Money Weighted Returns in Excel

In literature, we read “Don’t use Excel” a lot.  In practice, we see start-up firms using MS Excel for performance and other required GIPS statistics nine times out of 10.  When using Excel for money-weighted returns, though, beware the XIRR and IRR Excel formulas—the built-in assumptions can lead to inaccurate and prohibited results.

This article will walk you through how to de-annualize the XIRR formula in Excel for periods of less than one year and how to conduct reasonableness checks on your return results.

For the full article, please use the complementary sign-in.

‍

Featured Articles

Compliance Insights for 2024 Reporting

As year-end approaches, compliance with the GIPS standards and SEC Marketing Rule is top of mind for many firms. Our latest update highlights essential strategies for streamlining your tracking and reporting processes for marketing materials, ensuring your net-of-fees returns meet both the GIPS standards and SEC requirements, and conducting effective composite membership and data integrity reviews.

Hypothetical Performance Risk Alerts

These past few weeks, the SEC has charged 10 firms with violating the New Marketing Rule (NMR), and each of the firms charged share a common error: advertising hypothetical performance without establishing and implementing the required internal “policies and procedures reasonably designed to ensure that the performance is relevant to the likely financial situation and investment objectives of the intended audience.”

Selecting a Verifier

If you haven't yet evaluated your current verifier, the CFA Institute's verification questionnaire offers valuable questions for your consideration. In addition to the CFA Institute's questionnaire, this article provides supplementary insights that may prove beneficial as you evaluate your existing verification firm or search for a new one.

View All Posts
ServicesWho We AreResourcesPrivacy PolicyContact Us

© 2025 Cascade Compliance. All rights reserved.

{ }

GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.