Accounts/households with a positive net appreciation but a negative performance return (and vice versa) is counter intuitive but can be surprisingly common.
The root of the confusion comes from performance return being the result of a time weighted calculation, while net appreciation is a simple difference.
This occurs most frequently when there are large deposits/withdrawals in an account, or in a household when accounts open at different times.
Net Appreciation vs Performance FAQ
Why is my account's performance negative but the net appreciation is positive (or vice versa)?
Written by Joseph Barth
Updated over 3 years ago