Behind Navexa’s analytics and charts is one guiding principle:
You should be able to log in and instantly see how your portfolio is really performing.
To achieve this, we use an industry-standard calculation method that balances accuracy with transparency.
Why Performance Can Differ
There are many ways to measure investment performance. That’s why what you see in Navexa may not always match figures from your broker or another platform.
The difference comes down to methodology. Navexa uses the Modified Dietz Method.
The Modified Dietz Method
The Modified Dietz Method is widely used by fund managers and investment firms because it:
Weighs performance by cash flows (deposits and withdrawals).
Adjusts for the size and timing of those cash flows.
Provides a more accurate, dollar-weighted return than simpler methods.
The Formula
ROR = Rate of Return
EMV = Ending Market Value
BMV = Beginning Market Value
C = Cash Flow
W = Weighting of each cash flow by time
In plain English: It looks at where you started, where you ended, and how much cash you added or removed (and when).
Annualisation
On top of Modified Dietz, Navexa also annualises your returns. This lets you compare investments held for different periods of time.
Example
01/01/2018: Buy 1,000 shares @ $2.00 = AUD $2,000
31/12/2018: Buy 1,000 shares @ $2.20 = AUD $2,200
31/12/2019: Sell 2,000 shares @ $2.30 = AUD $4,600
Capital Gain = $4,600 – $2,200 – $2,000 = AUD $400
Total Capital Invested = AUD $4,200
We then calculate Average Years Invested (AYI):
Finally, the annualised return:
Total Return = Gain / Total Capital / AYI = 400/4,200 / 1.47 = 6.47%
Why We Use This Method
It’s recognised across the financial industry.
Regulators and watchdogs (via the Investment Performance Council’s Global Investment Performance Standards) recommend it.
It provides transparency and comparability for investors at every level.
In short: It’s accurate, fair, and trusted worldwide.
✅ Key takeaway: Navexa uses the Modified Dietz Method plus annualisation to give you the clearest, most reliable picture of your portfolio performance.