Annualised Returns in Accounts Personal not correct for periods less than a year

Archie

I am a long term user of ReckonAccounts Personal Plus so my request is made on a sound basis.

The calculation of % investment returns for periods of less than one year need to be changed.

Currently monthly / weekly percentage changes are annualised.  Relatively small dollar returns frequently result in meaningless returns of 100% or 200% when annualised.  A one week gain of 5% results in a 250% annualised return.  This renders the reports USELESS.

All returns of less than one year should not be annualised so that a one week return of 5% is recorded as 5% and that a six month return of 4% is recorded as 4%.

Many of the performance reports are of NO USE AT ALL because of the incorrect annualisation of returns over periods of less than one year.

Please make a request to correct this problem.

I apologise for the firmness of my request.  I do so because it is a serious limitation in the software.  An example is attached. 

John G

Thanks for this comment archieb2, I've forwarded it to our product development team.  

Do remember that annualized returns are not meant to correlate with absolute returns over the period, but provide a way of comparing different investment returns.  The nature of the calculation means that under some conditions (less than a year), you may get some bizarre results.  

Hope this helps.

regards,
John

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Jeanette Clough

This is still a problem in the 2016 version reports,  It seem quite peculiar that one can update one's stock prices on a daily basis, but the reports are not calculating the returns correctly when a short time period is used.  In these volatile times one may want to run the report daily, weekly etc.  The program has all the information required to calculate the results correctly over any time period, so why hasn't this been fixed?.