Performance Troubleshooting
Confused why your report performance doesn't match?
Orion uses one performance calculation engine across the entire database. If different results appear on different reports, the parameters used for performance calculations may be different.
Common option differences to check are:
1. Date Range
2. Net of Fees vs. Gross of Fees
3. Include Accrued Interest
4. Household Include
5. TWR vs. IRR vs. SIMPLE
Our database defaults for the HH Overview app are as follows:
| Name | Default Value |
|---|---|
| Calculation Method | IRR |
| Annualize Performance | True |
| Include Accrued Interest | True |
| Household Performance Include | Accounts with value |
| Allow First Day Performance | False |
| Allow Intraday Performance | False |
| Suppress mixed long/short ranges | False |
| Annualization Day-Count Method | Days with Value Only |
| Force Asset Grouping Intraday Performance | True |
| Dividend Accrual Start Date | 1/1/1950 |
| Allow Dividend Accrual | True |
| Suppress asset level perf with both long/short asset | False |
| Local Price Cut-Over Date | 7/27/2016 |
Common Performance Assumption
At the account level, since an account’s value is the sum of the group of assets on any given day, the account's value change and starting values are the same as the sum of all of the asset's starting values and value changes. This is where the common assumption of being able to take a straight weighted average of the underlying assets in an account begins to break down.
The TWR performance is negative when the market value increase is positive (or vice versa). Most likely there are large cash flows involved.
Things to Consider
- Contribution or distribution activity, as well as accounts, were added or removed during the reporting period.
- An account that begins the reporting period with $10,000. If the market value decreases to $9,000, the performance is -10%. Then the account adds $50,000, making the current market value $59,000. If the account grows to $63,000 from that point, the performance for that period is +6.77%. For the entire period, the increase in market value is $3,000. The performance however is -3.9%. This is because the period of -10% is weighted equally to the period of +6.77%, and when they are combined together the performance is -3.97%.
If these options do not fix your issue, create a service ticket providing the specific account, its settings, and sample performance numbers from different sources. The more detail you're able to provide the easier and faster it will be to resolve the issue.