Unify Your Performance Calculations Across the Database

As an Orion Advisor Tech user, you may have an idea of the default settings you’d like to establish when setting up your database for the first time. But you don’t always realize that those very settings can differ in various apps including the Performance Viewer, Report Builder, and Client Portal. You don’t want to have a situation where you are sharing pertinent performance data with your client and due to your settings, provide them with inaccurate information. So for this week’s tech tip, we are providing you with the various settings that need to be reviewed to ensure performance is calculated the same way across all aspects of the system. But first, let’s check out how the settings differ across the system. 

Apps within the Orion Platform

Performance Viewer

In the performance viewer, you can see what you’ve set your “Default Value” settings to and where you have the option to change those settings to “Changed Value”.


Report Builder

In the report builder, you have the ability to customize PDF reports that you create through the Report Builder 3.0 tool. 

Client Portal

The default calculation setting found in the client portal allows you to modify options within the app. 

 

Understanding Your Performance Value Settings 

Ensure that the below settings are consistent across the system for the most effective performance calculation.

Calculation Method

With this setting, it would be worthwhile for you to check the base calculation method being used. For example, if you elect to use Time-Weighted Return (TWR) as the default, make sure everything in the system is using TWR as well. It’s always a good idea to make sure this core setting is uniform across the database.

Fee Calculation Method

With this setting, your focus is on management fees. To prevent issues across databases, you should double-check all of the details associated with this setting before moving forward.  

Include Accrued Interest

This setting allows firms to include accrued bond interest in the daily values used in performance calculations. The “Starting Bond Accrual” value is added to the date’s Starting Value, and the “Accrued Interest Change” amount is added to the day’s Value Change. This is the most common cause when it comes to performance differences across databases.

Performance Include Override

This setting determines which accounts should be included as part of the Household’s performance across all time. As a best practice, we recommend leaving this setting at “All Accounts” so that the performance engine uses every account in the history of the client relationship to capture the accurate return since inception.

Annualize Performance

When the performance period extends past a full calendar year, you have the option to annualize the performance return to provide context regarding the length of time it took to achieve the performance value being reported. 

Unmanaged Assets Inclusion

With this setting, if specific accounts, assets, or products within the databases are meant to be excluded (I.E. unmanaged accounts/ assets), you should verify that there are no overrides set on the report itself that would undo the desired management settings.

 

The table listed below is a reference to each of the above-mentioned settings, which apps they exist in as editable options, and the various names they may be labeled with.

Setting NameDatabasePerformance ViewerReport Builder 2.0Report Builder 3.0Client Portal
Calculation MethodXXN/AXN/A
  • Performance Method
N/AN/AN/AN/AX
  • Performance Calculation Method
N/AN/AXN/AN/A
Fee Calculation MethodN/AXN/AN/AN/A
  • Gross of Fee
XN/AN/AN/AN/A
  • Fee Performance Method
N/AN/AXN/AN/A
  • Fee Method
N/AN/AN/AXN/A
Include Accrued InterestXXXXN/A
Performance Include OverrideN/AN/AXN/AN/A
  • Household Performance Include
XXN/AN/AN/A
  • Account to Include
N/AN/AN/AXN/A
  • Displayed Accounts
N/AN/AN/AN/AX
Annualize PerformanceXXXN/AN/A
  • Annualize
N/AN/AN/AXN/A
Unmanaged Assets InclusionXXXN/AN/A
  • Report Category
N/AN/AN/AXN/A

 

Want more information on these performance settings and how to properly organize your settings across all databases? Contact the Orion Performance Team via the online chat in Orion Connect or check out this useful reference guide

1059-OAS-4/21/2020

 

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