Advisers can now produce on-the-fly internal rate of return and daily time weighted return rates of return for their clients.
Advisers and firms employing the Albridge Wealth Reporting solution now have a set of much-requested calculations available to them: Advisers can now produce on-the-fly internal rate of return (IRR) and daily time weighted return (DTWR) rates of return for their clients.
These tools should be attractive to many advisers as they are generally seen as a better gauge of portfolio performance.
The IRR formula is a dollar-weighted calculation and takes into account both the size and timing of cash flows into and out of an investor's portfolio.
"Providing the adviser the ability to sit with a client and generate these calculations on-demand in real time and the fact that this is scalable across millions of accounts, that should really resonate with our adviser community," said Jake Rohn, executive vice president of Albridge Solutions.
All Albridge Wealth Reporting customers will have access to the calculations with no pricing impact.
When asked about the technical hurdles that had been overcome to make these calculations scalable, Rohn added that a combination of changes had been required including both software design and some updating of the hardware infrastructure.
While it is the financial institution involved that sets the default for the type of performance calculation it uses, Albridge provides privilege settings that the institution's administrator can in turn enable for its advisers.
Once they've been authorized advisers can choose one of the new default performance calculations for either their entire book of business, or on a portfolio-specific basis.
When enabled advisors will find the new calculations under the "Portfolio" tab or "Performance" tab within the Albridge Wealth Reporting application.
