Money-Weighted Rate of Return (MWRR)

[chatRG]

Is your feature request related to a problem? Please describe.
It's very important for me to have a rate that takes into consideration my cash flow in/outs. This rate solves this problem.

Describe the solution you'd like
To add as a widget in the Performance tab.

While IRR and MWRR are similar, there are situations where they can produce different results, especially when dealing with irregular cash flows or when the timing of cash flows significantly impacts the investment's performance.

MWRR is more relevant as it reflects the actual return achieved by an investor.

[bentrim71]

I'm new to this group and very well built product, but it appears that the issue described above (as well with a lot of the rate of return issues) cannot be solved with a separate "deposit account."
To resolve this issue, a generic $CASH symbol could be used to replace the deposit account since most broker dealers use sweep accounts.

[mierin12]

Could you develop a bit about the 'situation where they can produce different results' ? Do you have exemples ?

https://www.investopedia.com/terms/m/money-weighted-return.asp

Investopedia says they are the same

The MWRR is equivalent to the internal rate of return (IRR).

[bentrim71]

Hi – When calculating money-weighted returns, the firm must value portfolios at least annually and as of the period end for any period for which performance is calculated. When calculating money-weighted returns, the firm must: a. Calculate annualized since-inception money-weighted returns. b. Calculate money-weighted returns using daily external cash flows. c. Include stock distributions as external cash flows and value stock distributions at the time of distribution. Example : 2019 performance is calculated at 14.86%, when it is really 14.68% From: mierin12 ***@***.***> Sent: Saturday, October 12, 2024 5:59 AM To: portfolio-performance/portfolio ***@***.***> Cc: Brent Bentrim ***@***.***>; Comment ***@***.***> Subject: Re: [portfolio-performance/portfolio] Money-Weighted Rate of Return (MWRR) (Issue #4279) Could you develop a bit about the 'situation where they can produce different results' ? Do you have exemples ? https://www.investopedia.com/terms/m/money-weighted-return.asp Investopedia says they are the same The MWRR is equivalent to the internal rate of return (IRR). — Reply to this email directly, view it on GitHub<#4279 (comment)>, or unsubscribe<https://github.com/notifications/unsubscribe-auth/BMA2QK5G5VQZFINAUHHS653Z3DXIBAVCNFSM6AAAAABPU3PVV2VHI2DSMVQWIX3LMV43OSLTON2WKQ3PNVWWK3TUHMZDIMBYGUYDINZYGI>. You are receiving this because you commented.Message ID: ***@***.******@***.***>>