Internal Rate of Return (IRR)
  2. In PortfolioCenter, what does “change in accrued” mean?
  3. What’s the difference between Time Weighted Return and Internal Rate of Return?
  4. What is Internal Rate of Return?
  5. 4 Reasons income on a PortfolioCenter performance report may not match the Income Report
  6. PortfolioCenter Reports Gain/loss Mismatch