To calculate the modified Dietz return, divide the gain or loss in value, net of external flows, by the average capital over the period of measurement. The average capital weights individual cash …

Named after Peter O. Dietz – an academic whose works were extremely influential in measuring the returns of pension investment funds – t he Modified Dietz formula was created to better …

Guide to what is Modified Dietz. Here we explain its formula, examples, advantages, and disadvantages in detail.

Feb 25, 2020 · The modified Dietz method is a way to measure a portfolio's historical return that is based on a weighted calculation of its cash flow. The method takes into account the timing of …

Apr 10, 2025 · The Modified Dietz Method is a widely used formula for calculating investment returns that takes into account the timing and magnitude of cash flows. It is particularly useful …

Nov 7, 2025 · Use the Modified Dietz method to accurately measure portfolio performance by accounting for the size and timing of external cash flows like deposits and withdrawals.

Unlike simple return calculations, which presume no external additions or withdrawals during the period, the Modified Dietz Method considers these movements, and thus returns reflect the …

On this page, we provide the formula needed to calculate the modified Dietz. We also provide an example and implement the approach in Excel, which can be downloaded at the bottom of this …

Mar 11, 2025 · With this refinement came the need for an even more precise calculation: enter the Modified Dietz Method. The Modified Dietz method is based on a weighted calculation of cash …

Apr 4, 2025 · One such approach is the Modified Dietz Method, a widely used formula that provides a practical way to calculate returns for portfolios with cash flows. This method takes …