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Seems that Invest Perform IRR calc for brokerage acct does not include fix income. Correct?

jo18

Investing module does not seem to include fixed income positions when calculating IRR per Investment Performance. Is that corrrect? Means only equity positions are included in the calculation so if fixed income positions are included in brokerage acct, the resulting IRR in Perfomance will not be included.

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Jim_Harman

Not correct. What makes you think that?

Tom Young

Fixed income positions are definitely included in the IRR calculation if those securities are expressly included in the report: Customize > Securities > Select All

So, perhaps, you've somehow deselected the fixed income securities from the IRR report. If the securities have been included in the report but you're not seeing any activity - nothing showing up under "Investments" or "Returns" - that could be a situation where you're having dividends/distributions automatically reinvested and these actions take place on the same day. In that situation the two actions - Investments/Returns - zero out and the IRR report will not show them because they have no effect on the calculations. The securities themselves will be included in the "End Mkt Val" number; you should be able to confirm that.

jo18

Thanks. That was helpful. Default setting included all securities so that's not the issue. I'm reconciling to a separate report and the Irr deltais material - IRR for Quicken is much higher. I will continue to reconcile. I'm sure its a user error and not Quicken but will work through the financial theory to be sure which report - Quicken or third party report - is correct.

Thanks again.

Jim_Harman

Also make sure the investing performance report is for at least one year not YTD for example. The IRR is annualized so holding or analysis periods of less than one year may not be appropriate.

Tom Young

The IRR calculation should be "appropriate" irrespective of the amount of time covered but it is a calculated "annual" return figure, (it's assumed that the change reported for the shorter period continues for an entire year), so make sure the third party report is also annualized. Too, Quicken will agree to a third party number only if the actual cash flows recorded in Quicken agree to the third party assumptions. Typically mutual funds and the like calculate their IRR assuming distributions are reinvested. So unless you are also reinvesting distributions and not making and trades in the security - no new purchases, no sales - Quicken will calculate your IRR which won't agree to the third party's number.

jo18

Thanks to all. Been using xirr which is annualized ROR. Will reconcile later.

q_lurker

jo18 said:

Thanks to all. Been using xirr which is annualized ROR. Will reconcile later.

XIRR meaning the Excel function? Quicken's value is also annualized and in my experience agrees very closely with the Excel XIRR function - given the same input values.